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HDFC Life Uday Plan

The Uday plan from HDFC Life is a traditional non-linked ‘with profit’ plan that offers insurance coverage. Not only does the plan offer benefits in the form of guaranteed bonuses and additions, but also ensures that the family of the policyholder is financially secure in case of his/her untimely demise.

Customers who purchase the Uday plan from HDFC Life receive multiple term options to suit their requirements. The issuance process associated with the plan is relatively simple, making it easy for customers to purchase it. The premium payments towards the HDFC Life Uday start at around Rs.5,000 per annum, making it relatively affordable. Add to it the tax benefits in addition to the death and maturity benefit, the HDFC Life Uday plan is a great investment option for anyone who wishes to safeguard the future of their family.

Eligibility – Who is the HDFC Life Uday Plan For?

To be eligible to purchase a HDFC Life Uday plan, individuals must be of a certain age when purchasing the policy and also at the time of maturity. Following are the criteria you must meet of you wish to purchase a HDFC Life Uday plan:

Plan Type Individual
Minimum Entry Age 18 years completed
Maximum Entry Age 55 years completed
Minimum Maturity Age 30 years completed
Maximum Maturity Age 70 years completed

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

The premium payment made towards your HDFC Life Uday plan will determine the benefits you will receive through the policy. Premium payments can be made on a monthly, quarterly, semi-annual or annual basis depending upon the preference of the customer. Following are some of the features of the HDFC Life Uday plan:

Minimum Sum Assured Rs.28,465
Maximum Sum Assured No limit, subject to underwriting
Minimum Premium In case the premium payment frequency is annual, the minimum premium will be Rs.5,000. In case the premium payment frequency is semi-annual, the minimum premium will be Rs.2,500. In case the premium payment frequency is quarterly, the minimum premium will be Rs.1,250. In case the premium payment frequency is monthly, the minimum premium will be Rs.500.
Maximum Premium No limit, subject to underwriting
Premium Payment Frequency Monthly / Quarterly / Semi-Annual / Annual
Premium Payment Term 8 years in case the policy term is 12 years, and 8 years or 10 years in case the policy term is 15 years.
Policy Term 12 years / 15 years

*Premiums may vary based on age, location, plan term and other factors.

Plan Coverage – What the HDFC Life Uday Plan Covers?

Maturity Benefit In case the policyholder survives the entirety of the policy term, he/she will be eligible for a maturity benefit. The maturity benefit offered by the HDFC Life Uday will be the aggregate of the sum assured on maturity, the accrued guaranteed additions, and accrued interim bonus, terminal bonus and reversionary bonus, if any. Once the maturity benefit has been paid by the company, the policy will terminate and no further benefits will be payable to the life assured or the nominees.
Death Benefit In case of the untimely demise of the policyholder during the policy term, the nominee will be eligible for a death benefit. The death benefit offered by the HDFC Life Uday will be the higher of either the Sum Assured on Death + Accrued Guaranteed Additions + Accrued Reversionary Bonuses (if any) + Interim Bonus (if any) + Terminal Bonus (if any); or 105% of all the premiums paid by the life assured until the date of death. The sum assured on death will be the higher of the Sum Assured on Maturity; or an absolute amount assured to be paid on death of the policyholder, which in this case, will be the equivalent of the Sum Assured on Maturity; or 10 X Annualised Premium in case the entry age is under 50 years and 7 X Annualised Premium in case the entry age is greater than or equal to 50 years. Once the death benefit has been paid to the nominee, the policy will terminate and no further benefits will be paid by the company.
Guaranteed Additions The HDFC Life Uday offers additional boosters in the form of Guaranteed Additions. These additions will accumulate at the rate of 3% of the Sum Assured on Maturity during the first five years of the policy. These additions will be paid to the policyholder once the policy matures, or to the nominee of the policyholder in case of his/her untimely demise during the policy term, whichever is earlier. In case the life assured decides to surrender the policy the surrender value of the Guaranteed Additions will be paid immediately.
Bonuses At the end of each financial year, the company will declare a simple Reversionary Bonus as a percentage of the Sum Assured on Maturity. Once this bonus has been added to the policy, it will be paid to the life assured when the policy matures, or to the nominee of the policyholder in case of his/her death during the policy term. In case of the death of the policyholder or the surrender of the policy during the inter-valuation period, the policy will be eligible for the Interim Bonus. The bonus will depend upon the bonus rates declared by the company. A Terminal Bonus can also be added to the HDFC Life Uday plan at maturity or death, thereby enabling the company to pay a fair share of the profits at the end, depending upon the actual experience of the policy term and allowing for the reversionary bonuses already attached. Since the Terminal Bonus is based on the actual future experience, it is not a guaranteed benefit.
Surrender In case the policy is surrendered prior to the completion of five years starting from the date on which the policy commenced, the fund value will be transferred to the Discontinued Policy Fund after discontinuance charges have been deducted. The amount transferred to the Discontinued Policy Fund, plus accrued interest, will be paid out after the lock-in period has expired. In case of the untimely demise of the policyholder prior to the payment of the surrender benefit, the amount in the Discontinued Policy Fund will be paid out immediately. In case the policy is surrendered after the completion of five years starting from the date on which the policy commenced, the fund value will be paid out immediately. Once the payment of this benefit has been made, the policy will terminate and the policyholder will not be eligible for any further benefits.
Investment Funds Customers have the option to invest their money in any of the following four investment funds: Income Fund: The Income Fund offers higher potential returns as it is exposed to higher duration and credit. Balanced Fund: The Balanced Fund offers exposure to dynamic equity in order to increase the returns. At the same time, the volatility of returns is reduced by debt allocation. Blue Chip Fund: The Blue Chip Fund is exposed to large-cap equities and equity related securities. Opportunities Fund: The Opportunities Fund is exposed to mid-cap equities and equity related securities.

Exclusions – What the HDFC Life Uday Plan doesn’t Cover?

The HDFC Life Uday plan has certain exclusions which are as follow:

  • Policy loan: Customers cannot take a loan against this policy.
  • Suicide: In case of the death of the life assured due to suicide within 12 months from the date on which the policy comes into force, the beneficiary will be eligible for the fund value, as available on the date of death. Once the benefit has been paid to the beneficiary, the policy will terminate.
  • Critical Illness: In case the policyholder contracts a critical illness within six month following the date on which the policy was issued or commenced, the company will not pay any critical illness benefits. Critical illness benefits will also not be paid in case the condition is caused as a direct or indirect result of attempted suicide or intentional self-inflicted injury, whether or not the individual suffers from a mental condition, childbirth or pregnancy or complications arising therefrom. No benefits shall be payable even in case the policyholder contracts a critical illness as a result of solvent or alcohol abuse, or if he/she is under the influence of drugs unless said drugs are taken under the direction of a registered doctor or medical practitioner. Even if the critical illness was contracted as a result of war, hostilities, civil war, invasion, revolution, rebellion, riots, or if the individual was participating in any flying activity, except as a passenger on a commercially licensed aircraft, or if he/she was taking part in any act of criminal nature, the critical illness will not be payable.

Other Key Features of HDFC Life Uday Plan:

Following are some of the other key features of the HDFC Life Uday plan:

Free Look Period Customers who are not satisfied with the terms and conditions of the HDFC Life Uday plan have the option of returning the policy to the company within 15 days from the date on which they receive the policy. In case the policy was purchased via distance marketing mode, the free look period applicable will be 30 days. Once the policy is cancelled during the free look period, the company will refund the value of units allocated to the customer on the date on which the request to return the policy was made. The unallocated part of the premium plus charges levied by cancellation of units will be added to the refund amount, but the proportionate risk premium for the period of cover, stamp duty charges, and other expenses incurred by the company on medical examination, if any, will be deducted. Once the payment has been made, the policy and all benefits under it shall terminate.
Grace Period Customers who fail to make their premium payment on the due date will receive a grace period of 30 days to do the same.
Discontinuance / Reinstatement In case a customer discontinues his/her HDFC Life Uday plan before the completion of the first five policy years, i.e. if premium payments remain due after the expiry of the grace period, customers have the option of reviving the policy within a period of two years from the date on which the policy was discontinued. After the policy is discontinued, the risk cover will terminate and the fund value, as on the date of discontinuance, will be transferred to the Discontinued Policy Fund after the applicable Discontinuance Charge has been deducted. The minimum guaranteed interest rate applicable to the Discontinued Policy Fund is 4% per annum at the moment, but is subject to change based on revisions made by the IRDAI. Asset allocation for the Discontinued Policy Fund is currently 0% to 40% for money market instruments and 60% to 100% for government securities.
Switch A request for a fund switch initiated by the policyholder will be charged at Rs.250 per request, but if the request is executed through the company’s web portal, the charge will be Rs.25 per request.
Premium Redirection A request for premium redirection initiated by the policyholder will be charged at Rs.250 per request, but if the request is executed through the company’s web portal, the charge will be Rs.25 per request.

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

The benefits received through the HDFC Life Uday plan are eligible for tax benefits under Section 10(10D) and Section 80C of the Income Tax Act, 1961.

Why you should Buy the HDFC Life Uday?

HDFC Life is among India’s leading life insurance companies that offer a wide variety of individual as well as group insurance solutions that have been designed to cater to an expansive customer base. The company offers protection plans, pension schemes, savings and investment plans, health insurance policies as well as women’s and children’s plans. The company has received several accolades over the years thanks to its exceptional customer service. With the variety of options on offer in addition to a customer service team that promises effective solutions, purchasing the HDFC Life Uday plan can only turn out to be a good decision.

HDFC Life Uday Plan FAQs:

Q. What is the fund management charge applicable to the HDFC Life Uday plan?

A. The daily unit price already includes the company’s fund management charge of 1.35% per annum, charged daily, of the fund’s value.

Q. Is there a premium allocation charge associated with the HDFC Life Uday plan?

A. Yes, when you pay the premium towards the HDFC Life Uday plan, a small charge will be deducted from your premium and the remainder of the premium will be invested to purchase units. The remainder of your premium that is used to invest in securities is called the premium allocation rate. The premium allocation charge is guaranteed for the entire duration of the policy.

Q. Is there a policy administration charge associated with the plan?

A. Yes, the charge levied will be 0.13% per month of the total premiums paid (including any single premium top-ups). Every month, a charge will be deducted, subject to a maximum of Rs.500 per month.

Q. Are there any miscellaneous charges to be aware of?

A. Yes. In case the policyholder wishes to make alterations to the policy, each request will attract a charge of Rs.250.

Q. How do I make claims?

A. In case of the death of the life assured, you must notify HDFC Life immediately. The filed up claims must then be submitted to the company along with all the required documents as mentioned in the policy document. The claim will be processed after the company has conducted the necessary verification to ascertain the authenticity of your claim.

Q. Can I avail a loan against the HDFC Life Uday plan?

A. No, this policy has no facility that allows customers to borrow money against it.

Q. What is the charge for an additional switch?

A. Switches will be charged at Rs.250 per request. However, executing a request through HDFC Life’s web portal will cost you only Rs.25 per request.

Q. What is the charge for partial withdrawal?

A. A request for partial withdrawal will cost Rs.250 per request. However, executing a request for partial withdrawal through the company’s portal will cost you only Rs.25 per request.

Q. What is the charge for premium redirection?

A. Premium redirections will be charged at Rs.250 per request. However, executing a request through HDFC Life’s web portal will cost you only Rs.25 per request.

Q. Is service tax applicable to the HDFC Life Uday plan?

A. Yes, service tax and other statutory levies will be applicable as per the prevailing tax laws.