HDFC Life Single Premium Pension Super is a single premium unit linked pension plan that assists you in securing your finances post-retirement. The plan creates a corpus over the term of the policy, and this helps in generating an income for life, for utilisation after your earning years. The plan provides you the flexibility to choose the amount of the single premium, with an option to invest through top-up premiums in the future. A significant feature of the plan includes the provision of an assured maturity benefit of 101% of the single premium and all top-up premiums paid by the life insured. The policyholder can also plan his/her retirement date, and can avail a guaranteed regular income on the annuity that is purchased from the insurer.
There are certain eligibility conditions that need to be satisfied for a customer to purchase the HDFC Life Single Premium Pension Super plan. These factors are related to the age of the customer and the number of years of insurance that he/she would be purchasing. The eligibility criteria is detailed below:
|Minimum Entry Age||40 years|
|Maximum Entry Age||75 years|
|Minimum Vesting Age||50 years|
|Maximum Vesting Age||85 years|
All ages mentioned above are with respect to the last birthday of the life insured.
It should be noted that the plan can only be purchased on a single life basis for a policy term of 10 years.
The policy offers multiple benefits in the form of Vesting Benefit, Death Benefit, etc. that are explained in the coverage section below.
The premiums for the HDFC Life Single Premium Pension Super plan have the following limits:
|Maximum||No Limit||No Limit|
HDFC Life Single Premium Pension Super plan is an ideal channel to create a retirement fund so that you can enjoy a post retirement income for life. Since the plan is a unit linked product, it safeguards your investments and provides you maximum benefits when you need it the most.
The coverage under HDFC Life Single Premium Pension Super includes the following:
The way in which this vesting benefit will be paid to you is based on regulations, and is described in the ‘Policy Proceeds’ section below.
The nominee of the policyholder can take the amount as annuity from HDFC Life or withdraw the proceeds completely.
In case you would like to convert these benefits to an annuity, you will be required to buy a new policy from the insurance company.
This is not applicable for the plan.
There are no exclusions under this plan.
If the life insured surrenders the policy after 5 years, the available amount is the fund value, and it will be paid out as explained in the ‘Policy Proceeds’ section.
If the policyholder does not agree to the terms and conditions mentioned in the policy, he/she can return the same to the insurer within 15 days. If the policy was purchased through distance marketing, then the free-look period will be 30 days. Distance marketing refers to insurance policies that are not sold through face-to-face interactions. Policy sales via telephone and the internet can be classified as distance marketing. Once the insurer receives the letter with the original policy documents, the value of units allocated to the insured will be refunded. A policy that is returned cannot be reinstated, restored, or revived again.
The premiums paid for the HDFC Life Single Premium Pension Super plan are eligible for tax benefits, as per Section 80CCC of the Income Tax Act, 1961.
HDFC life offers a wide range of insurance solutions across the country, including insurance schemes related to Pension, Protection, Health, and Investment. The insurance company had a competitive claim settlement ratio of 99.41% in the financial year 2013-14. The claims assistance service of the insurer is very efficient, and they provide solutions with a short turnaround time.
HDFC Life is a front-runner in providing insurance solutions across the country. They have a wide reach, spanning 398 offices and 9,000 touch-points. This ensures that their products are always accessible to customers. The insurance company also has a strong financial consultancy group that has been delivering financial solutions throughout India and abroad.
A. The early 30s are an optimum time to take a look at retirement planning. However, the earlier you start planning, the greater would be the amount that you would collect in your retirement corpus. The power of compounding ensures that you accumulate a large retirement sum with comparatively low investments.
A. A savings and investment plan would have different targets in comparison to a retirement policy. Pension plans are designed to offer the policyholder a good amount as monthly income during his/her retirement years. These schemes also offer limited liquidity; hence, the customer’s savings would be intact for use during the years when it is required the most.
A. In the ideal scenario, you should build a retirement corpus that equates to at least 20 times the value of your income in the year just before retirement. You should factor the cost of living, medical inflation, and increase in life expectancy when you contribute towards your retirement kitty. Your employer’s pension plan may not have sufficient cover to support your post-retirement expenses. So, you should look to purchase an individual pension plan to supplement the benefits provided by your employer’s plan.
A. Having multiple incomes is useful during your ‘working years’. But when you enter into retirement, you may not get the same benefits from your alternate employment as today. In order to ensure that you have a steady source of income after you retire, you should look to purchase a pension plan early in life. Then the policy would accumulate sufficient funds in your retirement corpus for use during the retirement period.
A. Various charges associated with the HDFC Life Single Premium Pension Super plan are as follows:
Premium Allocation Charge - After this charge is deducted from the premium, the remaining amount is utilised in buying units. This percentage of your premium that is invested for the purchase of units is called Premium Allocation Rate.
|Premium||Premium Allocation Rate||Premium Allocation Charge|
Fund Management Charge - The FMC is already included in the daily unit price. This amount is 1.35% per annum of the fund’s value, and is charged on a daily basis.
Policy Administration Charge - A charge of 0.13% of the total premiums will be levied as policy administration charge. This amount is deducted monthly, and has a limit of Rs.500 per month. The charge is taken through cancellation of units from the fund, and it is guaranteed for the entire policy duration.
Mortality Charge - The death cover offered to the policyholder attracts a charge, the amount of which depends upon the age of the insured and the level of coverage provided by the policy. This charge is deducted by cancellation of units from the fund, and is guaranteed for the entire policy term.
Miscellaneous Charges - If the policyholder initiates a policy alteration request, he/she will be charged Rs.250 per request. Charges for administrative services introduced later would also be levied under this category.
Investment Guarantee Charge - The Investment Guarantee Charge is already included in the daily unit price. This amount is 0.40% per annum of the fund value, charged on a daily basis. This charge is applicable only on in-force policies and not on the Discontinued Policy Fund. The charge is also guaranteed for the entire policy term.
A. Unit Linked Life Insurance plans are different from traditional insurance plans, and are hence subject to different risk factors. The premium that is borne by the policyholder is exposed to investment risks of the capital market. The NAVs of the units may increase or decrease on the basis of fund performance and other factors that affect the capital market. The insured is advised to understand the risks and corresponding charges from the insurance agent or the policy documentation. It should be noted that the past performance of fund options do not influence their future performance.
A. The single premium and top-up premium along with the charges would be invested in the fund known as Pension Super Plus 2012.
|Cash, Money Market Instruments, Deposits||Liquid Mutual Fund||Government Securities, Fixed Income Instruments||Equity||Risk and Returns Rating|
|Pension Super Plus 2012||ULIF04818/06/12 PenSuPls12101||The fund will manage the allocation between equity and debt instruments dynamically, so that proceeds equal to the guaranteed benefit are provided||0% - 40%||40% - 100%||0 - 60%||Medium|
The fund has a dynamic asset allocation between fixed income assets and equities. This is dependent on interest rate levels and market movements. The returns from the fund will be different from an investment that is purely in the equity market. As the fund reaches maturity, the allocation will shift to fixed interest or cash.
A. The following terms apply to QROPS policyholders:
Vesting Benefits - If the policy was purchased as QROPS through the transfer of UK tax relieved assets, the access to policy benefits, i.e., annuitisation or tax-free commutation will be restricted. This continues till the life insured reaches 55 years of age or the vesting age, whichever is later.
Surrender Benefits - In this case, the access to policy benefits in the form of annuitisation or tax-free commutation will be restricted. This will be the case till the life insured is 55 years old or the lock-in period ends, whichever is later.
Cancellation during the Free-Look period - The proceeds arising from the cancellation of the policy during the free-look period will be sent back to the fund house from where it originated.
A. When the insurer receives all the necessary documentation from the policyholder, they make the claim payout within 30 days. But if the claim requires additional investigation, this will be initiated by the insurance company without any delay. After the investigation, the claim payout will be made as per the company regulations.
A. Yes, you can buy multiple policies from HDFC Life. However, this decision will be subject to underwriting approval.
A. If your claim has been rejected by the insurance company, you will receive a letter stating the same. The letter will also elaborate on the reasons for the rejection. You will receive this letter within 10 days of the decision from the insurer.