HDFC Unit Linked Pension II: Review

Posted by Admin on 0

“Sar Utha ke Jiyou” that’s what HDFC pension plans tag line reads..

HDFC has some of the very good pension plans available in the Indian insurance market.

HDFC Unit Linked Pension II comes with the “bumper addition” at the end of the term which is 50% of you annualized amount.

For policy with term more than 15 years there is a “bumper addition” of 50% of annualized premium chosen at the inception.

The addition will happen only if one has paid all premium at a level equal to inception premium or premium which is greater then inception premium and

For eg. If inception premium is Rs, 20,000 then bumper addition is Rs. 10,000 provided then for entire term either premium is Rs. 20,000 or greater then that.

Fund options:

Unlike many other ULIP plans available in the insurance market where you have the freedom to choose investment fund, in addition to this here you can choose Asset allocation option (AAO) based on the number of year remaining to vesting.

There are 3 strategies available

1) Cautious 2) Moderate 3) Aggressive.

Depending on the number of years remaining in the policy term (that is no. of years remaining before start of pension) it automatically switches your investment on every policy anniversary.

Years left to vesting




10 – 40 years

100 % in equity

100% in equity

100% in equity

5 years

30% equity, 60% secured, 10% stable

50% equity, 50 %secured fund

80% equity, 20% secured fund

1 year

30% to stable, 70% secured

30% to stable, 70% secured

20% to stable, 70% secured, 10% equities

Above table only shows 3 periods however investment pattern changes from 10th year onward till last year depending on investment strategy.

This helps a lot to investors who do not has the time to monitor their investment.

During early years by investing large part of your money in equities it allows you to gain maximum return and in the last years by investing lesser part in equities it give cushion to your investment in case market crashes.

Once you choose the Asset Allocation strategy, you can not switch between the other strategy, for eg if you have opted for Aggressive approach you can not switch to Moderate approach, however one can opt out of Asset allocation option and start managing investment on the own and in such case you can not come back to Asset allocation option.

For those who want to manage their investment on their own there total 7 funds available.

If opted for fund option can switch between the funds or can redirect their premium to specified fund.

Min/Max Term

10/40 years

Min/Max Entry Age

18/65 years

Min/Max Vesting Age

50/75 years

Min/Max Annual Premium


Premium can be increased or decrease however premium can be decreased only after 3 years premium is paid.

Maturity/Vesting benefit:

Here you will have an option withdraw 1/3rd amount in your fund value (Fund value + Bumper addition) and rest of the fund value as a lump sum converted to annuity on which you can select your insurer and get pension.

If you are opting for 1/3rd amount entire fund value is converted to annuity and pension is paid on that amount.

Death benefit:

Fund value to the nominee and in case death happens after 15th year then Fund value + Bumper addition.


Allocation charges.

First year depending on the premium amount it is 40%.

In second year it is 15% and from third year onward it is 2%.

So in the initial year it charges 40% which is more then many normal ulip plans.

Top up if paid would be charged 2% in second and 2.5% in first year.

Fund management charge: it is 1.25% per annum.

Policy admin. Charges: Rs. 60 per month.

Switch: Rs. 100 per switch after 24 switches.

Surrender charge:

One can surrender policy for full fund value only after paying full 5 years premium.

Surrender charge from 95% to 5% is applied if policy is surrendered in the for four years


A good pension plan with two nice features

1) AAO

2) Bumper addition of 50% annualized premium.

Only negative part is 40% allocation charge in the first year, however fund management charge is only 1.25%.

Tagged as: ,
About the Author

Write admin description here..

Get Updates

Subscribe to our e-mail newsletter to receive updates.

Share This Post

Related posts


Blogger templates. Proudly Powered by Blogger.
back to top