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Retirement Plan with Guaranteed Income Launched: Premium, Benefits, Tax, Other Details

HDFC Life recently unveiled its new policy, the HDFC Life Systematic Retirement Plan to help investors manage their annual inflation-adjusted living costs after retirement. It’s’ a non-linked, non-participating, individual/ group savings deferred annuity plan that allows you to systematically make your retirement saving while giving the option of picking the deferment time. The plan allows the customer to lock their annuity interest rates at the beginning of the policy. They may choose to receive annuities monthly, quarterly, half-yearly. Alternatively, the customers also have the option to receive the total premium refunded in the event of the policy holder’s death.

HDFC Life Systematic Retirement Plan: Key Features

– The plan gives the flexibility to choose a premium payment term between 5 and 15 years and customers may choose the deferment period up to 15 years.

– The policy is issued within 24 hours without the need for medicals and underwriting requirements if the necessary documentation and pre-conversion verification are completed through chat.

– The policy gives the customer a guaranteed income for the whole of life by paying a premium for a limited period. The guaranteed income, however, will depend on the premium paid, subject to terms and conditions.

– The annuity interest rate agreed at the commencement of the policy shall remain unchanged for the policy duration.

– Customers can choose any payout date with the Save the Date feature of the policy.

– In the event of the policy holder’s death during the deferment period, the death benefits paid to the annuitant shall be the higher of total premiums paid accumulated at a compounding interest rate of 6 per cent per annum or 105 per cent of total premiums paid up to date of death for both plan options.

– In the event of the customer’s death after the deferment period, no death benefits shall be applicable under the Life Annuity option. The policy shall remain terminated on the death of the annuitant and all other benefits shall also cease. In the case of Life Annuity with Return of Premiums option, the death benefit shall be the higher total premiums paid to accumulated at compounding interest of 6 per cent p.a. till the end of the deferment period after adjusting the total annuity payouts made till date of death or 105 per cent of the total premium paid.

HDFC Life Systematic Retirement Plan: Eligibility

Any individual falling within the age bracket of 45 to 75 years can avail of the benefits of the policy. The deferment period of the policy starts with the premium payment term of up to 15 years. The minimum annuity payout per instalment is Rs 1000 a month and customers may choose to receive it monthly, quarterly, half-yearly or yearly. However, there’s no limit on annuity payment, subject to Board Approved Underwriting Policy.

For group policies, a minimum of 10 people need to participate but there’s no limit cap.

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