HDFC Life Assured Pension Plan

• Assured vesting benefit
• Offers  gain from upside in the market
• Loyalty additions in the form of Pension Multipliers starting in the 11th year
• Option to start planning at the early age of 18 years
• Lower vesting/maturity age of 45 years
• Limited Pay & Single Pay  Options
• Assured death benefits to the nominee
• Tax Benefits under Section 80C and Sec 10(10D)

The plan offers following funds for investment:

• Pension Equity Plus Fund
• Pension Income Fund
• Pension Conservative Fund

Death Benefit

In case of your unfortunate demise before the end of policy term, your nominees/legal heirs will receive the higher of the following:

• Fund Value
• 105 % of the total premiums paid till date.

Your nominees/legal heirs have an option to take this amount as annuity from the company or to withdraw the death sum.

Vesting Benefit

Your policy vests at the end of the policy term, and your Maturity (Vesting) Benefit will be the higher of the following:

• Fund Value or
• Assured Vesting Benefit

Loyalty Additions

Loyalty additions in the form of Pension Multipliers will be added to the fund value, if all due premiums have been paid, every alternate year starting from the end of 11th policy year. These additions will be equivalent to 1% of average fund value for immediately preceding two years.

Commutation Benefit

Take up to 1/3 of the benefit as tax-free cash lump sum as per the current tax regulations. The rest of the amount must be converted to an annuity at the then prevailing annuity rates. You have to buy the annuity from us as per the prevailing regulation.

Switching/Premium Redirection

Switching & premium re-direction is not available under this plan.

Bonus

No bonus is available under this plan.

Loan Benefit

No loan benefit can be availed under this plan.

Surrender Value

Upon surrendering the policy with-in the lock-in period of 5 years, the Fund Value (including top-up fund value) less applicable discontinuance charges is credited to the ‘Discontinued Pension Policy Fund’ and it is refunded upon completion of the lock-in period.Upon surrendering the policy after the lock-in period of 5 years, Your fund value will be paid out.

No rider can be opted under this plan.

Premium Allocation Charges: Premium allocation charge is for Annual policies: 5%( year 1 to 5),4 (6^th year onwards).For single premium ,it ranges from 1% to 2.5% as per premium band.

Policy Administration Charge: Year 1-5: 0.18% per month of the Annualised Premium, Year 6 till the end of policy term: 0.50% per month of the Annualised Premium for regular pay.For single pay it is 0.09% per month.

Mortality Charges: Mortality Charge is deducted at each monthly anniversary by cancellation of units. It is applied on Sum at Risk based on the age of the life insured.

Fund Management Charges: The Fund Management Charge is 1.35 % p.a. of fund value.

Investment Guarantee Charge: It is 0.50% p. a for Pension Equity Plus Fund and Pension Income Fund and 0.10% p.a for Pension Conservative Fund.

Discontinuance Charge: This charge depends on the year of discontinuance and your annualised premium. There is no charge after 5th policy year.Refer the brochure for more details.

Miscellaneous Charge: Any Policy alteration request initiated by the policyholder will attract a charge of Rs 250 per request.

Premiums paid are eligible for tax benefits under Section 80CCC of the Income Tax Act, 1961, subject to the provisions contained therein.

Mr Verma, aged 35 years works in an MNC and has just completed his retirement planning. To his surprise, he has realized that out of a total of Rs 30 Lakhs that he would need, his current investments and superannuation funds would earn him a total of approximately Rs 10,50,000 i.e. only 35% of total money required. He needs to quickly start provisioning for additional 65% amount that he would need once he retires. Lets see how HDFC Life Assured Pension Plan will help him achieve his retirement goal.