Investment Plans 454 views April 21, 2020

HDFC Life Click 2 Invest is a great plan for those with big plans for themselves and their family members with a belief that it shouldn’t cost a lot to accomplish them just smart investments and adequate savings to do so. This is a type of Linked Insurance Product that does not have any liquidity during the first five years of the contract. Furthermore, the Life Assured will have a lock-in period comprising the first five years to the contract wherein they will not be allowed to surrender or withdraw the investment made in linked insurance products. In this policy, the Life Assured bears all risks of investment in an investment portfolio in return for market-linked returns and financial security.

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Salient Features of HDFC Life Click2Invest Plan-

  1. This plan is a ULIP type plan and assures guaranteed returns along with market-linked returns.
  2. There are several premium payment options provided for the policyholder’s convenience, such as Single Pay, 5 years, 7 years, 10 years or Regular pay.
  3.  HDFC Life Click2Invest policy can be purchased with minimal underwriting norms. Moreover, with just a Small Medical Questionnaire (SMQ) if the conditions are met; if not the plan will be offered through full underwriting.
  4. A Grace Period of 15 days for monthly mode of premium payment and 30 days for the rest modes of frequency is offered in case of Discontinuance of Premiums. This Grace Period will ensure a period of prolonging of your accrued benefits.
    • If the premium hasn’t been paid by the expiry of the Grace Period, then revive the policy within 2 years period from the date of discontinuance or completely withdraw from the policy without any risk cover
    • In case the policyholder does not exercise these options the withdrawal option will be considered as the default option. However, the policy will remain in force until discontinuance of the policy wherein the policy charges will be deducted. This is known as the Paid-Up policy.Discontinuance before 5 years from the commencement of the policy, apart from Single Premium payment policies, have provisions as follows:
  5. Similarly, when the policy becomes discontinued, the fund is moved to ‘Discontinued Policy Fund’. And the minimum guaranteed interest rate shall be as per the then prevailing regulations for the ‘Discontinued Policy Fund’. As same as the options provided for Discontinued Policy the funds, if not exercised the default option will become withdrawal for Discontinued Funds.
  6. In case of Life Assured’s death before the revival of the discontinued policy or payment, then the amount in the Discontinued Fund (s) shall be paid to the nominee.
  7. With Discontinued Funds an additional revival option is provided for policies over 5 years; to convert the policy into paid-up policy, wherein the paid-up sum assured will equal the original sum assured into the ratio of paid premiums to the sum of premiums payable as per the policy plan.
  8. The benefits payable for a paid-up plan shall be the highest of:
    • Paid-up Sum Assured, or
    • 105% of the total premiums
    • Or Fund Value
  9. Once the policy is surrendered by you then the risk cover will cease as well as the surrender benefit will be reimbursed. In case of surrender before the 5 years lock-in period then fund value will be discontinued and will be paid only after the lock-in period.
  10. On the other hand, in case of death of the policyholder before the payment of this surrender benefit then the ‘Discontinued Policy Fund’ will be immediately paid out to the nominee.
  11. With HDFC Life Click2Invest insurance product no policy loan can be availed.
  12. The capital market investments paid, being a linked plan, the payable premiums will be subject to investment risks associated with the capital market. The fluctuating unit prices of funds, a reflection of the market, will be borne by the policyholder. This plan provides you with an option of 8 different funds to invest your money in.
  13. The choice between the 8 types of funds or a mixture of them depends on the policyholder and each has its own investment policy based on the asset allocation between equity, capital market instruments and debt. The different funds have been listed below.
  14. Your accumulated funds, under this plan, can be moved from one fund to another anytime. The premiums too can be redirected, the first four premium redirections in any policy year are free of charges but subsequent ones shall be chargeable with no carry forward of unused chances.
  15. Tax Benefits provided under Section 80C and 10(10D) of Income Tax Act, 1961 such as tax exemptions to an individual or HUF from the premiums paid and benefits received under this policy being exempt from taxes respectively. It is subject to change as per the prevailing tax laws.
  16. Lastly, this policy comes with a Free-look period of 15 days and 30 days for offline purchase and online purchase respectively. During this period if the policy is not agreeable with you then returning the policy with specified reasons thereof can be done easily.

Eligibility aspects of HDFC Life Click 2 Invest Plan-

Eligibility ParametersMinimumMaximum
Entry Age0 Years (30 days)65 years
Maturity Age18 years75 years
Premiums Paying FrequencySingle- Rs.24,000No specified maximum limit and is subject to Underwriting
Annual- Rs.12,000
Half-yearly- Rs.6,000
Quarterly- Rs.3,000
Monthly- Rs.1,000
Fixed Sum Assured for Single Premium125% of Single Premium Paid
Fixed Sum Assured for Regular & Limited Premium
(Entry Age
10 x annualized premium
Fixed Sum Assured for Regular & Limited Premium
(Entry Age > 55 years)
7 x annualized premium
Premium Payment TermSingle Pay
Limited Pay ranges between 5, 7 and 10 years
Regular ranges from 5 to 20 years
Policy TermRanges from 5 to 20 years
Applicable chargesFund Management Charge (FMC)This is a charge that is availed daily for fund management. The daily unit price of the fund is calculated with deductions for the fund management charge.

It is subject to maximum cap as permitted by IRDA.
1.35% p.a. of the fund value is charged daily.
Mortality ChargeUnder this plan and charge, a monthly charge is levied in return for death benefit security to the policyholder. It is calculated by cancelling fund units proportionately from each fund type chosen.
This is a guaranteed risk benefit charge levied throughout the policy term.
Depending on your Age and Level of Cover the amount charged each month and with the level of cover will vary.
Investment options and Risk associatedFundsLevel of Risk
Equity Plus FundVery High
Diversified Equity FundVery High
Opportunities FundVery High
Blue Chip FundVery High
Bond FundModerate
Balanced fundModerate to High
Income Fund Moderate
Conservative Fundlow

Benefits of HDFC Life Click2Invest Plan-

The premium invested in the selected funds and its proportion will determine the sum assured and other benefits provided. On maturity, you will receive the fund value as a lump sum. On death of the life assured within policy term the chosen benefactor will receive the death benefit.

Maturity Benefit:

  1. This is a benefit that is payable at the end of your policy. As mentioned, the fund value will be paid out in a lump sum as the maturity benefit. It will be calculated by multiplying balance units in your fund by the prevailing unit price at the time of calculation.
  2. At the end of the policy term, chosen by you, this benefit will be paid out and all risk cover shall cease to exist.
  3. Additionally, under settlement option the fund value can be taken out in periodical instalments, at maturity. It is, however, subject to terms and conditions.

Death Benefit:

  1. In a scenario of the Life Assured’s unfortunate demise during the policy term, then the specified nominee in the policy will be paid the death benefit.
  2. The nominee will be paid highest of the following:
    • The Assured Sum
    • The Fund Value
    • 105% of the paid premiums
  3. After the death benefit is reimbursed from the paid premiums the policy will terminate thereafter with no more functional benefits.

Partial Withdrawal:

  1. Partial Withdrawal is an added bonus on the HDFC Life Click2Invest Plan. Under this benefit the Life Assured can withdraw money from their funds in cases of unpredictable financial emergencies.
  2. Furthermore, money can also be withdrawn to meet any future financial emergencies; this can be done as lump sum partial withdrawals can be done from the funds invested in after the lock-in period is over.
  3. To avail this benefit, the policyholder should be over 18 years of age and the policy must be over 5 policy years.

HDFC Life Click 2 Invest, a Unit Linked Plan, offers not just market linked returns but also valuable monetary security to your family members. The market linked returns can be availed through a range of investment funds and can be chosen from among 8 fund options. Additionally, partial withdrawals too can be made during financial emergencies. This policy can be well utilized with maximum bonuses and benefits only when the premiums and other pre requisites are promptly taken care of.

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