Future Planning is an important aspect of any investor’s life. We as an investor wants to plan for a better tomorrow. We plan for our child’s future, retirement, etc…. We always seek an opportunity which can ensure that money works for us when we need in near future. We invest for tomorrow so that we meet our desired goal.
To ensure the financial protection of our beloved ones, HDFC has come up with a policy named “HDFC Life Click 2 Wealth” which is a Unit Linked Life Insurance Plan that offers market-linked returns, charges minimally and provides valuable financial protection for you and your family.
A) Maturity Benefit – The Fund value will be paid on maturity of the policy. Fund Value will be calculated by multiplying balance units in your fund(s) by the then prevailing unit price(s). As soon as your policy matures at the end of Policy Term, all risk cover will cease. The policyholder can take their Fund value at maturity in periodic installments under Settlement Option.
B) Death Benefit – This benefit will be payable in case of the unfortunate death of the policyholder. On a valid death claim for an active policy where all due premiums have been paid, the death benefit shall be highest of the following:
# The partial withdrawals to be deducted from the Total Sum Assured shall be:
Upon payment of the death benefit, the policy shall terminate and no further benefits are payable.
C) Fund Booster –
i) Return of Mortality Charges (ROMC) – At the maturity date, the total amount of mortality charges deducted in respect of the insurance cover of Life Assured throughout the policy (including mortality charge deducted on top-up Sum Assured as applicable) will be added to the fund value.
For Golden Years Benefit Option, which has a whole of the life policy term, the total cumulative amount of mortality charges deducted will be added to the fund value at the end of policy year coinciding or immediately following the 70th birthday of Life Assured. This benefit will not be applicable in case of a surrendered, discontinued or Paid-up policy and will be added provided all due premiums have been paid.
ROMC will not be available for the policies where the Waiver of premium benefit is triggered due to the death of the Proposer.
ii) Special Addition – For Regular and Limited Pay Policies, 1% of your Annualized premium shall be added to the Fund Value at the time of allocation of premium for the first 5 policy years.
For Single Pay Policies, 1% of your Single premium shall be added at the time of allocation of single premium.
Special Edition will be available under all the 3 Plan options, viz. Invest Plus, Premium Waiver Option and Golden Years Benefit Option.
iii) Claw-back Additions – This will be as per the relevant IRDAI regulations issued from time to time. Currently, the applicable regulation is Section 37 (d) of the IRDAI (Linked Insurance Products) Regulation, 2013 which states the following –
D) Top-Up Premiums – The Policyholder has the option of paying Top-up premiums, subject to the following conditions:
E) Partial Withdrawal – The Policyholder has the option of making partial withdrawals subject to the following conditions:
The Policyholder can also submit a request for Systematic (recurring) withdrawals.
F) Settlement Option – The Policyholder can avail of the settlement option for maturity benefit. The fund value will be paid in periodical installments over a period which may extend to 5 years.
G) Systematic Transfer Plan (STP) – You can choose to avail a Systematic Transfer Plan (STP) which gives you the benefits of rupee cost averaging.
Like other HDFC Policies, this policy also has some eligibility conditions. Let us have a look at these conditions –
This policy offers 3 plan options in which a policyholder can choose depending on their protection and investment needs. Let us have a look at these –
HDFC Life Click 2 Wealth allows one to invest in a combination of funds by allocating their funds between 8 different fund options, giving the policyholder complete control over their money. Each fund has its asset allocation structure.
Equity-based funds invest in stock markets while debt-based funds invest primarily in safe and liquid instruments like bonds and government securities for secured growth. The policyholder can allocate the ratio between these funds and also switch between funds using fund switching options at any time.
The different fund options are given in the below table –
Exclusion in the policy –
Can I cancel the policy if I didn’t like its terms and conditions?
if a policyholder doesn’t like the terms and conditions of the policy, then the policyholder can cancel the policy, within 15 days from the date of receipt of the policy. This period is called Free-Look Period. If the policies are purchased through distance marketing (i.e. policies which are not bought face-to-face) then the free look period will be 30 days.
Can I take a loan against this policy?
No, loan against this policy is not allowed under any circumstances.
When can I get the surrender value against this policy?
A) If the policyholder surrender’s the policy before completion of the 5 years of the policy –
Upon surrender within the first five years of the policy, the Total Fund Value will be moved to a ‘Discontinued Policy Fund’ which will earn a minimum guaranteed interest rate as specified by the IRDAI. Presently, such an interest rate is 4% p.a. The amount allocated to the Discontinued Policy Fund, with accrued interest, will be paid out to the policyholder, on completion of the Lock-in Period. Once the benefit is paid the policy will terminate and no further benefit will be paid.
In the life assured dies before the payment of the surrender benefit, the amount in the Discontinued Policy Fund will
be paid out immediately. On payment of an amount, the policy will terminate and no further benefits will be payable.
B) If the policyholder surrender’s the policy after completion of the 5 years of the policy –
Upon surrender after 5 years of the policy, your fund value will be paid out. Upon payment of this benefit the policy terminates and no further benefits will be payable.
Can the lapsed policy be revived?
Yes, the lapsed policy can be revived within two consecutive years from the date of discontinuance of the policy, subject to payment of all due and unpaid premiums with interest.
So, by now you know each and every important detail of this policy. Now it up to you to decide whether this policy will create a good wealth for you or not as. Do let me know if I have missed any important points in the comment section. Please feel free to ask any doubts regarding this policy.
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