Investment Plans 293 views December 24, 2020

Financial independence shouldn’t take a hit at the time of retirement. People work hard all their life so that they can enjoy their retirement life with peace. To ensure the same, individuals like to plan for their retirement with different insurance plans that ensure lifelong monthly income after retirement or lump sum payout at vesting or death. Of the many insurance plans available, we will discuss the two most popular insurance plans among customers – HDFC Life Click 2 Retire vs HDFC Life Pension Guaranteed Plan. Both these plans are provided by HDFC Life, which is one of the leading insurance companies in India. We will compare these two plans so that you can choose the best plan for you. Read on!

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Let’s Compare HDFC Life Click 2 Retire vs. HDFC Life Pension Guaranteed Plan

HDFC Life Click 2 Retire Plan is an online Unit Linked Pension Scheme with which policyholders can achieve their retirement goals while HDFC Life Pension Guaranteed Plan is a single premium annuity product with which individuals can receive guaranteed income throughout their lifetime.

But this won’t be enough for you to decide the better of the two plans. That’s why we will be comparing HDFC Life Click 2 Retire and HDFC Life Pension Guaranteed Plan on various factors such as premium amount, death benefits, premium payment frequency, etc. Do check to know more about them!

Flexibility to Choose Multiple Plan and Annuity Options

As we told you earlier, HDFC Life Click 2 Retire Plan is a Unit-linked Pension Scheme with which your money works for you and not the other way around. There are three types of funds in this plan from HDFC Life – Pension Equity Plus Fund, Pension Income Fund, and Pension Conservative Fund. All these asset classes have different risk appetites ranging from Low to Very High. Also, these funds have different investment guarantee charges ranging from 0.10% to 0.50% per annum.

On the other hand, individuals who are looking to choose HDFC Life Click 2 Retire Plan have a total of three annuity options that they can choose from at inception. All these options are available on both Single and Joint Life bases. These plan options are Immediate Life Annuity Option, Immediate Life Annuity with Return of Purchase Price Option, and Deferred Life Annuity with Return of Purchase Price Option. The minimum payout can be INR 1,000 if you are choosing a monthly option. The annuity payout for all these options will be calculated as follows and can be received at monthly, quarterly, half-yearly, and yearly modes.

Annuity Payout = Applicable Annuity Rate * Purchase Price

Death Benefit

For both HDFC Life Click 2 Retire and HDFC Life Pension Guaranteed Plan, the nominee will receive a death benefit in case of your unfortunate demise. Have a look at the below table to know about it!

Insurance PlanDeath Benefit
HDFC Life Click 2 Retire PlanHigher of (Fund Value or 105% of the total premiums till date)

Note: Nominee can take this benefit as an annuity or withdraw the proceeds
HDFC Life Pension Guaranteed Plan

  1. For Immediate Life Annuity Option - None

  2. For Immediate Life Annuity with Return of Purchase Price Option - 100% of the Purchase Price of the Annuity

  3. For Deferred Life Annuity with Return of Purchase Price Option - Higher of (110% of the Purchase Price or Purchase Price + Guaranteed Additions - Total Payout Till Death)

For How Long Will You be Covered?

One of the best things about choosing the HDFC Life Pension Guaranteed Plan is that you will get a guaranteed income for a lifetime. So, you can be tension-free for the period of coverage with your insurance plan. However, for the HDFC Life Click 2 Retire Plan, there are multiple options that you can choose from when it comes to the Policy Term. These options are 10, 15 and 35 years, and you can choose according to the protection you need at the time of retirement.

For How Long Will You Need to Pay Premiums?

Depending on the time left in retirement, individuals can choose the premium payment term according to their convenience. For HDFC Life Click 2 Retire, the premium payment term options are Single Pay, 8 Pay, 10 Pay and 15 Pay. However, these premium payment modes tend to vary according to the policy term chosen by policyholders.

For HDFC Life Pension Guaranteed Plan, there is only one option of Single Pay irrespective of the Single or Joint Life basis plan you are choosing.

What is the Minimum Premium Amount and Minimum Purchase Price?

For the HDFC Life Click 2 Retire Insurance Plan, you will need to pay a premium that can be a Single Payment or in installments from the options of Annual, Half-yearly, Quarterly, or Monthly. The minimum premium amount for the Single Pay option stands at INR 50,000, while it can be as low as INR 2,000 for the Monthly Option.

For the HDFC Life Pension Guaranteed Plan, you will need to choose the purchase price that you wish to pay as an annuity. The minimum purchase price differs from one plan option to another. We are showing the minimum purchase price for the three different options below. Have a look!

Plan OptionsMinimum Purchase Price
Immediate Life AnnuityINR 42,076
Immediate Life Annuity with Return of Purchase PriceINR 1,60,261
Deferred Life Annuity with Return of Purchase PriceINR 76,046

Eligibility Criteria

Any individual with an age of 18 years can choose the HDFC Life Click 2 Retire Plan, while the maximum entry age can be 65 years. The Vesting Age for this plan from HDFC Life ranges from 45 to 75 years.

On the other hand, for HDFC Life Pension Guaranteed Plan, the entry age depends on the plan you are choosing. For Immediate Life Annuity and Immediate Life Annuity with Return of Purchase Price Option, the entry age is 30 years. For the Deferred Life Annuity with Return of Purchase Price option, the minimum entry age can be 45 years. However, the maximum entry age of 45 years remains the same for all options.

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