HDFC Life Assured Pension Plan

About HDFC Life Assured Pension

HDFC Life Assured Pension is a unit-linked investment plan (ULIP) that provides returns plus loyalty additions to help the policyholder build an adequate corpus for retirement. Since ULIPs are market-linked, the investment risk under this plan has to be borne by the policyholder.

Before we dive into the details of this plan, let’s have a quick look at some of its important aspects.

How Does the Plan Work?

The HDFC Life Assured Pension plan offers a choice between paying a single premium or opting for a limited premium payment term out of 8, 10, or 15 years to stay invested for a policy term ranging between 10/15 to 35 years and to receive a regular income post retirement.

Now let’s understand how the plan works.

(i) Pension multiplier

If the policyholder has duly paid all premiums, s/he shall receive loyalty additions in the form of pension multipliers, which will be equal to 1% of the average fund value, appliedto the two immediately precedingyears. This will be paid every alternate year beginning from the end of the eleventh year.

(ii) Vesting benefit

The maturity benefit that the policyholder will receive at the end of the policy term will be the higher among:

• Fund value
• Assured vesting benefit

[This is calculated as 101% + 1% * (policy term minus premium payment term) of the total premiums paid]

Refer to the following table to know the assured vesting benefits as a percentage of the total premiums borne:

(iii) Deferment of vesting date

The insurer can be intimated about the deferment of the maturity (vesting) date at any time before annuitization. Here are some things to keep in mind:

• The policyholder can postpone the deferment of the maturity date as many times as s/he wants subject to the condition that the maximum maturity age is 75 years and the policyholder is below the age of 55 years.
• When the maturity date is postponed, the assured vesting benefit and death benefit will continue to be applicable.
• The funds will move to the Pension Conservative Fund and all charges as applicable shall be deducted.

?(iv) Death benefit

In case the policyholder meets an untimely end while the policy is active, the nominee or the legal heir will stand to receive the death benefit, which will be the higher among:

• Fund value
• 105% of the total premiums paid

The nominee can also choose the mode of receiving the death benefit. It can be received either as annuity or as a lump sum.

Riders and Add-ons

There are no riders or add-ons available under this plan currently.

Why Should You Buy This Plan?

HDFC Life Assured Pension is a unit-linked plan that not only offers loyalty additions every alternate year starting from the end of the eleventh year, but also provides death benefit in the event of an untimely death of the policyholder.

Who Should Buy This Plan?

An individual falling within the age bracket of 18 to 65 years who is looking to invest some money to receive decent returns in the long run along with life cover can opt for this plan.