Investment Plans 184 views January 5, 2022

HDFC SimpliLife ULIP Plan helps you make money by providing you with a wide range of investments. And it also helps take care of your loved ones, in case you’re not around, by paying them. Let’s check out the highlights of the HDFC SimpliLife ULIP Plan below –

  • Maturity Benefit
  • Surrender Benefit
  • Partial Withdrawal
  • Seven Funds

For more details about this unit-linked life insurance plan, read this page further.

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HDFC SimpliLife ULIP Plan Payouts for Life Assured & Nominee

Check out the list of benefits available under the HDFC SimpliLife ULIP Plan –

Death Benefit Upon Life Assured Demise

If you die during the policy term, the insurance company will be liable to pay the following to the nominee –

  • Sum Assured on Death
  • Unit Fund Value

Upon payment of this benefit, this policy terminates. The insurer will not pay any benefit other than the value of the units held as on the date of intimation of death if you die within 90 days of the date of commencement, policy issuance, or revival, whichever is later.

The minimum sum assured on death is shown below –

Types of Premium PaymentMinimum Sum Assured on Death
Single Premium with a policy term of < 10 years125% of the Single Premium
Single Premium with a policy term of => 10 years110% of the Single Premium
Regular Premium 5X the Annualized Premium

Note – The level of sum assured cannot be altered at any time during the policy term.

Maturity Benefit for the Life Assured at the End of the Policy Term

Upon survival till the maturity date, the company will pay you the Unit Fund Value plus an additional 100% of the original annualized regular premium (Bumper Addition). The addition will be payable only if you have paid all the premiums in full.

You can receive the maturity benefit either in periodical installments over five years or in a lump sum. If you choose the settlement option, the minimum installment amount is determined by the company at its sole discretion. The current minimum installment will be specified in the policy schedule.

The risk cover ceases and the fund continues to be invested during the settlement period. And charges except risk charges will continue to be deducted. Provision 15 (Minimum Fund Value) will be applicable. No surrender charge, fund switch and partial withdrawal will be allowed. And to exercise the settlement option, intimate the insurer 30 to 180 days before the maturity date. You can withdraw the entire Fund Value during the settlement period. Any remaining fund value after five years from the maturity date will be payable immediately.

Partial Withdrawals Allowed During the Policy Term

After the first five years, the company provides you the facility of partial withdrawal, subject to meeting the below conditions –

  • The amount you withdraw should not be less than the amount specified in the policy
  • After the withdrawal, the unit fund value should not be less than the minimum fund value as specified in the policy
  • The maximum amount of withdrawal throughout the policy term is 300% of the original annualized premium
  • The minimum amount of withdrawal, fund value and partial withdrawal charge is determined by the company at its sole discretion

Any changes to the above are subject to prior approval from the Insurance Regulatory and Development Authority of India (IRDAI).

Policy Status Post Partial Withdrawal

After the withdrawal, your policy continues to be in force and all benefits and conditions remain the same. In case of any partial withdrawal request, the insurer cancels units from your funds. You will get the withdrawal amount post the deduction of applicable taxes and levies. Any delayed payment is done to maintain fairness and equity between unitholders remaining in that fund, and those who are leaving. So, the encashment of the partial withdrawal may delay up to 30 days. In such cases, the company uses the unit prices that apply on the day on which the encashment takes place.

Delayed payments could happen under the following circumstances –

  • When one or more stock exchanges are the base for valuation of a substantial portion of the assets of the fund that are ordinarily closed on holidays.
  • Result of political, economic, monetary, or any circumstances out of the company’s control
  • The extreme volatility of markets during which surrenders and switches are the main interests of the existing unitholders
  • In case of natural calamities, strikes, war, civil unrest, riots, and bandhs
  • Any force majeure or disaster that affects normal human functioning
  • Any IRDAI rule stipulating a delay in your payment

Surrender Benefit of the HDFC SimpliLife ULIP Plan

The insurance company allows you to surrender this life insurance policy at your convenience. If you surrender in the first three years, the death benefit will cease to exist, and you’ll get the Unit Fund Value less the surrender charge. But the surrender amount shall be payable to you on the 3rd policy anniversary.

And in case of your unfortunate death before the surrender payment, the insurer will make the surrender payment immediately on receipt of all relevant documents relevant to the death. After this payment, the policy terminates and no further benefits are payable.

If you surrender after the first three years, you will get the surrender value less surrender charges, and the policy terminates and no further benefits are payable.

Note – A surrendered policy cannot be reinstated under any circumstances.

HDFC SimpliLife ULIP Plan Investment Options

You can invest your money in any of the following funds as per your risk appetite and goal –

  • Liquid Fund II
  • Stable Managed Fund II
  • Secure Managed Fund II
  • Defensive Managed Fund II
  • Balanced Managed Fund II
  • Equity Managed Fund II
  • Growth Fund II

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