HDFC Life Systematic Pension Plan

Features of HDFC Life Systematic Pension Plan

Here are the key features of HDFC Life Systematic Retirement Plan:

• Profit Sharing: Participate in the profits of the company's participating fund by way of bonuses declared by the company. This can potentially increase your retirement corpus.

• Flexible Investment Term: Choose your investment horizon from 5 to 40 years to align the plan with your retirement goals.

• Flexible Premium Payment: Pay your premium in one go or spread it out over a period of time at your convenience. This allows you to adjust your contributions based on your financial situation.

• Enhanced Protection with Riders: Opt for additional riders to provide further protection against unforeseen events like death or disability. Riders are optional add-ons that come with an extra cost.

Eligibility Criteria for HDFC Life Systematic Pension Plan

Below are the eligibility criteria for the HDFC Life Systematic Retirement Plan:

Benefits of the HDFC Life Systematic Pension Plan

1. Death Benefit:

   • Provides financial security for your loved ones in case of your unfortunate demise during the deferment period.

   • The benefit paid will be the higher of:

     • Total premiums paid accumulated at a guaranteed interest rate of 6% p.a. till the date of death.

     • 105% of the total premiums paid up to the date of death.

2. Deferment Period:

   • This is the period between paying your premiums and starting to receive your pension benefits.

   • No survival benefits are paid during this time.

3. Survival Benefits (Annuity):

   • Once the deferment period is over and you survive, you'll start receiving regular income payments called annuities.

   • The frequency of these payments depends on your chosen option - monthly, quarterly, half-yearly, or yearly.

   • The annual annuity amount is calculated by multiplying the annuity rate (fixed at policy inception) with your annualized premium.

   • You'll receive the annuity payments in arrears, meaning you get them at the end of your chosen frequency.

4. Higher Premium Benefits:

   • Paying higher premiums allows you to earn additional benefits in the form of an increased annuity percentage. This means you'll receive a larger pension amount.

5. Surrender Benefits:

   • If you need to surrender the plan before maturity, you'll receive a surrender value:

     • During the deferment period, you'll get a higher amount between the Guaranteed Surrender Value (GSV) and the Special Surrender Value (SSV).

     • After the deferment period, if you've chosen the "Life Annuity with Return of Premiums" option, you'll receive the SSV.

Riders Under the HDFC Life Systematic Pension Plan

The riders under the HDFC Life Systematic Pension Plan are: 

• HDFC Life Income Benefit on Accidental Disability Rider (UIN: 101B013V03)

• HDFC Life Critical Illness Plus Rider (UIN: 101B014V02)

• HDFC Life Protect Plus Rider (UIN: 101B016V01)

Policy Details of the HDFC Life Systematic Pension Plan

1. Revival:

   Revive lapsed/paid-up policies within 5 years from the first unpaid premium due date, subject to underwriting policies and payment of unpaid premiums with 8.5% interest. Revival rates are reviewed semi-annually.

2. Surrender:

   Single premium policies get immediate Guaranteed Surrender Value; regular/limited premium policies need at least two years' premiums paid. Surrender value is higher than GSV or SSV, calculated based on premiums, bonuses, and terminal bonuses if declared.

3. Loans:

   Policy loans are available during the term, with an 8.50% interest rate, reviewed half-yearly based on G-Sec (government security) Yield.

4. Grace Period:

   30 days for yearly, half-yearly, and quarterly payments; 15 days for monthly. Unpaid premiums during the grace period are deducted from the Death Benefit if death occurs.

5. Lapsation:

   Policy lapses if the premium remains unpaid within the grace period and no Guaranteed Surrender Value is acquired.

Exclusions Under the HDFC Life Systematic Pension Plan

The suicide exclusion clause stipulates that if the policyholder dies by suicide within 12 months from the start of risk under the policy or from the policy's revival date, the nominee or beneficiary will receive a minimum of 80% of the total premiums paid up to the date of death or the surrender value at the time of death, whichever amount is greater, as long as the policy remains active.