Planning for your retirement is an important financial goal that everyone should focus on. While government and quasi-government employees are guaranteed an income through pension from the state or central government, most private employees have no such guarantee and have to depend on their savings. This is why it is important for an average employee to get an annuity plan.
Retirement plans are a type of insurance policy which offer the policyholder a certain amount as pension each month once they have retired from work. Retirement insurance schemes offer returns on investment and life insurance cover in a single product. Investing in retirement plans helps individuals combat the ill-effects of inflation and also helps them receive the much-needed monthly income to carry on with their lives. At the same time, if you meet with an untimely death, your nominee will be able to reap benefits of your prudence and get money to take the family through the difficult times. HDFC Life offers several retirement plans for individuals, including basic pension and annuity plans as well as Unit Linked Insurance Plans.
There are several benefits of getting an HDFC Life Retirement or Pension Plan. Some of the important advantages are:
HDFC Life has a good portfolio of retirement plans, which are available to be bought in two ways: online and offline. Below is a list of their plans segregated on the basis of their availability:
|Plan Name||Entry Age||Maturity Age||Minimum Premium|
|HDFC Life Personal Pension Plus||18 to 65 years||55 to 75 years||Rs.24,000 p.a.|
|HDFC Life Click 2 Retire||18 to 65 years||45 to 75 years||Rs.24,000 p.a.|
|HDFC Life New Immediate Annuity Plan||30 to 85 years||NA||NA|
|HDFC Life Guaranteed Pension Plan||35 to 65 years||55 to 75 years||Rs.24,000 p.a.|
|HDFC Life Single Premium Pension Super Plan||40 to 75 years||50 to 85 years||Rs.25,000 p.a.|
|HDFC Life Pension Super Plus||35 to 65 years||55 to 75 years||Rs.24,000 p.a.|
|HDFC Life Assured Pension Plan||18 to 65 years||45 to 75 years||Rs.24,000 p.a.|
Of these plans in the table, the first four are available online as well as offline, while the other three are available only at HDFC Life offices or with authorised insurance agents. Let us now look at the important information about each plan in detail:
This is a participating retirement solution that allows you to convert your savings into a fixed pension amount after you stop working. You can select a policy tenure between 10 and 40 years, and a retirement age between 55 and 75 years. You receive simple reversionary bonus, interim bonus and terminal bonus on this policy. These will add to the premium amounts paid by you and create a corpus of funds that can be converted into an annuity plan or claimed as vesting benefit at the end of policy tenure. Vesting age is the age at which you plan to retire, which is also equivalent to the maturity time of the policy.
This is a Unit Linked Insurance Plan (ULIP) that invests a part of your premiums in the stock market/funds and gives you higher returns than an endowment or deferred payment policy. The policy duration can be 10 years and between 15 and 35 years. You can pay premiums for limited periods of 8, 10 or 15 years or make a single lump sum premium payment. You are eligible for both vesting benefits and death benefits.
This is a conventional unlinked annuity plan which works slightly differently from a typical endowment plan. You need to pay a certain amount to buy the plan and that amount, plus benefits, will be returned to you during your retirement years as regular pension. There are 11 variants of the scheme, which includes life annuity only, life annuity with return of purchase price, life annuity with a guarantee period, joint life annuity, etc.
This is a non-participating pension scheme that gives you both death benefits and vesting benefits. At maturity, you get an assured addition of 3% of the sum assured per policy year as well as a vesting bonus plus the sum assured.
This is a ULIP scheme for which you need to pay premium only once. The policy is invested in a special pension fund. Both death benefits and maturity benefits are paid by the company. The amount you get at policy maturity can be invested in an annuity plan to ensure a regular retirement income.
This is another ULIP-based pension scheme that allows you to decide when to retire, and save as per your future monetary requirements. You get a guaranteed maturity amount as well as death benefits. You can take one-third of the maturity benefits without any tax cuts and buy an annuity plan with the rest. You can also use the entire maturity corpus to buy an annuity plan to ensure a regular pension income for your post-retirement years.
This is yet another unit-linked pension plan that gives you guaranteed maturity benefits, loyalty bonus, and pension multipliers. The death benefit is the higher of 105% of total premiums paid or the value of the pension fund you are invested in. You can change the vesting age any number of times while the policy is in force.
HDFC Life Pension and Annuity Plans will ensure that you receive a fixed income or a large corpus at the time of your retirement, while at the same time ensuring that your family’s financial needs are taken care of after your death. Here are some reasons why an HDFC Life Retirement Plan is good for you:
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