Insurance Plans 509 views April 14, 2020

In life, we have different stages of aspirations, dreams and goals for us and our family members. It is easier said than achieving them due to day to day responsibilities like household responsibilities, health expenses, marriage expenses, and education fees etc. Investing in HDFC Life Super Income Plan is a good way to ensure there are no compromises in regular expenses as well as future expenses.

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HDFC Life Super Income plan is a participating plan that provides a solution to achieve your dreams uninterrupted, i.e. guaranteed income for a period of 8 to 15 years. In addition, the plan is equipped with the opportunity to by the way of bonuses. This is a perfect choice for individuals seeking regular income at their disposal and is also able to meet the needs of future financial goals simultaneously.

Key Features of HDFC Life Super Income Plan-

The key features of this plan ensure uninterrupted benefits of regular income and profits from the participating fund of the company. Here are the features:

  1. A regular income for a period of 8 to 15 years can be availed after having duly paid premiums during the premium paying term.
  2. A Guaranteed base income will be paid during the pay-out period ranging from 8.0% to 12.5% of Sum Assured on Maturity each year. Maturity payout can be calculated this way: Last Guaranteed Base Income Payout + Accrued Bonuses
  3. The total Guaranteed Base Income pay-outs, in addition to accrued bonuses, will range from 100% or 120% of the Sum Assured on Maturity.
  4. Regular income at maturity can be boosted with reversionary bonuses and terminal bonuses if applicable.
  5. Insurance coverage is also provided throughout the policy term. In addition, the flexibility in policy term options and the range of premiums payable are a good way to meet one’s income targets.
  6. This plan can be easily availed by filling a short medical questionnaire.
  7. Flexibility in paying a premium in installments is provided: monthly, quarterly, half-yearly and annually. The right to choose between the options is only valid during the initiation of the policy and not midterm.
  8. A policy loan, up to 80% of the surrender value, can be availed once the policy acquires the surrender value. It is, however, subject to persisting terms and conditions.
  9. HDFC Life Super Income Plan comes with a Grace Period, time is given after the premium due date wherein the policy is still in force, of 30 days for yearly, half-yearly and quarterly frequencies of premium payment. As for monthly, the grace period is of 15 days.
  10. The policyholder in possession of this policy makes a valid claim during the specified grace period, before having cleared the due payment, the claim will be honoured. However, the unpaid dues will be deducted from any payable benefit arising under the plan.
  11. A lapsed policy can be revived within a specified time period. Moreover, all outstanding premiums, as well as the interest on them and the applicable taxes, must be cleared. A small concession will be charged to the clear the revival request. The interest is subject to the terms and conditions, however.
  12. Guaranteed Surrender Value is what the policy acquires if 2 full years of premium has been paid for a term of 8 years. On the other hand, 3 complete years in case of a term of 10 to 12 years. The GSV aggregate will be the percentage of total premium paid and the percentage of accumulate benefit.
  13. The life assured under the HDFC Life Super Income Plan is eligible for tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Tax Benefits such as premiums payable and the sum assured are exempt from tax but are subject to change in accordance with the tax law.
  14. An additional feature, in case you stop paying premiums after the policy acquires a Guaranteed Surrender Value, the policy will be made a paid-up at the end of the given grace period.
  15. In such a scenario, the paid-up sum assured on either death or maturity will be the sum assured on either death or maturity multiplies by the ratio of the paid premiums to the unpaid premiums payable.
  16. Similarly, the Guaranteed Base income for this paid-up policy will be a percentage of the paid-up sum assured on maturity. This shall be in addition to the reversionary bonus accrued as on the date of paid-up and will be payable on maturity. Note that, there would be no more accrued bonuses further and to revive the policy certain procedure must be followed.
  17. In case you are not agreeable to any policy terms and conditions, you have the option of returning the policy to us stating the reasons thereof, within 15 days from the date of receipt of the policy. The free-look period for policies purchased through distance marketing (specified below) will be 30 days
  18. Sum Assured Rebates are provided on policies with Sum Assured on Maturity of 4 lakhs and above
    On Maturity the Sum Assured Premium Discount Provided
    Rs 400,000 - less than Rs 800,0000.5 per 1000 Sum Assured on Maturity
    Rs 800,000 or more1 per 1000 Sum Assured on Maturity

Eligibility Parameters of HDFC Life Super Income Plan

Eligibility Parameter Minimum Maximum
Entry age The entry age for a policy term of 16 years is from 2 years onwards
The entry age for policy terms of 18 to 27 years is from 30 years onwards.
The maximum age for a policy term of 16 years of 59 years.
The maximum age for a policy term of 18 years is of 57 years.
The maximum age for a policy term of 20 years is of 55 years.
The maximum age for a policy term of 22 years is of 53 years.
The maximum age for a policy term of 24 years of 51 years.
The maximum age for a policy term of 27 years of 48 years.
Maturity Age 18 years 75 years
Sum Assured on Maturity Rs. 128,337There is no limit as such and the amount is subject to satisfactory underwriting.
Premium Paying Frequency
Annual Rs. 24,000
Half-Yearly Rs. 12,000
Quarterly Rs. 6,000
Monthly Rs. 2,000

No specified limit.

Benefits of HDFC Life Super Income Plan-

Maturity Benefit:

A policy with all due premiums paid, the available maturity benefit will be an aggregate of the following mentioned, after which the policy will terminate and no other benefits will be payable.

  1. The Last Guaranteed Base Income Pay-out
  2. The Accrued Reversionary Bonuses as well Interim Bonuses, if any.
  3. If applicable for the policyholder, Terminal bonuses on the Maturity Benefit.

In case of a minor, however, the accrued amount and benefits will be automatically vested on them after attaining 18 years of age.

Death Benefit:

In the unfortunate event of the Life Assured’s death during the term of the policy then the all remaining due premiums are taken care off.

The nominee is provided with the higher of the following amounts:

  1. Sum Assured on Death in addition to the Accrued Reversionary Bonuses and Interim bonus (if any) as well as Terminal bonus (if any).
  2. Or 105% of the premiums paid to the date of the demise; where the Sum Assured will be the higher of: (a): Sum Assured on Maturity, (b):Or 10 times the Annualized premium for the entry age till 50 years and 7 times the annualized premium for entry age more than 50 years. However, any underwriting extra premiums are excluded, including modal loadings and taxes paid.(c):Finally, death benefit provided on the unfortunate demise of the Life Assured during the pay-out period will not be reduced by the survival benefits that have already been cleared.

Guaranteed Base Income (GBI):

  1. This is the percentage of Sum Assured on maturity. It is a guaranteed amount that is decided at the inception of the policy by you. And are payable at maturity of the policy of each year during the pay-out period.
  2. The pay-out period is determined by your chosen plan option as offered by the policy in force.
    Plan Option Annual GBI (in percentage) Total GBI for the complete pay-out period
    1.12.5% 100%
    2.10.0% 100%
    3.12.0% 120%
    410.0% 120%
    510.0% 120%
    68.0% 120%
  3. The future pay-outs can be received monthly rather than annually; the monthly pau-out shall be 8% of the annual pay-out.

Reversionary Bonus:

  1. This is declared at the end of each financial year and is also expressed as a percentage of the Sum Assured on Maturity.
  2. Reversionary Bonus is guaranteed to be payable on maturity, make sure to clear all premiums duly.
  3. However, note that this bonus is not a Guaranteed Bonus and depend on various factors like investment return, expenses, tax, mortality etc. as declared keeping in mind the long term view.
  4. The policyholder is entitled to Interim bonus in case of death or surrender during the inter-valuation period and the bonus rates will be determined by the company declared rate.

Terminal Bonus:

  1. Lastly, a terminal bonus benefit can be added to one’s policy. It enables the company to pay a fair share of the profits on maturity.
  2. This bonus will be payable as a lump sum at the end of the policy term. Make sure to pay all due premiums timely.
  3. This too is not a Guaranteed Benefit.

HDFC Life Super Income Plan, a participating plan, is beneficial as it guarantees a regular income for a period of 8 to 15 years whilst participating in the profits of participating fund of the company. This ensures no compromise is made financially on your part whether every-day expenses or savings for the future. It is important to clear all premiums duly to maximise the benefits in the form of bonuses. Read through the terms and conditions thoroughly before availing any of the given plan choices and then buy the plan.

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