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  • HDFC Life Group Variable Employee Benefit Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    Employees are the backbone of any company. Without ensuring their well-being and happiness, a company cannot function properly. The Group Variable Employee Benefit Plan by HDFC Life is a variable insurance plan that is non-participating. As per this policy, employees are scheme members and the trustee/company is the policyholder. Through this plan, members can build their corpus in a flexible and cost effective manner, while ensuring a secure future. This plan has been designed in a way such that Leave Encashment, Superannuation and Gratuity along with other employee benefits can be managed in an effective manner.

    Benefits procured through this plan are numerous. Members can receive a guaranteed minimum return of 1% per year for the entire tenure of the policy. At the start of every financial quarter an additional rate of interest will be declared by HDFC Life. Tax benefits can be availed by both the policyholder and all members. In case of superannuation scheme, a choice of opting for individual member level accounts is available. In addition to the above, the policyholder has the option to provide an additional life cover to members at nominal cost by procuring an HDFC Group Term Insurance Plan.

    Eligibility - Who is the HDFC Life Group Variable Employee Benefit Plan for?

    As part of this plan, the trustee or company will be the master policyholder. Only members of the scheme will be eligible to join the Group Variable Employee Benefit Plan. All conditions mentioned below will have to be fulfilled in order to be eligible to procure this plan.

    Minimum Age at Entry 16 years
    Maximum Age at Entry 75 years
    Minimum size of group 10 members

    New employees can join this policy at a well-defined date based on scheme rules. The master policy will continue indefinitely on a yearly renewable basis.

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

    Customers can procure a Guaranteed Minimum Return of 1% per year for the entire tenure of the policy.

    Premium is as given below -

    Minimum Premium Rs.5,00,000 for policy
    Maximum Premium No Limit

    Customers should note that premiums vary based on age, location, plan term and other factors.

    Plan Coverage - What the HDFC Life Group Variable Employee Benefit Plan Covers?

    A number of benefits can be procured through this plan. These benefits are given below -

    Benefits applicable to Scheme Members:

    Interest Crediting Minimum Floor Rate - This rate is 1% per year and is guaranteed for the entire term of the policy. The Minimum Floor Rate will be credited to the balance of the policy at the end of the financial quarter.
    Additional Interest Rate - A non-zero positive additional rate of interest will be declared at the beginning of every financial quarter. At the beginning of a financial quarter, the non-zero positive additional interest rate will be set equal to 95% of the expected gross yields which are to be earned on the backing assets, minus the minimum floor rate. During each interval, once the minimum floor rate has been credited, the non-zero positive additional rate of interest will be credited to the balance of the policy account value.
    Residual Additions - Non-Zero positive residual additions (if any), will be credited to the policy account at the end of a policy year. Additionally, non-zero positive residual additions may be credited at the end of a policy year.
    Additional Funding Options Policyholder can opt to have additional funding on all contributions that are made. This can be chosen on contributions that are made during the first policy year. There are three options that policyholders can choose from, mentioned below. If the policyholder has availed additional funding, this amount will be recovered through a deduction from the account value, and will be equal to a percentage of contributions on which the extra funding was sought. If the policy has been surrendered prior to recovery period, unrecovered additional funding will be deducted from the policy account balance prior to paying the surrender benefits.
    Option A Option B Option C
    • Under this option, 3% of the contributions made will be considered as additional funding.
    • Reduction per annum will be 0.6%.
    • Recovery period is 6 years.
    • Under this option, 2% of the contributions made will be considered as additional funding.
    • Reduction per annum will be 0.6%.
    • Recovery period is 4 years.
    • Under this option, 1% of the contributions made will be considered as additional funding.
    • Reduction per annum will be 0.6%.
    • Recovery period is 2 years.

    Other Benefits that can be Procured as Part of this Plan are:

    • Gratuity, Leave Encashment and other employee benefits:
    Scheme/Events For those schemes wherein individual member accounts are not maintained
    Death of a member of the scheme Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value of the policy. Additionally, a benefit of Rs.1,000 is payable per member in case a life cover is chosen.
    Exit due to termination of service/resignation/early retirement/exit other than normal death Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value of the policy.
    • Superannuation Schemes:
    Scheme/Events For those schemes wherein individual member accounts are not maintained - Defined Benefit Schemes For those schemes wherein individual member accounts are maintained - Defined Contribution Schemes
    Death of a member of the scheme Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value or Assured Benefit of the policy. Higher of -
    • Member’s Account Value, or
    • Assured Benefit
    Once death benefit has been paid, all other benefits in respect of the member will stop.
    Vesting/Maturity Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value or Assured Benefit of the policy. Higher of -
    • Member’s Account Value, or
    • Assured Benefit
    Once death benefit has been paid, all other benefits in respect of the member will stop.
    Exit due to termination of service/resignation/early retirement/exit other than normal death Benefit will be paid according to scheme rules of the employer and is subject to a maximum of the Account Value of the policy. Member’s Account Value, and on payment of this benefit, all other benefits with respect to the member will stop.

    Customers should note that the master policy has an indefinite term and therefore will not have a specified vesting/maturity date. The maturity benefits for members will be paid only on normal date of retirement as per scheme rules of the employer.

    Riders/Add-On Plans - Additional Coverage under the HDFC Life Group Variable Employee Benefit Plan:

    There are no Add-On Plans or Riders that can be procured under this plan.

    Exclusions - What the HDFC Life Group Variable Employee Benefit Plan does not Cover?

    There are no exclusions to the death benefit on this plan.

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

    Cancellations in the Free-Look Period In case the policyholder does not agree with any of the provisions provided in the policy, the policy can be returned stating the reasons thereof, within a period of 15 days from the date of receipt of the policy. Premium amount will be refunded minus applicable deductions towards proportionate mortality charge and stamp duty.
    Surrender Benefit
    • In case of schemes wherein member level accounts are maintained with HDFC Life, the surrender benefit will be the policy Account Value and there will be no surrender charge.
    • In case of schemes wherein member level accounts are not maintained with HDFC Life, the surrender benefit will be the aggregate of Account value of all the members and there will be no surrender charge levied.
    Annuitisation of Benefits For schemes wherein member level accounts are maintained with HDFC Life -
    • Death Benefits - Nominee of the deceased will be entitled to
      • Withdraw entire death benefit amount, or
      • Utilise death benefits, either completely or partially, for purchasing an immediate annuity, at the then prevailing annuity rate being offered.
    • Maturity Benefits - Member will be entitled to -
      • Utilise residual amount to purchase an immediate annuity, at the then prevailing annuity rate being offered, or
      • Utilise the maturity/vesting benefit to procure a single premium deferred pension product.
    • Exit due to resignation/termination/early retirement, etc. - Member will be entitled to -
      • Transfer the account value to an approved superannuation fund, or
      • Continue account with HDFC Life, or
      • Utilise residual amount to purchase an immediate annuity, at the then prevailing annuity rate being offered, or
      • Purchase single premium deferred pension plan.
    • Surrender by master policyholder - member will be entitled subject to rules of the scheme -
      • Transfer Account Value to an approved superannuation fund, or
      • Utilise residual amount to purchase an immediate annuity, at the then prevailing annuity rate being offered
      • Purchase single premium deferred pension plan.
    Where the master policyholder maintains a superannuation fund with over one insurer, the master policyholder will be able to choose the insurer to purchase the immediate annuity.
    For schemes wherein member level accounts are not maintained with HDFC Life, and only a superannuation fund is maintained, benefits paid out during exist such as death, termination and so on, will be paid to the master policyholder in order to be utilised in accordance with scheme rules of employer.

    Tax Benefits - How you can save with the HDFC Life Group Variable Employee Benefit Plan?

    Tax Benefits applicable for the HDFC Life Group Variable Employee Benefit Plan is subject to the prevailing tax laws (Section 80C and Section 10 (10D)) of the Income Tax Act, 1961. It will have to be taken into consideration that tax benefits will differ if prevailing tax laws change. Hence, individuals are advised to confirm the same with their tax consultants.

    Other Benefits - How can you save with the HDFC Life Group Variable Employee Benefit Plan?

    HDFC Life is one of the premier providers of insurance in the country. A number of insurance plans are provided for different necessities.

    Online Applications HDFC Life Group Variable Employee Benefit Plan can be procured online by logging in to the HDFC Life website. This is extremely convenient for those who are unable to visit one of the HDFC branches to purchase the plan.
    Customer Care In case individuals have any queries, they contact HDFC Life’s customer care service. They can contact the customer service department via SMS, toll free number, email, letter, etc.
    Calculator Before purchasing the HDFC Life Group Variable Employee Benefit Plan, customers can identify their insurance needs on the basis of income, liabilities and expenses by using the HLV or Human Life Value Calculator, available on the HDFC Life website. Similarly, customers can also use the tax calculator by HDFC Life and find the amount of tax that they’ll have to pay.

    Why should you Buy the Group Variable Employee Benefit Plan from HDFC Life?

    HDFC Life is one of the foremost providers of life insurance policies within the country. Through this provider, customers can avail insurance plans that come with a number of unique benefits and services. HDFC Life has a network of about 39 offices that are spread across 9,000 touch points in India for easy access. This company also has a fantastic financial consultancy wing in India and abroad while providing some of the most successful insurance plans for a wide variety of clientele. HDFC employs cutting edge technology resulting in the company having one of the best claim settlement records in the company as compared to certain other insurance providers.

    HDFC Life Group Variable Employee Benefit Plan FAQs:

    Q. What is Assured Benefit?

    A. This benefit will be in the form of 1% per annum guaranteed return on the account value during the beginning of the year. This amount is adjusted suitably for cash flows that occur during the year.

    For example, in an individual has paid Rs.10,00,000 premium during policy inception and withdrew Rs.50,000 for making benefit payments during the middle of the year, the assured benefit at year end will be - Rs.10,00,000 x (1+1%) - Rs.50,000 x (1+1%)0.5.

    Q. What is the applicable Mortality Charge?

    A. Mortality charge of Re.1 per 1000 of Sum Assured will be charged. Statutory taxes and charges such as Education Cess may be deducted additionally at the then prevailing rates.

    Q. How can customers check the status of their HDFC Life Group Variable Employee Benefit Plan?

    A. In order to check the status of their HDFC Life Group Variable Employee Benefit Plan, customers can either contact HDFc Life through the toll free customer care number or can send them an email with query.

    Q. Is cancellation allowed during the free-look period?

    A. In case customers are not satisfied with the HDFC Life Group Variable Employee Benefit Plan, they can return the same to HDFc Life along with reasons within 15 days from the date of receipt of the policy.

    Q. Is Service Tax applicable to the HDFC Life Group Variable Employee Benefit Plan?

    A. Service Tax and other statutory charges are applicable as per existing service tax laws.

    Q. Is nomination allowed for this policy?

    A. Benefits of the policy will be processed through master policyholder with respect to nomination records that have been maintained by scheme administrator.

    Q. Are alterations allowed for the HDFC Life Group Variable Employee Benefit Plan?

    A. Alterations to the date of maturity may be allowed and is subject to scheme rules. In case the employer increases the normal age of retirement, maturity age may be extended.

    Q. What is the Minimum Floor Rate applicable to the policy?

    A. Minimum Floor Rate is 1% per year and is guaranteed for the entire tenure of the policy.

    Q. In case of superannuation scheme, can individuals avail member accounts?

    A. Yes, in case of a superannuation scheme, individual member level accounts can be availed.

    Q. What should be the minimum size of the group in order to procure this plan?

    A. A group should have a minimum of 10 members in order to procure the HDFC Life Group Variable Employee Benefit Plan.