HDFC Personal Pension Plan

PERSONAL PENSION PLAN

It is a plan which will provide you with income after your retirement. It also gives you the freedom to choose your retirement date.

Benefits:

Death benefit:

In case of your unfortunate death within the term of the policy, your nominee will get:

• 80% of the premium policy if you die within the first year of the policy term.
• Premiums are paid to the date along with the compound interest of 8%p.a (Subject to maximum of the sum assured plus bonus declared to date).

In case of a single premium policy, if your unfortunate death happens to be:

• Within the first year, 90% of the premium is paid.
• After the first year, the sum assured plus bonus is declared to date.

Vesting benefits:

When you choose your vesting date, you get a lump sum compromising the assured sum plus bonuses, if any.

You can also take 1/3^rd part of your sum assured as tax free plus the rest of the amount will be converted into annuity.

Tax benefits:

Under Section 80 CCC, you get a tax deduction for amount paid during the financial year out of your taxable income, towards specified pension plan. Maximum deduction allowed is Rs.100, 000

Under section 10 (10) D of the Income Tax Act, 1961 death and maturity benefits are tax free.

Under Section 80 C premiums up to Rs.100, 000 are allowed as deduction from taxable income.

Surrender benefits:

If you have paid premiums continuously for 3 years, then the contract holds a guaranteed minimum surrender value.

For Regular Premium Policies, the guaranteed minimum surrender value, including the bonuses if any, is 50% of premiums paid subsequent to the first year in respect of the basic benefit, with no additional premiums.

In case of Single premium Policies, the guaranteed surrender value, including the bonuses, if any, is 50% of the single premium paid in respect of the benefit (excluding all additional premiums).

At the end of the term the additional bonuses paid is dependent on the performance of the investment.

Features:

• Flexibility to choose your retirement date.
• Additional bonuses are paid depending upon the performance of the investment.
• In a single premium, the minimum tenure of the policy is of 5 years.
• In case of a regular premium, the minimum tenure of the policy is of 10 years and maximum is of 40 years.
• In case of a single premium, the minimum entry age is of 35 years and maximum is of 60 years.
• In case of a regular premium, the minimum entry age is 18 years and maximum is of 60 years.
• In case of retirement, the minimum entry age is of 50 years and maximum age is of 60 years.
• Flexibility to take a regular premium policy and pay annual premium for each year or take this plan as a single premium payment option.