HDFC Life Insurance - Smart Pension Plan - Discontinued Policy Fund - Pension

- Life insurance cover to the extent of 105% of all premiums paid including top-up premium
- To build a retirement corpus
- Flexibility to alter vesting date and premium payment term
- Loyalty additions

Minimum Age at Entry (as on last birthday) - 25 years
Maximum Age at Entry (as on last birthday) - 70 years

Minimum: 5 years or PPT whichever is higher
Maximum: 55 years

On death of the life assured before the end of policy term, the nominee will receive death benefit which shall be higher of the following:
i) Fund value
ii) Sum Assured on Death
Fund value is the number of units multiplied by the prevailing NAV. Sum Assured on Death in this policy at any time during the policy term will be 105% of total premiums including top-up premiums paid reduced to the extent of the partial withdrawals from the fund value with respect to contractual premiums made during the two-year period immediately preceding the death of the life assured. Partial withdrawals made from fund value with respect to top-up premiums will not affect Sum Assured on Death.

- Premiums paid may be eligible for tax benefits under the Income Tax Act, 1961, subject to the provisions contained therein.
- Part of the benefit can be taken as tax-free commuted value, as prescribed under the Income Tax Act, 1961. The remaining amount (or full amount) can be used to purchase a life annuity at the then prevailing annuity rates.

At any point of time during the policy term, the policyholder can opt to surrender the policy subject to the terms mentioned below: Policy Surrendered during the Lock-in Period: In case the policy is surrendered during the lock-in period, the fund value net of Policy Discontinuance Charges shall be credited to the Discontinued Policy Fund and the policy will be treated as mentioned in section on Treatment of Policy while in Discontinued Policy Fund . With respect to the policy surrendered during lock-in period, the fund value credited to the Discontinued Policy Fund will continue to be invested in Discontinued Policy Fund till the end of lock-in period or death of life assured, whichever is earlier. On death of life assured before end of lock-in period, death benefit will be the Discontinued Policy Fund as on date of death of policyholder and must be utilized by the nominee in the same manner as death benefit. On survival of the policyholder till the end of lock-in period, the policy will be terminated and Discontinued Policy Fund as on that date will be utilized by Policyholder in the same manner as vesting benefit. Policy Surrendered after completion of Lock-in Period: In case the policy is surrendered after completion of lock-in period, the policy stands terminated and fund value as on date of surrender must be utilized by policyholder in the same manner as vesting benefit.

Fund Management Charge is a charge levied on a daily basis as a percentage of the value of assets held in the unit fund at the time of computation of the unit price.
Fund Management Charges on Discontinued Policy Fund Pension is 0.5% per annum. The Company can review the fund management charge after giving 30 days notice and with prior approval from IRDAI. The maximum fund management charge cannot exceed the cap as allowed by IRDAI from time to time. Currently the maximum cap allowed by IRDAI is 1.35%.