HDFC SL Crest Plan Review
HDFC SL Crest Plan is a Unit-Linked Insurance Policy (ULIP). Thus, it is a Non-Traditional Insurance Plan without Bonus facility.
How it works – In this plan premium needs to be paid only for 5 years while the policy continues for 10 years.
There are 2 strategies for Investment in this plan:
- Highest NAV Guarantee Fund, which if chosen guarantees the minimum NAV at Rs 15 or the highest NAV recorded daily during the first 7 years of the Highest NAV Guarantee Fund
- Free Asset Allocation, which provides an option of selecting any of the 5 funds provided
On survival till the end of the Policy Tenure, the Policyholder gets the Fund Value. If the policy holder had chosen “Highest NAV Guaranteed Fund” then Fund Value would be calculated based on the higher of highest daily recorded NAV in the first 7 years, subject to a Minimum Guaranteed NAV of Rs 15 and the NAV as on date
However, if the policyholder had selected “Free Asset Allocation” then Fund Value would be calculated based on the prevailing NAV.
However, if the Life Insured dies within the policy tenure, the nominee gets the Sum Assured (minus deductible partial withdrawals) or Fund Value, whichever is higher as Death Benefit and the policy would be terminated.
Key Features of HDFC SL Crest Insurance Plan
- This is a Highest NAV Guarantee ULIP Plan
- In this plan, premium needs to be paid only for 5 years while the policy continues for 10 years
- This plan provides the benefit of Highest NAV at maturity
- There is also a benefit of Minimum Guaranteed NAV of Rs 15 at maturity
Benefits you get from HDFC SL Crest Plan
Death Benefit – In case of death of the Life Insured within the policy tenure, the nominee gets the Sum Assured (minus deductible partial withdrawals) or Fund Value, whichever is higher as Death Benefit and the policy would be terminated.
Maturity Benefit – On survival till the end of the Policy Tenure, the Policyholder gets the Fund Value.
- If the policy holder had chosen “Highest NAV Guaranteed Fund” then Fund Value would be calculated based on the higher of:
- Highest daily recorded NAV in the first 7 years
- Guaranteed NAV of Rs 15
- NAV as on date
- If the policyholder had selected “Free Asset Allocation” then Fund Value would be calculated based on the prevailing NAV.
Income Tax Benefit
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity amounts you receive from this plan are exempt from tax under section 10(10D)
Eligibility conditions and other restrictions in HDFC SL Crest Plan
|
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Minimum
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Maximum
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Sum Assured (in Rs.)
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10 x Annual Premium
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20 x Annual Premium
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|
Policy Term (in years)
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10
|
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Premium Payment Term (in years)
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5
|
|
Entry Age of Life Insured (in years)
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14
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55
|
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Age at Maturity (in years)
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NA
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65
|
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Annualized Premium (in Rs.)
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50,000
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No Limit
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|
Payment modes
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Yearly
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Sample illustration of returns at the end of the policy term in HDFC SL Crest Plan
Premium = Rs.50,000
Policy Term = 10 years
Premium Payment Term = 5 years
Total Investment = Rs. 50,000 x 5 years = Rs.2,50,000
Fund opted – Highest NAV Guarantee Fund
Additional Features and Benefits of HDFC SL Crest Plan
Riders – There are no riders in this policy.
Investment Fund Options– Under this plan the policy holder gets the following 2 investment options:
- Highest NAV Guarantee Fund
- Free Asset Allocation: There are 5 funds under this option
- Short Term Fund
- Income Fund
- Balanced Fund
- Blue Chip Fund
- Opportunities Fund
Top-up - There is no top-up facility under this policy.
Switching - No option to switch the investment option is available in this plan. Either Highest NAV Guarantee Fund or Free Asset Allocation option needs to be selected right at inception.
Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years or when the life insured is at least 18 years of age, whichever is later.
The minimum amount of partial withdrawal should be Rs. 10,000 and the maximum partial withdrawal that can be done throughout the policy term is 300% of the original regular premium.
Charges in Bharti AXA Life True Wealth Plan
Premium Allocation Charge – This charge is deducted from the Premium Paid by you
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Policy Year
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Premium Allocation Charge
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1st and 2nd
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4% of the Annualized Premium
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3rd
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3% of the Annualized Premium
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4th and 5th
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2% of the Annualized Premium
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Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis. The maximum Policy Administration Charge can be Rs 500, subject to IRDA approval.
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Policy Administration Charge
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Premium Allocation Charge
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PAC
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0.31% per month of the original Annual Premium
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Increases by
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5% on every policy anniversary
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Fund Management Charge and Guarantee Management Charge – This charge is deducted by adjusting the NAV of the units on a daily basis.
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Type
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Charge
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All Funds
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1.35% of the Fund Value
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Surrender Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.
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Yr of Discontinuation
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Discontinuance Charge
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1
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Lower of 6% X (Annual Premium or Fund Value) but not exceeding Rs 6,000
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2
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Lower of 4% X (Annual Premium or Fund Value) but not exceeding Rs 5,000
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|
3
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Lower of 3% X (Annual Premium or Fund Value) but not exceeding Rs 4,000
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|
4
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Lower of 2% X (Annual Premium or Fund Value) but not exceeding Rs 2,000
|
|
5
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NIL
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Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
Service Tax would be applicable on the charges depending on the applicable rates.
You stop paying the premium- If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund which will earn an interest according to the norms of IRDA. The proceeds from this discontinued fund will be payable after the fifth policy anniversary.
The policy can however be revived within 2 years from the due date of the First Unpaid Premium.
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The proceeds from this Discontinued Policy Fund will be payable after the fifth policy anniversary.
If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease, the fund value shall be paid immediately and the policy would be terminated.
You want a loan against your policy – There is a loan facility in this plan.The maximum amount of loan that can be availed will be equal to one annual premium or up to 40% of the Surrender Value, whichever is lower.
Alternate ULIPs from different insurance companies
HDFC Life Invest Wise - Single Premium
