HDFC Life has launched HDFC Life Saral Pension, a single premium, non-linked, non-participating product with life-long guaranteed annuity rates. HDFC Life Saral Pension is a standard, individual, immediate annuity product with features that help one make an informed decision for planning their retirement.
Some of the key features of the plan includes, no need for medical examination, single premium payment option, provides guaranteed income source, option to surrender if the policyholder or the spouse or any of the policyholder’s children is diagnosed as suffering from any of the listed critical illnesses, return of purchase price on death, the benefit of higher annuity rates for the large purchase price, and availability of policy loan.
On approval of surrender, 95 per cent of the Purchase Price, will be paid to the policyholder, after deduction of outstanding loan amount and loan interest, if any.
Experts say annuity is an important product category given the absence of social security in India. It enables an individual to continue receiving regular income even after retirement. The increase in lifespan, improvement in healthcare facilities and the increasing trend of nuclear families, all these factors necessitate retirement planning. Annuity plans ensure that one continues to live a comfortable life even after retirement.
Srinivasan Parthasarathy, Chief Actuary, HDFC Life, says “Annuity plans are suitable for individuals who are closer to retirement age or have retired. These plans can act as a safeguard against market volatilities and falling interest rates. One starts receiving regular payments right after purchasing the product which ensures steady and regular income with locked-in annuity rates for the rest of their life. HDFC Life Saral pension is a simple and easy to understand product. It is a helpful instrument for retirement planning and we hope customers make the most of it.”
HDFC Life Saral Pension offers the flexibility to choose how one receives annuity – one can choose to receive it monthly, quarterly, bi-annually or annually. Further, industry experts say the joint-life option works well for those who want to extend the benefit to their spouse.
