HDFC Life Systematic Income Plan

Annuity Options and Benefits in detail: You can choose any of the following annuity options at inception.

a) Life Annuity

b) Life Annuity with Return of Purchase Price

c) Variable Annuity with Return of Purchase Price

Life Annuity: The annuity will be paid in arrears post deferment period (if any), as per the payment frequency chosen by the policyholder, as long as the annuitant(s) is/are alive.

Single Pay: Annuity Rate * Single Premium

Limited Pay: Guaranteed Annuity Pay-out = Purchase Price * Annuity Rate

Life Annuity with Return of Purchase Price: The annuity will be paid in arrears post deferment period (if any), as per the payment frequency chosen by the policyholder, as long as the annuitant(s) is/are alive. 

Single Pay: Annuity Rate * Single Premium

Limited Pay: Guaranteed Annuity Pay-out = Purchase Price * Annuity Rate

Variable Annuity with Return of Purchase Price: Under this option, the annuitant will receive a life-time guaranteed annuity pay-out, at a minimum guaranteed annuity rate, as prescribed in the regulatory provisions, along with the variable annuity pay-outs linked to a publicly available benchmark. Here guaranteed annuity proportion is 60% of Purchase Price.

Single Pay: The annuity pay-out shall be equal the sum of the following:

1. Guaranteed Annuity Pay-out = Guaranteed Annuity Proportion * Annuity Rate * Single Premium, and

2. Variable Annuity Pay-out

Limited Pay: The annuity pay-out shall be equal the sum of the following:

1. Guaranteed Annuity Pay-out = Guaranteed Annuity Proportion * Annuity Rate *Purchase Price, and

2. Variable Annuity Pay-out

Life Annuity: Payable as a lump sum, on the death of the annuitant in case of Single Life and on later of the deaths of the two annuitants in case of Joint Life.

I. Immediate Annuity – Nil

II. Deferred Annuity

During deferment period

Higher of:

1. Premiums Paid accumulated at 4% p.a. till date of death OR

2. 105% of the Total Premiums Paid OR

3. Surrender Value on date of death

III. After deferment period

Nil

Upon payment of the death benefit, the policy shall terminate and all other benefits shall cease

Life Annuity with Return of Purchase Price: 

I. Immediate Annuity – 100% of the Total Premiums Paid

II. Deferred Annuity

During deferment period

Higher of:

1. Premiums Paid accumulated at 4% p.a. till date of death OR

2. 105% of the Total Premiums Paid OR

3. Surrender Value on date of death

After deferment period

Higher of:

1. Premiums Paid accumulated at 4% p.a. till end of deferment period less Guaranteed Annuity Pay-outs made till date of death OR

2. 100 % of the Total Premiums Paid OR

3. Surrender Value as on date of death

Upon payment of the death benefit, the policy shall terminate and all other benefits shall cease.

Variable Annuity with Return of Purchase Price: 

I. Immediate Annuity –

Sum of:

a) 100% of the Total Premiums Paid

b) Variable Pay-out Death Benefit, if any

II. Deferred Annuity

During deferment period

Higher of:

• Surrender Value on date of death OR

• Sum of:

a) Higher of:

• Premiums Paid accumulated at 4% p.a. till date of death OR

• 105% of the Total Premiums Paid, and

b) Variable Pay-out Death Benefit, if any

After deferment period

Higher of

• Surrender Value on date of death OR

• Sum of:

a) Higher of:

1. Premiums Paid accumulated at 4% p.a. till end of deferment period less Guaranteed Annuity Pay-outs made till date of death, OR

2. 100% of the Total Premiums Paid, and

b) Variable Pay-out Death Benefit, if any

Upon payment of the death benefit, the policy shall terminate and all other benefits shall cease.

Enhanced Terms: Enhanced benefit in the form of an additional annuity equivalent to 0.20% p.a. of the Single Premium (for Single Pay) and (Number of Premiums Paid / Number of Premiums Payable) / (premium payment frequency * premium conversion factor) * 0.2% p.a. of Purchase Price (for Limited Pay) for the business where no commission is payable and for the business sourced through ISNP.

Annuity Advance Option: This option is only available under Option B and Option C. For Single Pay, it can be exercised any time after completion of 1 year from the inception date or on joint life first death, if earlier. For Limited Pay, it can be exercised any time after the end of the premium payment term or on joint life first death, if earlier. Additionally, during deferment period, this option can only be exercised if the outstanding deferment period is less than 5 years.

For more details, please refer to the brochure.

Smart Legacy Option: Under this option, the nominee can choose to receive the death benefit in instalments instead of taking it as a lump sum. The instalments shall be paid in advance for a period of 2 to 15 years as chosen by the nominee at a frequency chosen by the nominee. The frequency can be monthly, quarterly, semi-annual or annual.

This product can be purchased under QROPS. For further details, please refer to the brochure.