HDFC Life SL Crest is a short-term Unit Linked Insurance Plan that provides the insured market-linked returns within a brief period of 10 years. The plan also offers financial protection to the family of the insured. The policyholder is expected to pay premiums for a period of 5 years, and he/she can avail returns for a duration of 10 years.
The plan provides the policyholder the flexibility to invest in any of the 4 fund options. The insured can also choose the sum assured multiple from 10 times to 20 times the annualized premium. The policy does not have an upper limit for the premium amount. The plan is available to HDFC Bank credit card holders through the payment of EMIs, if needed. Premiums can be paid through multiple modes, i.e., credit card, cheque, internet banking, and auto debit facility.
The HDFC Life SL Crest 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||14 years|
|Maximum Entry Age||55 years|
|Maturity Age||65 years|
|Policy Term||10 years|
All ages mentioned above are with respect to the last birthday of the life insured.
The sum assured varies as shown below:
|Minimum Sum Assured||When entry age is below 45 years, 10 times the annualized premium When entry age is above 45 years, 7 times the annualized premium|
|Maximum Sum Assured||20 times the annualized premium|
The linked insurance products do not offer any liquidity for the first five years of the contract. During this period, the policyholder will not be able to withdraw the amount invested in the linked insurance products, partially or as a whole.
The policyholder has the option to choose the premium as per the table below:
|Maximum Premium||No limit|
|Premium Payment Frequency||Annual|
|Premium Payment Term||5 years|
The HDFC Life SL Crest is a Unit Linked Plan that provides you the benefits of investing in funds with a shorter horizon. The coverage of the HDFC Life SL Crest plan includes the following:
|Before 60 years of age||The greater amount from the following will be paid:
|At or after 60 years of age||The greater amount from the following will be paid:
This plan does not offer any add-on covers.
If the life insured commits suicide within 12 months from the start of the policy or from the date of policy revival, the nominee will receive the fund value as on the date of death. Any charges that are recovered after the date of death will be payable to the nominee along with the death benefit.
The HDFC Life SL Crest plan has a grace period of 30 days. If the life insured discontinues the policy before the completion of 5 years, the following holds true:
In case the premiums have not been paid within the grace period, you can either revive the policy within 2 years from the date of discontinuance, or completely withdraw from the policy and forgo any risk coverage.
The policy will be discontinued if the life insured does not exercise any of these options or if he/she completely withdraws from the policy. It should be noted that the risk cover will be in-force and policy charges will be deducted till the discontinuance of the policy. After discontinuance, the risk cover will cease to exist and the fund value less the Discontinuance Charge will be shifted to the Discontinued Policy Fund. The minimum guaranteed interest rate applied to this fund is 4% per annum. This rate is however, subject to changes in the future.
If a discontinued policy is not revived, the proceeds are payable at the end of the lock-in period, which is usually 5 years. In situations where the revival period exceeds the lock-in period, the life insured can receive the proceeds either at the end of the lock-in period or the end of the revival period. In case the policyholder does not exercise any option, the proceeds are paid at the end of the lock-in period.
Once the discontinuance benefit is paid out, the policy will terminate with no further benefits.
Revival of Discontinued Policies:
The policyholder has the option to revive a discontinued policy within 2 years from the discontinuance date. At the time of revival:
If the policyholder is not in alignment with the terms and conditions specified in the insurance policy, he/she can choose to return the policy back to the insurer within a period of 15 days from the date of receipt of the policy. The free-look period for policies that were purchased through distance marketing is 30 days. When the insurer receives the returned policy from the policyholder with all relevant documents, they will arrange for a refund of the value of units that were allocated to him/her under the policy. It should be noted that a returned policy can never be reinstated or restored again.
Premiums paid towards the HDFC Life SL Crest policy are subject to tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. These tax laws are however, subject to change and you are advised to consult your tax advisor for updated tax laws.
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.
HDFC Life is a leader in providing insurance solutions within the country. They have an extensive network of 398 offices and 9,000 touch-points throughout India. This ensures that their products are always accessible to the customer. HDFC Life also has an excellent financial consultancy wing that offers financial solutions to customers in India and abroad.
A. No, loans are not available on the HDFC Life SL Crest policy.
A. The HDFC Life SL Crest plan is a ULIP that gives you the choice of 4 different funds in which you can invest. The funds available for investment under this plan are as follows:
|Fund (SFIN)||Investment Strategy||Investment Predominantly in||Risk and Return Rating|
|Income Fund - ULIF03401/01/10 IncomeFund101||Higher duration and credit exposure ensures higher potential returns||Government securities and fixed income securities||Moderate|
|Balanced Fund - ULIF03901/09/10 BalancedFd101||Dynamic exposure to equity enhances returns while the allocation of debts reduces volatility||Equity, Government securities, and fixed income securities||Moderate to high|
|Blue Chip Fund - ULIF03501/01/10 BlueChipFd101||Exposure to equity-related securities and large-cap equities||Equity||Very high|
|Opportunities Fund - ULIF03601/01/10 OpprtntyFd101||Exposure to equity-related securities and mid-cap equities||Equity||Very high|
The HDFC Life SL Crest plan enables you to invest in any of the 4 non-guaranteed funds mentioned above, based on your risk appetite. You also have the flexibility to switch or redirect your future premium.
A. Distance marketing refers to insurance policies that are sold through modes that do not include face-to-face interactions. This includes policy sales through the internet, telephone, etc.
A. The charges under the HDFC Life SL Crest policy are as stated below:
|Policy year of discontinuance||Discontinuance Charge|
|1||Lower of 6% of annual premium or fund value, but not above Rs.6000|
|2||Lower of 4% of annual premium or fund value, but not above Rs.5000|
|3||Lower of 3% of annual premium or fund value, but not above Rs.4000|
|4||Lower of 2% of annual premium or fund value, but not above Rs.2000|
|5 and above||Nil|
A. It is not possible for the insurer to change the current charges without approval from IRDAI.
The Discontinuance Charge and Fund Management Charge will be limited by a maximum cap, allowed by the IRDAI.
The Premium Allocation Charge, Policy Administration Charge, and Mortality Charge Rates are guaranteed for the complete duration of the policy term.
A. Under the HDFC Life SL Crest policy, increase or decrease in the policy term, premiums, and sum assured are not allowed.
A. Yes, it is possible to assign/transfer the policy to another individual. For this, you will have to submit a written request to the insurance company. The instrument of transfer/assignment should specify the reason for the same. The fee pertaining to the transfer/assignment will be communicated to you by the insurer. The insurer may accept or decline the assignment/transfer request.
A. If you are aggrieved by the policy assignment refusal, you can prefer a claim to IRDAI within 30 days of receipt of the insurer’s letter of refusal.
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.
A. Once HDFC Life receives all claim-related information from the claimant, they will make a payout within 30 days. In case the claim needs to be investigated further, the insurer initiates this at the earliest. The claim payout will depend upon the result of the investigation.