Insurance Plans 211 views April 15, 2020

HDFC Life Insurance the most popular name in the insurance sector is famous for introducing life insurance plans that are designed to satisfy and secure the financial needs of individuals and families. HDFC Life Classic One is one of the most sought-after single premium unit-linked life insurance plans that offer the unique benefit of securing two life under a single plan. let us understand the plan in-depth.

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Features of HDFC Life Classic One Plan

The HDFC Life Classic One insurance plan is designed to offer financial protection. The following are some of the most unique features offered by the plan:

  1. Being a unit-linked plan, it offers an opportunity to earn higher returns by investing money in the market
  2. The plan comes in two variants wherein the customer is given an option to choose either Single Life Cover or Joint Life cover.
  3. For Single Life Cover, the insurance coverage is offered for only one life, however, for joint life coverage two individuals are covered under the same policy
  4. Under joint life coverage, in the event of the death of first life assured, the surviving life has the option to withdraw the entire funds and continue to have a full life cover till the end of the policy tenure, however, no death benefit is paid as under joint life coverage variant, the death benefit is paid only in the event of the death of both the life assured.
  5. Loyalty additions are allocated in the 10th policy year as extra units only if no partial withdrawal of funds has been exercised.
  6. For online cases, loyalty additions are allocated in 7th and 10th policy year as extra units provided no funds are withdrawn partially
  7. For online cases, if the premium paid is above Rs 15 Lakhs then 1% of the single premium amount shall be offered as special joining addition
  8. Investment flexibility is offered through 11 fund options. The policyholder can invest under any fund to boost the policy’s fund value. Additionally, unlimited free fund switching option is offered under the plan

Eligibility Criteria of HDFC Life Classic One Plan

ParticularsSingle Life VariantJoint Life Variant
MinMaxMin Max
Age at Entry0401880
Age at Maturity18502890
Single-Premium AmountRs 25000
No max limitRs 25000
No max limit
Policy Term10 Years50 (-) age at entry10 Years90 (-) Age at Entry
Sum Assured1.25 times of Single Premium10 times of Single Premium10 times of Single Premium10 times of Single Premium

Kindly Note: For Joint Life coverage, the relationship between the two life i.e. the policyholders can be any one of the following:

  1. Spouse
  2. Child
  3. Parent
  4. Grandparent
  5. Co-Borrower
  6. Other relationships like the partners of a partnership firm may also be considered only if insurable interest

Benefits of HDFC Life Classic One Plan

In addition to the unique features, the plan also offers benefits that help in securing the financial safety of family and loved ones. the benefits offered under this plan are as under:

Maturity Benefit:

As the plan has two variants it offers different maturity benefits to each of them. The maturity benefit offered by each of the variants is as under:

  1. Under Single Life Coverage variant, the maturity benefit equivalent to the fund value shall be paid at the end of the policy tenure
  2. Under the Joint Life Coverage variant, the maturity benefit equivalent to the fund value shall be paid in the event of survival of at least one life assured at the time of maturity.

Kindly note, the fund value shall be calculated by multiplying balance units available in the fund by prevailing price per unit. At the time of policy maturity, all the risk cover will cease. The policyholder can avail the maturity amount in periodic instalments under STP i.e. Systematic Withdrawal Plan.

Death Benefit:

The death benefit payable under the plan is different for both the variants. The death benefit paid under each of the variants is as under:

  1. Under Single Life Coverage variant, the death benefit shall be paid in a lump sum to the nominee in the event of the death of the life assured during the policy tenure
  2. Under Joint Life Coverage variant, the death benefit shall be paid in a lump sum in the event of the death of the 2nd life assured during the policy tenure

Death Benefit paid under the policy is highest of:

  1. Total Sum Assured minus any amount partially withdrawn
  2. Total Fund Value
  3. 105% of total premiums paid including top-up premiums

Kindly note, in the event of the death of the 1st life, assured, under the Joint Life Coverage variant, the amount of death benefit shall be set to 125% of the single premium paid or the amount equivalent to the balance units available under the fund. Further, the surviving life assured has an option to either:

  1. Fully withdraw the amount, or
  2. Not withdraw any amount

Loyalty Additions:

Loyalty Additions are offered under this plan. the loyalty additions are provided in the form of units to boost the fund value of the policy. Under this plan, loyalty addition is offered at the end of the 10th policy year provided the policy is in force and no partial withdrawal of funds is exercised by the policyholder. For online cases, loyalty addition is given twice in the policy term i.e. at the end of the 7th policy year and at the end of the 10th policy year provided the policy is in force and no partial withdrawal of funds is exercised.

Special Joining Addition:

Special Joining Addition equivalent to 1% of single premium shall be added directly to the fund for single premium policies having a premium of Rs 15 Lakhs or higher at the time of inception of the policy.

Settlement Option:

The policyholder has an option to choose how he/she shall receive maturity benefit. however, the settlement option is available subject to the fulfilment of certain specific conditions. It is recommended to read the policy document carefully.

Systematic Transfer Plan:

The policyholder has an option to choose a Systematic Transfer Plan to enjoy the benefit of rupee cost averaging. Under STP, the policyholder can switch all or some part of their investment in various funds available under the plan.

HDFC Life Classic One is the best single premium unit-linked life insurance plan that offers an opportunity to create wealth by earning through market-linked funds. The plan is best to secure the financial needs of your loved ones in your absence.

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