HDFC Life Systematic Retirement Plan
Every person wishes to retire with financial freedom and a steady stream of income throughout their retirement years. Therefore, methodological preparation for the golden years of retirement is extremely pivotal to leading a stress-free life.
HDFC Life Systematic Retirement Plan is an individual/group, non-linked, non-participating, and savings deferred plan that enables the policyholder to build his/her retirement corpus. The plan gives you the flexibility to select the deferral period so you can lead a comfy life.
Continue reading to know more about the plan!
|Minimum Entry Age||45 Years|
|Maximum Entry Age||75 Years|
|Policy Term||Whole Life|
|Minimum Premium Payment Term||5 Years|
|Maximum Premium Payment Term||15 Years|
|Deferment Period||Up To 15 Years|
HDFC Life Systematic Retirement Plan Coverages
The following aspects are included under the plan:
Option 1: Life Annuity
Option 2: Life Annuity with Return of Premiums
|Grace Period||If you pay your premiums annually, half-yearly, or quarterly, you have a grace period of 30 days; and for monthly premiums, you have a grace period of 15 days.|
|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||The amount of time after the first unpaid premium is due is to be 5 years, unless otherwise permitted by applicable product regulations.|
|Free Look Period||15 Days|
|Maturity Benefit||Not Covered|
|Guaranteed Surrender Value||Covered|
Reasons To Choose HDFC Life Systematic Retirement Plan
You should consider buying HDFC Life Systematic Retirement Plan because of the following benefits:
- Death Benefit
In case of the policyholder’s death during the deferment period, the death benefit will be higher of:
- Total premiums paid accumulated at compounding interest of 6% p.a. till the date of death
- 105% of total premiums paid up to the date of death
- Survival Benefits
During the deferment period, no survival benefit will be paid. However, on survival after the completion of the deferment period, survival benefits will be paid as per the annuity payment frequency chosen by the policyholder.
- Annuity Payouts
Your yearly frequency annuity will be determined as follows:
Annuity Payout = Annuity Rate X Annualised Premium
After the deferment period, your annuity will be payable in arrears at the conclusion of the set annuity payment frequency.
- Higher Premium Benefits
Higher annualized premiums would result in benefits in the form of an additional annuity that would be paid as a percentage of the annuity rates.
- Surrender Benefits
In case you wish to surrender the plan, the insurer offers you the following surrender benefits:
|On surrender during the Deferment Period||Higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV)|
|On surrender after the Deferment Period||SSV shall be payable under the “Life Annuity with Return of Premiums” option|
Premium Illustration Of HDFC Life Systematic Retirement Plan
You might be wondering how much HDFC Life Systematic Retirement Plan will cost you. Therefore, we have calculated the premium amounts for the plan in accordance with different parameters. Let’s take a look at the premium table below:
|Name||Age||Gender||Premium Paying Terms||Annuity Amount||Premium Amount|
|Devika Kumari||52 Years||Female||5 Years||Rs. 35,081||Rs. 1 Lakh|
|Shivam Singh||55 Years||Male||7 Years||Rs. 1,06,828||Rs. 2 Lakhs|
|Avantika Rathore||62 Years||Female||10 Years||Rs. 2,47,272||Rs. 3 Lakhs|
|Kamal Gupta||72 Years||Male||5 Years||Rs. 1,43,537||Rs. 4 Lakhs|
What’s Not Included Under HDFC Life Systematic Retirement Plan?
- There is no maturity benefit under the plan.
- You cannot avail loan against the policy.
- Individuals below the age of 45 years are excluded from the plan.
- No benefit will be paid upon the policy’s expiration.
Frequently Asked Questions
The deferment period will start when the policy is first issued. The first annuity payment is made to the annuitant in arrears at the conclusion of the deferment period at the frequency that the annuitant has selected. The annuitant must select the deferment time in the beginning, and it may be different from the term for paying premiums.
The policy cannot be changed in any way. Once chosen, the premium payment term and deferment period will not change for the duration of the insurance.
The plan offers you three annuity payout options: half-yearly, quarterly, and monthly.
Yes. However, if the nominee is a minor, the policyholder may designate any individual to be the beneficiary of the funds secured by the policy in the event that the policyholder passes away while the nominee is still a minor.