Launch of a Retirement Plan with Guaranteed Income: Premiums, Benefits

HDFC Life recently unveiled its new policy, which is the HDFC Life Systematic Retirement Plan to assist investors in managing their inflation-adjusted annual living expenses following retirement. It’s a non-linked, not-participating, group or individual savings deferred annuity which allows you to gradually build your retirement savings and also allows you to choose selecting the duration of the deferment. The plan permits the purchaser to secure their annuity interest rates from the beginning of the plan. Customers can choose to receive annuities on a monthly basis and quarterly, or even half-yearly. Additionally, they can choose to have the entire amount of their premium in the case of the policy holder’s death.

HDFC Life Systematic Retirement Plan: Key Features

The plan provides the possibility of selecting the premium payment period between 5 and 15 years , and customers can choose a delay period of that is up fifteen years.

The policy can be available within 24 hours, without the requirement of medical exams or underwriting requirements if all necessary documents and verification of pre-conversion are done via chat.

The policy offers the client a guaranteed monthly income for the entire duration of their life, by paying a monthly premium for an indefinite period. The assured income is contingent on the amount paid in accordance with rules and regulations.

The interest rate for annuities set at the time of the start of the policy will remain constant throughout the policy period.

Customers can select any date for payout using The Save the Date feature in the policy.

In the event of the death of the policy holder during the deferment time, the death benefit paid to the annuitant will be the greater of all premiums paid, accumulated over an interest rate that is compounded at 6 percent per year or 105 percent of the total amount paid to the date of death for both options.

In the event of the death of the customer following the deferment time period the death benefit will not be available in the life Annuity option. The policy will be ended upon when the deceased annuitant dies. the other benefits will also end. If the policy is a Life Annuity with the Return of Premiums option the death benefit shall comprise the greater amount of premiums paid, accumulated at an interest rate of compounding at 6 percent p.a. until the expiration of the deferment period , after changing the payments made up to date of death , or 105 % of the premium total.

HDFC Life Systematic Retirement Plan: Eligibility

Anyone in the age range of 45-75 years are eligible for the advantages of the policy. The deferment time period of the policy begins with the premium payment period of 15 years or more. The minimum payout for annuities per installment is 1000 rupees per month. Customers can opt to receive it monthly as well as quarterly, half-yearly, or even yearly. There’s no limitation on annuity payouts subject to the board approval. Approved the Underwriting Policies.

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