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Knowledge Base Life Insurance Guaranteed Plan HDFC Life ClassicPension Plan Review
Thursday, 04 August 2011 18:29

HDFC Life ClassicPension Plan Review

Written by  Yashish Dahiya
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HDFC Life ClassicPension Plan Review


Plan Name: Pension Plan

Insurer: HDFC Life Insurance Company Limited

Category: Traditional Plan

Objective: Provides regular income post retirement


Major USP of HDFC Life ClassicPension Plan


Limited Premium paying term

Bonuses

Rebate


Eligibility for HDFC Life ClassicPension Plan


Minimum Entry Age – 25 Years

Maximum Entry Age - 65 Years

Minimum Age at Vesting- 45 Years

Maximum Age at Vesting-   80 Years

Policy Term – 10 to 40 Years

Premium Payment Term: Single, 5 years to policy term


What benefits does HDFC Life ClassicPension Plan offer?


Death benefit:

In case the Life Assured passes away during the policy term, the beneficiary will receive premiums paid with accumulated interest of 6% per annum.


Maturity Benefit:

Maturity amount will be equivalent to sum of Sum Assured and bonuses.

You can opt for

- One third of the maturity amount can be received as lump sum and the rest of amount through annuity

- Entire amount can be used to purchase annuity and the payouts will begin


With Profits Plan:

Bonus both reversionary which is based on performance of the participating fund and terminal bonus if any will be given by HDFC LIFE.


Rebate:

For Sum Assured above Rs 500,000, discount on premium shall be given/


Are there any tax benefits?


Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.


What else should I know about?


Paid up Policy: After three policy years if you are unable to continue policy, you can convert to paid up. The policy will not participate in future performance. On maturity or death, reduced Sum Assured and any vested bonuses if any will be paid.


Surrender Benefit: In case you want to cancel HDFC Life ClassicPension plan after 3 years, the minimum guaranteed surrender value will be paid which is equivalent to 50% of all premiums paid barring the first year premium.


Free Look Period: Pension Plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.


How can I buy HDFC Life ClassicPension Plan?


Policybazaar representatives will assist you in buying Pension Plan.


What’s Policybazaar opinion on HDFC Life ClassicPension Plan?


ClassicPension is traditional pension plan where your returns are somewhat guaranteed. The bonus amount may vary as per the performance of fund. You can also avail of rebate if you opt for higher Sum Assured. There are no riders available with the plan.

 

Compare Returns in Guaranteed Plans!!

How much will you get?

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5 comments
  • Comment Link AMAR SINGH Thursday, 22 December 2011 17:00 posted by AMAR SINGH

    Iam 61 I want to invest 50000 per anum in classicpension plan for 5 years.How much pension &other benifits Iwill get from 6th year onward

  • Comment Link Administrator Thursday, 22 December 2011 18:31 posted by Administrator

    Hi Amar
    The premium payment term could be 5 years but the minimum policy term is 10 years. After 10 years, your maturity benefit will be equal to Sum Assured and bonuses. You can withdraw 1/3 of the amount in lump sum while the rest of the amount will be used for providing pension.

  • Comment Link scl tiwari Wednesday, 18 January 2012 19:36 posted by scl tiwari

    I am willing to go for this policy but i want that i should see a copy of bond which confirms the details

  • Comment Link Administrator Friday, 20 January 2012 18:40 posted by Administrator

    Hi scl tiwari
    The pension plan has been withdrawn because of new regulations which came into effect on Dec 31, 2012.
    Many pension plans have been withdrawn because of the regulations and hopefully new plans will be launched soon.

  • Comment Link Payal Saturday, 04 February 2012 22:49 posted by Payal

    If i have invested in HDFC SL Classic Pension Plan, before 31st Dec 2011, i want to know, on completion of term, if i take annuity - what will be the tax implication on the pension drawn.

    If DTC gets applicable what will be the tax implication on the anuuity drawn out of this plan

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