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Employees are the backbone of any industry. Although customers drive profits, without employers it is impossible for companies to function effectively. Hence, a lot of industries provide policies and services that ensure the wellbeing of employees is taken care of. Insurance policies are most commonly procured for this purpose. The HDFC Life New Group Unit Linked Plan offers a cost effective and flexible method through which a corpus can be built to fund future needs of employees. This is a unit linked insurance plan that can maximise investments without hassles.
Customers have the unique advantage of having the choice to opt between 6 debt and equity oriented funds along with flexibility with respect to premium payments. Individuals also have the option to switch between different options. An insurance coverage of Rs.1,000 comes in-built with this plan. Schemes with large funds will have additional units added to it by HDFC Life.
Factors that govern the eligibility for the HDFC Life New Group Linked Plan are based on the size of the group and age. Some of the criteria is mentioned below -
|Minimum Age Limit||Based on Trust Deeds and Rules for the Scheme|
|Maximum Age Limit||Based on Trust Deeds and Rules for the Scheme|
|Minimum size of group at inception||10 members|
|Minimum Policy Tenure||Master Policy will continue indefinitely and will be renewed annually|
Sum Assured that policyholders can procure will depend on their choice of funds, premium amount, trust deeds and rules for the scheme.
|Minimum Premium Amount||Rs.5,00,000 per policy|
|Maximum Premium Amount||No Limit|
Customers should note that premiums vary based on age, location, plan term and other factors.
A number of benefits can be procured through this plan. One of the biggest advantages that customers have is that they can opt for their choice of funds. They can either opt for one fund or a combination of different options based on their appetite for risk. The table below provides details of all the fund options available.
|Money Market Instruments and Public Deposits||Government Bonds and Securities||Equity||Rating and Risk Return|
|Liquid Fund II||
|Secure Managed Fund II||
||0% to 25%||75% to 100%||-||Low|
|Defensive Managed Fund II||
||0% to 20%||50% to 85%||15% to 30%||Moderate|
|Balanced Managed Fund II||
||0% to 20%||20% to 70%||30% to 60%||High|
|Equity Managed Fund II||
||0% to 15%||0% to 40%||60% to 100%||Very High|
|Growth Fund II||
||0% to 10%||-||90% to 100%||Very High|
|Maturity Benefit||Since there is no maturity date for this policy, it will continue until a member chooses to leave the scheme.|
|Benefit that is payable when a member leaves policy||The claim amount that has been requested by the policyholder will be paid from the policy fund to the individual which allows them to provide the benefit payment to the beneficiary. Maximum amount that will be payable is the Fund Value.|
|Death Benefit||In case of unfortunate demise of eligible member, an additional amount of Rs.1,000 will be paid to the policyholder along with amount that would be paid through unit linked funds.|
|Surrender Benefit||In case of policy surrender, the unit value minus surrender charges will be paid to the holder of the policy.|
There are no Add-On Plans or Riders that can be procured under this plan.
|Cancellations in the Free-Look Period||In case the policyholder is not in agreement with any of the provisions provided in the policy, the same can be returned stating the reasons thereof, within 15 days from the date of receipt of the policy. Premium amount will be refunded minus applicable deductions towards proportionate mortality charge for the period on cover and stamp duty expenses.|
|Surrender Charge||A charge of 0.05% of the unit fund will be levied (subject to a maximum of Rs.5,00,000) in case funds are withdrawn prior to third anniversary of the policy.|
|Claw-back Additions||At the end of each policy year (after the end of the fifth year of policy), gross yield will be calculated along with reduction in yield and net yield based on actual returns. In case the reduction in yield is above that as necessary as per regulations, Claw-back Additions will be added to the fund so as to ensure compliance with reduction in yield requirements.|
Tax Benefits applicable for the HDFC Life New Group Linked 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 vary if there is a change in the prevailing tax laws change. Hence, individuals are advised to discuss the same with their tax consultants.
HDFC Life is one of the foremost insurance providers in the country. Customers can choose between a variety of products based on their necessities.
|Online Applications||HDFC Life New Group Linked Plan can be availed online by logging in to the HDFC Life website. This method is convenient for those who are unable to visit one of the HDFC branches to purchase the plan or stay in far-off places.|
|Customer Care||In case individuals have any queries, they can contact the customer care centre. They can contact the customer service department via SMS,email, toll free number, letter, etc.|
|Calculator||Before purchasing the HDFC Life New Group Linked 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.|
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. HDFC Life also has one of the highest Claims Track Record in the company with 95% of claims being honoured. This company 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. Cutting edge technology is employed by HDFC Life resulting in the company having one of the best claim settlement records in the company as compared to certain other insurance providers.
A. Customers can find out the status of their policy application by either calling HDFC Life on the toll free customer care number or by sending them an e-mail.
A. Service tax along with education cess will be charged by cancellation of units.
A. HDFC Life sets the Unit Price of a fund based on IRDA’s guidelines. This price will be computed as -
‘Market Value of Investments + Value of any current assets + any accrued income net of fund management charges - value of any current liabilities provision (if any)’. This will result in the net asset value of the fund. Dividing this by the number of units existing at the valuation date (prior to allocation/redemption of new units), will result in the unit price of the fund that is under consideration.
The resulting price will be rounded off to the nearest Re.0.0001.
A. This term means that additional units will be added by HDFC Life to schemes that have large funds. The Large Fund Discount will depend on the size of the fund value of the scheme, as illustrated below -
|Fund Value||Amount to be added (% per annum of the policy’s fund)|
|Less than 1 crore||0.00%|
|Greater than or equal to 1 crore||0.25%|
|Greater than or equal to 2 crores||0.45%|
|Greater than or equal to 5 crores||0.55%|
|Greater than or equal to 10 crores||0.65%|
|Greater than or equal to 15 crores||0.70%|
A. A mortality charge of Re.1 per 1000 of Sum Assured will be charged. Statutory taxes are also applicable. Cess may be deducted additionally at the prevailing rates at that time.
A. The daily unit price will include a fund management charge of 1.25% per year, charged everyday, of the value of the fund.
A. After subtracting this charge from the contribution, the remainder will be invested to purchase units. The percentage remaining of the contribution that is invested to purchase units is referred to as Premium Allocation Rate.
|Policy Sourced||Premium allocation charge||Premium allocation rate|
|Through an intermediary||2.00%||98.00%|
A. Liquidity Management is a unique feature of HDFC Life New Group Unit Linked Plan and allows investment of relatively smaller amounts as compared to larger values that are required to be invested, in case investments have been made directly by the employer in the market.
A. At policy inception, the group should have a minimum of 10 members.
A. No, the insurer is not liable to pay gratuity or leave encashment to its members. The master policyholder is liable to pay the same.
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