Launch of the HDFC Life systematic retirement plan. Here are the main features

HDFC Life has launched the “HDFC Life Systematic Retirement Plan” – an individual, group, non-participating, untied and savings deferred annuity plan that systematically allows you to save for your retirement years.

Why HDFC launched this plan

HDFC Life said in its statement: “With increasing life expectancy and inflation in India, the need for retirement planning is critical. In addition, movements in social structures like the growth of nuclear families, migration of the younger generation for jobs, education, etc. emergencies without compromising the money saved for their golden years. “

He added: “A retirement plan is essential to ensure stability in the later years as well as financial independence. Research indicates that retired Indians often live private lives because they live in fear of outliving their life savings. Insurance products like annuities provide guaranteed income for life thus helping consumers to cover themselves against this longevity risk of life. “

The HDFC Life systematic retirement plan allows clients to lock in their annuity interest rates from the start of the policy. The HDFC Life systematic retirement plan offers individuals a unique opportunity to systematically save for a body of retirement over a period of time and then enjoy guaranteed income for life. The plan offers the option of choosing from two plan options – the life annuity and the life annuity with return of premiums, according to the press release from HDFC Life.

Main features of the HDFC Life systematic pension plan:

– An individual has the option of choosing a premium payment period of 5 to 15 years

– He can choose the deferral period up to 15 years

– Policy issuance within 24 hours without medical or underwriting requirements, subject to completion of all necessary documentation and pre-conversion verification via chat. Receive guaranteed income for life by paying premiums for a limited payout period. The annuity rate is guaranteed at the start and remains unchanged for the duration of the policy. In addition, the amount of guaranteed income will depend on the premiums paid subject to the applicable terms and conditions.

– Choose any annuity payment date with the “Save date” function 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 highest of the total premiums paid (It corresponds to the total of premiums received excluding surcharges, endorsements and taxes) accumulated at an interest composed of 6% pa until the date of death or 105% of the total premiums paid until the date of death for both plan options.

– After the suspension period, in the event of death, under the Life annuity option, no death benefit will be due. The policy ends on the death of the annuitant and all other benefits cease. For the Return of Premium Life Annuity Option, the death benefit payable will be the highest aggregate amount of premiums paid2 accrued at compound interest of 6% per annum until the end of the deferment period less the total annuity payments made up to the date of death or 105% of the total premiums paid. on the date of death. In either case, upon payment of the applicable death benefit, the policy ends and all other benefits cease.

HDFC Life systematic retirement plan eligibility

– A natural person must be at least 45 years old to opt for the plan and at most 75 years old, provided that the pension begins at age 80.

– The premium payment period varies from 5 to 15 years

– The deferment period starts from the premium payment term up to 15 years

– The payment of the annuity can be monthly, quarterly, semi-annual or annual according to the choice of the individual

Srinivasan Parthasarathy, Chief Actuary, HDFC Life, said: “Financial independence with a secure and steady stream of income during the golden years is the goal of every individual in retirement. Therefore, systematic planning for life after retirement will ensure that you continue to live worry-free. “

To subscribe to Mint newsletters

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now !!

Source link