HDFC Life ClassicAssure Plus is an insurance cum investment plan by HDFC Life that provides you a guaranteed benefit while growing your investments. The plan is ideal for meeting the long-term financial goals of the life insured.
The policy provides a death benefit in the form of a lump sum payment. The policyholder can also enjoy discounts on premium for policies that have sum assured of Rs.10 lakh or above. The policy enables the insured to avail a loan, provided certain conditions are met. Additionally, the policyholder can pay premiums on an annual, semi-annual, quarterly, or monthly basis.
To be able to purchase the HDFC Life ClassicAssure Plus plan, the customer has to satisfy certain eligibility criteria with respect to his/her age and the level of protection that he/she needs. These factors are laid down by the insurer and can be tabulated as shown below:
|Policy Term||10 years||15 years||20 years|
|Minimum Entry Age||8 years||3 years||30 days|
|Maximum Entry Age||55 years||60 years||55 years|
|Maximum Maturity Age||65 years||75 years|
All ages mentioned above are with respect to the last birthday of the life insured.
The sum assured is the amount of benefit that is guaranteed to be paid at the time of policy maturity or the death of the life insured, according to the terms and conditions specified in the policy.
|Policy Term||10 years||15 years||20 years|
|Minimum Sum Assured||Rs.49,447||Rs.48,032||Rs.73,516|
|Maximum Sum Assured||No limit, subject to underwriting guidelines|
|Premium Payment Term||7||7 or 10||10|
The policyholder has the option to choose the premium as per the table below:
|Frequency||Minimum installment premium||Maximum installment premium|
The HDFC Life ClassicAssure Plus is a participating insurance plan that provides guaranteed reversionary bonus coupled with the flexibility to select a premium payment term. The coverage of the HDFC Life ClassicAssure Plus plan includes the following:
In addition to this amount, the nominee will receive all bonuses accrued under the policy. Once the maturity or death benefit is paid out, the policy will terminate with no further benefits.
This plan can be enhanced by opting for the HDFC Life Critical Illness Plus Rider.
If the life insured commits suicide within 12 months:
Grace Period is the time after the premium due date when the policy is in-force with the complete risk coverage. The HDFC Life ClassicAssure Plus plan has a grace period of 30 days for policies with annual, semi-annual, and quarterly frequencies. For a policy with monthly frequency of premium payment, the grace period is 15 days. If a valid claim is raised within the grace period, the insurer will honour the claim. In such a scenario, the due and unpaid premiums will be reduced from the payable benefits.
If the policyholder has not paid the due premiums within the grace period, and the policy has not acquired a surrender value, it will move into the lapsed status. For a lapsed policy, the risk cover will cease to exist and no benefits are payable. It is possible to revive a lapsed policy.
If the policyholder stops paying premiums after the policy has reached surrender value, at the end of the grace period, the policy will be made paid-up. The Reversionary Bonus that was accumulated on the policy till the date of paid-up will still be linked to the policy. The policy will, however, not accrue any further bonuses.
Paid-up value at maturity = (Sum Assured * (Premiums paid/Premiums payable)) +Bonuses accrued on the policy till date of paid-up.
The Paid-up value at death is the highest amount among the following:
In addition to the above amount, the bonuses accrued on the policy will also be added to the death benefit. It is possible to revive a paid-up policy.
A lapsed or paid-up policy can be revived within 2 years of lapsation or becoming paid-up. For revival, the policyholder is required to pay all outstanding premiums and corresponding interests. He/she is also required to pay a revival charge of up to Rs.250 along with taxes. When the policy is revived, all contractual benefits are reinstated.
If the policyholder wants to enjoy full benefits of the policy coverage, he/she will have to continue on the policy till the end of the policy term. However, this may not be possible in all cases. A policy acquires a Guaranteed Surrender Value when:
The Guaranteed Surrender Value is a percentage of all the paid premiums. Additionally, a percentage of the accrued bonuses is also added when the policy has reached a Guaranteed Surrender Value. Once the surrender benefit is paid to the policyholder, the policy will terminate with no further benefits.
If the policyholder is not in alignment with the terms and conditions specified in the insurance policy, he/she can choose to return the policy back to the insurer within a period of 15 days from the date of receipt of the policy. The free-look period for policies that were purchased through distance marketing is 30 days. When the insurer receives the returned policy from the policyholder with all relevant documents, they will arrange for a refund of the premium, after deducting the expenses for medical examination and stamp duty. It should be noted that a returned policy can never be reinstated or restored again.
Premiums paid towards the HDFC Life ClassicAssure Plus policy are subject to tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. These tax laws are however, subject to change and you are advised to consult your tax advisor for updated tax laws.
HDFC Life is a leading insurance provider in the country renowned for the quality of their offerings and excellent customer service. The insurer observed a competitive claim settlement ratio of 99.41% in the financial year 2013-14. The company has a dedicated claims assistance cell that helps customers throughout their claims process.
HDFC Life has a wide network of 398 offices and 9,000 touch-points throughout the country. This ensures that the products offered by the insurer are always accessible to customers. HDFC Life also has a proficient financial consultancy team that offers financial solutions to customers in India and abroad.
A. When the HDFC Life ClassicAssure Plus policy has reached surrender value, the policyholder can avail a loan of up to 80% of the surrender value of the policy.
A. Distance marketing refers to insurance policies that are sold through modes that do not include face-to-face interactions. This includes policy sales through the internet, telephone, etc.
A. Under the HDFC Life ClassicAssure Plus policy, alterations to the premium payment term, policy term, premium amount, and sum assured are not allowed. However, it is possible to change the premium frequency which may subsequently lead to an alteration in the premium amount.
A. Yes, it is possible to assign/transfer the policy to another individual, either in part or as a whole. The instrument of assignment/transfer should specify the reason for the same. A fee will be charged by the insurer for the assignment or transfer of the policy. The request may or may not be approved by the insurance company.
A. If you are aggrieved by the policy assignment rejection, you can prefer a claim to IRDAI within 30 days of receipt of the insurer’s letter of refusal.
A. Once HDFC Life receives all claim-related information from the claimant, they will make a payout within 30 days. In case the claim needs to be investigated further, the insurer initiates this at the earliest. The claim payout will depend upon the result of the investigation.
A. The HDFC Life Critical Illness Plus Rider provides a benefit in the form of a lump sum amount when the policyholder is diagnosed with any of the 19 predefined critical illnesses. This Rider Sum Assured can be used to cover the expenses arising from the illness; hence providing financial protection to the life insured and his/her family. It should be noted that the benefits will be paid to the life insured only if he/she survives beyond 30 days from the date of diagnosis of the critical illness.
A. The critical illnesses covered under this rider are the following:
A. The purpose of a savings and investment plan is totally different from that of a pension plan. The pension plan is configured to provide you a regular income when you enter into retirement. A savings and investment plan is designed to meet the long-term financial goals of an individual. This includes funding your child’s education, creating a fund for your future aspirations, etc. This type of plan acts as a cushion to secure your finances throughout life.
Hence, it is advisable to invest in a savings or investment plan if you are looking to avail benefits from the policy not only during your retirement years, but throughout life.
A. Savings plans can be of the traditional endowment type or unit-linked type. You can choose a plan based on your risk appetite, your understanding of the financial market, and your ability to track the movements in your investment. So, individuals who can bear investment risks for higher returns should look to purchase unit-linked products. The converse is true for traditional savings plans as well.