HDFC Life Smart Pension Plus

You can choose any of the four annuity options at inception. Plan option once selected shall remain the same for the duration of the policy

a) Life Annuity

b) Life Annuity with Return of % of Total Premiums Paid

c) Life Annuity with Early Return

d) Increasing Annuity

Life Annuity: The annuity will be paid in arrears post deferment period, as per the payment frequency chosen by the policyholder, as long as the annuitant(s) is/are alive.

Life Annuity with Return of % of Total Premiums Paid: The annuity will be paid in arrears post deferment period, as per the payment frequency chosen by the policyholder, as long as the annuitant(s) is/are alive.

In addition to annuity for life, a multiple (x%) of the Total Premiums Paid will be paid to the nominee on death of the annuitant(s).The multiple (x%) can range from 50% to 100%, as chosen by the policyholder at inception. 

Life Annuity with Early Return: The annuity will be paid in arrears post deferment period, as per the payment frequency chosen by the policyholder, as long as the annuitant(s) is/are alive.

Survival till milestone age(s):

Option I: 50% of Total Premiums Paid, at Age 75

Option II: 100% of Total Premiums Paid, at Age 75

Option III: 50% of Total Premiums Paid, at Age 80

Option IV: 100% of Total Premiums Paid, at Age 80

Option V: 100% of Total Premiums Paid, between 76 to 95 (both inclusive)

For non-annual payment frequency, the above amount will be divided equally between the installments will be paid in a year.

Increasing Annuity

The annuity will be paid in arrears post deferment period, as per the payment frequency chosen by the policyholder, as long as the annuitant(s) is/are alive.

The policyholder has the choice to select from the below sub options at inception:

Option I – x% p.a. simple increase every year

Option II – x% p.a. compound increase every year

Where x can be between 1% to 5% (both inclusive)

Life Annuity

I. Immediate Annuity  - No Benefits will be paid upon death under this option

II. Deferred Annuity

During deferment period - 105% of the Total Premiums Paid

After deferment period - No Benefits will be paid upon death after the deferment period

Life Annuity with Return of % of Total Premiums Paid

I. Immediate Annuity - x% of  Total Premiums Paid

II. Deferred Annuity

During Deferment Period

Higher of

1. Total Premiums Paid accumulated at 6% p.a. compounded on a daily basis till date of death

2. 105% of the Total Premiums Paid

After Deferment Period

Higher of

1. Total premiums paid accumulated at 6% p.a. compounded on a daily basis till end of deferment period less Total Annuity Payouts made till date of death

2. x % of the Total Premiums Paid

The multiple (x%) can range from 50% to 100%, as chosen by the policyholder at inception.

Life Annuity with Early Return

I.  Immediate Annuity - Total Premiums Paid less survival benefit on milestone age(s) already paid till date of death

II.  Deferred Annuity

During Deferment Period

Higher of

1. Total Premiums Paid accumulated at 6% p.a. compounded on a daily basis till date of death

2. 105% of the Total Premiums Paid

After Deferment Period

Higher of

1. Total Premiums Paid accumulated at 6% p.a. compounded on a daily basis till end of deferment period less Total Annuity Payouts made till date of death

2. Total Premiums Paid less survival benefit on milestone age(s) already paid till date of death

Increasing Annuity

I. Immediate Annuity - Single Premium Paid, if ROPP is selected, nil otherwise

II. Deferred Annuity

  During Deferment Period

 a. If ROPP  is selected: Higher of

 1. Single Premium Paid accumulated at 6% p.a. compounded on a daily basis till date of death

 2. 105% of the Single Premium Paid

b. If ROPP is not selected: 105% of Single Premium Paid

After Deferment Period

a. If ROPP  is selected: Higher of

 1. Single Premium Paid accumulated at 6% p.a. compounded on a daily basis till end of deferment period less Total Annuity Payouts made till date of death

  2. Single Premium Paid

b. If ROPP is not selected: Nil

Enhanced Terms

Enhanced benefit in the form of an additional annuity equivalent

Annuitisation Provisions

On death of the policy holder, nominee can exercise any of the following options: a) Utilize entire proceeds of the policy or a part thereof for purchasing an immediate annuity or deferred annuity b) Withdraw the entire proceeds of the policy

NPS – Family Income Option

This annuity benefit will be paid for life of the subscriber and his/her spouse as per Annuity ‘Plan Option B with 100% Return of Purchase Premium Paid’ on a Joint Life basis.This option is available specifically for National Pension System (NPS) subscribers only.

Liquidity Option

The policyholder will have an option to receive a lumpsum in return of reduction in annuity payments and other benefits. This option is only available under Plan option “Life Annuity with Return of % of Total Premiums Paid”.

Advanced Annuity Option

This is an option to withdraw present value of annuities payable in next 1 to 5 years in advance as a lump sum.

This product is purchased as QROPS