HDFC Life Click2Invest is an online Unit Linked Insurance Plan that provides the insured market-linked returns at minimal charges. It effectively provides the family of the insured valuable financial protection and the best investment options. The plan offers the flexibility to choose from 8 fund options, according to the investment style preferred by the policyholder. The insured can also choose the policy term from 5 to 20 years. The policy offers maturity benefits, death benefits, and tax benefits as well.
The HDFC Life Click2Invest plan can be purchased by a customer if he/she satisfies certain criteria with respect to his/her age and the level of protection he/she requires. These eligibility conditions are detailed below:
|Minimum Entry Age||30 days|
|Maximum Entry Age||65 years|
|Minimum Maturity Age||18 years|
|Maximum Maturity Age||75 years|
|Minimum Policy Term||5 years|
|Maximum Policy Term||20 years|
All ages mentioned above are with respect to the last birthday of the life insured.
The policyholder has the option to choose from the following premium payment options:
The sum assured varies as shown below:
|Sum Assured (Fixed)||Percentage of premium|
|Single Premium||125% of single premium|
|Regular and Limited Premium - Entry age||10 * annualised premium|
|Regular and Limited Premium - Entry age > 55 years||7 * annualised premium|
|Policy Term||5 to 20 years|
Initially the sum assured is determined by the customer. Following this, the premium paid by him/her will be invested in the funds selected as per the chosen proportions. At maturity of the policy, the policyholder receives the fund value as a maturity benefit which is a lump sum amount. If the life insured faces death during the policy term, the nominee receives the death benefit.
The policyholder has the option to choose the premium and premium payment term as per the table below:
|Payment term for premium||Regular, Limited, or Single|
|Payment frequencies for premium||Annually, semi-annually, quarterly, or monthly|
|Minimum annualized premium for single payment term||Rs.24,000|
|Minimum annualized premium for annual payment term||Rs.12,000|
|Minimum annualized premium for semi-annual payment term||Rs.6,000|
|Minimum annualized premium for quarterly payment term||Rs.3,000|
|Minimum annualized premium for monthly payment term||Rs.1,000|
|Maximum annualized premium for all payment terms||No limit on this amount, subject to satisfactory underwriting|
The HDFC Life Click2Invest is a Unit Linked Plan that does not offer any liquidity in the first five years of the contract. The policyholder will not be able to withdraw or surrender the funds invested in linked insurance products, either partially or completely during this period. The coverage of the HDFC Life Click2Invest plan includes the following:
Once the death benefit is paid, the policy terminates and no more benefits are payable.
This plan does not offer any add-on covers.
If the policyholder commits suicide within 12 months from the start of the policy or from the revival date of the policy, the nominee or beneficiary will receive the fund value as on the date of death. If any charges are recovered after death, these will be paid back to the nominee or beneficiary with the death benefit.
Discontinuance of premiums
This plan has a grace period of 15 days for the monthly mode of premium payment. The grace period for other modes are 30 days.
Discontinuance before completion of 5 years:
Apart from Single premium payment mode, policies with all other payment modes will be liable to the following guidelines:
If the policyholder has not paid due premiums by the end of the grace period, then the following options are available:
Until discontinuance, the risk cover will remain as is and policy charges will continue to be deducted. When the policy is discontinued, the risk cover will stop and the existing fund value will be shifted to the Discontinued Policy Fund. The minimum guaranteed interest rate applicable to this fund is currently 44% per annum and this varies based on prevailing regulations. Once the fund value is moved to the Discontinued Policy Fund, a Fund Management Charge of 0.50% per annum is levied.
If the discontinued policy is not revived, the proceeds are paid out when the lock-in period of five years is completed. If the revival period exceeds the lock-in period, after the grace period expires, the policyholder has the following options:
In case the policyholder does not exercise any option, the policy will be withdrawn and proceeds will be paid out at the end of the lock-in period. If the life insured dies before the revival of the discontinued policy, the amount in the Discontinued Policy Fund is paid to the nominee. Following this, the policy will terminate with no further benefits.
Discontinuance after the completion of 5 years:
The following provisions will be applicable to policies that are not of Single and Limited premium payment types:
If the policy is discontinued after 5 years, then the policyholder can choose one among the following:
If the life insured chooses to convert the policy to paid-up status, the death benefit payable to the nominee will be the highest amount among the following:
Once the death benefit is paid, the policy terminates with no further benefits. In case the policyholder does not exercise any of the above options, the policy will be withdrawn and the proceeds will be paid out.
After the discontinuance benefit is paid to the policyholder, the policy terminates and no further benefits will be paid.
Revival of Discontinued Policies:
Discontinued policies can be revived within 2 years from the discontinuance date. At the time of revival:
If the policy is surrendered, the risk cover ceases with no further benefits.
If the policy is surrendered before the completion of 5 years
In this case the fund value is moved to the Discontinued Policy Fund. This amount is then paid out at the completion of the lock-in period. If the life insured dies before the payout of the surrender benefit, the amount in the Discontinued Policy Fund is paid out to the nominee.
If the policy is surrendered after the completion of 5 years
In this case, the fund value is paid out. Following this, the policy terminates and no further benefits are payable.
If the policyholder does not agree to the terms and conditions specified in the policy documentation he/she can return the policy to the insurer stating the relevant reasons. This should be done within 15 days from the receipt of the policy. If the policy was purchased through distance marketing, the free-look period is 30 days.
When the insurer receives the original policy documents along with the letter from the customer they will arrange for a refund of the value of units allocated to him/her. Once the policy is returned, it cannot be revived, restored, or reinstated again.
Premiums paid by the policyholder or HUF under the HDFC Life Click2Invest plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Under Section 10 (10D), the benefits received from this policy are exempt from tax. These regulations are subject to changes based on alterations in tax rules. It is advisable to consult a tax advisor for the updated regulations.
HDFC Life has been instrumental in efficiently honouring 99.41% claims in the financial year 2013-14. The insurance company also has a dedicated claims assistance cell that helps customers throughout their claim journey. Additionally, the HDFC Life Click2Invest plan can be purchased online in a hassle-free manner with limited paperwork.
HDFC Life is a leading insurance solutions provider in India with a wide network of 398 offices and 9,000 touch-points across the country. The vast coverage ensures that their insurance products are easily accessible by one and all. The insurance company also has a strong financial consultancy wing that provides solutions to customers in India and abroad.
A. No, loans are not available on the HDFC Life Click2Invest policy.
A. The HDFC Life Click2Invest plan is a ULIP that gives you the choice of 8 different funds in which you can invest. Each fund has its own investment guidelines, on the basis of asset allocation between debt, equity, and money market instruments. You can choose to invest in a combination of funds; you can also switch between funds with the fund switch option. The funds available for investment under this plan are as follows:
|Fund (SFIN)||Investment Strategy||Investment Predominantly in||Risk and Return Rating|
|Equity Plus Fund (ULIF05301/08/13EquityPlus101)||To generate long term capital appreciation on the lines of Nifty index returns||Equity||Very High|
|Diversified Equity Fund (ULIF05501/08/13DivrEqtyFd101)||To generate long term capital appreciation by investing in high potential companies||Equity||Very High|
|Blue Chip Fund (ULIF03501/01/10BlueChipFd101)||Exposure to large-cap equities and equity-related instruments||Equity||Very High|
|Opportunities Fund (ULIF03601/01/10OpprtntyFd101)||Exposure to mid-cap equities and equity-related instruments||Equity||Very High|
|Balanced Fund (ULIF03901/09/10BalancedFd101)||Dynamic equity exposure for enhancement of returns, while debt allocation reduces volatility||Balanced exposure to debt, equity, and money market instruments||Moderate to High|
|Income Fund (ULIF03401/01/10IncomeFund101)||Higher potential returns arising from higher credit exposure and duration||Debt and money market instruments||Moderate|
|Bond Fund (ULIF05601/08/13BondFunds101)||Active allocation across all fixed income instruments||Debt and money market instruments||Moderate|
|Conservative Fund (ULIF05801/08/13ConsertvFd101)||To invest in high grade fixed income instruments and Government securities to deliver stable returns||Debt and money market instruments||Low|
A. Switching - The policyholder can switch from one fund to another at any point of time.
Premium Redirection - The policyholder can pay future premiums into different funds, as required. The first 4 free premium redirections in a policy year are absolutely free of cost. Charges are applicable for the subsequent redirections. It should be noted that the unused free premium redirections cannot be carried forward.
A. The charges under the policy are as stated below:
|Fund Management Charge (FMC)||This charge is levied daily, and the daily unit price is determined after deduction of this charge. The FMC will be subject to a maximum limit, as regulated by the IRDA||1.35% per annum of the fund value|
|Mortality Charge||The insurer levies a monthly charge for the death benefit provided under the policy. This charge is levied by the cancellation of units proportionately from the chosen funds. This charge is guaranteed for the entire policy duration.||The amount charged on a monthly basis depends on the age of the policyholder and the level of coverage|
In addition to these charges, only if you request for certain services, the following charges will be levied:
Partial withdrawal charges - There are 4 free partial withdrawals that can be made each policy year. Subsequent policy withdrawals will attract a charge of Rs.250 per request. If the request is placed through the company’s website, the charge will be reduced to Rs.25 per request. This charge will be levied on the unit fund at the time of partial withdrawal.
Switching charge - There are 4 switches that can be made free of cost in each policy year. Subsequent switches will be charged Rs.250 per request. If the request is raised through the company’s website, the charge will be reduced to Rs.25 per request. The charge is levied at the time of the switch.
Premium redirection - Each policy year can have 4 free premium redirections. Subsequent premium redirections will attract a charge of Rs.250 per request. The charge will be reduced to Rs.25 per request when the premium redirection is requested through the company’s website.
Except Mortality Charge, all the above charges are subject to revision on the basis of IRDA regulations.
A. Service tax and all other statutory levies are applicable on the policy. In the future, if any other indirect tax or levy becomes applicable, it will have to be paid by the policyholder.
A. The following guidelines pertain to alterations under the HDFC Life Click2Invest plan:
A. Yes, it is possible to assign the policy to another individual. For this, you will have to submit a written request to the insurance company. If the policy was issued under the Married Women’s Property Act, 1874, assignment will not be allowed.
A. The insurer sets the unit price of a fund based on IRDA guidelines. It is calculated as follows:
Unit price of a fund = [(Market value of investments held by the fund) + (Value of current assets) - (Value of current liabilities and provisions)] / (Number of units that exist at the valuation date before unit allocation)
This value is rounded to the nearest Re.0.0001, and will be published at the insurer’s website.
A. When the policyholder exits from a policy (i.e., through surrender, maturity, or death, whichever comes earlier) at any time or after completing 5 years, the insurance company calculates the gross yield, net yield, and yield reduction on the basis of actual returns. If the reduction in yield is greater than regulations, the insurer adds claw-back additions to the fund before the benefits are paid out.
A. Yes, it is possible for NRIs to invest in the HDFC Life Click2Invest plan. They would have to fill an NRI questionnaire for the same.