HDFC Life Click 2 Invest Plan Review

At the end of the policy term you will get the Fund Value in the policy. Just as an example, if you hold 1,000 units with an NAV of Rs. 53.26, the Fund Value will be 10,000 x 53.26 = Rs. 53,260. You have the option of withdrawing your money over a period of 5 years - details of this are mentioned under the Settlement Option which is explained below.

You can choose to take the maturity amount over a 5 year period. The units you hold at maturity will be divided by 5 and each year you will get ⅕ of the Units. The existing units will continue to be invested in your funds and the Fund Management Charge would apply. There will be no risk cover during this period. Also no switching or partial withdrawal will be allowed during this period.

In case of the death of the policyholder, the nominee will get the highest of the following:

• Fund Value
• Sum Assured
• 105% of the premiums paid

 You can make a partial withdrawal or a complete withdrawal of your funds at any time after the completion of 5 policy years. You should have attained the age of 18 years though to make partial withdrawals.

At any point of time, you can pay your future premiums to buy units from other funds of your choice. You are allowed upto 4 free premium redirections in 1 policy year.

You can move your accumulated funds to another fund at any point of time. You are allowed upto 4 free switches in 1 policy year.

There are the following 2 scenarios:

• You stop paying the premiums before completion of 5 policy years - After the grace period of paying premiums gets over, the Fund Value at that time will move to the Discontinued Policy Fund. Your risk cover also ceases. Here you would earn an interest rate of a minimum 4% (this is as per the current regulations). A Fund Management Charge of 0.5% would apply and there would be no other charges. After 5 policy years, the funds will be paid to the policyholder.
• You stop paying the premiums after completion of 5 policy years - After the grace period of paying premiums gets over, you have the following options:
  • Withdraw your money and close the policy
  • Convert the policy to paid-up and continue with a reduced sum assured. Your investments can be withdrawn anytime later
  • Revive the policy by paying the due premiums and continue with the plan. This has to be done within 2 years of date of discontinuance.

You can revive your discontinued policy by paying all the missed premiums and on meeting any applicable underwriting criteria of the company. No interest will be charged on the missed premiums.

Loan - No loans are available in this plan.

Surrender - You can surrender your plan anytime after 5 policy years and receive the Fund Value. In case surrender before 5 years, the funds will move to the Discontinued Fund and you can withdraw after 5 years.

You have a grace period of 15 days for the monthly payment mode and 30 days for other modes of premium payment.

The premiums paid are exempted from tax under Sec 80C. Please bear in mind that the annual premium should not be greater than 10% of the cover amount for this exemption to be applicable. The Maturity and Death Benefits are tax exempt under Sec 80D.