Private life insurer HDFC Life on Monday announced the launch of two pension plans, HDFC Life Pension Super Plus and HDFC Life Single Premium Pension Super. The former is a regular premium unit linked plan whereas the latter is a single premium unit linked plan. HDFC Life is the first private life insurance company to launch a pension product post the new pension guidelines.
Amitabh Chaudhry, MD & CEO, HDFC Life said, "We are the first company to get approval for the pension products. We have launched it in the Ulip platform, as this is our strength. We will also file for par and non-par pension products and expect pension to contribute a high single-digit revenue to our business."
HDFC Life Value Notes Life Freedom Index, a survey conducted earlier this year to understand the current state of financial planning in urban India, revealed that consumers are skeptical about the adequacy of their financial plans to meet their desired standard of living throughout their lifetime.
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 six 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. According to Insurance Regulatory and Development Authority (Irda)'s recent guidelines, customers need to purchase immediate annuity from the proceeds of the pension plan from the same company.
Sanjay Tripathy, executive vice president and head (marketing, product and direct channel), HDFC Life said the entry age of their Immediate Annuity Plan ranges from 30-85 years catering to the diverse spectrum of customers across all age bands with 11 different annuity options for both individual and joint lives. The minimum purchase price is Rs 2 lakh. For customers whose purchase price is Rs 2.5 lakh and above will have the benefit of higher annuity rates.