How can this systematic retirement plan be a good bet for your golden years?

Eligibility Required

You should review the eligibility criteria of the plan which are as follows before purchasing it.

Details Minimum Maximum
Entry age 45 years old 75 years
Annuity payment (in Rs) Per installment Annual: 12,000; Semi-annual: 6,000; Quarterly: 3,000; Monthly: 1,000 Without limits. Acceptance of any case is subject to the Board Approved Underwriting Policy (BAUP).
Premium2 (in Rs) Per installment Annual: 30,000; Semi-annual: 15,300; Quarterly: 7,800; Monthly: 2,625 Without limits. Acceptance of any case is subject to the Board Approved Underwriting Policy (BAUP).
Group size1 (for group policies) ten Without limits. Acceptance of any case is subject to the Board Approved Underwriting Policy (BAUP)
Premium payment term 5 years 15 years
Adjournment period Premium payment term chosen 15 years
Policy term All the life All the life
Source: www.hdfclife.com
Advantages

Advantages

The life annuity and the life annuity with return of premiums are the two annuity options available with the plan. When applying for the plan, you can choose between the two annuity alternatives. Once you’ve chosen a plan, you can’t edit it. The plan offers two types of benefits: one is a survivor benefit and the other is a death benefit. During the deferment period, no survivor benefit will be paid if you survive the term.

Beyond the deferral period, if the annuitant survives, payments will be issued as long as the annuitant remains in arrears according to the annuity payment frequency chosen by the policyholder. However, in the event of death during the deferment period, the death benefit will be equal to the total of the highest premiums paid accrued at 6% per annum, compound interest until the date of death or 105% of the total premiums. paid.

Once the death benefit is paid, the policy will be terminated and all other benefits will also be terminated. And what if you die after the deferment period is over? No death benefit will be payable if you choose the Lifetime Annuity Option, and if you choose the Lifetime Annuity with Return of Premiums option, the death benefit will be paid. By standard means, annuity payments will be issued when the policy matures if you survive.

Plus, you can choose to receive annuity payments on any date. The deferment period can be between the premium payment period and 15 years if the annuitant chooses a guaranteed survival term other than the policy term.

Premium conversion rate

Premium conversion rate

Premiums payable at intervals other than annual are determined by multiplying the annual premium by the following conversion factors:

Frequency Premium conversion factor
Biannual 0.51
Quarterly 0.26
Monthly 0.0875
Source: www.hdfclife.com
Pension deposit (by frequency)

Pension deposit (by frequency)

Only arrears will be paid on the annuity and the regularity of annuity payments, on the other hand, can be set at annual, semi-annual, quarterly or monthly. Annuity rates for non-annual types are calculated by multiplying the annual annuity rate by an annuity conversion factor. Here are the annuity payments for different frequencies:

Frequency Pension deposit (by frequency)
Biannual 98.19% x annual pension x 1/2
Quarterly 97.30% x annual pension x 1/4
Monthly 96.72% x annual pension x 1/12
Source: www.hdfclife.com
Higher premium benefit

Higher premium benefit

For higher annual premiums, benefits in the form of an additional annuity as a percentage of annuity rates would be paid as follows:

Premium payment term Annualized premium > = 5 lakhs
5-7 years 0 0.50% 0.75% 0.90%
8-10 years 0 0.40% 0.60% 0.70%
> 10 years 0 0.30% 0.45% 0.50%
Source: www.hdfclife.com


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