This bonus declaration is applicable only to policies under the following 'With Profits' plans:

• HDFC Endowment Assurance Plan
• HDFC Children's Plan
• HDFC Money Back Plan
• HDFC Single Premium Whole of Life Plan
• HDFC Personal Pension Plan
• HDFC Savings Assurance Plan
• HDFC Assurance Plan
• HDFC Endowment Gain
• HDFC New Money Back Plan
• HDFC Group Savings Plan
• HDFC Classic Assure

Over the term of your policy, we invest the premiums that we receive from you and from other similar 'With Profits' policyholders in a 'With Profits' fund. We invest in a variety of assets to achieve an investment return on your policy. Benefits and expenses of your policy are paid out of this fund.

We use bonuses to give you a maturity value, which fairly reflects the performance of the fund (investment or otherwise) over the term of the policy. The level of bonuses we allocate aims to deliver a fair share of the fund when the policy matures or on a death claim.

Note: Additional benefits taken by you such as critical illness or accidental death benefits, offer protection for different circumstances and have no investment-related benefits. Hence they do not attract bonuses.

Reversionary Bonus 
We declare Reversionary Bonus annually as a percentage of the Sum Assured (Plus attaching bonuses in case of HDFC Single Premium Whole of Life policies).

The following table illustrates how bonus is calculated for a policy that was bought on 1st April 2009 by a person aged 30:

Once added to your policy, this Bonus is guaranteed to be payable at maturity. For Single Premium Whole of Life policies, which do not have a maturity date, this bonus is guaranteed to be paid on selected future policy anniversaries.

For all our 'With Profits' plans, the influence of our reversionary bonus declaration on the death benefit is governed by the policy wording under each plan.

We calculate this bonus keeping in mind a long-term view of investment returns, expenses, mortality and other experience elements.

Interim Bonus
If a maturity claim or death claim is made before the next planned reversionary bonus declaration, we will add an Interim Bonus to your policy.
All policies where such claims have occurred do not participate in the next reversionary bonus declaration. Therefore, we add an Interim Bonus to give you or your nominee a fair share of bonus earned over the next financial year i.e. from 1st April 2011 to the date of claim.

For all our 'With Profits' plans, the influence of our interim bonus declaration on the death benefit is governed by the policy wording under each plan.

Terminal Bonus
This bonus is sometimes added to a policy on maturity and allows us to pay the fair share of the 'With Profits' fund based on the experience over the policy term.

The following diagram* demonstrates how bonuses could build up on a 25-year 'With Profits' Endowment Assurance Plan on maturity

*This diagram is solely to represent a concept rather than a representation of a particular policy and is not to scale.

The return on a 'With Profits' policy cannot be considered in terms of just reversionary bonuses. One should always ascertain the return on the policy by looking at the total payouts on the policy delivered in the form of the Sum Assured, Reversionary and Terminal Bonuses together.

Your bonus statement explains how this announcement adds to your benefits. It contains:

• The basic Sum Assured on your policy.
• Any Reversionary Bonuses already attached to your policy from previous years.
• The Reversionary bonus rate to be applied to your policy for year ending 31st March 2011.
• The Reversionary Bonus that will be added in respect of this current bonus announcement.

Reversionary Bonus

Interim Bonus:

For any queries relating to this bonus announcement, please write to us at service@hdfclife.com Or call us Toll Free - 1800-209-7777 (Any Phone) or 1800-228-228 (MTNL/BSNL).

Please note that the past performance is not necessarily an indication of future performance. This document has no monetary value at any time and is not a proof of any contract with HDFC Standard Life Insurance Company Limited.
Insurance is the subject matter of the solicitation. ARN: DM/08/2007/037.