a balanced mutual fund which is expected to generate at least 8% p.a. We recommend that you read the brochure & benefit illustration and understand what the plan is, how it works, the risks involved before you purchase. In such case, the nomination will not get cancelled to the extent of insurer’s or transferee’s or assignee’s interest in the policy. Learn how your comment data is processed. You can take upto 1/3rd of the tax benefit as a commuted value that is tax-free, as detailed under Section 10(10A) of the Income Tax Act, 1961. The minimum purchase price that will produce the minimum annuity mentioned above will depend on the minimum annuity rates, as applicable. If the policyholder intends to initiate a reassignment after the loan is repaid, the nomination will not get cancelled. HDFC Life Guaranteed Pension Plan – Review, Features and Benefits HDFC Life Guaranteed Pension Plan is a non-participating deferred pension plan that offers assured benefits on death or at vesting. In a Joint Life annuity, the secondary annuitant can be the spouse/child/parent/parent-in-law or sibling of the primary annuitant. Insurance is the subject matter of solicitation. After the death of both the annuitants, the purchase price will be paid back to the nominee, Annuity payments = Applicable Annuity rates* Purchase Price. Other relationships maybe considered as long as there is an insurable interest3 between the annuitants. Good article and will help guys that get confused with too many offerings from market. Thus, we may see better rates in bank FDs, Post office scheme, and other fixed-income securities, in next 2-3 years. Very objective. If both the policyholder (annuitant) dies, then the death benefit payable to the nominee will be in a lump sum. The additional annuity amount payable is based on the top-up amount and the annuity rates prevailing at the time of top-up. Yes, you can buy more than one policy from the insurer. The rate of annuity is guaranteed at the time of investment and pension will start after the deferment period which may be 1 to 10 years. For half-yearly frequency the annuity payout will be after 6 months from the purchase. • On death of the annuitant, the annuity payments will cease and no further benefits will be payable. HDFC Life Pension Guaranteed Plan is a single premium annuity product which provides a regular guaranteed income for lifetime. If you are among those who feel that, if the bank has deducted TDS on your bank deposits and also the employer... © Copyright 2017 - Good Moneying Financial Solutions, HDFC Life Pension Guaranteed Plan – A detailed Review, Personal Financial Planning services | Online Financial Planning, Live RICH (Online goal-based financial planning), (Download the annuity rates of HDFC Life pension. Structurally, annuity plans have their merits and demerits. At the same time, given the purpose an annuity plan is expected to serve, the intent should be to purchase the best plan. HDFC Life is a leading provider of insurance solutions in India. However, you must compare the rates for your age and the variant you like and decide accordingly. The sum assured at maturity of the policy is determined by the premium chosen by you. After the deferment period, annuitant will start receiving the pension till he/she is alive and after that, the Purchase price will be returned to the nominee. You invest the money and will start receiving the pension/annuity as per the frequency is chosen while investing. As long as either of the primary or secondary policyholders (annuitant) is alive, the annuity will be payable in arrears post deferment period as per payment frequency is chosen by the policyholder. Nomination can be made at any time before the maturity of the policy. The Death Benefit will vary depending on the annuity option chosen by the policyholder. ARN: EC/06/2017/9792. Hyderabad, Life insurance calculator The greatest merit is that annuities help you cover longevity risk. Your annuity (for annual frequency) will be calculated as follows: The purchase price referred above excludes applicable taxes and other statutory levies if applicable. Now it’s up to you to decide that, Is this the best pension policy for you or not. The article is good. Your pension can start immediately (immediate annuity) or it can start after a few years (deferred annuity). In such a case only, the provisions of Section 39 will not apply. The purchase price referred below excludes applicable taxes and other statutory levies, if applicable. Notify me via e-mail if anyone answers my comment. 5 reasons why people avoid retirement planning and die poor? a.Single Life, • The annuity will be payable in arrears as per payment frequency chosen by you, for as long as the annuitant is alive. Required fields are marked *, Subscribe to FREE Video Course + FREE Ebook + Future Email Updates. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited). If the policyholder chooses to convert the Surrender or Vesting Benefit to an annuity, then he/she will be required to purchase a new policy from the insurer. HDFC Life Pension Guaranteed Plan -Types of Annuity available All are taxable instruments just like an Immediate Annuity. How to Choose the Best Health Insurance Plans & Policies in India? Get your numbers right. You can consider annuity plans from other insurers too before you decide. Options for banks/financial institutions to purchase immediate annuities in respect of annuity payments for their commitments to the homeowners under the reverse mortgage schemes. By the way, I assume buying an annuity plan makes sense for your finances. This ensures that their products are easily accessible by one and all. But in the case of a deferred annuity, the working is bit different. Gurgaon. If the policy has not acquired a surrender value and the policyholder does not pay the premiums that are due under the policy within the allowed grace period, the policy will move into lapsed status. Your nominee has an option to utilize the death benefits, fully or partly, for purchasing an immediate annuity from us. Make your plans now, HDFC International Life and Re Company Limited, Wide range of annuity options to cater to your needs, Option to take the plan on a Single or Joint Life basis, Option to receive immediate or deferred annuity, Option to receive annuity monthly, quarterly, half-yearly or yearly, Option of Return of Purchase Price on death. Guaranteed Additions that were accumulated on the policy before it became paid-up, Vesting Addition that is calculated based on the Paid-Up Sum Assured, The premiums for the first two years have been paid (for premium paying terms of 5 or 7 years), The premiums for the first three years have been paid (for premium paying term of 10 years), Surrender value of accumulated Guaranteed Additions. Deferment Period may be between 1 to 10 years (Integer values), as chosen by the policyholder at inception. Taxes and Levies as applicable will be charged and payable by you by any method including by levy of an additional monetary amount in addition to premium and/or charges. HDFC Life Sanchay claims 8% to 9% Guaranteed Addition and also the guaranteed maturity benefit of 220% to 325% of the Sum Assured depending upon the policy term. Request received - loud & clear!Returning you to where you were... HDFC Life Guaranteed Pension is a participating deferred pension plan that provides the policyholder assured benefits on vesting or at death. Not withstanding anything stated under this document, the following terms & conditions shall apply to QROPS policyholders: In case the policyholder is not agreeable to any policy terms and conditions under this product, the policyholder shall have the option of returning the policy to us stating the reasons thereof, within 15 days from the date of receipt of the policy, as per IRDA (Protection of Policyholders’ Interests) Regulations, 2017. Let us have a closer look at this policy. Deferment period may be between 1 to 10 years. When pension has to come from Government, no one is concerned about safety, low interest. The eligibility conditions of the plan are detailed in the table below: All ages mentioned above are with respect to the last birthday of the policyholder. This ensures that the customer’s savings remain secure for use during the retirement years. Thanks for all the help! Planning for retirement in 2016? the rate at which one will get the fixed pension is predefined and guaranteed by the insurer. He also delivers training on Various personal finance topics to various corporate houses. One of my blog readers noticed this and shared with me for review. Surrender benefit available under different plan options is as follows: Surrender Value shall be equal to the Present Value (PV) of expected future benefits discounted at the then prevailing interest + 2%. Since it is easy to compare annuity products, when one of my clients asked my opinion about the HDFC Life Pension Guaranteed Plan, my first reaction was to compare the annuity rate with LIC Jeevan Shanti, an annuity product from LIC. Immediate Annuity with Return of Purchase price (Joint Life), You invest the money and start getting the pension, after you, the second annuitant will keep getting the pension. Falling into the guarantee trap you will lose the Opportunity cost of your investment. Deepesh made sure that he understands all my financial circumstances that affect the planning. 5 big mistakes investors make in their life & how it impacts them. I worked with Deepesh for investing in mutual funds. Ignore if already submitted. When a transfer or assignment of policy is required, the nomination will be automatically cancelled. The policy provides guaranteed additions on an annual basis and a lump sum vesting addition at the time of maturity. After the seventh policy year, the percentage of premiums paid for GSV calculation shall be interpolated such that it smoothly progresses from 50% at the end of the seventh policy year to 90% two years before vesting. How to evaluate a financial planner – It’s not a Number... Income tax Return Filing – Why it is Important to file... Union Budget 2020 and its Impact on your Personal Finances. • The annuity will be payable in arrears as per payment frequency chosen by you, for as long as either of the primary or the secondary annuitant is alive, • On the death of both annuitants, the annuity payments will cease and no further benefits will be payable. A smart way to ensure a regular income stream post-retirement is by buying an Annuity plan. A charge of Rs 250 shall be levied for processing the revival. Most of these life insurance policies are available online, so buy one today and Sar Utha Ke Jiyo!.