• HDFC Life Click 2 Retire Plan

    Life Insurance
    • Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
    • Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
    • Do more with plans that offer pure protection, retirement planning and investment options

    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.

    Eligibility - Who is the HDFC Life Click 2 Retire – ULIP for?

    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

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

    Sum Assured:

    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
    Minimum Premium Annually 24,000 NA
    Semi annually 12,000 NA
    Quarterly 6,000 NA
    Monthly 2,000 NA
    Single Pay NA 50,000
    Maximum Premium No Limit
    • The customer can choose to pay the premiums at frequencies suitable to him/her. This should however, be agreed with the insurer at the time of policy purchase.
    • For monthly frequency, prevailing operational rules may mandate that the premium for the first three months is paid in advance.
    • Once the premium, policy term, and premium payment term are finalised, it cannot be altered. However, you can change the frequency at which you pay the premium amount.

    Plan Coverage - What the HDFC Life Click 2 Retire Covers?


    HDFC Life Click 2 RetireULIP 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 policy does not have any entry charges, such as the premium allocation charge.
    • There are no policy administration charges associated with the plan.
    • The policy does not have any exit charges.

    The coverage under HDFC Life Click 2 Retire – ULIP includes the following:

    • Vesting Benefit – At the end of the policy term, the policy will mature or vest. The Maturity/Vesting Benefit that is payable to the policyholder is the highest among the following:
      • Fund Value
      • Assured Vesting Benefit

    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.

    • Deferment of vesting date – You can initiate deferment of the vesting/retirement date, and inform the insurer about the same any time before annuitisation.
      • The vesting date can be postponed multiple times, provided that the maximum vesting age is 75 years, and the policyholder is below 55 years of age.
      • When the vesting date is postponed, Death benefit and Assured Vesting Benefit will be applied as usual. It should be noted that the Assured Vesting Benefit will remain the same as the amount that was calculated at the inception of the policy.
      • The amount will be moved to the Pension Conservative Fund and all relevant charges will be deducted as usual.
    • Death Benefit - If the policyholder faces death before the policy matures, his/her nominee will receive a death benefit that is higher of the following:
      • Fund Value
      • 105% of the total premiums that were paid till death

    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.

    • Utilisation of Policy Proceeds - According to current regulations, you can choose to take the Vesting Benefit in any of the following ways:
      • Take ? rd of the amount as a cash lump sum that is tax-free. The remaining amount is converted to an annuity at the annuity rates prevailing then. The annuity will have to be purchased from the insurer, as per regulations.
      • The policyholder can use the entire amount to buy annuity from HDFC Life at the annuity rates that are prevalent at that time.
      • The entire proceeds can be used to buy a single premium deferred pension plan from the insurer.
      • The policyholder can choose to extend the deferment period of the same policy, provided he/she is below 55 years of age when the policy vests.

    Add-On Plans – Additional Coverage under the HDFC Life Click 2 Retire – ULIP:

    This is not applicable for the plan.

    Exclusions - What the HDFC Life Click 2 Retire doesn’t Cover?

    There are no exclusions under this plan.

    Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

    • Free-look Period

    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.

    • Discontinuance

    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.

    • Surrender

    The surrender benefit is the fund value at the time of surrender.

    • When you surrender before the completion of 5 years

    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.

    • When you surrender after 5 years from the start of the policy

    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.

    • Revival of Discontinued Policies

    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.

    • When you discontinued before the completion of 5 years

    In this scenario, at the time of revival:

    • You would be required to pay all due premiums, without any interests.
    • The proceeds of the discontinued policy will be moved to the segregated fund by the insurer. This will however, depend on the balance term to vesting.
      • When you discontinued after 5 years from the start of the policy

    In this scenario, at the time of revival, you will have to pay all due premiums without any interest charged.

    Tax Benefits – How you can save with the HDFC Life Click 2 Retire?

    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.

    • Up to 1/3rd of the tax benefit can be availed as a commuted value that is tax-free, as detailed under Section 10(10A) of the Income Tax Act, 1961. The remaining amount can be utilised for the purchase of a life annuity from HDFC Life.
    • The tax benefits listed herein are subject to changes based on the existing tax laws. It is advisable to reconfirm the same with your tax consultant before investing in the policy.

    Other Benefits – How you can save with the HDFC Life Click 2 Retire?

    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.

    Why you should Buy the Click 2 Retire from HDFC Life?

    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.

    HDFC Life Click 2 Retire Plan FAQs:

    Q. At what age should I look to save towards my retirement years?

    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.

    Q. If I already have a savings and investment plan from the insurer, do I need to buy a separate insurance policy for retirement?

    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.

    Q. If my employer provides me pension, do I need to buy a pension plan?

    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.

    Q. If I have multiple sources of income, should I buy a pension plan to meet my retirement goals?

    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.

    Q. What are the risk factors associated with this plan?

    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.

    Q. What are the charges for the plan?

    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.

    Q. What are the benefits if HDFC Life Click 2 Retire – ULIP is purchased as Qualifying Recognised Overseas Pension Scheme (QROPS)?

    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.

    Q. How will I be informed of a rejected claim?

    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.

    Q. How long does it take the insurer for claim processing?

    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.

    Q. Is it possible to buy more than one policy from HDFC Life?

    A. Yes, you can choose to purchase multiple insurance policies from the same insurer. This decision is however, subject to underwriting approval.

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