HDFC Life Super Income Plan

HDFC Life Super Income is a participating plan that provides the policyholder a guaranteed income for a long duration, i.e., between 8 and 15 years. The plan enables the insured to participate in the profits of a fund of the company through bonuses. The policy is ideal for customers who require a regular income for their current expenses so that they need not compromise on future goals. The policyholder can avail survival benefits that vary from 8% to 12.5% of the Sum Assured at maturity on an annual basis. The policyholder also has the flexibility to choose the payment frequency, i.e., annual, semi-annual, quarterly, or monthly.

Eligibility - Who is the HDFC Life Super Income Plan for?

There are certain eligibility conditions that should be met for a customer to be able to purchase the HDFC Life Super Income plan. These factors are based on his/her age and the number of years of insurance that he/she would like to avail. These eligibility conditions are detailed below:

Eligibility	Minimum		Maximum
	Policy term - 16 years	Policy term - 18 to 27 years	Policy term - 16 years	Policy term - 18 years	Policy term - 20 years	Policy term - 22 years	Policy term - 24 years	Policy term - 27 years
Entry age	2 years	30 days	59 years	57 years	55 years	53 years	51 years	48 years
Maturity age	18 years		75 years

All ages mentioned above are with respect to the last birthday of the life insured.

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

The HDFC Life Super Income plan has a wide range of options that you can choose from at the inception of the policy, depending upon your financial goals. These options are listed in the table below:

Options	Premium Payment Term in years (A)	Payout Period in years (B)	Policy Term in years (A+B)
Option 1	8	8	16
Option 2	8	10	18
Option 3	10	10	20
Option 4	10	12	22
Option 5	12	12	24
Option 6	12	15	27

Sum Assured:

The sum assured for the HDFC Life Super Income plan is as shown below:

Minimum Sum Assured at Maturity	Rs.128,337
Maximum Sum Assured at Maturity	No limit, subject to underwriting guidelines

Premium:

The policyholder can choose to pay the premiums at annual, semi-annual, quarterly, or monthly frequencies. The limits on premium are as shown below:

Frequency	Minimum Instalment Premium	Maximum Instalment Premium
Annual	Rs.24,000	No limit
Semi-annual	Rs.12,000
Quarterly	Rs.6,000
Monthly	Rs.2,000

The minimum premium is not inclusive of the service tax and other statutory levies.

Plan Coverage - What the HDFC Life Super Income Plan Covers?

The HDFC Life Super Income plan is a regular income plan that provides guaranteed benefits and bonuses to the insured. The coverage of the plan includes the following:

• Survival Benefit - The Survival Benefit is a percentage of the Sum Assured at Maturity. This is a guaranteed amount that is predefined at the inception of the policy and will be paid out on an annual basis during the payout period, subject to the policy being in force. The Survival Benefit is calculated as shown in the table below:

Option	Survival Benefit as percentage of Sum Assured on Maturity
	Annual Survival Benefit	Total Survival Benefit that is paid during the payout period
1	12.50%	100%
2	10%	100%
3	12%	120%
4	10%	120%
5	10%	120%
6	8%	120%

 

The policyholder can choose to receive the payouts on a monthly basis, as opposed to an annual payout. The monthly payout would be 8% of the yearly payout.

• Maturity Benefit - If the policyholder has paid all due premiums on a policy, the maturity benefit will be the sum of the following amounts:
  • Last Survival Benefit Payout
  • Accrued Reversionary Bonuses
  • Interim Bonus
  • Terminal Bonus

Once the maturity benefit is paid, the policy will terminate with no further benefits. If the policyholder is a minor, the policy will mature when he/she attains 18 years of age.

• Bonuses - The bonuses that are offered under the policy are as follows:
  • Reversionary Bonus - At the end of each financial year, a simple reversionary bonus will be payable. This will be a percentage of the sum assured at maturity. When this bonus is added to the policy, it will be paid at the time of vesting, subject to all due premiums being paid. It should be noted that this bonus is not a guaranteed benefit and it depends on the investment return, mortality, expenses, tax, etc. If the life insured faces death or surrenders the policy during the inter-valuation period, an Interim Bonus (based on the company’s bonus rates) will be payable.
  • Terminal Bonus - A terminal bonus, when added to the policy, enables the insurer to pay a share of the surplus, provided that the policyholder has paid all due premiums. This bonus is not a guaranteed benefit as it depends on the actual experience over the term of the policy and the accrued reversionary bonuses.

• Death Benefit - If the policyholder faces death during the term of the policy, the insurance company will pay the nominee the highest amount among the following:
  • Sum Assured at Death + Accrued Reversionary Bonuses + Interim Bonus (if applicable) + Terminal Bonus (if applicable)
  • 105% of premiums paid till death

In the above calculation of the death benefit, the sum assured at death is the highest among:

• Sum Assured at Maturity
• 10 times the annualized premium when the entry age is up to 50 years and 7 times the annualized premium when the entry age is greater than 50 years

Once the death benefit is paid, the policy will terminate with no further benefits.

Add-On Plans – Additional Coverage under the HDFC Life Super Income Plan:

The HDFC Life Super Income plan can be enhanced by opting for the following riders:

• HDFC Life Income Benefit on Accidental Disability Rider
• HDFC Life Critical Illness Plus Rider

Exclusions - What the HDFC Life Super Income Plan doesn’t Cover?

If the policyholder commits suicide within 12 months from the start of the policy, the nominee will receive 80% of the paid premiums provided that the policy is in-force.

If the policyholder commits suicide within 12 months from the revival date of the policy, the nominee will receive the highest amount among the following:

• 80% of premiums paid till death
• Surrender Value on the date of death

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

Rebate on High Sum Assured:

When the Sum Assured on maturity of the policy is 4 lakhs and above, the insurer offers a high sum assured rebate on premium.

Sum Assured at Maturity	Discount on Premium
Between Rs.4,00,000 and Rs.8,00,000	Re.0.50 per 1000 sum assured at maturity
Rs.8,00,000 and above	Re.1 per 1000 sum assured at maturity

Grace Period:

Grace period is the time after the premium payment due date when the policy is in-force with risk cover. The HDFC Life Super Income plan has a grace period of 30 days for policies with yearly, half-yearly, and quarterly frequencies. The grace period for policies with monthly frequency is 15 days. The insurer honours all claims that are raised within the grace period. In such a scenario, the unpaid premium that is due for payment will be deducted from the benefits paid.

Lapsation:

If the due premiums are not paid within the grace period, and the policy has not reached a guaranteed surrender value, it will move into lapsed status. For lapsed policies, the risk cover will cease to exist and no further benefits will be paid. It is possible to revive a lapsed policy.

Paid-Up:

After the policy has acquired a guaranteed surrender value, if the policyholder stops paying premiums, the policy will move into the paid-up status at the end of the grace period. When the policy becomes paid-up:

• The paid-up sum assured at maturity or death will be calculated as follows:

Paid-up sum assured at maturity/death = Sum assured at maturity/death * (Paid premiums) / (Total premiums payable)

• Survival benefit will be a percentage of the paid-up sum assured at maturity.
• Reversionary bonus accumulated on the policy till the date of paid-up will be attached to the policy and will be paid at the time of vesting. The policy will however, not accumulate any further bonuses.

It is possible to reinstate a paid-up policy.

Revival:

A lapsed or paid-up policy can be revived within 2 years (as per current regulations). For revival of a policy, the policyholder is required to pay all the outstanding premiums, corresponding interests, and taxes. Revival of a policy is charged Rs.250 by the insurer. When the policy is revived, the policyholder will receive all benefits as per the contract.

Surrender:

For a policy with premium payment term of 8 years, the Guaranteed Surrender Value (GSV) is acquired when the policyholder has paid all premiums for 2 years. For policies with premium payment terms of 10 and 12 years, the GSV will be attained when the premiums for 3 years have been borne by the insured. GSV is the sum of the following amounts:

• Percentage of all premiums paid
• Percentage of accrued bonuses

If any amount of Survival Benefit is paid to the insured before the policy is surrendered, the Surrender Value (as calculated above) will be reduced based on the payouts that were already made. Once the Surrender Benefit is paid out to the policyholder, the policy terminates with no further benefits. However, it is encouraged to pay premiums for the entire premium payment term to enjoy the complete benefits of the policy.

Free-Look Period:

If the insured is not in agreement with the terms and conditions specified in the policy documentation, he/she can return the policy to the insurer within 15 days from the reception of the policy document. If the policy was purchased through distance marketing, i.e., over the internet or telephone, the free-look period will be 30 days. When the insurer receives the returned policy document with all relevant information, they will arrange for a refund of the premium, after deducting the expenses for medical examination and stamp duty.

It should be noted that after a policy is returned, it cannot be revived again.

Tax Benefits – How you can save with the HDFC Life Super Income Plan?

Premiums paid under the HDFC Life Super Income plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The benefits received from this policy are also exempt from tax under Section 10 (10D) of the Income Tax Act, 1961. These benefits are available as per the current tax regulations, and are subject to change in the future. You are advised to consult a tax advisor for updated tax regulations before the purchase of the policy.

Other Benefits – How you can save with the HDFC Life Super Income Plan?

HDFC Life had a competitive claim settlement ratio of 99.41% in the financial year 2013-14. They also have a dedicated customer service cell that provides assistance for all claim-related queries.

Why you should Buy the Super Income Plan from HDFC Life?

HDFC Life is a leading provider of insurance solutions in the country. They have a wide network of 398 offices and 9,000 touch-points throughout India. This ensures that their products are always accessible to customers. HDFC Life also has an excellent financial consultancy team that provides financial services and solutions to customers within the country and abroad.

HDFC Life Super Income Plan FAQs:

Q. Can I avail loans on the policy?

A. Once the HDFC Life Super Income policy has acquired the surrender value, you can take a policy loan of up to 80% of the surrender value of the policy. The current rate of interest on a policy loan is 10.5% per annum.

Q. What alterations can be made on the premium after the purchase of the policy?

A. After the HDFC Life Super Income policy has been purchased, it is only possible to alter the premium frequency. This is however, subject to certain terms and conditions.

Q. Is assignment or transfer of the HDFC Life Super Income policy allowed?

A. The HDFC Life Super Income policy can be assigned or transferred, in part or as a whole. The instrument of assignment should indicate the reasons for the transfer or assignment. Assignment/transfer fee will be specified by the regulating authority. The insurer may accept or decline the request for assignment or transfer.

Q. What can I do when an assignment request for my policy is rejected by the insurer?

A. If the insurer refuses an assignment request, the aggrieved person may prefer a claim to IRDAI within 30 days from the date of receipt of the refusal letter.

Q. What is the coverage of the HDFC Life Income Benefit on Accidental Disability rider?

A. If the policyholder suffers total permanent disability due to an accident he/she will be paid a monthly income on a regular basis. This income is equal to 1% of the sum assured and will be provided for a duration of 10 years. The total benefit payable should however, be less than or equal to the sum assured of the base policy.

Q. What is the coverage of the HDFC Life Critical Illness Plus rider?

A. The HDFC Life Critical Illness Plus rider provides a lump sum amount on diagnosis of any of the 19 predefined critical illnesses. This benefit can be used to cover expenses arising from the illness. The minimum rider sum assured is Rs.25,000. Currently, the maximum rider sum assured is equivalent to the sum assured of the base policy.

Q. What taxes are applicable on the policy?

A. Indirect Taxes - The Service Tax and other statutory levies will be charged on the HDFC Life Super Income policy. In the future, if any additional taxes become applicable, the policyholder is required to pay the same.

Direct Taxes - Direct taxes, as applicable will be deducted at the prevailing rates from the payments made towards the policy.

Q. What are the conversion factors for arriving at the instalment premium?

A. The instalment premium for policies with premium payment frequency other than the annual mode can be calculated by multiplying the conversion factor with the annual premium. The conversion factor used for this calculation is as shown below:

Premium Frequency	Conversion Factor
Annual	1
Semi-annual	0.51
Quarterly	0.26
Monthly	0.0875

Q. Can I buy more than one policy from HDFC Life?

A. Yes, it is possible to purchase more than one policy from the insurer. However, you will have to receive the necessary approval from the insurer for the same.

Q. How long does HDFC Life take to process claims?

A. When HDFC Life receives all the relevant documentation from the claimant, they make the necessary payouts within 30 days. If the claim needs to be investigated further, the insurer will initiate the same at the earliest. The payout in this case will be made after the investigation.