The HDFC Life Personal Pension Plus (PPP) Plan is a traditional participating Insurance policy that offers a minimum guaranteed maturity benefit along with bonus facility. This insurance plan is ideal for individuals who seek to plan for their post retirement income.

How HDFC Life Personal Pension Plus Plan works

The insurer needs to pay the premium for the entire policy tenure as chosen between 10 to 40 years.

The higher of Sum Assured on Vesting plus accrued Bonuses or Assured Benefit of 101% of all regular Premium Paid is paid to the policyholder on Vesting.

On maturity, the Annuitant can:

  • Withdraw 1/3rd of the maturity benefit as Tax Free under section 10(10)A and utilize the remaining to purchase annuity from HDFC Life
  • Use the entire amount to purchase annuity from HDFC Life
  • Utilize the entire amount to purchase a Single Premium Deferred Pension Plan from HDFC Life

This pension plan accrues simple Reversionary Bonus, Interim Bonus and Terminal Bonus (payable on maturity or on early death.)

The premium rates for frequencies other than annual are calculated by multiplying the annual premium rates by the applicable conversion factors and adding the policy fee for the frequency. You can use the HDFC Life Personal Pension Plus calulator to calculate your premium.

HDFC Life Personal Pension Plus Insurance Plan Key Features

The policy is a Regular Premium Deferred Annuity plan that provides a higher timeframes of 10 to 40 years

The nominee will receive 101% of Total Premiums paid till date + Bonuses, if the Annuitant dies within the Policy Tenure.

On maturity, the higher of Sum Assured on Vesting plus accrued Bonuses or Assured Benefit of 101% of all regular Premium Paid is paid to the policyholder.

Eligibility & Other Conditions

MinimumMaximum
Entry Age1865
Age at Vesting (Maturity)5575
Policy Term1040
Sum Assured on Vesting204841No Limit

Benefits from HDFC Life Personal Pension Plus Insurance Policy 

  1. Maturity Benefit

In case of survival till the vesting date, you will receive higher of the following, provided the full payment of premiums due throughout the policy term is done:

  • Sum Assured on vesting plus accrued bonuses
  • Assured Benefit of 101% of all regular premiums paid till date

Regulation will mandate how this Vesting Benefit will be payable to you.

  1. Death Benefit

In case of death of the life assured within the policy tenure, the nominee will get the Assured Death Benefit of 101% of all regular premiums paid to date. Accrued bonuses will also be payable.

  • The minimum level of death benefit at all times will be 105% of the premiums paid till date.
  • The nominee can utilise the death benefit for purchasing an immediate annuity from them, fully or partly. On the other hand, the nominee can withdraw the entire amount as a lump sum.
  1. Income Tax Benefit
  • Insurance Premiums paid are eligible for tax benefits under Section 80CCC of the Income Tax Act, 1961, subject to fulfilment of terms and conditions.
  • Up to 1/3rd of the Maturity proceeds can be taken as tax-free commuted value, under section 10(10A) of the Income Tax Act, 1961. Also the remaining (or full) amount can be used to purchase a life annuity from them at the annuity rates existing at that time.

For any reason if the premium of HDFC Life Personal Pension Plan Plus stops, the policy will lapse. But if at least 3 years’ premiums have been paid the policy becomes paid up and continues with Reduced Benefit. However the pension plan can be revived within 2 years from the due date of the first unpaid premium. Also the policy acquires a Guaranteed Surrender Value (GSV) which is a percentage of all regular premiums paid, provided first 3 years’ premiums have been paid (as specified in the policy terms & conditions).

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