Investment Plans 242 views December 24, 2020

Retirement is a crucial milestone in an individual’s life, and that’s why people religiously work towards protecting their life after retirement. Insurance companies provide different types of plans that can ensure the same such as insurance-cum-pension Plans, Annuity Plans, etc. If you want good surplus money after retirement, you can choose between HDFC Life Guaranteed Pension Plan and HDFC Life New Immediate Annuity Plan. These two from HDFC Life are the most popular life insurance-cum-pension plans among customers.

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To choose a suitable plan for yourself, you should have a proper understanding of both these products. In this article, we will be doing a comparison of HDFC Life Guaranteed Pension Plan vs HDFC Life New Immediate Annuity Plan. Keep reading!

Let’s Compare HDFC Life Guaranteed Pension Plan and HDFC Life New Immediate Annuity Plan

As the name suggests, HDFC Life Guaranteed Pension Plan is a non-participating deferred pension plan with which individuals can enjoy guaranteed benefits at the time of policyholder’s death or vest ( when you want to retire). On the other hand, HDFC Life New Immediate Annuity Plan is a single premium non participating non linked annuity plan with which customers can choose from several annuity options.

Want to know more about these plans from HDFC Life? Well, we will be comparing these plans based on a variety of factors such as Benefits, Premium amount, Premium payment term, Annuity Options, Plan options, Policy Term, etc. Let’s start with the features of these plans that you can enjoy.

Key Features

Firstly, you should know about some of the key features associated with HDFC Life Guaranteed Pension Plan and HDFC Life New Immediate Annuity Plan. We are showing them in the table below.

Insurance PlanFeatures
HDFC Life Guaranteed Pension Plan

  1. Guaranteed Additions of 3% of the Sum Assured on Vesting (keeps getting accumulated for each completed policy year)

  2. Lump Sum Vesting Addition payable at vesting

  3. Guaranteed Death Benefit equal to total premiums paid to date, accumulated at 6% per annum

  4. Minimum death benefit as 105% of all the premiums paid

HDFC Life New Immediate Annuity Plan

  1. Wide Range of Annuity Options according to your needs

  2. Return of Purchase Price Option on Death and Critical Illness

  3. Guaranteed Lifetime Annuity till the time you or your partner is alive

Flexibility to Choose Annuity Options

With HDFC Life New Immediate Annuity Plan, individuals can choose from several annuity options at the inception of their respective plans. One of the best things about this plan from HDFC Life is that you can also choose Joint Life Annuity Options where the second life can be your spouse, children, parents/parents-in-law, or siblings who will receive annuity after your lifetime.

There are a total of seven Single Life Annuity Options – Life Annuity, Life Annuity with Return of Purchase Price, Life Annuity with Balance Purchase Price, Life Annuity with a Guarantee Period, Life Annuity with 5% selection, Life Annuity with Return of Purchase Price in Parts, Life Annuity with Return of Purchase Price on Diagnosis of Critical Illness.

On the other hand, with HDFC Life Guaranteed Pension Plan, you only need to choose your vesting age and the premium amount that you wish to pay according to your retirement needs.

For How Long Will Your Policy Cover?

One of the most important factors that individuals look at while choosing an insurance plan is the Policy Term, which is the period for which your policy will cover. HDFC Life Guaranteed Pension Plan provides the option to choose a policy term ranging from 10 to 20 years according to your vesting age limit. However, with the HDFC Life New Immediate Annuity Plan, policyholders can choose to receive annuity payouts as long as you or your partner is alive. Also, you can get higher annuity payout rates if you choose a large purchase price.

What will be the Premium Payment Term?

To get an HDFC Life Guaranteed Pension Plan, individuals can choose the premium payment term from three options of 5, 7 and 10 years according to their convenience. On the other hand, with HDFC Life New Immediate Annuity Plan, individuals will need to pay the purchase price in a single installment with which they will get a guaranteed income source for life.

What is the Minimum Premium Amount and Minimum Purchase Price?

For the HDFC Life Guaranteed Pension Plan, individuals will need to pay the premium amount. If you are unable to pay it in one installment, you can choose to pay in half-yearly, quarterly or monthly modes. For annual frequency, the minimum premium amount is INR 24,000. However, this can be as low as INR 2,000 if you are paying it monthly.

However, in the case of the HDFC Life New Immediate Annuity Plan, the minimum purchase price will depend on the prevailing annuity rates that tend to change according to the purchase price band. The annuity rates tend to be higher with a purchase price of INR 2,50,000 or above.

Eligibility Parameters

When doing the comparison of HDFC Life Guaranteed Pension Plan and HDFC Life New Immediate Annuity Plan, you should know these important parameters such as Entry Age and Vesting Age. For Guaranteed Pension Plan from HDFC Life, the minimum entry age can be 35 years and the maximum can be 65 years. While the age at vesting can be 55 years, and it can be a maximum of 75 years.

On the other hand, the entry age for HDFC Life New Immediate Annuity Plan can be 20 years, and it can go up to 85 years.

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