HDFC Life Guaranteed Pension

Key Features of HDFC Guaranteed Pension Plan

meant for being an option towards pension payment has the following salient features -

Benefits and Advantages of Guaranteed Pension Policy

This plan from allows a limited premium payment term to build a secure financial scenario for retirement. Life insurance provided by this policy throughout the policy term is an added benefit. The key advantages in opting for this plan can be mentioned in the following points -

• Life cover is present throughout the policy term
• Flexible term policy tenures for secure pension plan
• Flexible premium payment tenures
• Applicable tax benefits can be availed as per Section 80CCC and 10(10A) of the Income Tax Act

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

• Vesting Benefit - On survival of the life insured till the vesting age, after the completion of the policy term, this amount can be paid to the policyholder. This amount includes the Sum Assured on Vesting, Guaranteed Additions and Vesting Addition. One third of the proceeds can be availed as tax-free lump sum cash amount and the rest can be used to purchase an annuity plan, a single premium deferred pension plan
• Death Benefit - In case of the death of the insured life, the Assured Death Benefit will be payable to the nominee. It will include total premiums paid till death at a guaranteed rate of 6% per annum compounded annually. The
• Surrender Benefit - In case 2 years’ premiums have been paid for a paying tenure of 5 or 7 years or 3 years’ premiums have been paid in full for a payment tenure of 10 years, the policy would acquire a Guaranteed Surrender Value and the same will be paid to the policyholder. In certain cases, the insurer may also pay an amount higher than the GSV which will be a Special Surrender Value
• Tax Benefit - The contributions made towards the premiums of this policy can be tax deductible as per Section 80CCC and the received benefits can fall under Section 10(10A). Though these benefits are dependent on the prevailing tax laws

Premium Payment for HDFC Life Guaranteed Pension Plan

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

GST of 18% is applicable on life insurance effective from the 1st of July, 2017