HDFC Life Insurance
HDFC Life Insurance Systematic Pension Policy

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.

Eligibility Criteria

Minimum Entry Age18 Years
Maximum Entry Age75 Years
Policy Term5 To 40 Years
Minimum Sum AssuredFor Single Pay: Rs. 50,000, For Regular/Limited Pay: Rs. 1,50,000
Maximum Sum AssuredNo Limit
Premium Payment TermSingle Pay, Regular Pay, Limited Pay (5 To 12 Years)

Features Of HDFC Life Systematic Pension Plan

The plan covers the following aspects:

AccumulationThrough Compounded Bonus
Assured BenefitsCovered
Grace Period

For Yearly, Half-Yearly, & Quarterly Frequencies: 30 Days

For Monthly Frequency: 15 Days

LapsationIf 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 UpThe 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).
RevivalWithin 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.

Higher Of:

• Guaranteed Surrender Value (GSV) OR

• Special Surrender Value (SSV)

LoanSubject 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:

  1. Assured Benefit on Death + Accrued Reversionary Bonus + Interim/Terminal Bonus (if declared)
  1. 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:

  1. Sum Assured on Vesting + Accrued Reversionary Bonus + Interim/Terminal Bonus (if declared)
  2. Assured Benefit on Vesting, Where Assured Benefit on Vesting is equal to the Total Premiums Paid accumulated at 4% p.a. compound.
  • Bonus

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:

    1. HDFC Life Income Benefit on Accidental Disability Rider
    2. HDFC Life Critical Illness Plus Rider
    3. 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!

NameAgeGenderPolicy TermPremium AmountAssured Benefit On Vesting
Kartar Singh29 YearsMale16 YearsRs. 31,350Rs. 6,80,925
Dimple Arora36 YearsFemale15 YearsRs. 40,000Rs. 8,32,981
Shubham Bhardwaj51 YearsMale20 YearsRs. 52,000Rs. Rs. 16,10,398
Shalini Gupta61 YearsFemale10 YearsRs. 64,000Rs. 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).