HDFC Life Income Advantage Plan

This plan ensures that your family is financially protected in your absence by paying them (Sum Assured on Death + Vested Simple Reversionary Bonuses (SRB), as applicable excluding SRB already paid, if declared +Terminal Bonus, if declared

While you pay premium only during the first half, you enjoy Life Insurance Cover over the entire policy term. This ensures financial protection for your family in case of demise where a lump sum amount is paid to your family.

Life Insurance Cover Amount = Higher of (10 times the Annualized Premium¹ or Basic Sum Assured or Minimum Guaranteed Sum Assured on Maturity or 105% of total premiums paid²) + Applicable bonuses, if declared

On paying all due premiums during the first half of the policy term, this plan provides you with regular income during the second half of the policy term on annual basis.

You have the flexibility to choose how you want to receive your income.

• Pure Income Benefit: Under this option, a lump sum amount is paid to you once every year as guaranteed income. In addition, you benefit from additional income every year that is paid to you on account of applicable bonuses announced from time to time.
  Your Annual Income = Guaranteed Income + Accrued Bonuses, if declared
  
• Income with Maturity Benefit: On survival during the benefit payout term, provided all due premiums are paid, you will get:
  Guaranteed Income (GI): Guaranteed Income under this option is paid annually or monthly, as per the income Payout Mode chosen by you, at inception of policy. Income payout mode can be changed at any time, before the end of the premium payment term.

   

Survival benefit option has to be chosen at the inception of policy. Once chosen, option cannot be changed during the policy term

Bonuses, if declared represent your share in profits of the company’s participating fund. Bonuses are, therefore, not guaranteed and are based on performance of the participating fund.

Bonus rate, if declared is paid as a percentage of the ‘Basic Sum Assured’ in the policy and once declared becomes guaranteed.

Simple Reversionary Bonus (SRB):
Pure Income Benefit: These are non-guaranteed bonuses vested annually,if declared from the end of first policy year till the end of chosen premium payment term. Vested Simple Reversionary Bonuses, if declared are payable on survival during the benefit payout term as explained in the table below

The above table is indicative and is provided for illustration purposes as bonus is not guaranteed.

Income with Maturity Benefit: These are non-guaranteed bonuses vested annually, if declared from the end of first policy year till the end of chosen policy term. The vested SRB, if declared, are payable on maturity of the policy or death of life assured, whichever is earlier, subject to the policy being in force.

Special Additional Bonus²
These are non-guaranteed bonuses declared every year during the benefit payout term and are payable at the end of that policy year, if declared.
2. Applicable for Option A - Pure Income Benefit only

Terminal Bonus (TB)
Terminal bonus, if declared, will be paid on policy maturity or on death of the life assured, whichever is earlier.

This plan rewards you with a premium discount of up to 6%, if you choose to pay higher premium amount.

This also results in an increase in the Basic Sum Assured which in turn increases your annual income payouts.

You save tax¹ on premiums paid under section 80C; on income payout and maturity amount under section 10(10D); on premiums paid towards critical illness rider under section 80D of Income Tax Act 1961 as per prevailing income tax laws.