HDFC Life Classic Assure Plus – Review, Features and Benefits

HDFC Life Classic Assure Plus is an investment cum insurance plan that offers guaranteed benefit while letting your money grow. This policy offers guaranteed reversionary bonus along with the flexibility to choose premium paying term. It also provides financial protection against untimely demise of the policyholder throughout the policy term.

The policy is ideal for meeting long term financial goals such as funding your child’s aspiration of higher education, creating a fund for your own future aspirations and creating a financial stability for securing future of your loved ones.

HDFC Life Classic Assure Plus Policy

Features of this policy –

  1. Limited premium payment terms of 7 and 10 years.
  2. HDFC Life Classic Assure Plus Policy provides Insurance coverage throughout the policy term.
  3. The plan can be taken only on a single life basis.
  4. EMI available for HDFC Bank Credit Card holders.
  5. Guaranteed reversionary bonus during the premium paying term.
  6. Option to go for a Short Medical Questionnaire eliminating tedious medical tests.
  7. Additional protection by opting for HDFC Life Critical Illness Plus Rider that provides Rider Sum Assured in case diagnosed with any of the 19 Critical Illnesses.
  8. Premiums can be paid monthly, quarterly, half-yearly and annually.
  9. The policyholder can take loan against this policy.
  10. Tax benefit u/s 80C and 10 (10D) of Income Tax act, 1961.

Benefits of the policy –

A) Maturity Benefit – The policyholder will receive sum assured + accrued bonuses if the policy holder survives till the maturity period will all the due premiums paid throughout the premium paying term.

B) Death Benefit – If the policyholder passes away then the company will pay the following provided all the due premiums have been paid. On the payment of the death benefit to the nominee, the policy will terminate and no further benefit will be payable. On death of the life assured, provided all due premiums are paid, the company would pay the nominee highest of the following –

  • Sum Assured
  • 10 times annualized premium
  • 105% of the premiums paid + accrued bonuses We will terminate the policy on payment of the maturity or death benefit.

C) High Sum Assured Discount – For policies with a Sum Assured of Rs 10 Lacs and more, a discount of 5% would be offered on the basic premium (i.e. excluding policy fee and any underwriting extra premium).

Eligibility of this policy –

This policy can be purchased only on a single life basis. Like other HDFC Policies, HDFC Life Classic Assure Plus Policy also has some eligibility criteria. The age and the term limits for this policy are as follows –

eligibility conditions of HDFC Life Classic assure Plus Policy

How much premium the policyholder needs to pay?

The policyholder can choose the premium as per their convenience. The premiums can be paid either annually, half yearly, quarterly or monthly. Below is the detailed description of the premium –

premium details of HDFC Life Click Assure Plus policy

Can I take loan against this policy?

Yes, the policyholder can take loan against this policy, once the policy has acquired the surrender value. The policyholder can take policy loan up to 80% of the surrender value of the policy subject to applicable terms and conditions.

The current terms and conditions are stated below:

  • The loan will only be given on an active policy.
  • The policyholder should be at least 18 years of age at the time of requesting the loan.
  • The interest rate on loan is 14% p.a (as per current terms and conditions).

Can lapsed policy be revived?

The lapsed policy can be revived within 2 years of lapsation provided all due premiums have been paid with interest. A revival charge of up to Rs. 250 + taxes will be applicable. Once the policy is revived, the policyholder will be entitled to receive all contractual benefits.

When can this policy acquire a guaranteed surrender value?

The policy can acquire a guaranteed surrender value only in the following 2 conditions –

  1. For premium paying term of 7 years, the policy has to be active with fully paid premiums of 2 years.
  2. For premium paying term of 10 years, the policy has to be active with fully paid premiums of 3 years.

Once, the surrender benefit is paid, the policy will terminate and no further benefits will be paid.

Is there any exclusions in the policy?

If the policyholder commits suicide within 12 months –

  • From the date of inception of the policy, the nominee of the policyholder will get 80% of the premiums paid provided the policy is active.
  • From the date of revival of the policy, the nominee of the policyholder will get the amount which is higher of 80% of the premiums paid till date of death or the surrender value as available on date of death.

Can I cancel the policy if I didn’t like it’s terms and conditions?

Yes, the policyholder can cancel the policy within 15 days from the date of receipt of the policy stating a reason for cancellation. This period is called a Free-Look Period. But if the policy is purchased through distance marketing (policies which are not purchased face-to-face) then the free look period will be 30 days.

The company will arrange to refund the premium after deducting the proportionate risk premium for the period on cover, the expenses incurred by the company on medical examination and stamp duty.

Conclusion –

So, by now you know each and every important details of this policy. Now it up to you to decide whether this policy will be helpful in meeting your long-term financial goal. Do let me know if I have missed any important point in the comment section. Please feel free to ask any doubts regarding this policy.

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