HDFC Life has launched the HDFC Life Smart Pension Plus, a non-linked, non-participating individual and group annuity savings plan that ensures a regular stream of income in the golden years.

The product offers immediate or deferred payout facility for all plan options. The annuity payouts are in monthly, quarterly, half-yearly and yearly modes. Income payments are as per the selected option.

Why To Buy HDFC Life Smart Pension Plus

The plan provides guaranteed annuity income for life by paying premiums for a single or limited payment term. One plan caters to both single and joint life, with immediate and deferred annuity.

The customer has the option to receive your annuity amount in monthly, quarterly, half-yearly or yearly modes. In addition, the product has four annuity options: life annuity, life annuity with return of per cent of total premiums paid, life annuity with early return, and increasing annuity.

Other Key Features

The customer can make a single payment of Rs 50,000 or a limited payment of Rs 30,000 annual, Rs 15,300 half-yearly, Rs 7,800 quarterly, and Rs 2,625 monthly. There is no limit either to maximum premium amount, or the maximum annuity amount, subject to board approved underwriting policy.

For group policies, it allows a minimum 10 members, while there is no maximum limit, subject to board approval. If bought through a point of sales person (PoSP), a broker or a distributor, the minimum entry age is 40 years, and the maximum is 70 years. The policy term is for the entire life.

Also, the minimum annuity amount is Rs 12,000 annual, Rs 6,000 half-yearly, Rs 3,000 quarterly, Rs 1,000, monthly. There is no limit for maximum annuity amount.

In the case of a joint life annuity, HDFC Life said the primary annuitant will be the primary person entitled to receive the annuity payments. Furthermore, in the event of death of the primary annuitant, the secondary annuitant will be entitled to receive the annuities.

The secondary annuitant can be the spouse, children, parents, parents-in-law or siblings. Other relationships, it said, can be considered if there is an insurable interest between the annuitants.

In a joint life annuity, the payments will continue as long as either of the annuitants is alive. Customers can choose any one of the four options, and once selected, they cannot change the plan. The annuity rate will be guaranteed at the inception of the plan. The plan has scores of other features and options.