HDFC Life Click2Invest Plan

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.

Eligibility - Who is the HDFC Life Click2Invest Plan for?

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.

Sum Assured and Premium Range - What you Get and What it Costs?

The policyholder has the option to choose from the following premium payment options:

• Single Pay
• Limited Pay - 5, 7, and 10 years
• Regular Pay - 5 to 20 years

Sum Assured:

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 <= 55 years	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.

Premium:

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

Plan Coverage - What the HDFC Life Click2Invest Covers?

 

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:

• Maturity Benefit - Fund value is the amount equivalent to the prevailing unit price multiplied by the balance units in your fund. When the policy matures, the fund value will be payable to you. The policy matures at the end of the chosen policy term, and all risk cover ceases at this time. You can also choose to avail the maturity benefit in the form of periodic instalments under the settlement option.

• Death Benefit - In the case of unfortunate demise of the life insured, the nominee will be paid the highest amount among the following:
  • Sum Assured
  • Fund Value
  • 105% of the paid premiums

Once the death benefit is paid, the policy terminates and no more benefits are payable.

• Partial Withdrawal - To meet future financial emergencies, the policyholder is offered the choice to withdraw the policy fund value when needed. After the completion of 5 policy years, provided that the life insured is at least 18 years of age, partial withdrawals as lump sum amounts can be made from the funds.

Add-On Plans – Additional Coverage under the HDFC Life Click2Invest Plan:

This plan does not offer any add-on covers.

Exclusions - What the HDFC Life Click2Invest Plan doesn’t Cover?

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.

Other Key Features – Freelook Period, Surrender Values, Grace Period:

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:

• To revive the policy within 2 years from the date of discontinuance
• To completely withdraw the policy. The risk cover will cease and no further benefits will be payable in this case. This is the default option if the policyholder does not exercise any option.

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:

• To revive the policy within 2 years from the discontinuance date
• To withdraw the policy without any risk coverage
• To receive the policy proceeds at the end of the lock-in period or revival period, whichever comes later.

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:

• Revive the policy within 2 years from the date of discontinuance. Once the policy is revived, the risk cover will remain as mentioned in the terms and conditions. Policy charges will also continue to be deducted.
• Completely withdraw from the policy. The risk cover will cease to exist in this case.
• Convert the policy to paid-up status. In this scenario the paid-up sum assured will be equal to the original sum assured multiplied by the ratio of paid premiums to the total premiums payable under the policy.

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:

• Paid-up Sum Assured
• Fund Value
• 105% of total paid premiums

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:

• All due premiums should be paid without any interest.
• The proceeds of the discontinued policy will be re-allocated to the segregated funds chosen by the policyholder at the prevailing unit prices. This is applicable if the discontinuance is before the completion of 5 years.

Surrender:

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.

Free-Look Period:

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.

Tax Benefits – How you can save with the HDFC Life Click2Invest Plan?

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.

Other Benefits – How you can save with the HDFC Life Click2Invest Plan?

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.

Why you should Buy the Click2Invest Plan from HDFC Life?

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.

HDFC Life Click2Invest Plan FAQs:

Q. Can I avail loans on the policy?

A. No, loans are not available on the HDFC Life Click2Invest policy.

Q. What are the funds associated with the HDFC Life Click2Invest plan?

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

Q. What are the flexibilities that the HDFC Life Click2Invest plan offers?

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.

Q. What are the charges under the policy?

A. The charges under the policy are as stated below:

Charge	Description	How much
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.

Q. Is Service tax applicable for the policy?

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.

Q. Are alterations allowed under the policy?

A. The following guidelines pertain to alterations under the HDFC Life Click2Invest plan:

• Change of premium frequency is allowed under the plan.
• Change in fund options are allowed.
• It is not possible to increase or decrease the sum assured and premiums.
• It is possible to increase the premium payment term and policy term.
• It is not possible to decrease the premium payment term or policy term.

Q. Can I assign the policy to another individual?

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.

Q. What are the unit prices of funds associated with the policy?

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.

Q. What are non-negative claw-back additions?

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.

Q. Can NRIs invest in this plan?

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.