An individual can earn enough during his working years to support himself and his family comfortably. But the real challenge begins when retirement dawns and expenses show no sign of slowing down. Inflation, rising healthcare costs, needs of growing up children all have to tackled in life’s later years. For this planning early for finances to support retirement years is necessary.
HDFC Life has a number of pension plans to secure your retirement years. Its plans provide insurance cover with growing savings options, so that your funds continue to grow and provide you with a nest egg for retirement when you need it.
Types of HDFC Life Pension Plans
HDFC Life has an array of pension plans that suits an individual’s needs for a secure financial status in life’s later years. Let’s take a look at these plans:
HDFC Life Personal Pension Plus
HDFC Life Personal Pension Plus is a participatory traditional pension plan with an investment horizon of 10-40 years. The plan lets you choose payment of premiums on monthly/quarterly/half-yearly/annually and pays an assured benefit of 101% of all premiums paid on death. You can also choose from a range of annuity options at vesting (on maturity) and get guaranteed income for life. Further, the plan provides tax benefits under 80 CCC.
HDFC Life Pension Super Plus
This is a unit-linked pension plan that lets you accumulate a corpus fund to see you through the retirement years. The plan invests premiums dynamically between fixed income avenues and equities. Death benefits to nominee in case of insured’s death, 102.5% of premium allocation 11th year of investment onwards and assured benefits of fund value or 101% of premiums are other features of the plan.
HDFC Life Single Premium Pension Super Plan
HDFC Life Single Premium Pension Super Plan, a unit-linked single premium policy that creates a corpus over the policy term to generate post-retirement income for life. It gives you the flexibility of paying a single premium and additional top-up premiums. It also provides an assured value of 101% of your single and top-up premiums as maturity benefits (on vesting).
HDFC Life Guranteed Pension Plan
HDFC Life Guranteed Pension Plan is a plan that provides you with guaranteed income to enjoy your retirement years. There is guaranteed addition of 3% for every completed policy year. Assured death benefit of total premiums paid compounded at an annual rate of 6%.
HDFC Life New Immediate Annuity Plan
HDFC Life New Immediate Annuity Plan is a non-linked traditional annuity plan that assures financial independence after your retirement. It also gives you choose frequency of annuity payment-monthly/quarterly/half-yearly or annually and you may receive this as long as you or your partner dies.
HDFC Life Qualifying Recognized Overseas Pension Scheme (QROPS)
If you spent your working life in United Kingdom but wish to transfer the same to India where you wish to spend your last years, then HDFC life Qualifying Recognized Overseas Pension Scheme (QROPS) is for you. This is a tax efficient retirement product registered as QROPS with HMRC and has following benefits:
- Tax Efficient transfer of your pension fund accumulated in the UK to India
- Post retirement in India, you can earn a steady income
- Your funds can continue to grow in India
HDFC Life Click2Retire - ULIP
It is an online unit linked insurance plan, particularly designed to fulfil your retirement needs. The plan helps you spend your retirement days in comfort and style by providing comprehensive coverage and a number of flexibilities. The HDFC Life Click2Retire also enables you to invest in three different funds such as Pension Equity Plus fund, Pension Income Fund and Pension Conservative Fund and get assured returns on your investments. The plan comes with a free-look period 30 days and grace period of 30 days. The minimum entry age required to purchases this plan is 18 years and the maximum age is 65 years.
An example of pension plan
Suppose Ramesh is a public sector worker in India who was offered a voluntary retirement scheme at age of 45 by his company. He accepted the offer and invested the lump sum money he received in the HDFC Life Single Premium Pension Super Plan, a unit-linked single premium policy. At the vesting age of 55 years, he continued to earn an annuity of Rs. 30,000 per month and was able to sustain his lifestyle. In the event of his death during the term, his wife would receive the fund value or assured benefit of 105% of premium paid.
Why HDFC Life Pension Plan?
Coming from the house of HDFC, India’s leading housing finance company, HDFC Life Pension Plans cater to the financial needs of an individual in their later stage of life. They also incorporate features like flexibility, tax savings and guaranteed lifetime income in addition to death benefits.
HDFC Life is a joint venture between India’s Housing Development Finance Corporation Limited (HDFC), and UK’s Standard Life plc. HDFC Life's has Protection, Investment, Pension, Savings and Health plans. Customers can add on riders, to their policies at a nominal price. With 400 branches across the country the company has a fair claim settlement ratio and is geared up to serve customers better.
Other HDFC Life Insurance Plans
GST of 18% is applicable on life insurance effective from the 1st of July, 2017