HDFC Life Super Savings is a long-term investment plan by HDFC that protects your family from financial liabilities, and helps you meet your long-term goals at various stages of life. This is a regular premium paying endowment plan that offers an opportunity to the insured to participate in funds. The maturity benefit offered by the plan is boosted through reversionary and terminal bonuses. The policyholder can also avail insurance in a hassle-free manner without going through tedious medical tests. Additionally, the policy provides the flexibility to choose a policy term based on the convenience of the customer.
There are certain eligibility conditions that should be met for a customer to be able to purchase the HDFC Life Super Savings plan. These factors are based on his/her age and the number of years of insurance that he/she would like to avail. These eligibility conditions are detailed below:
|Entry Age||30 days||60 years|
|Maturity Age||18 years||75 years|
|Policy Term||15 years||30 years|
All ages mentioned above are with respect to the last birthday of the life insured.
Sum Assured is the amount of benefit that is paid to the life insured at the time of maturity of the policy or the death of the policyholder. The sum assured for the HDFC Life Super Savings plan is as shown below:
|Minimum Sum Assured at Maturity||Rs.245,155|
|Maximum Sum Assured at Maturity||No limit, subject to underwriting guidelines|
|Premium Payment Term||Same as policy term|
The policyholder can choose to pay the premiums at annual, semi-annual, quarterly, or monthly frequencies. The limits on premium are as shown below:
|Frequency||Minimum Instalment Premium||Maximum Instalment Premium|
The minimum premium is not inclusive of the service tax and other statutory levies.
The HDFC Life Super Savings plan is a regular income plan that provides guaranteed benefits and bonuses to the insured. The coverage of the plan includes the following:
Additionally, the reversionary bonus, interim bonus, and terminal bonus accrued on the policy is paid to the nominee.
When a policy is in paid-up status, the death benefit payable to the nominee is the highest among the following:
Additionally, all bonuses accrued on the policy till the date of paid-up is payable to the policyholder.
This plan does not have provisions for any add-on covers.
If the life assured is not in agreement with the terms and conditions mentioned in the policy document, he/she can return the policy to the insurer, stating relevant reasons. The policy should be returned within 15 days from the date of receipt of the same. This interval of 15 days is referred to as the free-look period. The free-look period for policies that were purchased through distance marketing is 30 days.
When the insurer receives the letter and original policy documents from the policyholder, they will arrange for a refund of the premium, after deduction of expenses incurred for medical examination and stamp duty. It should be noted that a returned policy cannot be reinstated again.
Grace period is the interval after the premium due date during which the policy is still in-force with all risk coverage. The HDFC Life Super Savings plan has a grace period of 30 days for policies with annual, semi-annual, and quarterly premium payment frequencies. The grace period for policies with monthly frequency is 15 days. If a valid claim arises within the grace period, the insurance company will honour it. In this scenario when the claim payout is made, the unpaid premium is deducted from the payable benefits.
If the policy has not acquired a guaranteed surrender value and the policyholder has not paid due premiums under the policy within the grace period, the policy will lapse. The risk cover of the policy will cease and no benefits are payable. It is possible to reinstate a lapsed policy.
When the policyholder stops paying premiums after the policy has acquired a guaranteed surrender value, the policy moves into the paid-up status at the end of the grace period. Once a policy is in the paid-up status:
Paid-Up Sum Assured = (Sum Assured) * (Premiums paid) / (Total premiums payable)
It is possible to reinstate a paid-up policy.
The policyholder can revive a paid-up or lapsed policy within the revival period, subject to certain terms and conditions. To revive a policy, it is necessary to pay all outstanding premiums, corresponding interests and associated taxes. The insurer levies a charge of Rs.250 for the revival of a policy. Currently the revival period for a policy is 2 years, but it may be revised in the future. On revival of a policy, the policyholder receives all contractual benefits that were agreed upon.
In order to enjoy the complete benefits of an insurance policy, it is necessary to continue till the end of the policy term. However, under certain unforeseen circumstances, the policyholder may be compelled to surrender the policy.
The HDFC Life Super Savings policy acquires a Guaranteed Surrender Value (GSV) if the life assured has paid the premiums for 3 years. The GSV is a percentage of the total premiums that have already been paid. Additionally, the Surrender Value of bonuses, which is a percentage of the accumulated bonuses, is also applied on the policy.
Based on prevailing market conditions, the insurance company may pay a surrender value that is higher than the GSV. This is referred to as Special Surrender Value (SSV). Once the surrender value is paid, the policy terminates with no further benefits.
Premiums paid under the HDFC Life Super Savings plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The benefits received from this policy are also exempt from tax under Section 10 (10D) of the Income Tax Act, 1961. These tax benefits are available as per the current tax regulations, and are subject to change in the future. You are advised to consult your tax advisor for updated tax regulations before the purchase of the policy.
HDFC Life is an established insurance provider in the country, and they have observed a competitive claim settlement ratio of 99.41% in the financial year 2013-14. They also have a dedicated customer service team that assists customers in all claim-related issues or queries.
HDFC Life is a leader in providing insurance solutions within the country. They have an extensive network comprising of 398 offices and 9,000 touch-points across India. This facilitates the availability of their insurance products throughout the country. They have a vast range of plans to suit the varied insurance needs of customers, such as Protection, Pension, Investment, and Health. HDFC Life also has an excellent financial consultancy team that offers solutions to customers in India and abroad.
A. When the HDFC Life Super Savings policy has reached surrender value, the life assured is allowed to avail policy loans of up to 80% of the surrender value of the policy.
A. After the HDFC Life Super Savings policy has been purchased, it is only possible to alter the premium frequency. This is however, subject to certain terms and conditions.
A. The HDFC Life Super Savings policy can be assigned or transferred to another individual. For this, the policyholder will be required to submit a written request to HDFC Life. If the policy was issued under the Married Women’s Property Act, 1874, the insurer does not allow assignment.
A. Service tax is applicable on the premiums paid towards the HDFC Life Super Savings policy. Any other tax that becomes applicable in the future must be borne by the policyholder.
A. Distance marketing refers to the sale of insurance policies through channels that do not involve face-to-face interactions. Internet policy purchase, telephone purchase, etc. are all included under distance marketing.
A. Yes, it is possible to purchase more than one policy from HDFC Life. However, you will have to receive the necessary approval from the insurer for the same.
A. When HDFC Life receives all the relevant documentation from the claimant, they make the necessary payouts within 30 days. If the claim needs to be investigated further, the insurer will initiate the same at the earliest. The payout will be made to the policyholder based on the investigation results.
A. You can choose to buy a unit-linked insurance plan or a traditional endowment plan. The choice of a plan is governed by a number of factors, including your risk profile, your understanding of investment instruments and your ability to track these. If you are willing to bear investment risk for higher returns, you should look to buy a unit-linked insurance product. Likewise, you can choose a traditional endowment plan if you desire less volatility.
A. If your finances do not enable you to take risks via investments in equity, the best insurance plans for you will be the bonus-based endowment plans. Otherwise you should invest in unit-linked plans which deliver higher payouts at maturity. Unit-linked plans are ideal for safeguarding your family’s future financial needs.
A. ‘With Profits’ plans are those which invest premiums in a variety of assets to earn returns on your policy. These returns are shared with you in the form of annual bonuses. Once these bonuses are declared, they will be guaranteed for the entire policy term. HDFC Life Super Savings plan is a ‘With profits’ regular premium endowment scheme with an in-built accidental death cover. Savings under the plan are accumulated over a long period of time to build a good financial corpus.