"Spending a whole day looking for insurance is fun," said nobody, EVER!
Close

Tell us about yourself & we'll find the best Term/Cancer Life Insurance offers for you.

HDFC Life Group Unit Linked Pension Plan

Life Insurance
  • Premiums as low as Rs.18/day for sum assured of Rs.1 crore
  • Paperless process available
  • Choose between lump sum and monthly payout options

Employees are the backbone of every workplace. Without ensuring their happiness and well-being, a company cannot function smoothly. One of the ways in which a company can take care of their employees is by providing them with insurance and/or pension plans. The HDFC Life Group Unit Linked Pension Plan provides trustees with a solution that is flexible and helps to manage superannuation goals. This unique product allows companies to manage all their obligations regarding superannuation schemes in a manner that is both transparent as well as cost effective.

The Group Unit Linked Pension plan is helpful in building the superannuation benefit fund for employees. Policy can be established either through a single policy account or individual accounts for every member. Fund allocation is based on Life Stage, i.e., depends on the number of years left for retirement. The Return Protector option provides minimum guarantee. All in all, this plan is highly advantageous to every company.

Eligibility - Who is the HDFC Life Group Unit Linked Pension Plan for?

The eligibility for group pension plans are largely decided based on the size of the group and age. The table below illustrates the necessary parameters.

Parameters Details
Minimum size of the group 10 members
Minimum age of entry 18 years
Maximum age of entry 74 years
Maximum vesting age 75 years or usual age of retirement, whichever is earlier
Minimum contribution to a new business Rs.5,00,000

All ages are calculated as per previous birthday of the individual.

Sum Assured and Premium Range - What you Get and What it Costs?

Assured Benefit This will 0.5% per annum guaranteed return on the fund value at the beginning of the year. This value is also adjusted suitably based on cash flows that occur throughout the year.

Plan Coverage - What the HDFC Life Group Unit Linked Pension Plan Covers?

Scheme/Benefits For those schemes wherein individual member level accounts are not maintained, such as Defined Benefit Schemes For those schemes wherein individual member level accounts are maintained, such as Defined Benefit Schemes
Death of Member Benefit will paid in accordance with scheme rule put forth by employer and is subject to a maximum of Assured Benefits or Fund Value. Higher of -
  • Value of Fund
  • Assured Benefit
On payment of death benefit, all benefits with respect to the member will stop.
Vesting/Maturity Benefit will paid in accordance with scheme rule put forth by employer and is subject to a maximum of Assured Benefits or Fund Value. Higher of -
  • Value of Fund
  • Assured Benefit
On payment of maturity benefit, all benefits with respect to the member will stop.
Exit due to service termination, resignation, early retirement or circumstances other than normal death Benefit will paid in accordance with scheme rule put forth by employer and is subject to a maximum of Fund Value. Higher of -
  • Value of Fund
  • Assured Benefit
On payment of this benefit, all benefits with respect to the member will stop.

Add-On Plans – Additional Coverage under the HDFC Life Group Unit Linked Pension Plan:

This is not applicable for the plan.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

Free Look Period In case individuals are not satisfied with their Group Unit Linked Pension plan from HDFC Life, they can return the policy document to the company within 15 days from the date that they received their policy, stating reasons thereof, along with original policy documents. Value of units allocated to the company will be refunded. Expenses incurred on stamp duty will be deducted.
Surrender On complete surrender of the policy, fund value minus applicable surrender charge will be paid. Customers can also opt for a partial surrender, subject to availability of units in the funds. Customers will have to specify the proportion of fund value that is to be surrendered partially.
Revival Once the HDFC Group Unit Linked Pension Plan has been cancelled, it cannot be revived. A new proposal will have to be made for a new policy.
Reinstatement Once the HDFC Group Unit Linked Pension Plan has been cancelled, it cannot be reinstated. A new proposal will have to be made for a new policy.

Tax Benefits - How can you save with HDFC Group Unit Linked Pension Plan?

Tax Benefits applicable for the HDFC Group Unit Linked Pension Plan is subject to the prevailing tax laws (Section 80C and Section 10 (10D)) of the Income Tax Act, 1961. Customers will have to note that tax benefits may vary if tax laws are changed. Hence, customers are advised to confirm the same with their tax consultants.

Other Benefits - How can you save with the HDFC Group Unit Linked Pension Plan?

HDFC Life is one of the premier providers of Life Insurance and pension in the country. Their Group Unit Linked Pension Plan comes with a number of unique benefits such as the option to choose the investment plan. These are as listed below -

Scheme Defined Benefit wherein individual member level accounts are not maintained by HDFC Life Defined Benefit wherein individual member level accounts are maintained by HDFC Life
Investment Options
  • Return Protector Option 1
  • Return Protector Option 2
  • Secure Option
  • Return Protector Option 1
  • Return Protector Option 2
  • Secure Option
  • Life Stage Allocation Option
  • Secure Option - As part of this option, 100% of all the contributions will be allocated to Liquid Fund II.
  • Return Protector Option 1 - As part of this option, all contributions will be allocated to Liquid Fund II. Each month, the returns that have been generated over and above the assured benefit will be switched automatically to Secure Managed Fund II.
  • Return Protector Option 2 - As part of this option, all contributions will be allocated to Liquid Fund II. Each month, the returns that have been generated over and above the assured benefit will be switched automatically to Balanced Managed Fund II.

Customers can switch between these options at a later date and is applicable to the entire policy.

  • Life Stage Allocation Option - This option is available for those policies wherein individual member accounts are maintained with HDFC. If this option is chosen, the fund value for an individual’s account will be allocated to numerous funds based on remaining duration to maturity, as illustrated in the table below -
Remaining years to Maturity Investment Allocation
Liquid Fund II Secure Managed Fund II Defensive Managed Fund II
Below 2 years 100% 0% 0%
2 to 5 years 0% 100% 0%
Over 5 years 0% 0% 100%

New contributions will be invested into the fund wherein existing amount has been invested.

Investment Fund Mandates:

Investment Fund Mandates is as illustrated in the table given below -

Fund Details Asset Class Risk and Return Rating
Money Market Instruments and Public Deposits Government Bond and Securities Equity
Fund Composition
 
  • Very low capital risk
  • Very stable returns
100% - - Very Low
 
  • More capital stability as compared to equity funds
  • Higher potential return than Liquid Fund
0% to 25% 75% to 100% - Low
 
  • Access to better long-term returns through equities
  • Significant bond exposure reduces risk as compared to equities
0% to 20% 50% to 85% 15% to 30% Moderate
 
  • Higher equity exposure provides better expected long-term return
  • Bond exposure provides stability as compared to equities
0% to 20% 20% to 70% 30% to 60% High

Why should you Buy the HDFC Group Unit Linked Pension Plan?

One of the premier providers of life insurance and pension policies within the country, HDFC Life allows customers to procure some of the most sought-after plans in the insurance sector. HDFC Life has a network of around 39 offices spread across 9,000 touch points across India for easy access. This company also has a robust financial consultancy wing in India and abroad while providing some of the most successful insurance plans for a wide variety of clientele. Cutting edge technology is also employed resulting in HDFC having one of the best claim settlement records in the company as compared to other insurance providers.

HDFC Group Unit Linked Pension Plan FAQs:

Q. How can one check the status of their HDFC Group Unit Linked Pension Plan?

A. Status of the HDFC Group Unit Linked Pension Plan can be checked by either calling the HDFC Life toll free customer care number of by sending them an e-mail.

Q. What is the applicable Large Fund Discount?

A. To schemes with large funds, additional units will be added as per table provided below -

Value of Fund in Rs. Amount that is to be added (% per annum of the policy’s fund)
More than or equal to 1,00,00,000 0.25%
More than or equal to 2,00,00,000 0.45%
More than or equal to 5,00,00,000 0.55%
More than or equal to 10,00,00,000 0.65%
More than or equal to 15,00,00,000 0.70%

Additional units will be added every month on the last day of working prior to policy monthly anniversary at 1/12th of the rate applicable at that time.

Q. What are the charges applicable to the HDFC Group Unit Linked Pension Plan?

A. Charges applicable to the HDFC Group Unit Linked Pension Plan is given below -

Premium Allocation Charge There is no premium allocation charge as 100% of contributions will be allocated.
Fund Management Charge The daily unit price includes fund management charge of 1.25% per year charged daily, of the value of the fund. The Fund Management Charge will be subject to maximum cap as allowed by the IRDA.
Surrender Charge 0.05% of the unit fund will be levied as surrender charge, as long as policy is surrendered prior to 3rd anniversary of the policy. This is subject to a maximum of Rs.5,00,000.
Mortality Charge This charge will be in force only for those policies wherein member accounts are maintained by HDFC Life. Based on sum at risk, mortality charge will be deducted.
Switching Charge 12 switches per policy year per account, are free and additional requests are priced at Rs.40 per request.

Explain Annuitisation of Benefits.

Annuitisation provisions in respect of pension or superannuation liabilities of the policyholder is as explained below, for schemes wherein member accounts are maintained by HDFC Life -

  • Death Benefits - nominee of deceased member will be entitled to -
  • In order to utilise these benefits either partly or completely, for purchasing an immediate annuity from HDFC Life at the prevailing annuity rate, or
  • Withdraw the entire death benefit amount
  • Maturity/Vesting Benefit - member shall be entitled to -
  • Utilise residual amount to purchase an immediate annuity from HDFC Life at the prevailing rate, or
  • Utilise maturity benefit to procure a single premium deferred pension product from HDFC Life
  • Exit on the grounds such as early retirement, resignation, termination and so on, member can -
  • Transfer fund value to a superannuation fund (subject to approval), or
  • Continue account with HDFC Life, or
  • Purchase single premium deferred pension plan from HDFC Life, or
  • Utilise residual amount to purchase an immediate annuity from HDFC Life at the prevailing rate

Q. Are Service Taxes applicable?

A. Yes, Service Taxes are applicable as per prevailing Service Tax Laws.

Q. Can the policy be terminated?

A. HDFc Life reserves the right to terminate a policy as per their discretion after providing a notice period of 90 days to the policyholder. In such a case, the Fund Value will be paid to the policyholder and all other benefits will cease.

Q. Is nomination allowed for the HDFC Group Unit Linked Pension Plan?

A. Based on nomination records maintained by the scheme administrator, benefits will be processed through master policyholder.

Q. Is automatic switching allowed for HDFC Group Unit Linked Pension Plan?

A. In order to manage risk that is associated with guarantees, under Life Stage Allocation, guarantee exposure will be monitored by the company by comparing discounted value of Assured Vesting Benefit to fund value at individual account level. In case the fund value is below 110% of the discounted value of the Assured Vesting Benefit, the fund value in the Defensive Managed Fund II, if any, will be switched to Secure Managed Fund II.

Q. What are the Switching Factors applicable while switching funds?

A. To manage the risk associated with guarantees, Switch Factors mentioned below will be used in order to switch funds from Defensive Managed Fund II to Secure Managed Fund II.

Outstanding Term to Maturity Switch Factor Outstanding Term to Vesting Switch Factor
5 84% 16 47%
6 80% 17 44%
7 76% 18 42%
8 72% 19 40%
9 68% 20 38%
10 64% 21 36%
11 61% 22 34%
12 58% 23 32%
13 55% 24 30%
14 52% 25 or above 29%
15 49%    

Q. In case an in individual wants to override the Life Stage Allocation, how can he/she allocate his/her investments?

A. In case an individual wants to override the Life Stage Allocation, he/she can choose to allocate the investments to -

  • Liquid Fund II, or
  • Secure Managed Fund II as long as remaining term to maturity is either 2 years or above.