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.

Eligibility Criteria

Minimum Entry Age	Immediate Life Annuity: 30 Years Immediate Life Annuity with Return of Purchase Price: 30 Years Deferred Life Annuity with Return of Purchase Price: 45 Years
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:

Annuity Options	Immediate Life Annuity Immediate Life Annuity with Return of Purchase Price Deferred Life Annuity with Return of Purchase Price
Top-Up Options	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:

Discounts

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	Higher of Purchase Price + Guaranteed Additions (GA) – Total Annuity Payouts till date of death 110 % of Purchase Price

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

1. What are the minimum and maximum purchase prices under the HDFC Life Pension?

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

2. How will my annuity payout be calculated under the plan?

The annuity payout under the plan will be calculated as follows:

Annuity Payout = Applicable Annuity Rate X Purchase Price

3. How will the interest rate on a loan be calculated?

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).

4. Is a minor eligible to serve as my nominee under the plan?

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.