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When you look forward to your retirement, what is your foremost and biggest concern? Isn’t it about enduring your savings? Normally, it depends on the fact that how much you have saved till your retirement.
However, market declines may take all your retirement funds and thus your retirement visions get down with market declines. HDFC has come up with a solution to build & secure its policyholder’s retirement savings named HDFC Life Assured Pension Plan so that they can enjoy their post-retirement.
In this HDFC Life Assured Pension Plan (ULIP), the risk of investment in the investment portfolio is endured by the insured. The linked assurance products don’t offer any kind of liquidity throughout the first 5 years of the policy term contract.
The insured person won’t be able to either withdraw or surrender the fund invested in the Unit-Linked Insurance Plans partially or completely till the completion of the 5th year.
Coverage Of The Plan
Table of Contents
One would learn from a brief glance at recent history that the lifespan has improved significantly. It is only going to get better over time if you have access to better medical care. But inflation is also steadily increasing. In light of this, your current income and savings may not be sufficient for the future.
Exactly at this point, HDFC Life Assured Pension Plan enters the picture. Your post-retirement period will be significantly easier because of the pension plan’s assurance that you have amassed enough corpus. As soon as you choose to hang up your boots, this Universal Life Insurance plan will assist you in investing enough money to cover your future expenses. This pension plan utilizes the following procedures to get to the same.
- You are entitled to the maturity or vesting benefit if you serve for the whole duration of the plan. You will receive a vesting benefit upon completion equal to the higher of the Assured Vesting Benefit or the fund value. The above-described formula makes calculating the Assured Vesting Benefit simple enough.
- A delay in the vesting date can let HDFC Life know that you want to delay reaching retirement age. As long as your age is under 55 and the vesting or maturity age is 75, you may defer retirement as many times as you’d like. You won’t lose out on the guaranteed death or the vesting benefits if you push back the vesting date. The Assured Vesting Benefits, on the other hand, are based on the period that you selected when purchasing the insurance.
- The pension multiplier kicks in when your coverage has been in force for 11 years and you haven’t missed a single payment. You get the benefit, which could be up to 1% of the standard fund value over the previous two years, every other year. Given that these plans typically last for an extensive amount of time, you can anticipate receiving a sizable sum when you retire.
- It is very certain that the future will be uncertain. The plan provides death benefits to address such unforeseen circumstances. Nominees are entitled to death payments if the policyholder passes away while the policy is still in effect. Either the prevailing fund value or at least 105% of the total amount of premiums paid up to this point will be given to the policy’s nominees.
- There are no available add-ons for this plan that you may purchase to increase the policy’s possibilities. With low, moderate, and high-risk investing options, the Assured Pension Plan includes the Pension Income Fund, Pension Conservative Fund, and also Pension Equity Plus Fund. You can choose one or both of the fund choices depending on your risk tolerance and the amount of retirement corpus you hope to accumulate. Each of them comes with a different level of risk due to their various market exposures.
Features Of the HDFC Life-Assured Pension Plan
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You can protect your retirement with guaranteed vesting benefits as well as gain from the upside market from this plan
This plan allows you to start as quickly as you complete 18 years
Loyalty add-ons in the arrangement of Retirement fund Multipliers every alternative year, beginning in the eleventh year
Lower maturity/vesting age of 45 (forty-five) years
Death benefits will be given to its nominee, which is higher than the fund value of the policy during the death or after 105% of the premiums are paid before the death
Both the Single Pay & Limited Pay Options are available under this one product
Tax Benefits are availed in this plan under the Section 80C & Section 10(10D) of the Income Tax (IT) Act 1961
Benefits Of the HDFC Life-Assured Pension Plan
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Here are some of the benefits of the HDFC Life Assured Pension Plan given below. Check out the HDFC Life Assured Pension Plan here:
Adjournment Of The Maturity Date:
You can delay your vesting date as many times as you want. This is entirely subject to the extreme vesting period of 75 years, in case you are below 55 years.
On rearrangement of the vesting date, the Guaranteed Vesting Benefit & Death Benefits will endure applying. The Guaranteed Vesting Benefits will remain the same as the amount calculated on this policy term selected at the beginning of the plan.
The savings will transfer to your Pension Conventional Fund as well as all your applicable responsibilities will endure being subtracted.
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Pension Multiplier Benefit:
Loyalty add-ons in the arrangement of the Pension Multipliers will add to your fund value, in case all due payments have been funded, every alternative year beginning from the completion of the eleventh policy year. Such additions are equal to 1% of the usual fund value for the instantly preceding 2 years.
Vesting Benefits:
Your HDFC Life Assured Pension Plan vests after your policy term, as well as your Vesting (Maturity) Benefits, will be higher than the Assured Maturity Benefit or Fund Value
Death Benefit:
In the case of unfortunate death before the completion of the policy term, the nominee will be given higher Fund Value as well as 105% of your total premium(s) paid to date.
NOTE:
The policy then will dismiss thereafter & thus no more paybacks will be given by the company.
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Eligibility of the HDFC Life-Assured Pension Plan
Here I have provided the eligibility in the table form below. Please check out the eligibility of the HDFC Life Assured Pension Plan
Entry Age and Vesting Age |
||
Age |
Minimum |
Maximum |
| Entry | 18 years | 65 years |
| Maturity | 45 years | 75 years |
The term of the Premium Payment |
The term of the Policy |
| Single Pay | 10 years, 15 years to 35 years |
| 8 Pay | 10 years, 15 years to 35 years |
| 10 Pay | 10 years, 15 years to 35 years |
| 15 Pay | 15 years to 35 years |
There is no limit for the maximum amount for the premium but there are several options for the minimum premium payment. So, let’s now check out the minimum premium payment details in the table given below:
Payment Frequency |
Limited & Regular Pay Alternatives |
Single Pay Alternatives |
| Single Pay | NA | 50000 |
| Monthly | 2000 | NA |
| Quarterly | 6000 | NA |
| Half Yearly | 12000 | NA |
| Annual | 24000 | NA |
NOTE:
There are no limits on the supreme premium which the policyholder will pay & the minimum payments required will be contingent on the option you chose and the frequency of premium payment.
Documents Needed To Purchase the Policy
In case you determine to purchase this Life Assured Pension Plan from HDFC, here is a complete list of the needed documents that you may have to provide.
- Identity Proof such as
- Voter’s ID
- Aadhaar card
- Passport
- PAN card
- Address Proof Such As
- Aadhaar Card
- Voter’s ID
- Passport
- PAN Card
- Utility bills such as telephone, electricity, etc.
- Proof of Age
- Aadhaar card
- Passport
- Voter’s ID
- Income Proof
- Applicant’s Bank Statement’s Attested copy
FINAL WORDS
HDFC’s Life Assured Pension conservative fund has received many positive reviews over the years. These reviews are from both users and insurance experts. There are many positive things about this plan. It has an amazing claim settlement percentage of 97.8% for personal claims and also 99.27% percentage for group claims.
This HDFC life insurance comes with a 30-day grace period in case you want to choose the annual premium paying term, quarterly or half-yearly. The grace period with monthly premium payment frequency is 15 days from due and unpaid premiums. These smaller components along with the many advantages that the policy has to offer, made the policy a sensible pension-building choice.
While the policy offers plenty of benefits like tax benefits, death benefits, vesting benefits, and further benefits such as average fund value and then prevailing annuity rates in case you remain invested throughout the plan. You can also surrender if you feel like the plan isn’t suitable for you. Unlike other policies and plans, the surrender charges are not as exorbitant.
So, if you are doing your retirement planning
FAQ
Q. What are the main charges for this plan?
A. Many charges are there for this plan. These are as follows:
Premium Allocation Charge – This charge is dependent on the premiums paid for the plan. After deducting this charge from your premium, the rest amount will be invested in buying units. It is known as the Premium Allocation Rate.
Policy Administration Charge – It will be charged by canceling units. It’s deducted monthly, and the max amount that’s charged each month is only INR 500/-
Fund Management Charge – The fund management charges are 1.35% yearly of the average fund value. It is charged daily as well as is a ratio of the unit funds. These charges are assured for the full term of the plan.
Investment Guarantee Charge – It is charged daily as well as is a ratio of the unit funds. It is levied only when your plan is in force as well as not on any Discounted Policy Fund.
Discontinuance Charge – It depends on the time the plan was discontinued, as well as the yearly premium of the plan. There won’t be any charge applicable from the fifth policy year.
Statutory Charge – Statutory Service Tax and Education Cess would be levied individually.
Miscellaneous Charge – In case you initiate a plan alteration request, you’ll be levied INR 250′- per request. It is charged through the unit’s cancellation.
Q. Is There Any Death Benefit?
A. If the policyholder dies before the policy term ends, the nominee will get the following benefits:
- 105% of your premiums paid.
- Fund Value
The plan will terminate afterward and no benefits will be then payable.
Q. Is There Any Vesting Benefit?
A. Your plan vests at the policy term’s end and your Vesting (Maturity) Benefit will be the following
Assured Vesting Benefit or Fund Value
Here, the minimum venting age is 45, while the maximum vesting age is 75 years.
Q. Is There Any Tax Benefit?
A. Tax Benefit is available for the premiums paid for this plan as per Section 80C as well as benefit amount obtained as per Section 10(10D) of the Income Tax Act, 1961.
Q. Is any Rider Available with this Plan?
A. No there is no rider available with this plan.
Q. Can I Get A Partial Withdrawal or Loan From This Plan?
A. No, partial withdrawals and loans aren’t possible here.