HDFC Personal Pension Plus Plan

What is the HDFC Personal Pension Plus Plan?

The HDFC Life Personal Pension Plus Plan is a smart annuity plan that provides you with a regular income in exchange for a regular premium payment. This investment plan guarantees benefits either in case of death or when the policy matures. It also offers a chance to earn bonuses based on the company's profits, which you will receive at the vesting age. The HDFC Life Personal Pension Plus Plan is a good investment option for building a retirement fund to meet your future needs. 

An annuity plan provides you with regular payouts after retirement when you pay lumpsum or periodic contributions during the accumulation phase of your investment plan.

A Quick HDFC Personal Pension Plus Review

• It is a participating Deferred Annuity Plan with a regular premium payment option.

• You can choose an investment horizon ranging from 10 to 40 years.

• You can receive additional bonuses, if and when they are declared.

• You can enjoy vesting benefits up to the age of 75.

• You or your nominee will receive 101% of the premiums paid upon vesting or in the event of the insured's death.

• You can pay your premiums annually, half-yearly, quarterly, or monthly.

Eligibility Criteria of HDFC SL Personal Pension Plus Plan

*You can estimate your regular payouts at the vesting age using an Annuity Calculator.

Benefits HDFC SL Personal Pension Plus Plan

• Vesting Benefit: At vesting, you will receive either the sum assured plus bonuses or 101% of the premiums paid, whichever is higher.

• Death Benefit: In the event of death of the policyholder, their nominee will receive 101% of the premiums paid plus any bonuses, with a minimum payout of 105%.

• Qualifying Recognised Overseas Pension Scheme (QROPS) Policyholders: If your policy is a QROPS, you can only access benefits after turning 55 or when the policy gains its surrender value.

• Reversionary Bonus: This is a guaranteed bonus added each year, which will be paid at vesting if all premiums are paid.

• Interim Bonus: An interim bonus may be added if the policy vests before the next reversionary bonus is declared.

• Terminal Bonus: A terminal bonus may be added at vesting based on the policy’s performance, but it is not guaranteed.

Rider Benefits of HDFC Personal Pension Plus Plan

The following rider is available with the HDFC Life Personal Pension Plus Plan to get added protection:

• HDFC Life Protect Plus Rider: It offers additional protection by providing a proportion of the Rider Sum Assured to your beneficiaries in case of death due to an accident.

Policy Details HDFC Life Personal Pension Plus Plan

• Grace Period: The grace period is the time after the premium due date, during which your policy remains active with full coverage. For yearly, half-yearly, and quarterly payments, the grace period is 30 days and 15 days for monthly payments. 

• Policy Lapse: If you do not pay the premium within the grace period and your policy has not acquired a surrender value, the policy will lapse, coverage will cease, and no benefits will be payable. You can revive a lapsed policy within the revival period.

• Paid-Up: If you stop paying premiums after your policy has acquired a surrender value, it will become a paid-up policy. In this case:

  • The sum assured is reduced based on the premiums paid.

  • Accrued bonuses remain, but no new bonuses will be added.

  • The death benefit will be 101% of the premiums paid, with a minimum of 105%.

  • The vesting benefit will include the reduced sum assured and any accrued bonuses.

  • You can revive a paid-up policy within the revival period.

• Revival: You can revive a lapsed or paid-up policy within five years from the due date of the first unpaid premium, as long as it is before the policy term ends. To do so, you will need to pay all outstanding premiums, interest, and applicable taxes. The current interest rate for revival is 9.5% per annum, with a processing fee of ₹250. Once revived, all contractual benefits are restored.

• Surrender: While it is advisable to keep your policy active to enjoy full benefits, you can surrender it if necessary. The policy acquires a Guaranteed Surrender Value (GSV) after at least two years of premiums have been paid.

How the Plan Works?

Step 1: Decide When You Want to Retire

• Pick the age at which you want to retire (vesting age) and choose a policy term, ranging from 10 to 40 years.

Step 2: Set Your Premium or Retirement Benefit

• Either decide how much you want to pay in premiums to determine your retirement benefit or choose the retirement amount you want, and the plan will tell you how much you need to pay.

Step 3: Lock in Your Retirement Benefit

• The amount you have chosen or calculated is guaranteed to be there when you retire, giving you peace of mind about your financial future.

Suicide Exclusion Criteria

The HDFC Personal Pension Plus Plan includes a suicide exclusion clause. If the policyholder commits suicide within 12 months from the policy's start date or revival, the nominee receives 80% of the premiums paid. No additional benefits are payable under this exclusion.