HDFC Life Capital Shield is an investment-cum-insurance plan by HDFC Life that allows you to invest your hard-earned money into equity market and debt oriented securities. The plan offers the potential of high returns by systematically allocating your investment into debt funds and equities. The plan lets you protect your investment from uncertain market risks through assured maturity benefit. Moreover, this policy will keep you protected during the entire term of the policy. You can either choose to pay the premiums once a year, annually, half-yearly, quarterly or on a monthly basis for a limited period of 5 years. Throughout the entire policy term, you are protected with a life insurance cover and also entitled to increasing loyalty addition from the end of the 6th policy year onwards.
In order to be eligible for the HDFC Life Capital Shield Plan, the applicant is required to fulfill certain criteria as described by HDFC Life. The eligibility is determined based on the type of the plan, the age of the applicant, tenure of the plan, and other factors. The age limit of the plan is listed below:
|Minimum age for entry||8 years|
|Maximum age for entry||60 years|
|Minimum age for maturity||18 years|
|Maximum age for maturity||70 years|
The policy offers various advantages such as maturity benefits, death benefits, tax benefits, etc. The sum assured under this plan depends on the age, premium amount, and the other terms and conditions of the scheme. The following table indicates the sum assured for the HDFC Life Capital Shield plan:
|Single||Entry age less than 45 years||125% of Single Premium|
|Entry age equal to 45 years and above||110% of Single Premium|
|Limited||Entry age less than 45 years||125% of Single Premium|
|Entry age between 45 years to 54years||110% of Single Premium|
|Entry age 55 years or above||Seven times Annualized Premium|
The policy has a term of 10 years. The policyholder is required pay the premium as agreed while buying the policy. The premium details are:
|Single||Annual - Rs.48,000|
|Limited – 5 years||Annual - Rs.48,000 Half-yearly - Rs.24,000 Quarterly – Rs.12,000 Monthly – Rs.4,000|
There is no maximum limit for the premiums. The premiums vary based on age, location, plan term, and other factors.
|Maturity Benefit:||The policy will mature at the end of the policy term and all the risk cover will end. On maturity, the policyholder will receive the highest of either the Fund Value or the Assured Maturity Benefit. The Assured Maturity Benefit is paid out when all the premiums have been paid without surrendering the policy.|
|Death Benefit:||In case of the policyholder's unfortunate demise during the term of the policy, provided that all the due premiums have been paid, the nominee will receive the 'Sum Assured on Death'. The Sum Assured on Death will be the highest of either the Sum Assured less Partial withdrawals made (if any), Fund value, or 105% of total premiums paid till the date of the policyholder's death.|
Upon payment of either the Maturity Benefit or the Death Benefit, the policy will be terminated and no other benefits are payable.
HDFC Life Capital Shield Plan has no riders or add-on plans that can be added, however, the 'Loyalty Additions' can be counted as a benefit. At the end of the 6th Policy year, if all the premiums are paid, the loyalty additions will be added to the Fund Value in the form of additional units. The loyalty additions are applicable for both Single Pay and Limited Pay policies. The loyalty additions as % of the average fund value will vary with the Policy Year as mentioned below:
|Policy Year||Loyalty Additions|
In case of the policyholder's death due to suicide within 12 months from the policy inception day, the nominee or the beneficiary will be entitled to the fund value, as available on the date of death. If there are any charges subsequent to the date of death, it will be paid back to the nominee or the beneficiary along with the death benefit.
|Freelook Period||If the policyholder is not satisfied with the terms and conditions of the Policy, he/she is given an option to return the Policy to the insurer with the reason. From the date of the inception, the policyholder has to return the policy within 15 days (30 days for the Policy that was purchased through Distance Marketing Mode) in order to be eligible for the refund of the premium paid. The insurer will deduct the relevant charges before initiating the refund. Once a Policy has been returned, it cannot be revived or reinstated, however, the customer can make a proposal for a new Policy.|
|Surrender Values||If the customer decides to surrender the Policy before the completion of the lock-in period (5 years), the fund value less discontinued charges will be transferred to the Discontinued Policy Fund. The fund value from the Discontinued Policy Fund will be paid out on the completion of the lock-in period. If the Policy is surrendered after the completion of the lock-in period, the fund will be paid out accordingly. Upon payment of this benefit, the policy will be terminated and no further benefits will be payable.|
|Revival of Discontinued Policy||In case of a Discontinued Policy, the customer is given an option to revive the policy within 2 years. The Revival of the policy is subject to relevant charges and payment of pending premiums, if any.|
|Alteration||The insurer allows change of premium payment frequency which is subject to terms and conditions of the policy.|
The premiums paid under the HDFC Life Capital Shield Plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.The benefits received under this plan are exempt from tax under the Section 10 (10D).
There are various platforms for existing as well as potential customers to contact HDFC Life. A customer can choose to buy the Policy either online or offline. The qualified advisors from HDFC Life can be contacted through telephone, email or chat for queries related to the Policy. A potential customer can use telephone, email, SMS or the callback option on the HDFC Life's website to get more details about a Policy.
HDFC Life is one of the leading long-termlife insurance providers in India that has a presence over 900 cities. From Investment, Protection, Pension, Savings, and Health plans to exclusive Children and Women plans, HDFC Life has 29 individual and 10 group products in its portfolio. Awarded as one of the most trusted brands, the insurance provider has more than 390 branches in India.
The HDFC Life Capital Shield Plan can be seen as an investment avenue to save and grow your money. Depending on your specific financial situation and future financial needs, the plan can be customized to suit your requirements. The Plan will provide financial protection and secure the present and future of your family. With this Plan, you can protect your investment from market risks with an Assured Maturity Benefit of 101% of Total Premiums paid. The HDFC Life Capital Shield Plan is an investment-cum-insurance plan that enables you to earn higher returns by making part investments into equity and the balance in debt.