How This Systematic Retirement Plan Can Be A Good Bet For Your Golden Years?

When it relates to retirement planning, you should be extremely clear about your retirement goals and begin saving as soon as possible to ensure a prosperous future. Retirement plans are investment schemes that allow you to set out a portion of your money to grow over time and provide you with a consistent income once you retire. HDFC Life, a prominent life insurance provider in India, has launched a new policy called HDFC Life Systematic Retirement Plan to help you manage your annual inflation-adjusted living costs after retirement.

It is a Non-Participating, Non-Linked, Individual/Group Savings Deferred Annuity Plan that helps you to progressively grow your retirement corpus while having the option to pick the deferment time. Restricted premium payment terms through a systematic manner, deferment up to 15 years, and guaranteed income for the rest of your life are just a few of the benefits of this plan. The plan also offers the option of receiving annuities monthly, quarterly, half-yearly, or yearly, as well as the alternative of having the total premiums paid refunded in the event of death.

Eligibility Required

You should review the plan's eligibility criteria which are as follows before purchasing it.

Particulars	Minimum	Maximum
Entry Age	45 years	75 years
Annuity Payout (in Rs) Per instalment	Annual: 12,000; Half Yearly: 6,000; Quarterly: 3,000; Monthly: 1,000	No limit. Acceptance of any case is subject to Board Approved Underwriting Policy (BAUP).
Premium2 (in Rs) Per instalment	Annual: 30,000; Half Yearly: 15,300; Quarterly: 7,800; Monthly: 2,625	No limit. Acceptance of any case is subject to Board Approved Underwriting Policy (BAUP).
Group1 Size (For Group Policies)	10	No limit. Acceptance of any case is subject to Board Approved Underwriting Policy (BAUP)
Premium Payment Term	5 years	15 years
Deferment Period	Premium Payment Term chosen	15 years
Policy Term	Whole Life	Whole Life
Source: www.hdfclife.com

Benefits

Life Annuity and Life Annuity With Return of Premiums are the two annuity options available with the plan. While applying for the plan, you can pick between the two annuity alternatives. Once you've chosen a plan, you can't modify it. The plan offers two types of benefits: one is a Survival Benefit, and the other is a Death Benefit. During the deferment time, no survival benefits will be paid if you survive the term.

Beyond the deferral period, if the annuitant survives, payouts will be issued as long as the annuitant lives in arrears according to the annuity payment frequency chosen by the policyholder. However, in the event of death within the deferment period, the death benefit will be equal to the higher total premiums paid accumulated at 6% p.a. compounding interest until the date of death or 105 percent of total premiums paid.

Once the death benefit is paid, the policy will be discontinued, and all other benefits are terminated as well. And what happens if you die after the deferment period is over? There will be no death benefit payable if you choose the Life Annuity option, and if you choose the Life Annuity with Return of Premiums option, the death benefit will be paid. By a standard means, annuity payouts will be issued on the maturity of the policy if you survive.

Additionally, you can select to receive annuity payments on any certain date. The deferment period can be any part between the premium payment period and 15 years if the annuitant chooses a survival benefit deadline other than the maturity of the policy.

Premium conversion rates

Premiums payable at intervals other than annually are determined by multiplying the annual premium by the following conversion factors:

Frequency	Premium Conversion factor
Half-yearly	0.51
Quarterly	0.26
Monthly	0.0875
Source: www.hdfclife.com

Annuity Instalment (per frequency)

Only arrears will be paid on the annuity and the regularity of annuity payments, on the other hand, can be set to annually, half-yearly, quarterly, or monthly. Annuity rates for non-annual types are computed by multiplying the annual annuity rate by an annuity conversion factor. The following are the annuity payments for various frequencies:

Frequency	Annuity Instalment (per frequency)
Half-yearly	98.19% x Annual Annuity x 1/2
Quarterly	97.30% x Annual Annuity x 1/4
Monthly	96.72% x Annual Annuity x 1/12
Source: www.hdfclife.com

Higher Premium Benefit

For higher yearly premiums, benefits in the form of an additional annuity as a percentage of the annuity rates would be paid as follows:

Premium Payment Term Annualized Premium	<=1.5 lakhs	< 3 lakhs	< 5 lakhs	>= 5 lakhs
5-7 yrs	0	0.50%	0.75%	0.90%
8-10 yrs	0	0.40%	0.60%	0.70%
> 10 yrs	0	0.30%	0.45%	0.50%
Source: www.hdfclife.com