HDFC Pensions Plans: Top HDFC Retirement Schemes in India

HDFC Life Insurance Company is one of India’s leading private sector life insurance companies. Founded in the year 2000, the company is a joint venture between HDFC Ltd., India’s leading housing finance institution and Standard Life Aberdeen, a global investment company. HDFC Life Insurance Company offers a wide range of innovative individual and group life insurance products to cater to the needs of diverse customer segments in the country. With its wide network, multi-distribution channels, HDFC life is offering excellent service and insurance solutions to people of the country. Along with pure insurance plans, the company also offers savings plans, wealth plans, pension plans and unit-linked investment plans to address the varying needs of its customers.

HDFC Pension Plans – an Overview

Life post-retirement needs to be well planned in advance during the working career. Retirement planning is a crucial process in order to secure financial future post-retirement. To maintain the same lifestyle and for unforeseen events, post-working life, building enough corpus to avail regular income is really important. Pension plans are the specially crafted financial tools to avail future financial security. Pension plans are the investment products that help to build a big corpus through regular investments and provide regular income after retirement. HDFC Life Insurance offers a variety of pension plans with various attractive features. 

Types of HDFC Pension Plans

HDFC Life offers various pension plans each with its own unique feature to suit the requirements of people. Let’s take a look at various pension plans offered by the company.

1. HDFC Life Pension Guaranteed Plan

HDFC Life Pension Guaranteed Plan is a single premium annuity plan that aims to provide a regular stream of income after retirement for a lifetime. The plan comes with a wide range of annuity options along with death benefits involved. There are various attractive features and benefits offered by this plan.

Features and Benefits of HDFC Life Pension Guaranteed Plan

• Flexibility to choose the preferred annuity options at policy inception. Following are the plan choices available:
  • Immediate annuity plan: The annuity will be payable in arrears as per the payment frequency was chosen as long as the annuitant is alive. In case of death, the payments will cease and no further benefits are paid.
  • Immediate life annuity with return of purchase price: The annuity will be payable in arrears as per the payment frequency was chosen as long as the annuitant is alive. In case of death, the death benefit in a lump sum is payable to the designated nominee. After this, the policy will be terminated and no further benefits are paid.
  • Deferred life annuity with return of purchase price: The annuity will be payable in arrears after the deferment period as per payment frequency was chosen as long as the annuitant is alive. In case of death, the death benefit in a lump sum is payable to the designated nominee. After this, the policy will be terminated and no further benefits are paid. Deferment period may vary from 1 to 10 years. 
• Plan can be availed on a single life or on a joint life basis. Secondary annuitant in a joint-life annuity can be the spouse or child or parent or parents-in-law
• The death benefit is paid in the policy depending on the annuity plan chosen. Following are the details:
  • For an immediate annuity plan: No death benefits 
  • For immediate life annuity with return of purchase price option: 100% of the purchase price of the annuity is payable as a death benefit
  • For deferred life annuity with return of purchase price: Death benefit is higher of 110% of the purchase price or purchase price + guaranteed additions – total annuity payouts till death. Where, guaranteed additions = purchase price X annuity rate/12
• Flexibility to choose the annuity payment frequency – monthly/quarterly/half-yearly/yearly
• Top-up facility to boost annuity payouts

Eligibility Criteria and Other Terms for HDFC Life Pension Guaranteed Plan

2. HDFC Life Guaranteed Pension Plan

HDFC Life Guaranteed Pension Plan is designed to provide financial security and stability after retirement with a regular stream of income with various amazing features. The plan can be availed only on a single life basis.

Features and Benefits of HDFC Life Guaranteed Pension Plan

• Guaranteed additions of 3% of sum assured for each completed policy year
• At the time of vesting, lump-sum vesting addition is also payable
• The benefit is assured on death or at vesting. An annuity purchased at the time of vesting will provide lifelong income after retirement
• The assured death benefit is payable in case of demise. Death benefit = total premium paid till the date of death accumulated at a guaranteed rate of 6% per annum compounded annually.
• Premium paid is eligible for tax benefit under Section 80CCC of the Income Tax Act, 1961

Eligibility Criteria and Other Terms for HDFC Life Guaranteed Pension Plan

3. HDFC Life New Immediate Annuity Plan

HDFC Life New Immediate Annuity Plan is a non-linked traditional annuity plan that provides financial security for golden yearly with regular annuity payouts. The product comes with many amazing features to provide financial independence post-retirement.

Features and Benefits of HDFC Life New Immediate Annuity Plan

• Guaranteed income for as long as the annuitant or the joint annuitant lives. Annuity payout frequency can be chosen as per the requirement – yearly/half-yearly/quarterly/monthly
• Wide range of annuity options to choose from based on individual need
• Higher annuity rates for investments of INR 2, 50,000 and above
• Death benefits are offered for annuity options that have the return of the purchase price. 
• An annuity can be availed on single life as well as joint life basis

Eligibility Criteria and Other Terms for HDFC Life New Immediate Annuity Plan

4. HDFC Life Pension Super Plus

HDFC Life Pension Super Plus plan provides an excellent solution for regular income during retirement life in order to maintain the lifestyle and financial stability. As the plan is linked to the market, helps in maximising the return of money invested in the plan.

Features and Benefits of HDFC Life Pension Super Plus

• On vesting, the benefit payable is higher of the fund value or an assured benefit of 101% of the total premiums paid
• The policyholder can purchase annuity out of the whole lump sum benefit available on vesting or the policyholder can commute 1/3rd of the total benefit and annuity can be purchased with the remaining 2/3rd of benefits
• The policyholder can purchase an annuity on a single life as well as a joint life basis.
• From the 11th policy year onwards, 102% of the premiums paid is allocated to the investment fund
• In case of death, the benefit payable to the designated nominee is higher of the fund value or total premiums paid accumulated at the rate of 6% per annum or 105% of the total premiums paid till the date of death.

Eligibility Criteria and Other Terms for HDFC Life Pension Super Plus

5. HDFC Life Single Premium Pension Super Plan

HDFC Life Single Premium Pension Super Plan is a unit-linked, single premium retirement plan by HDFC Life that provides protection for the retirement life by maximising the returns on investment. This HDFC pension plan comes with various attractive features to provide a financial cushion in the later years of life.

Features and Benefits of HDFC Life Single Premium Pension Super Plan

• If the policyholder is less than 55 years of age, vesting age can be extended

• On vesting, the benefit payable is higher of the fund value or an assured benefit of 101% of the total premiums paid
• The policyholder can purchase annuity out of the whole lump sum benefit available on vesting or the policyholder can commute 1/3rd of the total benefit and annuity can be purchased with the remaining 2/3rd of benefits or can purchase another single premium deferred annuity from HDFC Life 
• The policyholder can purchase an annuity on a single life as well as a joint life basis.
• In case of death, the benefit payable to the designated nominee is higher of the fund value or 105% of the total premiums paid till the date of death. The nominee can either purchase annuities out of the benefits or can withdraw the benefit.

Eligibility Criteria and Other Terms for HDFC Life Single Premium Pension Super Plan

6. HDFC Life Assured Pension Plan-ULIP

HDFC Life Assured Pension Plan is a unit-linked investment plan that provides market-linked returns with loyalty additions that aims to provide hassle-free retirement life. With the potential for higher returns, the plan helps in achieving retirement goals.

Features and Benefits of HDFC Life Assured Pension Plan-ULIP

• The plan provides a combination of market gains and assured benefits on vesting
• Loyalty additions in the form of pension multipliers every alternate year, starting in the 11th year
• Three different investment funds to choose from 
• Flexibility to choose between limited pay and single pay
• In case of death, the benefit payable to the designated nominee is higher of the fund value of the policy at the time of death or 105% of the total premiums paid till the date of death
• Income tax benefit under Section 80C and Section 10(10D) of the Income Tax Act, 1961

Eligibility Criteria and Other Terms for HDFC Life Assured Pension Plan-ULIP

7. HDFC Life Personal Pension Plus Plan

HDFC Life Personal Pension Plus is a traditional participating HDFC pension plan that provides stable and regular income post-retirement for the corpus amount invested over the years. The plan can be availed only on a single life basis.

Features and Benefits of HDFC Life Personal Pension Plus Plan

• Flexibility to choose the policy term based on the need
• Assured benefit equal to 101% of total premium paid on death or on vesting
• The policyholder can purchase annuity out of the whole lump sum benefit available on vesting or the policyholder can commute 1/3rd of the total benefit and annuity can be purchased with the remaining 2/3rd of benefits
• Income tax benefit under Section 80C and Section 10(10D) of the Income Tax Act, 1961

Eligibility Criteria and Other Terms for HDFC Life Personal Pension Plus Plan

8. HDFC Life Click 2 Retire Plan

HDFC Life Click 2 Retire Plan is one of the popular HDFC pension plan online offered by HDFC Life for the investors seeking a good retirement investment option. It is a unit-linked plan that create wealth by maximising returns based on market performance. 

Features and Benefits of HDFC Life Click 2 Retire Plan

• If the policyholder is less than 55 years of age, vesting age can be extended

• The policyholder can purchase annuity out of the whole lump sum benefit available on vesting or the policyholder can commute 1/3rd of the total benefit and annuity can be purchased with the remaining 2/3rd of benefits or can purchase another single premium deferred annuity from HDFC Life 
• Three different investment funds to choose from – pension equity plus fund, pension income fund and pension conservative fund
• On vesting, benefit payable is = [101%+1%X(policy term-premium payment term)]X total premiums paid
• In case of death, the benefit payable to the designated nominee is higher of the fund value of the policy at the time of death or 105% of the total premiums paid till the date of death

Eligibility Criteria and Other Terms for HDFC Life Click 2 Retire Plan

7 Most Important Reasons to Choose HDFC Life Pension Plans:

There are numerous pension plans available in the market. HDFC Life offers one of the best retirement plans. There are a few reasons to choose HDFC pension plans. 

1. HDFC retirement plans are a bundle of attractive features including guaranteed additions, death benefit, tax benefits and flexibility to suit each unique requirement of individuals. 
2. HDFC pension plans aim to provide financial security along with life protection during retired life. 
3. HDFC Life offers both traditional and new age unit linked non-participating plans which can be chosen based on each individuals risk profile and retirement needs
4. HDFC pension plans come with flexibility in premium payment, annuity payment and benefit payout options.
5. Policies can be customised with the additional riders offered by the insurance company to enhance the protection needs
6. HDFC Life is a popular and well-known brand that offers excellent customer services along with diversified products.
7. HDFC ULIP plans for retirement have delivered good returns over the past years.

How to Buy HDFC Pension Plans?

HDFC pension plans can be bought through both online and offline mode. Some policies are specially designed for the digital platform. It’s quite simple and convenient to buy HDFC pension plans online. HDFC retirement plans can be easily bought on Turtlemint platform also.

Following are the simple steps to follow for purchase online:

• Log on to Turtlemint home page
• Choose the category as ‘life insurance’
• Once you click on the category, various plans available under that category will be displayed. Click on ‘retirement/pension plan’.
• Provide your profile details such as gender, marital status, date of birth, income details and contact details etc 
• You can compare the retirement plans offered by various life insurance companies as well as HDFC Life on the side by side basis and select the suitable HDFC pension plan as per your need
• After choosing the plan, provide relevant details and continue to make payment to complete the buying process

How to Make Premium payments for HDFC Pension Plans?

Premium payment for HDFC pension plan can be done online in a few clicks. Following are the mode of premium payments available

• NEFT (National Electronic Funds Transfer)
• ECS (Electronic Clearing System)
• Dropbox
• Bill pay – EBPP (Electronic Bill Presentment and Payment)
• Debit card/ credit card (YES/AXIS Bank)
• Cash/Cheque payment