HDFC Life Launches Systematic Retirement Plan – Check Features

The plan offers individuals the ability to systematically save for a retirement corpus over a period of time and then receive guaranteed income for life.

HDFC Life has launched HDFC Life Systematic Retirement Plan – an individual, group, non-participating, untied deferred savings annuity plan that will allow policyholders to save systematically for their retirement years.

With increasing life expectancy and inflation in India, the need for retirement planning is essential. Also, the movements of social structures like the growth of nuclear families, the migration of the younger generation for employment, education, etc. have further deeply emphasized the need for timely retirement planning, because retirement not only provides additional income, but allows a person to cope with health and medical care. financial emergencies without compromising the money saved for their golden years.

A retirement plan is essential to ensure stability in later years as well as financial independence. Research indicates that retired Indians often live in deprivation as they live in fear of outliving their life savings. Insurance products such as annuities provide guaranteed income for life, helping consumers hedge against this longevity risk.

Similarly, this new systematic retirement plan will allow policyholders to lock in their annuity interest rates from the start of the policy. The plan offers individuals the ability to systematically save for a retirement corpus over a period of time and then receive guaranteed income for life. The plan offers the possibility of choosing between two plan options: the life annuity and the life annuity with return of premiums.

Key Features of the HDFC Life Systematic Retirement Plan:

  • An individual has the option of choosing a premium payment period of 5 to 15 years.
  • A policyholder can choose the deferment period up to 15 years.
  • Policy issued within 24 hours with no medical or underwriting requirements
  • Receive guaranteed income for life by paying premiums for a limited payment term. The annuity rate will be guaranteed at the start and will remain unchanged for the duration of the policy.
  • Choose any annuity payment date with the ‘save the date’ feature to select birthdays, anniversaries and other special occasions
  • Choose Refund of total premiums paid on death with the LA-ROP option

During the deferment period, in the event of death, the death benefit paid to the annuitant will be the greater of the total premiums paid accrued at compound interest of 6% per annum to the date of death or 105% of the premiums total paid up to date of death for both plan options.

After the deferment period, in the event of death, under the Life Annuity option, no death benefit is payable. The policy terminates on the death of the Annuitant and all other benefits cease. For the life annuity with return of premium option, the death benefit payable will be equal to the total amount of premiums paid accrued at a compound interest rate of 6% per annum until the end of the deferment period, less the total of the annuity payments made up to the date of death or 105% of the total. premiums paid up to the day of death. In either case, upon payment of the applicable death benefit, the policy will terminate and all other benefits will cease.

Srinivasan Parthasarathy, Chief Actuary, HDFC Life, says, “Financial independence with a secure and regular stream of income during the golden age is every individual’s retirement goal. Therefore, systematic planning for life after retirement will ensure that you continue to live carefree. The HDFC Life Systematic Retirement Plan allows you to save systematically for your retirement – with the ability to choose the deferment period so you can enjoy and live a comfortable life.

Eligibility for the HDFC Life Systematic Retirement Plan

  • A person must be at least 45 years old to opt for the scheme and not more than 75 years old. (subject to pension from age 80)
  • The premium payment period varies from 5 to 15 years
  • The deferral period starts from the premium payment term up to 15 years
  • Annuity payment can be monthly, quarterly, semi-annually or annually depending on the choice of the individual

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