HDFC Life Click 2 Retire Plan

• Hasslefree online Pension Plan
• Secure your retirement with Assured Vesting Benefit
• Option to start as early as 18 years
• Lower vesting/maturity age of 45 years
• Regular, Limited Pay & Single Pay – Options available in one product
• Death benefits to the nominee
• Tax Benefits1 under Section 80C and Sec 10(10A) of Income Tax Act 1961

Following fund options are available:

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

Death Benefit

With the unfortunate demise of the life insured before the vesting date, the death benefit payable to the nominee is the higher of the Fund Value or  105% of the total premiums paid till date.The nominee has the option to take this amount as annuity from us or to withdraw the proceeds.

Vesting Benefit

The policy vests at the end of the policy term, and your Maturity (Vesting) Benefit will be the higher of the  Fund Value or Assured Vesting Benefit.

Loyalty Additions

Loyalty Additions added to your Fund Value on the original vesting date of your policy. Loyalty Additions are expressed as a percentage of annualized/single premium. For regular/limited premium, it may vary from 8.5% to 33% of annualized premium. For single premium, it may vary from 3% to 4.5% of single premiums.

Deferment of Vesting Benefits

The deferment of vesting date (retirement date) can be intimated any time before annuitisation :

• You can postpone the vesting date any number of times subject to the maximum vesting age of 75 years, provided you are below an age of 55 years
• On postponement of vesting date, Assured Vesting Benefit and Death Benefit will continue to apply. The Assured Vesting Benefit will be the same as that calculated on the policy term chosen at the inception of the policy.
• The funds will move to the Pension Conservative Fund and all applicable charges will continue to be deducted.

 

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: Nil. This charge is guaranteed for the term of the policy.

Policy Administration Charge: Nil. This charge may be increased to a maximum of ` 500 per month subject to prior approval from IRDAI.

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 0.25% per annum of the fund value & top-up premium fund value. It is adjusted in the unit price. Guarantee charge up to a maximum of 0.50% per annum of the NAV.

Discontinuance Charge: This charge is levied, in case the policy is discontinued during the first 4 policy years. This charge is levied as applicable under the policy terms & conditions. For more details, please refer the policy brochure.

Miscellaneous Charge: Any Policy alteration request initiated by policyholder will attract a charge of Rs 250 per request. However, if the request is executed through the company’s web portal the policyholder will be charged Rs 25 per request.

Service Tax: Any service tax/cess on charges will be debited by cancellation of units.

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 Click 2 Retire will help him achieve his retirement goal. Requirement of Mr. Verma: Ensure that his Pension Plan gives him an additional Rs. 20 Lakhs, when he retires. Suppose Mr. Verma purchases HDFC Life Click 2 Retire with 10 year premium paying term and 20 year policy term for Rs 1 Lakh premium. Below the chart depicts working of the plan over the entire policy term.
 

Below table depicts working of the plan over the entire policy term. The purchase price is exclusive of Service tax. The annuity amount is illustrated as per mandate by IRDAI at assumed rate of return of 8% and 4%. The annuity amount will depend on the then prevailing annuity rates and options at the time of purchase of the then available Annuity Plan. It is assumed that the entire purchase price has been used to purchase annuity from us.