"Spending a whole day looking for insurance is fun," said nobody, EVER!
  • HDFC Life Group Unit Linked Pension

    HDFC Life Insurance

    Overview

    A group unit linked pension plan offering life cover and options to invest in different funds based on the risk appetite of the master policyholder. In addition to the life cover provided to every member under the group policy, the choice of funds in this plan can help manage superannuation schemes very effectively. This policy utilizes contributions from trustees and the master policyholder as investments to build on the superannuation fund value.

    Eligibility Conditions for HDFC Life Group Unit Linked Pension Plan

    This group insurance plan that allows employers to provide for superannuation benefits has got the following the eligibility conditions -

    Parameter

    Minimum

    Maximum

    Group size

    10 members

    N/A

    Policy Term (Years)

    1 year

    Indefinite

    Entry Age

    18 years

    74 years

    Vesting Age

    N/A

    Earlier of 75 years or retirement age

    Contribution at New Business

    Rs. 5,00,000

    N/A

    Key Features of HDFC Group Unit Linked Pension Plan

    This group pension plan has the following salient features -

    Parameters

    Details

       

    Plan Type

    Unit-linked non-participating pension plan

       

    Basis

    Group policy

       

    Policy Term

    Indefinite

       

    Policy Validity

    Annually renewed automatically until surrendered

       

    Sum Assured

    Being a group pension plan, the sum assured per member depends on the salary paid, annuity rates and the initial contribution made

       
           

    Coverage

     

    Member Level Accounts not with HDFC Life

    Member Level Accounts with HDFC Life

     

    Maturity/Vesting Benefit

    Benefit is in line with the scheme rule of the employer till a maximum of the Fund Value or Assured Benefit

    Higher of Fund Value or Assured Benefit

     

    Death of a member

    Benefit is in line with the scheme rule of the employer till a maximum of the Fund Value or Assured Benefit

    Higher of Fund Value or Assured Benefit

     

    Surrender Benefit

    Existing fund value less the surrender charges

     

    Free look Period

    30 days in case of online purchase. 15 days otherwise

       

    Fund Choice Selection

    Investment Options

    Defined Benefit (Member Level Accounts not present with HDFC Life)

    Defined Contribution (Member Level Accounts present with HDFC Life)

       

    Secure Option

    Secure Option

       

    Return Protector Option 1

    Return Protector Option 1

       

    Return Protector Option 2

    Return Protector Option 2

         

    Life Stage Allocation Option

    Annuitisation Options

    Allows the Vesting Benefit or Death Benefit to be paid out immediately in full, partially and a portion to be used to purchase an annuity plan, as the case may be

       

    Nomination

    Benefits of the individual member to be processed through the master policyholder in accordance with nomination records with the administrator

       

    Benefits and Advantages of Group Unit Linked Pension Plan

    This plan from HDFC Life utilizes different investment funds in order to aid in the growth of wealth and can be opted for by employers to aid in the management of superannuation benefits of employees. Life cover provided by this policy for the group members throughout the policy term is an added benefit. The key advantages in opting for this plan can be mentioned in the following points -

    1. Life cover is present throughout the policy term
    2. Indefinite policy term through an annual automatic renewing cycle
    3. Applicable tax benefits can be availed as per the prevailing tax laws
    4. Multiple fund options, 12 free switches and further chargeable unlimited switches to and from different fund options

    The key benefits under this policy can be explained as below -

    1. Maturity/Vesting Benefit - This amount is made available to the group member upon retirement or resignation. The benefit can be withdrawn partially by the member and the rest of the amount can be used to purchase an annuity plan from HDFC Life. The entire proceeds of the benefit can also be utilised towards the annuity plan
    2. Death Benefit - In case of the death of the group member, Death Benefit will be payable to the nominee. It can withdrawn as a lump sum amount or can be used in part or whole to purchase an annuity plan from HDFC Life
    3. Surrender Benefit - As a group policy, this plan’s surrender benefits are only applicable for the master policyholder and will be equal to the fund value at the time of the surrender less the surrender charges
    4. Tax Benefit - As per the prevalent tax rules, tax benefits might be applicable for this plan with reference to the master policyholder

    Investment of Funds under HDFC Life Group Unit Linked Pension

    This unit-linked plan from HDFC Life comes with four fund options that offer a variable mix of risk and return. The premiums for the fund options are through employer and trustee contributions, and continue throughout the term of the policy. The details about such funds have been mentioned in the table below -

    Fund Name

    Details

    Asset Categories

       

    Risk and Return Rating

       

    Money Market Instruments & Public Deposits

    Govt. Securities & Bonds

    Equity

     
       

    Fund Ratios

         

    Liquid Fund II

    Lowest risk to capital and most stable returns

    100%

    N/A

    N/A

    Very Low

    Secure Managed Fund II

    A more potentially rewarding fund with increased stability

    0-25%

    75-100%

    N/A

    Low

    Defensive Managed Fund II

    Better returns and manageable stability

    0-20%

    50-85%

    15-30%

    Moderate

    Opportunities Fund

    Increase in better long term returns and some stability

    0-20%

    20-70%

    30-60%

    High

    Charges in HDFC Group Unit Linked Pension Policy

    Being an group insurance plan that relies on various funds to generate wealth on the investment made, the policy entails charges on quite a few aspects of itself. The applicable charges on this policy are as follows -

    Charge

    Particulars

     

    Premium Allocation Charge

    No premium allocation charge

     

    Fund Management Charge

    1.25% per annum of fund value, chargeable daily

     

    Mortality Charge

    Dependent on policyholder’s age and level of cover

     

    Switching Charges

    Rs. 40 per request post 12 free switches per policy year

     

    Surrender Charge

    Charged only if policy is surrendered before the third year and will be at 0.05% of the unit fund subject to a maximum of INR 5,00,000

     

    Premium Payment for HDFC Life Group Unit Linked Pension Policy

    The details of premium payment for this plan can be summarised in the table below -

    Premium Parameter

    Details

     

    Premiums

    Contributions made by employer or trustees to the unit fund to buy more units, subject to a minimum contribution of INR 5,00,000 for a new business

     

    Premium Discount

    Fund Value (in INR)

    Percentage of policy fund to be added

     

    >= 10,000,000

    0.25%

     

    >= 20,000,000

    0.45%

     

    >= 50,000,000

    0.55%

     

    >= 100,000,000

    0.65%

     

    >= 150,000,000

    0.70%

    Premium Paying Term (PPT)

    Equivalent to the policy tenure

     

    Premium Paying Frequency

    Contributions can be made as and when the fund value decreases after a benefit payment

     

    Premium Paying Modes

    ECS, debit cards, credit cards, cheques and other acceptable modes

     

    Premium Discontinuation Scenario for Group Unit Linked Pension

    This group policy gets renewed automatically every year and the initial contribution counts as the single main premium paid. The fund value can depreciate on account of payments made towards annuitisation benefits but that will not account for the policy discontinuation. Only in the case of surrender, a policy shall be deemed discontinued and the fund value (less the surrender charges, if any) will be paid to the master policyholder.

  • reTH65gcmBgCJ7k - pingdom check string.
    reTH65gcmBgCJ7k - pingdom check string.
    This Page is BLOCKED as it is using Iframes.