HDFC Life Pension Plans

HDFC Standard Life Insurance Company was established between Housing Development Finance Corporation Limited (HDFC) and Standard Life plc based out of UK. While HDFC holds 74.60% of the company’s stake, Standard Life (Mauritius Holding) Limited holds 26% while the remaining is held by others. With the expertise of HDFC and Standard Life together under one umbrella, HDFC Standard Life Insurance has become a market leader in the insurance sector offering a complete range of products at competitive rates. Moreover, the company boasts of a strong foundation of sales force which helps to increase the company’s market share in the insurance sector.

HDFC Pension Plans – Summary

HDFC Life Pension Plans - Detail

The company offers pension plans in both traditional format and Unit-linked format. The pension plans which HDFC Life has can be highlighted below:

HDFC Pension Plans – HDFC Life Personal Pension Plus Plan

Is a traditional plan with the under-mentioned features:

• On Vesting, higher of the Sum Assured including bonuses or 101% of total premiums paid is guaranteed to be paid under this HDFC pension plan.
• Under this HDFC pension plan, on vesting, the policyholder can commute 1/3rd part of the corpus and avail annuity from the remaining part or avail immediate annuity from the entire corpus or use the proceeds to buy a Single Premium Deferred Annuity plan from the company.
• Under this HDFC pension plan, in case of death, higher of 101% of the premiums paid including the bonus amount or 105% of the premiums paid up to death is payable to nominee who can either receive annuity or take the entire benefit
• Reversionary bonus, interim bonus and terminal bonus accrue in the HDFC pension plan

Eligibility Details

HDFC Pension Plans – HDFC Life Click 2 Retire Plan

An online pension plan in a unknit linked format. The features of the plan are as follows:

• This HDFC pension plan promises an assured Vesting Benefit equal to {101% + 1% * (policy Term – premium paying term)}*total premiums paid
• The death benefit which is payable under this HDFC pension plan will be the amount which will be higher among the fund value on the date of death or 105% of premiums paid till death
• Under this HDFC pension plan, the vesting age can be postponed if the policyholder’s age is below 55 years
• Three types of funds are available under this HDFC pension plan which are Pension Equity Plus Fund, Pension Income Fund and Pension Conservative Fund
• Income Tax Benefit on the premiums paid under Section 80C, on the commuted part of the fund value under Section 10(10A). Death benefit is exempt under Section 10(10D).
• Under this HDFC pension plan, on maturity, 1/3rd of the fund value can be commuted, i.e. withdrawn as cash and the remaining 2/3rd should be used to draw a pension or the policyholder can also use the entire proceeds to purchase an annuity with the fund value. Alternatively, a single premium deferred annuity plan can be purchased from the proceeds.

Eligibility Details

HDFC Pension Plans – HDFC Life Pension Super Plus

A pension plan with the following features:

• On vesting, the company pays higher of the fund value or an assured benefit of 101% of the sum of premiums paid under this HDFC pension plan
• Under this HDFC pension plan, on vesting, the policyholder can purchase a joint life annuity from the company guaranteeing regular income till the policyholder or his spouse is alive. The policyholder may also commute 1/3rd of the fund and receive annuity from the remaining portion.
• From the 11th year onwards 102.5% of the premiums paid are allocated to the fund under this HDFC pension plan
• On death, the company pays higher of the fund value or total premiums paid accumulated at a rate of 6% per annum or 105% of the total premiums paid till death under this HDFC pension plan,
• Income Tax Benefit on the premiums paid under Section 80C and on the commuted part of the fund value under Section 10(10A) of the Income Tax Act. Death benefit is exempt under Section 10(10D). People looking to reduce their tax liability will find this HDFC pension plan well suited for their needs

Eligibility Details

HDFC Pension Plans – HDFC Life Single Premium Pension Super Plan

A single premium ULIP plan with the following features:

• On vesting, the company pays higher of the fund value or an assured benefit of 101% of the single premium paid under this HDFC pension plan
• The vesting age can be extended if the policyholder is aged less than 55 years under this HDFC pension plan
• Under this HDFC pension plan, on vesting, the policyholder can purchase an annuity from the company with multiple options like availing a joint life annuity guaranteeing regular income till the policyholder or his spouse is alive. The policyholder may also commute 1/3rd of the fund and receive annuity from the remaining portion or purchase another Single Premium deferred annuity from the company
• Under this HDFC pension plan, on death of the insured, higher of the available fund value or 105% of the premium is paid to the nominee who may choose to receive annuities or withdraw the entire amount
• Income Tax Benefit on the premiums paid under Section 80C and on the commuted part of the fund value under Section 10(10A) of the Income Tax Act. Death benefit is exempt under Section 10(10D). This is another HDFC pension plan that is suitable for people trying to reduce their taxable income

Eligibility Details

HDFC Pension Plans – HDFC Life Guaranteed Pension Plan

A deferred annuity plan with the following features:

• A guaranteed addition of 3% of the Sum Assured is added to the corpus for every completed year of this HDFC pension plan
• Vesting additions are also added on vesting which is expressed as a percentage of the Sum Assured and it depends on the tenure of the HDFC pension plan chosen
• Under this HDFC pension plan, the death benefit is also guaranteed which is the total of all premiums paid till death accumulated at an interest of 6% per annum
• The premium needs to be paid for a limited term only under this HDFC pension plan
• Under this HDFC pension plan, the death benefit is payable to the nominee who can either choose to receive annuities out of the proceeds or withdraw the proceeds entirely.
• Under this HDFC pension plan, on vesting, the proceeds are payable to the policyholder who can either choose to receive annuity payouts from the entire corpus or withdraw 1/3rd of the corpus as cash and receive annuity payouts from the remainder 2/3rd of the corpus which shall be taxable. The policyholder may also choose to buy a Single Premium Deferred Annuity plan from the company using the entire corpus
• Income Tax Benefit on the premiums paid under Section 80C and on the commuted part of the fund value under Section 10(10A) of the Income Tax Act. Death benefit is exempt under Section 10(10D).

Eligibility Details

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

HDFC Pension Plans – HDFC Life New Immediate Annuity Plan

An annuity plan with the following features:

• This HDFC pension plan will pay annuity without delay from the period chosen by the annuitant after the premium is paid
• The annuity promises multiple annuity options under this HDFC pension plan like:
  • Annuity payouts for life
  • Annuity for life and then return of purchase price on death
  • Lifetime Annuity with Return of Balance of Purchase Price
  • Life Annuity which is guaranteed for 5/10/15 or 20 years and then payable for life
  • Life Annuity increasing at a simple rate of 5% p.a.
  • Lifetime Annuity plus Return of Purchase Price in parts
  • Lifetime Annuity with Return of 100% of Purchase Price on diagnosis of Critical Illness or death
  • Joint Life Last Survivor with 100% annuity to the secondary annuitant
  • Joint Life Last Survivor with 50% annuity to the secondary annuitant
  • Joint Life Last Survivor with 100% annuity to the secondary annuitant and Return of 100% of Purchase Price
  • Joint Life Last Survivor with 50% annuity to the secondary annuitant and Return of 100% of Purchase Price
  • Moreover, the Purchase Price, i.e. the single premium paid for availing the annuity is returned on death or in case of a Critical Illness under the relevant annuity options under this HDFC pension plan
  • The premium paid to buy this HDFC pension plan is exempt from taxation under Section 80CCC of the Income Tax Act.
  • Under this HDFC pension plan, higher rates of annuity are available for higher Purchase Price of Rs.2.5 lakhs and above.

Eligibility Details

HDFC Pension Plans – Benefits of Annuity Plans 

How does an annuity plan help?

Let us understand this with an example. Mr. Batra decides to buy an annuity plan from one of the HDFC pension plans when he is 40 years old. This gives him 20 years time to build up an annuity fund. For the next 20 years (which is called the accumulation phase), he regularly pays his premiums. At the end of the 20th year, when Mr. Batra is 60 years old and recently retired, the annuity phase begins and he starts to receive his monthly payments. He had opted for a life annuity plan, so the annuity plan pays till the last day of his life and that helps him to take care of all his financial needs.

When should an annuity plan be taken?

An annuity plan should ideally be taken much before the actual retirement time. Like we saw in the above example, Mr. Batra bought the plan from one of the HDFC pension plans at the age of 40 and that gave him a solid period of 20 years to build up the annuity fund. Taking a plan early has two benefits. First and foremost you can invest more money and secondly you can do it at a relaxed pace, without having to worry about paying too much too soon.

Should I opt for an immediate or a deferred annuity plan?

Whether you opt for an immediate or a deferred annuity plan would depend on how early you took the plan. If you chose to buy the plan after your retirement or very close to the retirement date, you have to opt for an immediate annuity plan. If however, you did so much earlier, like Mr. Batra, you can opt for a deferred annuity plan from one of the HDFC pension plans.

How can I provide for my spouse if I buy an annuity plan?

There are certain kinds of annuity plans that have provisions for partners as well. The most common type is the joint annuity where you can jointly take the plan with your spouse. So even if you die, your spouse will continue to receive the annuity till the time he or she lives. Then, you can opt for a guaranteed period annuity and opt to receive the annuity for a fixed number of years. You just have to name your spouse as the nominee and so even after you die, he or she will continue to receive the annuity till the time the period ends.

Helpful Resources: What is an Annuity

HDFC Pension Plans – Applying for a Pension Plan from the company:

Online

The company offers specific HDFC pension plans which are available online only. The customer only needs to log into the company’s website, choose the required HDFC pension plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the HDFC pension plan policy will be issued

Intermediaries

HDFC pension plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

 HDFC Life Pension Plans – FAQs

• Q4. What is the company’s process to settle claim for HDFC Life pension plans?

  Ans: For HDFC pension plan policyholders, Cashless facility is permitted in case of hospitalization or surgery. For others the process is as follows;

  Step 1: Duly fill the claims form for your HDFC pension plan

  Step 2: Attach the relevant documents- medical bills, reports, accident report- with your claims form

  Step 3: Submit the documents at the Claims Office at any of your nearest HDFC branch in your city

  Alternatively, you can post it at their registered headquarter:

  HDFC Standard Life Insurance Company Ltd.Lodha Excelus, 13th Floor Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India.

• Q5. What is the policy cancellation process for HDFC Life pension plans?

  Ans: HDFC pension plan policyholders must attach all the relevant policy documents along with a duly filled surrender form at any of the branch locations in their city. Within 72 hours, the refund will be made into your bank account, post deducting cancellation charges, stamp duty (if any), and medical tests.

  You can also check National Pension Scheme Benefits