HDFC Life Personal Pension Plus Plan is a traditional deferred annuity plan which aims to create a guaranteed retirement corpus for the policyholder. The plan also participates in bonus declarations which enhance the benefit amount. Moreover, the vesting benefit is also guaranteed to be a minimum of 101% of the premiums paid.
Step 1 – the policyholder chooses the premium amount or the Sum Assured, the plan term and the premium paying frequency. If premium is chosen, the Sum Assured would be calculated based on it. If the Sum Assured is chosen, the premium would be calculated.
Step 2 – in case of death during the plan term, the death benefit is paid. The death benefit is the Assured Death Benefit of 101% of premiums is paid till death and accrued bonuses. However, the death benefit should be a minimum benefit of 105% of all premiums paid till death.
Step 3 – if the insured survives the plan tenure, the maturity benefit is paid which is higher of the Sum Assured on Vesting along with accrued bonuses or Assured Benefit of 101% of all premiums paid during the plan tenure. The policyholder has to avail the vesting benefit in any of the options provided under the plan.
Viral, aged 30 years, buys the plan and pays a regular premium of Rs.50, 000. The tenure selected is 20 years.
Option 1 – Viral dies in the 10th year of the policy. The benefit paid is 101% of total premiums paid plus accrued bonuses. Total premium paid is Rs.5 lakhs. Thus, the death benefit would be Rs.5 lakhs + accrued bonuses provided that the total amount is above 105% of Rs.5 lakhs i.e. Rs.5.25 lakhs.
Option 2 – If Viral survives the plan tenure, higher of the Sum Assured on Vesting along with accrued bonuses or Assured Benefit of 101% of all premiums paid during the plan tenure is paid as vesting benefit.
Viral can choose to receive the Vesting benefit in any of the following manners:
He can use the entire benefit to buy a Single Premium Deferred Annuity Plan from the insurance company.
The Vesting Benefit could then be used by the policyholder in any of the following options:
|Age at entry (in completed years)||18 years||65 years|
|Age at maturity (in completed years)||55 years||75 years|
|Term of the plan||10 years||40 years|
|Premium paying options||Regular Pay|
|Premium Paying term||10 years||40 years|
|Annual premium amount||Annually – Rs.24,000
Half-yearly – Rs.12,000
Quarterly – Rs.6000
Monthly – Rs.2000
|Sum Assured on Vesting||Rs.204,841||No limit|
There are no exclusions under the plan.
Given below is the sample premium rates payable by a non-smoking male aged 35 years for different combinations of Sum Assured on Vesting and policy term. The premiums are exclusive of taxes and are assumed to be paid annually.