HDFC Life recently unveiled its new policy, HDFC Life Systematic Retirement Plan, to help investors manage their annual inflation-adjusted cost of living post retirement. It is a non-linked, non-participating, individual/group savings deferred annuity plan that allows you to systematically build your retirement savings while giving you the option to choose the deferment time. The plan allows the subscriber to lock in his annuity interest rates at the inception of the policy. They can choose to receive monthly, quarterly, half yearly annuities. Alternatively, the subscribers also have the option of getting the total premiums refunded in the event of the death of the policy holder.
HDFC Life Systematic Retirement Plan: Key Features
The plan offers the flexibility to choose the premium paying term between 5 to 15 years and the subscriber can choose a moratorium period of up to 15 years.
– The policy is issued within 24 hours without the need for medical and underwriting requirements if required documentation and pre-conversion verification is completed via chat.
The policy provides a guaranteed income for the whole life to the subscriber by paying premiums for a limited period of time. However, the guaranteed income will depend on the premium paid, subject to terms and conditions.
The annuity interest rate agreed at the inception of the policy will remain unchanged for the policy term.
– Customers can choose any payment date with the save the date feature of the policy.
– In the event of death of the policyholder during the moratorium period, the death benefit paid to the annuitant shall exceed the aggregate premiums paid accumulated at the compound interest rate of 6 per cent per annum or 105 per cent of the total premiums paid. Till the date of death for both the plan options.
– In the event of death of the subscriber after the deferment period, no death benefit will be applicable under the life annuity option. On the death of the annuity holder, the policy will terminate and all other benefits will also cease. In case of life annuity with return of premium option, the death benefit, after adjusting the total annuity payments made till the date of death, is higher paid to accrue at the compound interest of 6 per cent per annum till the end of the moratorium period. The total premium will be or 105 per cent of the total premiums paid.
HDFC Life Systematic Retirement Plan: Eligibility
Anyone falling in the age group of 45 to 75 years can avail the policy. The moratorium period of the policy starts from the premium paying term of up to 15 years. The minimum annuity payout is Rs 1000 per month per installment and customers can choose to get it monthly, quarterly, half-yearly or annually. However, there is no limit on the annuity payment subject to the Board approved underwriting policy.
For group policies, at least 10 people are required to participate, but there is no limit.
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