Employees are the backbone of any company. Without ensuring their well-being and happiness, a company cannot function properly. The Group Variable Employee Benefit Plan by HDFC Life is a variable insurance plan that is non-participating. As per this policy, employees are scheme members and the trustee/company is the policyholder. Through this plan, members can build their corpus in a flexible and cost effective manner, while ensuring a secure future. This plan has been designed in a way such that Leave Encashment, Superannuation and Gratuity along with other employee benefits can be managed in an effective manner.
Benefits procured through this plan are numerous. Members can receive a guaranteed minimum return of 1% per year for the entire tenure of the policy. At the start of every financial quarter an additional rate of interest will be declared by HDFC Life. Tax benefits can be availed by both the policyholder and all members. In case of superannuation scheme, a choice of opting for individual member level accounts is available. In addition to the above, the policyholder has the option to provide an additional life cover to members at nominal cost by procuring an HDFC Group Term Insurance Plan.
As part of this plan, the trustee or company will be the master policyholder. Only members of the scheme will be eligible to join the Group Variable Employee Benefit Plan. All conditions mentioned below will have to be fulfilled in order to be eligible to procure this plan.
|Minimum Age at Entry||16 years|
|Maximum Age at Entry||75 years|
|Minimum size of group||10 members|
New employees can join this policy at a well-defined date based on scheme rules. The master policy will continue indefinitely on a yearly renewable basis.
Customers can procure a Guaranteed Minimum Return of 1% per year for the entire tenure of the policy.
Premium is as given below -
|Minimum Premium||Rs.5,00,000 for policy|
|Maximum Premium||No Limit|
Customers should note that premiums vary based on age, location, plan term and other factors.
A number of benefits can be procured through this plan. These benefits are given below -
|Interest Crediting||Minimum Floor Rate - This rate is 1% per year and is guaranteed for the entire term of the policy. The Minimum Floor Rate will be credited to the balance of the policy at the end of the financial quarter.|
|Additional Interest Rate - A non-zero positive additional rate of interest will be declared at the beginning of every financial quarter. At the beginning of a financial quarter, the non-zero positive additional interest rate will be set equal to 95% of the expected gross yields which are to be earned on the backing assets, minus the minimum floor rate. During each interval, once the minimum floor rate has been credited, the non-zero positive additional rate of interest will be credited to the balance of the policy account value.|
|Residual Additions - Non-Zero positive residual additions (if any), will be credited to the policy account at the end of a policy year. Additionally, non-zero positive residual additions may be credited at the end of a policy year.|
|Additional Funding Options||Policyholder can opt to have additional funding on all contributions that are made. This can be chosen on contributions that are made during the first policy year. There are three options that policyholders can choose from, mentioned below. If the policyholder has availed additional funding, this amount will be recovered through a deduction from the account value, and will be equal to a percentage of contributions on which the extra funding was sought. If the policy has been surrendered prior to recovery period, unrecovered additional funding will be deducted from the policy account balance prior to paying the surrender benefits.|
|Option A||Option B||Option C|
|Scheme/Events||For those schemes wherein individual member accounts are not maintained|
|Death of a member of the scheme||Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value of the policy. Additionally, a benefit of Rs.1,000 is payable per member in case a life cover is chosen.|
|Exit due to termination of service/resignation/early retirement/exit other than normal death||Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value of the policy.|
|Scheme/Events||For those schemes wherein individual member accounts are not maintained - Defined Benefit Schemes||For those schemes wherein individual member accounts are maintained - Defined Contribution Schemes|
|Death of a member of the scheme||Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value or Assured Benefit of the policy.||Higher of -
|Vesting/Maturity||Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value or Assured Benefit of the policy.||Higher of -
|Exit due to termination of service/resignation/early retirement/exit other than normal death||Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value of the policy.||Member’s Account Value, and on payment of this benefit, all other benefits with respect to the member will stop.|
Customers should note that the master policy has an indefinite term and therefore will not have a specified vesting/maturity date. The maturity benefits for members will be paid only on normal date of retirement as per scheme rules of the employer.
There are no Add-On Plans or Riders that can be procured under this plan.
There are no exclusions to the death benefit on this plan.
|Cancellations in the Free-Look Period||In case the policyholder does not agree with any of the provisions provided in the policy, the policy can be returned stating the reasons thereof, within a period of 15 days from the date of receipt of the policy. Premium amount will be refunded minus applicable deductions towards proportionate mortality charge and stamp duty.|
|Annuitisation of Benefits||For schemes wherein member level accounts are maintained with HDFC Life -
|For schemes wherein member level accounts are not maintained with HDFC Life, and only a superannuation fund is maintained, benefits paid out during exist such as death, termination and so on, will be paid to the master policyholder in order to be utilised in accordance with scheme rules of employer.|
Tax Benefits applicable for the HDFC Life Group Variable Employee Benefit Plan is subject to the prevailing tax laws (Section 80C and Section 10 (10D)) of the Income Tax Act, 1961. It will have to be taken into consideration that tax benefits will differ if prevailing tax laws change. Hence, individuals are advised to confirm the same with their tax consultants.
HDFC Life is one of the premier providers of insurance in the country. A number of insurance plans are provided for different necessities.
|Online Applications||HDFC Life Group Variable Employee Benefit Plan can be procured online by logging in to the HDFC Life website. This is extremely convenient for those who are unable to visit one of the HDFC branches to purchase the plan.|
|Customer Care||In case individuals have any queries, they contact HDFC Life’s customer care service. They can contact the customer service department via SMS, toll free number, email, letter, etc.|
|Calculator||Before purchasing the HDFC Life Group Variable Employee Benefit Plan, customers can identify their insurance needs on the basis of income, liabilities and expenses by using the HLV or Human Life Value Calculator, available on the HDFC Life website. Similarly, customers can also use the tax calculator by HDFC Life and find the amount of tax that they’ll have to pay.|
HDFC Life is one of the foremost providers of life insurance policies within the country. Through this provider, customers can avail insurance plans that come with a number of unique benefits and services. HDFC Life has a network of about 39 offices that are spread across 9,000 touch points in India for easy access. This company also has a fantastic financial consultancy wing in India and abroad while providing some of the most successful insurance plans for a wide variety of clientele. HDFC employs cutting edge technology resulting in the company having one of the best claim settlement records in the company as compared to certain other insurance providers.
A. This benefit will be in the form of 1% per annum guaranteed return on the account value during the beginning of the year. This amount is adjusted suitably for cash flows that occur during the year.
For example, in an individual has paid Rs.10,00,000 premium during policy inception and withdrew Rs.50,000 for making benefit payments during the middle of the year, the assured benefit at year end will be - Rs.10,00,000 x (1+1%) - Rs.50,000 x (1+1%)0.5.
A. Mortality charge of Re.1 per 1000 of Sum Assured will be charged. Statutory taxes and charges such as Education Cess may be deducted additionally at the then prevailing rates.
A. In order to check the status of their HDFC Life Group Variable Employee Benefit Plan, customers can either contact HDFc Life through the toll free customer care number or can send them an email with query.
A. In case customers are not satisfied with the HDFC Life Group Variable Employee Benefit Plan, they can return the same to HDFc Life along with reasons within 15 days from the date of receipt of the policy.
A. Service Tax and other statutory charges are applicable as per existing service tax laws.
A. Benefits of the policy will be processed through master policyholder with respect to nomination records that have been maintained by scheme administrator.
A. Alterations to the date of maturity may be allowed and is subject to scheme rules. In case the employer increases the normal age of retirement, maturity age may be extended.
A. Minimum Floor Rate is 1% per year and is guaranteed for the entire tenure of the policy.
A. Yes, in case of a superannuation scheme, individual member level accounts can be availed.
A. A group should have a minimum of 10 members in order to procure the HDFC Life Group Variable Employee Benefit Plan.