HDFC Life launches two pension plans in kerala

HDFC Life, one of India’s leading life insurance companies, on Tuesday announced the launch of 2 pension plans in Kerala.

While HDFC Life Pension Super Plus is a regular premium unit linked plan, HDFC Life Single Premium Pension Super is a single premium unit linked plan.

Announcing the schemes, Sanjay Tiwari, Vice President-Strategy and Products-HDFC Life told reporters here that they were the first private life insurance company to bring back pension plans to customers under the new regulatory regime.

There has been good response to the schemes so far all over the country, he said adding so far Rs 100 crore had been collected as premiums.

The two schemes are designed to build a sizeable corpus for post retirement income and offers assured vesting value with minimum guarantee benefits, he said. Both the plans offer assured benefit on death and vesting.

HDFC Life Pension Super Plus offers assured death benefit of total premiums paid to date accumulated at a guaranteed rate of 6 per cent per annum and an assured vesting benefit of 101 per cent of total premiums paid. HDFC Life Single Premium Pension Super offers assured benefit of 101 per cent of total premiums paid on death and vesting.

HDFC Life has also launched a traditional annuity plan—HDFC Life New Immediate Annuity Plan. As per IRDA’s new guideline, customers need to purchase immediate annuity from the proceeds of the Pension Plan from the same company.

Tiwari said in India there was a paradigm shift in retirement trends and the increase in life expectancy.

Individuals opt for retirement as early as at 40-45 years and go on to live beyond 80-85 years.

This emerging trend is expected to boost the Annuity market substantially in the next few years, he said. The entry age of HDFC’s Immediate Annuity Plan ranges from 30-85 catering to the diverse spectrum of customers across all age bands with 11 different annuity options for both individual and joint lives, he said.

The minimum purchase price of Annuity is Rs 2 lakh. For customers whose purchase price is Rs 2.5 lakh and above will have the benefit of higher annuity rates, he said.