Overview

This is the ideal retirement option for those people who wish to make the most of their savings by providing for retirement by making safe investments. The benefits of this plan are payable largely on an installment basis thereby providing an income stream during retirement when personal income is limited.

The HDFC Life Personal Pension Plus Plan Offers Benefits on

1. Death of the life assured
2. At vesting

As a participating plan, bonuses are payable, participating in the profits made by the fund. Under this plan, an applicant can either opt to pay premiums and receive the sum assured based on these payments at time of death/vesting or an applicant can choose the sum assured based on which premiums to be paid will be determined.

• services taxes and other regulatory fees to be included where applicable

Eligibility of HDFC Life Personal Pension Plus

In order to be eligible for this HDFC Life policy, the applicants must meet these age criteria. The policy term of 10 to 40 years can be chosen not only depending on the age of entry but also keeping in mind the age of exit or maturity or vesting. This would also affect the sum assured and premiums that can be opted for as explained in the features above.

Benefits or Advantages of the HDFC Life Personal Pension Plus Plan are Outlined Below

• Tax benefits: This plan makes for an efficient tax-saving investment

1. Premiums: Tax advantages U/S 80CCC
2. ^ ? cash lump sum payout is tax-free

This is subject to changes in tax rules

• Option to choose lump sum or annuity payouts as per nominee/policyholder needs upon death/vesting
• Flexible sum assured, policy term and premium payment options
• Affordable retirement plan with an EMI option exclusively to users of HDFC credit cards; offers an investment cum savings option
• Easy application process
• Provides financial security on retirement

How This Plan Works

Let us elucidate this plan through the following example.

Mr.Ahuja, 55, wishes to provide for his retirement and opts for the HDFC Life Personal Pension Plus policy. He will be eligible for the policy as the maximum entry age is 65 years. He can choose a policy term of 10 to 20 years. This is because the minimum policy term is 10 years and the maximum age at maturity / vesting / exit is 75 years.

After consulting with his financial advisor, he estimates he can pay premiums comfortably every month. The minimum payable every month is Rs.2,000 i.e. Rs.24,000 per year. He opts for this for a term of 20 years.

Suppose, Mr. Ahuja dies after 5 years. He will receive an assured benefit of 101% of Rs.24,000 * 5 = Rs.1,21,000 + applicable bonuses. At a minimum level of 105%, it works out to Rs.1,26,000 + applicable bonuses.

If Mr. Ahuja survives till policy maturity i.e. for the next 20 years, he will receive 101% of Rs.24,000*20 = Rs.4,84,000 + applicable bonuses or the vesting amount + applicable bonuses. whichever is higher.

Conversely, if the sum assured is fixed or decided upon when taking the policy, then the premium payable is based on this.