HDFC Life SL Crest Plan

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.

Eligibility - Who is the HDFC Life SL Crest Plan for?

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.

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

Sum Assured:

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.

Premium:

The policyholder has the option to choose the premium as per the table below:

Minimum Premium	Rs.50,000
Maximum Premium	No limit
Premium Payment Frequency	Annual
Premium Payment Term	5 years

Plan Coverage - What the HDFC Life SL Crest Covers?

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:

• Maturity Benefit - Your policy will vest at the end of the policy term and the fund value on the date of maturity will be paid out. You can select a settlement option as detailed below:
  • Settlement option - You can choose to take your fund value over a period of 5 years in periodic installments. The value of the instalment paid on the date specified will be subject to investment risks. During the Settlement period, the risk cover will cease. However, the Fund Management Charge will continue to be deducted, and no further charges will be levied. During this time, it will not be possible to do partial withdrawals and switches. However, it is possible to do complete withdrawals in this interval. After the completion of 5 years, the insurer will redeem the balance units at the prevailing rates and will pay you the fund value.

• Death Benefit - If the Life Assured succumbs to death, the death benefit paid to the nominee will be as defined in the table below:

Death	Death Benefit
Before 60 years of age	The greater amount from the following will be paid: Sum Assured minus all withdrawals made during the immediate two years preceding death Total fund value The policy terminates after the death benefit is paid and no further benefits are payable.
At or after 60 years of age	The greater amount from the following will be paid: Sum Assured minus all withdrawals made after attaining 58 years of age Total fund value The policy terminates after the death benefit is paid and no further benefits are payable.

• Partial Withdrawal - It is possible to make partial withdrawals from your funds in the form of a lump sum amount after 5 years into the policy. However, this is subject to:
  • The withdrawal amount being at least Rs.10,000.
  • After the withdrawal, the fund does not go below the minimum value of 150% of your regular premium.
  • The maximum withdrawals that are possible throughout the term of the policy is 300% of the regular premium.
  • The Life Assured is at least 18 years old.

 

Add-On Plans – Additional Coverage under the HDFC Life SL Crest Plan:

This plan does not offer any add-on covers.

Exclusions - What the HDFC Life SL Crest Plan doesn’t Cover?

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.

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

Discontinuance:

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:

• All due unpaid premiums should be paid without any interests.
• The discontinuance charges that were deducted on discontinuance of the policy will be reversed. The proceeds in the discontinuance fund will be re-allocated to the segregated funds chosen by the policyholder.
• Premium allocation charges and policy administration charges will be levied for the discontinuance period.

Surrender:

• If the policy is surrendered before the completion of 5 years, the fund value less the discontinued charges will be shifted to the Discontinued Policy Fund. The amount in this fund along with the accrued interest will be paid to the policyholder when the lock-in period is completed. If the life insured succumbs to death before the surrender benefit is paid, the amount in the Discontinued Policy Fund is paid out at the earliest.
• If the policy is surrendered after the completion of 5 years, the fund value will be paid to the policyholder immediately. Once this benefit is paid, the policy terminates with no further benefits.

Free-Look Period:

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.

Tax Benefits – How you can save with the HDFC Life SL Crest Plan?

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.

Other Benefits – How you can save with the HDFC Life SL Crest Plan?

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.

Why you should Buy the SL Crest Plan from HDFC Life?

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.

HDFC Life SL Crest Plan FAQs:

Q. Can I avail loans on the policy?

A. No, loans are not available on the HDFC Life SL Crest policy.

Q. What are the funds associated with the HDFC Life SL Crest plan?

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.

Q. What is distance marketing?

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.

Q. What are the charges under the HDFC Life SL Crest policy?

A. The charges under the HDFC Life SL Crest policy are as stated below:

• Premium Allocation Charge - This is a charge levied on the basis of the premium. After this charge is deducted from the premiums, the remainder is invested in purchasing units. This percentage of the premium using which units are purchased is called the Premium Allocation Rate. The Premium Allocation Charge is guaranteed throughout the premium payment term.

  Premium paid during the year	Year 1 and 2	Year 3	Year 4 and 5
  Premium Allocation Rate	96%	97%	98%
  Premium Allocation Charge	4%	3%	2%

• Fund Management Charge - The daily unit price is inclusive of the fund management charge (FMC) of 1.35% per annum of the fund’s value. This amount is charged on a daily basis.
• Policy Administration Charge - The policy administration charge is 0.31% of the annual premium per month. This amount will increase at the rate of 5% at every policy anniversary, subject to a maximum amount of Rs.500 per month. This charge is levied by the cancellation of units from the chosen funds.
• Mortality Charge - Every month, the insurer levies a charge for providing the life insured a death cover under the policy. The amount of charge depends on the age of the policyholder and the amount of coverage.
• Miscellaneous Charge - Any policy alteration request initiated by the policyholder will attract a charge of Rs.250. Additionally, for partial withdrawal, premium redirection, and fund switch requests, the following charges will be levied:
• Partial Withdrawal Charge - If the policyholder requests for a partial withdrawal, the change will attract a charge of Rs.250 per request. If the request was placed through the company’s website, the charge will be a slashed amount, i.e., Rs.25 per request. This charge is levied at the time of partial withdrawal of the fund.
• Switching Charge - If the policyholder requests for a switch in funds, the change will attract a charge of Rs.250 per request. If the request was initiated through the website of HDFC Life, the charge will only be Rs.25 per request. The charge will be levied at the time of the switch between funds.
• Premium Redirection Charge - If the policyholder initiates a request for premium redirection, the change will attract a charge of Rs.250 per request. However, if the request was placed through the company’s website, the charge will be Rs.25 per request.
• Discontinuance Charge - This charge is based on the year of discontinuance. There is no discontinuance charge on a policy after the fifth policy year. Discontinuance charges applicable are as shown in the table 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

Q. Can these charges be altered?

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.

Q. Is it possible to alter the policy term after the policy has been purchased?

A. Under the HDFC Life SL Crest policy, increase or decrease in the policy term, premiums, and sum assured are not allowed.

Q. Can I assign the policy to another individual?

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.

Q. What can be done if my policy assignment request has been declined by the insurer?

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.

Q. What are non-negative claw-back additions?

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.

Q. How long does the insurer take to process claims?

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.