HDFC Life Guaranteed Income Insurance Plan – A Complete Guide

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A comprehensive guide on the Guaranteed Income Insurance Plan from HDFC Life – its features, benefits, eligibility criteria, and more. Read on. 

The very thought of an assured income plan, as you grow older that can help you retire in peace, can be so comforting. This is exactly what HDFC Life intends to achieve for its customers. The HDFC Guaranteed Return Plan assures just that. This blog provides more details about the plan so that you know what you’re investing in before making that decision.

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What is HDFC Guaranteed Income Plan?

The Guaranteed Return Investment Plan by HDFC Life Insurance is a non-linked and non-participating savings plan that also offers the dual benefit of life insurance. This means that in the event of an untimely demise of the policyholder, the plan provides a guaranteed death benefit (monetary) during the term of the policy. Besides this, the guaranteed return insurance plan also offers tax benefits upon completion of the term of premium payment as part of the plan.

Features of HDFC Guaranteed Return Investments Plan

This plan has the following key features:

1. A Guaranteed Base Income (GBI) gets collected every year during the payout term as a specified percentage of the Sum Assured

2. The plan offers 6 options with varied combinations regarding Premium Payment Term, Policy Term, and Payout Term

3. It is one of the best guaranteed return plans with a limited option for premium payment. It is a participating life insurance, savings-oriented plan.

4. The plan helps create a steady corpus by way of accruement of several bonuses like the Interim Bonus, Simple Reversionary Bonus, and Terminal Bonus

5. The guaranteed returns on the plan start as soon as the Premium Payment Term (PPT) completes and the payout continues for around 8-15 years, as per the preference of the investor

Key Benefits of HDFC Guaranteed Return Policy

As stated earlier, the Guaranteed Income Insurance Plan promises to be the best investment plan with guaranteed returns to the investor. There are several benefits to look forward to when buying the policy, some of which are listed below:

  • The plan assures a guaranteed income for the long term along with the added benefit of tax savings in line with the taxation laws
  • There is a fully guaranteed monetary death benefit to the bereaved family of the deceased policyholder even during the income payout terms
  • The plan is ideal for investors looking for a long-term guaranteed income during the term of the insurance policy, in addition to some other benefits such as tax exemptions, life insurance cover, and a lump sum benefit upon policy maturity

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Eligibility Criteria for HDFC Guaranteed Return Insurance Plan

The following people are eligible to apply for the guaranteed return plan by HDFC:

1. Entry Age Limit

Minimum Age Limit

Maximum Age Limit

2 years (for a 16-year policy term)

59 years (for a 16-year policy term)

30 days (for a policy term ranging from 18-27 years)

57 years (for a 16-year policy term)

30 days (for a policy term ranging from 18-27 years)

55 years (for a 16-year policy term)

30 days (for a policy term ranging from 18-27 years)

53 years (for a 16-year policy term)

30 days (for a policy term ranging from 18-27 years)

51 years (for a 16-year policy term)

30 days (for a policy term ranging from 18-27 years)

48 years (for a 16-year policy term)

2. Maturity Age 

  • Minimum – 18 years
  • Maximum – 75 years

3. Plan Options

Plan Option

Term of Premium Payment (A)

Payout Period (B)

Term of Policy (A+B)

% of Sum Assured on Maturity

Total Guaranteed Income for the Entire Payout Term (B*C)

Option 1

8

8 16 12.5%

12.5% * 8 = 100%

Option 2

8

10 18 10%

10% * 10 = 100%

Option 3

10

10 20 12%

12 * 10 = 120%

Option 4

10

12 22 10%

10 * 12 = 120%

Option 5

12

12 24 10%

10 * 12 = 120%

Option 6

12 15 27 8%

8 * 15 = 120%

Add-On Riders Offered With HDFC Guaranteed Income Insurance Plan

The plan offers a host of add-on rider benefits to its customers, which can be purchased over and above the original plan to derive additional benefits. Here are some of the most popular riders offered as part of the plan:

1. HDFC Life Critical Illness Plus Rider:

A lump sum amount is offered to the policyholder, which is equivalent to the rider sum assured, in case of diagnosis of a critical illness, as specified under the plan.

2. HDFC Life Income Benefit on Accidental Disability Rider:

This rider offers extra income benefits over the Sum Assured in case of total permanent disability owing to an accident.

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Summing it Up

The Guaranteed Income Insurance Plan by HDFC is a brilliant initiative by the company offering its customers the dual benefit of savings and corpus-building as well as life insurance and an assured death benefit even during the policy term. This is what makes the plan popular among HDFC investors. To know more details about buying this plan or any of its key features, visit PayBima.

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FAQs: HDFC Life Guaranteed Income Insurance Policy

What is the guaranteed monthly income plan of HDFC?

As part of the policy, the guaranteed monthly income is paid out as a percentage of the selected Sum Assured.

What is HDFC's guaranteed return plan review?

HDFC has received positive customer reviews for its Guaranteed Return Plan since its launch. Several investors find the plan to be one of the best money-back options online for investment in the Indian insurance sector with the benefit of an assured income scheme for the long term.

What is the maturity benefit of a guaranteed income plan?

At the end of the term of the policy, 110% of the total premiums paid by the investor are paid out as maturity benefit in conjunction with the last income installment.

Is a guaranteed income plan good?

Guaranteed income plans are rather popular among Indian investors owing to their decent insurance coverage which is up to 10 times the annual premium payable. The rate of interest is locked in for a considerably long period.

Is a guaranteed income plan tax-free?

Yes, the premium payable under the plan is eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Besides, the maturity proceeds as part of the plan are also liable to be free of tax under Section 10(10D) of the ITA.

What are the disadvantages of a guaranteed income plan?

Since these plans offer a long-term saving option, they need to keep pace with inflation. Failure to do so may not help with generating decent wealth to meet your financial goals in the long term.

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Jun 29, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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