Premium, benefits, taxes, other details


HDFC Life recently unveiled its new policy, the HDFC Life Systematic Retirement Plan, to help investors manage their annual inflation-adjusted cost of living after retirement. It is an unrelated and non-participating individual / group deferred savings annuity plan that allows you to systematically build up your retirement savings while offering the possibility of choosing the deferral period. The plan allows the client to lock in the interest rates on their annuity at the start of the policy. They can choose to receive monthly, quarterly, semi-annual annuities. Alternatively, clients also have the option of receiving the full premium refunded in the event of the death of the insured.

HDFC Life systematic retirement plan: key features

– The plan gives the possibility to choose a premium payment period between 5 and 15 years and customers can choose the deferral period up to 15 years.

– Policy is issued within 24 hours without the need for medical and underwriting requirements if the necessary documentation and pre-conversion verification is completed via chat.

– The contract provides the client with guaranteed income all his life by paying a premium for a limited period. Guaranteed income, however, will depend on the premium paid, subject to conditions.

– The annuity interest rate agreed at the start of the contract remains unchanged throughout the duration of the contract.

– Customers can choose any payment date with Save Policy Date feature.

– In the event of the death of the policyholder during the deferment period, the death benefit paid to the annuitant will be the greater of the total premiums paid accrued at a compound interest rate of 6 percent per annum or 105 percent of total premiums paid. on the date of death for both plan options.

– In the event of the client’s death after the deferral period, no death benefit will be applicable under the Life annuity option. The policy remains terminated upon the death of the annuitant and all other benefits also cease. In the case of the Lifetime Annuity with Return of Premium option, the death benefit will be the total amount of paid premiums accrued at the compound interest rate of 6 percent per annum until the end of the deferment period after adjustment of the total pension payments made up to the date of death. or 105 percent of the total premium paid.

HDFC Life systematic retirement plan: Eligibility

Any natural person in the 45 to 75 age bracket can benefit from the benefits of the policy. The policy deferment period begins with the premium payment term of up to 15 years. The minimum annuity payment per installment is Rs 1000 per month and clients can choose to receive it monthly, quarterly, semi-annually or annually. However, there is no limit to the annuity payment, subject to the underwriting policy approved by the Board.

For group policies, a minimum of 10 people must participate, but there is no limit.

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