HDFC Life New Immediate Annuity

An individual choosesthe purchase price, which will fall under one of the following bands,which provides proportional benefits:

• Band 1 – Less than Rs 2,50,000
• Band 2 – Rs 2,50,000 to 4,99,999
• Band 3 – Rs 5,00,000 to 9,99,999
• Band 4 – Rs 10,00,000 to 49,99,999
• Band 5 – Rs 50,00,000 and above

Inaddition, an individual has to choose either a single life plan or joint life plan for purchase, as well as their annuity option from the following:

A) Single Life Annuity

• Life Annuity – Pension amounts are payable until the individual passes away.
• Life Annuity with Return of Purchase Price – Pension amounts are payable until the individual passes away. In this case, the purchase price is returned to the nominee.
• Life Annuity with Return of Balance Purchase Price – Pension amounts are payable until the individual passes away. The amount remaining from the fund is payable to the nominee (if the pay-outs surpass the insurance fund, no money will be returned).
• Life Annuity with a Guarantee Period – Pension amounts are payable for a guaranteed period of 5, 10, 15, or 20 years.
• Life Annuity with 5% Escalation – The pay-outs will increase annually by 5% p.a. No payment is offered after death.
• Life Annuity with Return of Purchase Price in Parts – This option has the following terms:

1. If an insured passes away after 7 years, the nominee gets a pay-out of 70% of the purchase price
2. If an insured passes away before 7 years, the nominee gets a pay-out of the entire purchase price
3. If an insured survives 7 years, he receives pension pay-outs + 30% of the payment price

• Life Annuity with Return of Purchase Price on Diagnosis of Critical Illness (available before age of 55, unlike other plans, which can be availed only after 55 years) – If an insured is diagnosed with any of the 6 specified illnesses [cancer, kidney failure, major organ transplant (heart, lung, liver, kidney, pancreas, bone marrow), heart attack, coronary artery bypass surgery, stroke] before the age of 85, the pension pay-outs will be discontinued and the entire purchase price will be paid back. As the plan also functions as a death cover, the purchase price is payable to the nominee if the insured dies.

B) Joint Life Annuity

• Joint Life Annuity with 100% Annuity to the Secondary Annuitant – On death of the primary insured, the secondary insured will get the same amount being paid to both the insured individuals before death occurred. No pay-outs or paybacks will be made after death of the secondary insured.
• Joint Life Annuity with 50% Annuity to the Secondary Annuitant – On death of the primary insured, the secondary insured will get 50% of the amount being paid to both the insured individuals. No pay-outs or paybacks will be made after death of the secondary insured.
• Joint Life Annuity with 100% Annuity to the Secondary Annuitant and Return of Purchase Price – On death of the primary insured, the secondary insured will get the same amount that was paid to both the insured individuals. The purchase price will also be returned on the death of one of the insured.
• Joint Life Annuity with 50% Annuity to the Secondary Annuitant and Return of Purchase Price – On death of primary insured, the secondary insured will get 50% of the amount that was being paid to both the insured individuals. In addition, 50% of the purchase price will be returned on death of any of the insured.

Annual pay-outs begin a year after the initial payment is made. If the option of half-yearly payments is selected, the pay-outs begin in 6months. For the quarterly pay-out option, pay-outs begin 3 monthsafter the entire amount is paid. For the monthly pay-out option, pay-outs begin a month after the initial payment is made.

As far as the guaranteed additions are concerned, the annuity rate of the plan stands at 8.85% for a 60-year-oldindividual. Investments higher than INR 2,50,000 attract a betterannuity rate for this plan.