HDFC Life Insurance
HDFC Life Insurance Personal Pension Plus Policy

HDFC Life Personal Pension Plus Plan

One of the most significant life experiences that many of us will ever go through is retirement. The income ceases after retirement, but the expenses do not. It is no denying that our current funds may not be enough to cover all of the expenses we’ll have after retirement. Since this helps the corpus compound many times by the time we retire, it becomes essential for us to plan for retirement in the early years of our careers.

A guaranteed benefit is provided upon death or at vesting under the HDFC Life Personal Pension Plus Plan, a participating regular premium deferred pension plan. Through incentives that are paid to you at the time of vesting, the product gives you the chance to share in the company’s earnings made by participating funds. The strategy is perfect for those who want to prepare financially for retirement so that they can achieve all of their post-retirement objectives.

Read on to know more about the HDFC life personal pension plus eligibility, features and benefits, premium illustration, and more.

Eligibility Criteria

Here are the eligibility criteria for opting for HDFC Life Personal Pension Plus;

Entry AgeMinimum- 18 Years, Maximum- 65 Years
Vesting Age-Minimum- 55 Years, Maximum- 75 Years
Policy TermMinimum- 10 Years, Maximum- 40 Years
Premium Payment TermSame as Policy Term

Salient Features & Benefits of HDFC Life Personal Pension Plus

The following are the salient features and benefits of HDFC Life personal pension plus.

  1. Death Benefit – If the policyholder passes away prior to the policy’s maturity, they will receive an Assured Death Benefit equal to 101% of all premiums (taxes excluded) paid up until the time of death. Additionally, the policy’s accrued bonuses will be given to him or her. It should be emphasized that the death benefit will always be at least 105% of the premiums paid for the duration of the insurance. The policyholder’s nominee may purchase an immediate annuity from HDFC Life with all or part of the death benefit.

The nominee also has the option of withdrawing the entire death benefit as a lump sum.

  1. Surrender – To reap the greatest benefits from your insurance policy, it is crucial to keep it in effect until the conclusion of the term. But occasionally, you can find yourself unable to. After three years of premium payments, the policy will earn a Guaranteed Surrender Value (GSV). As stated in the terms and conditions, the GSV is a portion of all premiums that have been paid. The surrender value of the bonuses will be applied when the policy gets GSV. The section under “Policy Proceeds” contains information on the sum that will be given to you upon surrender.
  1. Grace Period – This is the period of time following the premium due date when the policy will be in full force and effect. The grace period for the annual, semi-annual, and quarterly premium due dates under the HDFC Life Personal Pension Plus policy is 30 days. A monthly frequency policy has a grace period of 15 days after the due date of the premium. The insurer will honor any valid claims you make during this time if they are covered by the policy.
  1. Lapsation – If the policyholder doesn’t pay the required premium before the grace period’s conclusion, the policy will become lapsed, assuming it hasn’t already gained a surrender value. The risk cover won’t exist in the case of expired insurance, and benefits won’t be paid out. If necessary, a lapsed policy may be reinstated.
  1. Free-Look period – Within 15 days of the day the policy was received, you have the option of returning it to the insurer with the appropriate justifications if you do not agree with the terms and conditions stated in the policy. The free-look period will be 30 days if the policy was obtained by distance marketing, or through methods where there is no face-to-face connection, like the phone or the internet.

The premium must be refunded once the stamp duty has been subtracted to the insurer when they receive the cancellation letter and original policy document. The policy cannot be revived, reinstated, or restored once it has been returned.

  1. Flexible Investment Horizon: You can select your investment horizon from 10 to 40 years when you buy the HDFC Life Personal Pension plus insurance. Additionally, you will get an assured payout at death or vesting equivalent to 101% of the total premiums paid to date.
  1. Revival Benefit: Depending on the terms and conditions set forth by the insurer, a lapsed or paid-up policy may be reinstated during the revival period. You must pay all past due premiums, interest on past due rates, and all necessary taxes in order to be reinstated. 9.5% per year is the current interest rate for resurrection. For handling the revival, a fee of Rs. 250 will be charged. Before the policy term expires and five years after the first unpaid premium was due, there will be a revival period.

Premium Illustration of HDFC Life Personal Pension Plus

Let’s take an example to understand!

A man, named Mr. Ashok Rajpal, who is working as a software engineer at GOC, Gurgaon, is looking to buy a retirement plan. As he is working in a private firm, he wants to safeguard the financial future of his family members. When he was searching for the best retirement plan, he then stumbled upon HDFC Life Personal Pension Plus Plan on the internet. Also, he even asked his relatives, family, and friends, and there were many people in his circle who suggested him to buy HDFC Life Personal Pension Plus for maximum financial protection after retirement.

Here’s what he will get under different circumstances.

AgePolicy termSum assuredGuaranteed BenefitNon-Guaranteed BenefitTotal benefit
30 Years25 YearsRs. 20,00,000Rs. 92,757Rs. 66,466Rs. 1,59,223
30 Years30 YearsRs. 40,00,000Rs. 1,62,301Rs. 1,33,817Rs. 2,96,118

Frequently Asked Questions

Here is the list of the frequently asked questions related to HDFC Life Pension Plus.

Planning for your retirement in your thirties is a good idea. The more money you save the earlier you start adding cash to your retirement account. This is because interest will be compounded to ensure that you may save more money with lower initial investments.

As an alternative, you can select the amount of the vesting assurance, and we’ll let you know what the premium will be. The least amount guaranteed upon vesting is Rs. 2,04,841. The maximum sum assured on vesting has no upper limit.

After the grace period has passed, your policy will become paid up if you stop making premium payments after the contract has developed a surrender value.

  1. Yes, you are able to buy many policies from HDFC Life. However, underwriting approval is required for this.

Yes, the policyholder will qualify for section 80c tax benefits.