HDFC Life Click 2 Retire – ULIP is an online unit linked plan offered by HDFC Life that provides you market linked returns with minimal charges. This retirement plan can help you achieve your goals post retirement if you plan well in advance. Through this policy you can create a secure retirement kitty with an Assured Vesting Benefit, and also stand to gain from the upside of the market. The plan offers you the flexibility to start as early as 18 years of age, and has a low vesting age of 45 years. The plan also provides you multiple payment options, such as Regular, Single Pay and Limited Pay.
HDFC Life has set some eligibility conditions that will have to be satisfied for a customer to purchase the HDFC Life Click 2 Retire – ULIP. These conditions are related to his/her age and the number of years of insurance that he/she would like to avail. The eligibility criteria of the plan are detailed below:
|Minimum Entry Age||18 years|
|Maximum Entry Age||65 years|
|Minimum Vesting Age||45 years|
|Maximum Vesting Age||75 years|
All ages mentioned above are with respect to the last birthday of the life insured.
Based on the number of years remaining for your retirement, you can choose from a wide range of policy terms and premium paying terms, as shown below:
|Premium payment term (years)||Policy term (years)|
|Single pay||10, 15 to 35|
|8 pay||10, 15 to 35|
|10 pay||10, 15 to 35|
|15 pay||15 to 35|
The policy offers multiple benefits in the form of Vesting Benefit, Death Benefit, etc. that are explained in the coverage section below.
The policy does not enforce any limits on the maximum premium chosen by you. But the minimum premium is dependent on the option that you choose for premium payment and the corresponding frequency.
|Premium Payment Frequency||Regular and Limited Pay Options||Single Pay Options|
|Maximum Premium||No Limit|
HDFC Life Click 2 Retire – ULIP helps you to be in control of your retirement goals through insurance. The plan enables you to accumulate sufficient funds in your retirement kitty. This way, you can enjoy the benefits of a regular income in the form of a pension, post retirement.
The benefits offered by this online pension plan are detailed below:
The coverage under HDFC Life Click 2 Retire – ULIP includes the following:
The Assured Vesting Benefit can be calculated from the following formula:
Assured Vesting Benefit = [101% + 1% * (Policy term minus Premium paying term)] of the total paid premiums.
The way in which the maturity benefit is payable to you is mandated by regulation, as detailed in the ‘Utilization of Policy Proceeds’ section below.
The nominee can take the amount as annuity from the insurer or withdraw the proceeds. When the death benefit amount has been paid by HDFC Life, the policy will terminate and no further benefits will be paid. If you prefer to convert the maturity to an annuity, you will have to purchase a new policy from HDFC Life at that point in time.
This is not applicable for the plan.
There are no exclusions under this plan.
In case the policyholder is not in agreement with the terms and conditions detailed in the policy documentation, he/she has the option to return the policy to the insurer within 30 days. When HDFC Life receives the letter with the original policy documents, they will arrange for a refund of the value of units allocated to you plus the cancellation charges. After the policy is returned, it cannot be reinstated, restored, or revived, and a new proposal will have to be initiated for a new policy.
Grace Period - This is the time period after the premium due date when the policy will be in-force with all risk coverage. HDFC Life Click 2 Retire – ULIP has a grace period of 30 days from the premium due date for policies with annual, semi-annual, and quarterly frequencies. For monthly frequency, the grace period is 15 days from the due date of the premium. The premium is expected to be paid throughout the premium payment term.
If you do not follow any of the options mentioned above, or if you completely withdraw from the coverage, the policy will be discontinued. Until discontinuance, the policy will have the associated risk coverage with the relevant charges. When the policy is discontinued, the risk cover ceases and the fund value will be moved to the Discontinued Policy Fund. The amounts in this fund will attract a Fund Management Charge of 0.50% per annum.
The surrender benefit is the fund value at the time of surrender.
Your fund value less the discontinuance charges will be shifted to the Discontinued Policy Fund, and this amount is paid out at the end of the lock-in period. If the policyholder faces death before the surrender benefit is paid, the amount in the Discontinued Policy Fund is paid to his/her nominee. After this payment, the policy terminates and there will be no further benefits.
In this case, your fund value will be paid out. After payment of this amount, the policy terminates and no further benefits are payable.
The utilization of proceeds for discontinuance or surrender follows the same guidelines as that for the vesting benefit, mentioned above.
It is possible to revive your discontinued policy within 2 years from the discontinuance date. You will have to pay all due and unpaid premiums for the same. The decision is also subject to underwriting policies.
In this scenario, at the time of revival:
In this scenario, at the time of revival, you will have to pay all due premiums without any interest charged.
The premiums paid for the HDFC Life Click 2 Retire – ULIP are eligible for tax benefits, as per Section 80CCC of the Income Tax Act, 1961.
HDFC Life is a leading insurance company in India, offering a myriad of individual and group insurance schemes to meet varying customer needs such as Pension, Protection, Investment, and Health. The insurer is also known to settle claims within a short duration, with a claim settlement ratio of 99.41% in the financial year 2013-14. The company also has an effective claims assistance cell that helps customers throughout their claim journey.
One of the largest insurance providers in India, HDFC Life has a wide reach across the country. With 398 branch offices and 9,000 touch-points, the products offered by the insurer are always at reach. Additionally, the company has a strong financial consultancy wing that delivers financial solutions across the country and abroad.
A. The best time to start planning for your retirement is in the early 30s. It should be noted that the earlier you start planning, the greater will be the savings in your retirement kitty. This is due to the fact that compounding enables you to accumulate a large retirement sum with a relatively small investment, as you would be building the funds over a substantial period of time.
A. A pension plan offers you different benefits when compared to a savings and investment plan. Pension plans are designed to provide you a substantial monthly income post retirement, as that is the period when you would not be working. Another advantage of investing in a pension plan is the ability to keep your savings intact. Pension plans do not offer much liquidity, which contributes to your savings being secure.
A. Ideally, you should look to accumulate a retirement fund that amounts to at least 20 times the value of your income in the the year before retirement. The increase in life expectancy, medical costs, and cost of living would contribute to significant expenses in your life after you retire. The pension provided by your employer may not be sufficient to meet these costs. So, it is advisable to buy a pension plan to supplement the employer’s pension.
A. Diverse incomes are always welcome; however, when you are older you may not get the same benefits from your alternate employment as today. The ideal way in which you can ensure a steady source of income post retirement is by purchasing a pension plan that helps you accumulate a good amount as savings for the future.
A. All ULIPs are different from traditional insurance schemes, as they are subject to different risk factors. The premiums paid are exposed to investment risks in alignment with the capital markets. The NAVs of the units may go down or up, on the basis of the fund performance and other factors influencing the capital market. It should be noted that past performance of the funds are not indicative of the performance in the future.
A. Various charges for the plan are detailed below:
Premium Allocation Charge - Nil, as this charge is guaranteed for the policy term.
Fund Management Charge - This charge is 1.35% per annum of the fund value. The charge is levied daily and is a percentage of the unit funds. For Discontinued Policy Fund, this charge will be 0.50% per annum. This charge may be increased based on the approval from IRDAI.
Policy Administration Charge - Nil. This charge could be increased later to a maximum of Rs.500 per month with prior approval from the IRDAI.
Mortality Charge - Mortality charge for this scheme is nil, and is guaranteed for the policy term.
Investment Guarantee Charge - This charge is levied daily, and is a percentage of the unit funds. This amount is charged only when the policy is in-force and not on the Discounted Policy Fund.
|Fund||Investment Guarantee Charge|
|Pension Equity Plus Fund SFIN - ULIF06001/04/14PenEqPlsFd101||0.50% p.a.|
|Pension Income Fund SFIN - ULIF06101/04/14PenIncFund101||0.50% p.a.|
|Pension Conservative Fund SFIN - ULIF06201/04/14PenConsvFd101||0.10% p.a.|
Statutory Charge - Education Cess and Statutory Service Tax would be charged, as applicable.
Discontinuance Charge - Nil. This charge may be increased as per IRDAI approval.
Miscellaneous Charge - If the policyholder initiates a policy alteration request, he/she will be charged Rs.250 for each request. If the policy alteration is requested through the website of the insurer, the charge will be only Rs.25 per request. This charge is levied through the cancellation of units, and may be increased based on IRDAI approval.
A. The following terms apply to QROPS policyholders:
Vesting Benefits - If the product is purchased as QROPS, access to benefits through the proceeds from the policy (in the form of annuitisation and tax free commutation) would not be allowed till the policyholder is 55 years old or the vesting age, whichever is later.
Surrender Benefits - If the policy has been purchased as QROPS through the transfer of UK tax relieved assets, the access to benefits of the policy (in the form of annuitisation and tax free commutation) would be restricted. The restriction would continue till the policyholder reaches the age of 55 or the end of the lock-in period, whichever comes later.
Cancellation during Free-Look period - If the policy was purchased as QROPS, the proceeds from the cancellation of policy during the free-look period will be moved back to the fund house from where the funds were received when the policy was purchased.
A. If the insurer rejects your claim, you will receive a letter stating the reason for the rejection. This letter will be sent to you within 10 days of the decision.
Once HDFC Life receives all relevant documentation from the claimant, they will make the claim payout within 30 days. However, if they require an investigation before the payout, this will be initiated immediately. The payout will then be made on the basis of the investigation results.
A. Yes, you can choose to purchase multiple insurance policies from the same insurer. This decision is however, subject to underwriting approval.