HDFC Life Pension Guaranteed Plan
It is pivotal to be financially independent during the retirement period to enjoy and lead a comfortable life. HDFC Life Pension Guaranteed Plan is a wise option if you wish to guarantee a steady income stream after retirement. It is a non-participating, non-linked, and single premium annuity plan that promises guaranteed benefits to take care of your post-retirement life with a steady income.
|Minimum Entry Age|
|Maximum Entry Age||85 Years|
|Premium Payment Term||Single|
|Minimum Annuity Payout Per Instalment|
Annually: Rs. 12000, Half-Yearly: Rs. 6000
Quarterly: Rs. 3000, Monthly: Rs. 1000
|Maximum Annuity Payout Per Instalment||No Limit|
|Minimum Group Size (For Group Policies)||5 (Five)|
|Deferment Period||Up To 12 Years|
Focal Points Of HDFC Life Pension Guaranteed Plan
The plan includes the following aspects:
The plan gives you the option to choose a top-up option to improve your annuity payouts. The top-up amount and the applicable annuity rates determine the additional annuity amount that is due. The age at the time of top-up will be used to calculate the annuity rate.
|Free Look Period||The policyholder has the option of returning the policy within 15 days of receiving it if they are not comfortable with any of the policy terms and conditions under this product. This time frame will be 30 days if the policyholder buys it using distance marketing.|
|Loan Facility||Policy loans will be accessible throughout the deferment period under the Deferred Life Annuity option, subject to the terms and circumstances that the firm may from time to time establish. A maximum of 80% of the surrender value will be the loan amount.|
|Maturity Benefit||Not Available|
Why Should You Invest In HDFC Life Pension Guaranteed Plan?
You should consider buying HDFC Life Pension Guaranteed Plan because of the following reasons:
For higher purchase prices, the plan offers discounts in the form of higher annuity rates. Note that all joint-life rates are gender neutral. For all single-life policies, a female individual will be provided premiums that are the same as those of a male individual with a three-year setback.
- Surrender Benefits
The plan also offers the following surrender benefits to the policyholder:
- Immediate Life Annuity Option (Single and Joint life option): Surrender is not allowed.
- Immediate and Deferred Life Annuity with Return of Purchase Price (Single and Joint life option): Surrender Value shall be equal to the Present Value (PV) of expected future benefits discounted at the then prevailing interest + 2%.
- Tax Benefits
All annuity distributions could be liable to income tax depending on the legislation in effect at the time of the payout. Please get in touch with your tax consultant for more information.
- Death Benefits
The plan also offers the following death benefits to the policyholder:
|Annuity Option||Death Benefit|
|Immediate Life Annuity Option||NA|
Immediate Life Annuity with
Return of Purchase Price Option
|100% of the Purchase Price of the Annuity|
Deferred Life Annuity with
Return of Purchase Price Option
Premium Calculation Of HDFC Life Pension Guaranteed Plan
It is important to know an estimate about how much HDFC Life Pension Guaranteed Plan costs. Let’s take a look at premium calculation for different individuals based on several parameters.
|Name||Age||Gender||Purchase Price||Payout Frequency||Annuity Payout|
|Asha Rani||32 Years||Female||Rs. 8 Lakhs||Annual||Rs. 46,697|
|Shweta Tiwari||42 Years||Female||Rs. 10 Lakhs||Half-Yearly||Rs. 30,021|
|Madan Lal||51 Years||Male||Rs. 12 Lakhs||Quarterly||Rs. 19,769|
|Ayush Mehra||62 Years||Male||Rs. 15 Lakhs||Monthly||Rs. 9,241|
Exclusions Under HDFC Life Pension Guaranteed Plan
The following things are excluded under the plan:
- No alterations are allowed after the annuity has been purchased.
- The maturity benefit is excluded under the plan.
- There is a prohibition of rebates according to Section 41 of the Insurance Act, 1938.
- Individuals below 30 years are not eligible for the plan.
Frequently Asked Questions
The minimum and maximum purchase prices under the plan are as follows:
- Immediate Life Annuity: Rs. 42,076
- Immediate Life Annuity with Return of Purchase Price: Rs. 160,261
- Deferred Life Annuity with Return of Purchase Price: Rs. 76,046
The annuity payout under the plan will be calculated as follows:
- Annuity Payout = Applicable Annuity Rate X Purchase Price
At this time, the loan’s annual percentage rate is 9%. It will be determined by adding 2% to the average annualized 10-year benchmark G-Sec yield (for the previous six months).
Yes. In the case that the policyholder dies while the nominee is still a minor, the policyholder may, nevertheless, select any person to be the beneficiary of the money secured by the policy if the nominee is a minor.