HDFC Life Systematic Pension Plan

On death of the Life Assured, Death Benefit is payable as a lumpsum.

The Death Benefit payable will be higher of:

• Assured Benefit on death plus Accrued Reversionary Bonus plus Interim/Terminal Bonus, if declared,

• 105% of Total Premiums Paid

Where, Assured Benefit on death is equal to 101% of Total Premiums Paid.

Upon this payment the Policy terminates and no further benefits are payable.

Please refer to Section ‘Annuitisation Provisions for Policy Proceeds’ for provisions relating to annuitisation of death benefits.

On survival of the Life Assured till the vesting date and on full payment of all due premiums throughout the Policy Term, the vesting benefit payable will be higher of the following:

• Sum Assured on vesting* plus Accrued Reversionary Bonus plus Interim/Terminal Bonus, if declared,

• Assured Benefit on vesting which is equal to the Total Premiums Paid accumulated at 4% p.a. compound

*Sum Assured on vesting is an amount which is guaranteed to become payable on vesting of the policy, and is calculated as:

For Single Pay, Sum Assured on vesting* = Single Premium Paid

For Limited/Regular Pay, Sum Assured on vesting* = Annualized Premium x Premium Payment Term

On vesting, the amount will be paid to you as defined in the ‘Annuitisation Provisions for Policy Proceeds’ section.

As per current regulations, you can take the benefits in the following manner:

On death of the policy holder, nominee can exercise any of the following options:

• Utilize entire proceeds of the policy or a part thereof for purchasing an immediate annuity or deferred annuity from the same insurer at the then prevailing rate. Nominee can also purchase an immediate or deferred annuity from another insurer at the then prevailing rate to the extent of percentage, as stipulated by the Authority, currently 50%, of the entire proceeds of the policy net of commutation

• Withdraw the entire proceeds of the policy.

On surrender or vesting, the policyholder can exercise any one of the following options:

• To utilize the entire proceeds to purchase immediate annuity or deferred annuity from the same insurer at the then prevailing annuity rate. The policyholder shall have an option to purchase annuity from another insurer at the then prevailing rate to the extent of percentage, as stipulated by the Authority, currently 50%, of the entire proceeds of the policy net of commutation.

• To commute up to 60% and utilize the balance amount to purchase immediate annuity or deferred annuity from the same insurer at the then prevailing annuity rate. The policy holder shall have an option to purchase annuity from another insurer at the then prevailing rate to the extent of percentage, as stipulated by the Authority, currently 50%, of the entire proceeds of the policy net of commutation. 

In case the proceeds of the policy either on death or surrender or on vesting are not sufficient to purchase minimum annuity as defined in Regulation 3(a) of IRDAI (Minimum Limits for Annuities and Other Benefits) Regulations, 2015, as amended from time to time, such proceeds may be paid to the nominee/policy holder/beneficiary as lump sum.