HDFC Life Systematic Pension Plan
The income ends after retirement, but the expenses don’t. The savings we currently have might not be enough to cover all of the expenses we’ll have after retirement.
HDFC Life Systematic Pension Plan is specifically designed with flexible retirement planning features to create a retirement fund that will support your post-retirement objectives. It is a participating pension plan that can assist you in saving money for retirement so you can have a comfortable lifestyle after you retire. Continue reading to know more about the plan.
|Minimum Entry Age||18 Years|
|Maximum Entry Age||75 Years|
|Policy Term||5 To 40 Years|
|Minimum Sum Assured||For Single Pay: Rs. 50,000, For Regular/Limited Pay: Rs. 1,50,000|
|Maximum Sum Assured||No Limit|
|Premium Payment Term||Single Pay, Regular Pay, Limited Pay (5 To 12 Years)|
Features Of HDFC Life Systematic Pension Plan
The plan covers the following aspects:
|Accumulation||Through Compounded Bonus|
For Yearly, Half-Yearly, & Quarterly Frequencies: 30 Days
For Monthly Frequency: 15 Days
|Lapsation||If the insurance’s premium is not paid in full within the grace period and it has not yet accumulated a Guaranteed Surrender Value, the policy will expire. If the policy expires, no benefits will be paid out.|
|Paid Up||The insurance will become paid up if a due premium is not paid when the grace period expires and it has accrued a Guaranteed Surrender Value (GSV).|
|Revival||Within five years after the first due date of an unpaid premium, you may revive a lapsed or paid-up policy, subject to the board’s approved underwriting policy and the payment of any unpaid premiums plus interest. The current interest rate is 8.5% a year.|
• Guaranteed Surrender Value (GSV) OR
• Special Surrender Value (SSV)
|Loan||Subject to the terms and conditions of the policy, policy loans will be offered throughout the policy period. The loan’s current interest rate is 8.50% per year.|
Benefits Offered By HDFC Life Systematic Pension Plan
The plan offers the following benefits to the policyholder:
- Death Benefit
The death benefit is paid out in one lump payment upon the death of the life assured.
The death benefit will be higher of:
- Assured Benefit on Death + Accrued Reversionary Bonus + Interim/Terminal Bonus (if declared)
- 105% of Total Premiums Paid, Where Assured Benefit on Death is 101% of the Total Premiums Paid.
- Vesting Benefit
The vesting benefit payable upon the life assured’s continued existence through the vesting date and upon timely payment of all outstanding premiums for the duration of the policy term shall be the higher of:
- Sum Assured on Vesting + Accrued Reversionary Bonus + Interim/Terminal Bonus (if declared)
- Assured Benefit on Vesting, Where Assured Benefit on Vesting is equal to the Total Premiums Paid accumulated at 4% p.a. compound.
The plan provides Reversionary Bonus and Interim/Terminal Bonus to the policyholder.
- Reversionary Bonus: A yearly declaration of the compounded reversionary bonus on the total amount of premiums paid is permitted. The incentive is payable without fail after it has been included in the policy.
- Interim/Terminal Bonus: The company can pay a fair share of the surplus at the end based on the actual experience over the policy term by adding an interim or terminal bonus (if any) to the policy upon death, surrender, or vesting.
- Rider Benefits
To enhance the coverage of the policy, the plan offers 3 rider options to the policyholder:
- HDFC Life Income Benefit on Accidental Disability Rider
- HDFC Life Critical Illness Plus Rider
- HDFC Life Protect Plus Rider
- Surrender Benefits
The policy offers the following surrender benefits to the policyholder:
- For a Single premium, the policy shall immediately acquire Guaranteed Surrender Value on payment of due premium.
- For Regular/Limited premiums, the policy shall acquire a Guaranteed Surrender Value on payment of at least two years’ premiums.
- Tax Benefits
The premiums you pay for the HDFC Life Systematic Pension Policy are entitled to tax deductions under Section 80C of the Income Tax Act of 1961. Additionally, you are allowed to receive up to one-third of the tax advantage as a commuted value that is tax-free under Section 10(10A) of the Income Tax Act of 1961.
The tax benefits mentioned here could alter in accordance with the laws in effect at the time. Therefore, before making an investment in the HDFC Life Systematic Pension plan, it is recommended that you confirm this with your tax advisor.
Premium Calculation Of HDFC Life Systematic Pension Plan
Let’s check out premium rates in accordance with different parameters!
|Name||Age||Gender||Policy Term||Premium Amount||Assured Benefit On Vesting|
|Kartar Singh||29 Years||Male||16 Years||Rs. 31,350||Rs. 6,80,925|
|Dimple Arora||36 Years||Female||15 Years||Rs. 40,000||Rs. 8,32,981|
|Shubham Bhardwaj||51 Years||Male||20 Years||Rs. 52,000||Rs. Rs. 16,10,398|
|Shalini Gupta||61 Years||Female||10 Years||Rs. 64,000||Rs. 7,99,126|
What’s Not Included Under HDFC Life Systematic Pension Plan
The following things are not covered under the plan:
- In case the policyholder dies due to suicide within 12 months from the date of commencement of risk or the date of revival of the policy, the nominee or beneficiary will get only 80% of the total premiums paid.
There are no other exclusions under the plan except this suicide clause exclusion.
Frequently Asked Questions
The minimum installment premiums under the plan are as follows:
- For Single: Rs. 50,000
- Yearly: Rs. 30,000
- Half-Yearly: Rs. 15,300
- Quarterly: Rs. 7,800
- Monthly: Rs. 2,625
There is no limit to the maximum installment premium.
Yes. The policy will deduct an amount in case of overseas transfer.
Yes. The beneficiary of the funds secured by the policy may be anyone, even if the nominee is minor, in the event of the policyholder’s death while the nominee is still a minor.
The loan’s current annual percentage rate is 9%. It will be calculated by adding 2% to the benchmark 10-year G-Sec yield’s average annualized yield (for the previous six months).