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HDFC Life Click 2 Retire Plan

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HDFC Life Click 2 Retire Plan

HDFC Life Click 2 Retire is an online Unit Linked Plan. Thus, it is a Non-Traditional Insurance Plan without Bonus facility. It offers market linked returns, with minimal charges and helps to achieve his/her retirement goals by planning well in advance.

 

How it works?

In this plan, the policyholder can choose either a single pay or premium paying term of 8, 10 or 15 years with policy term of 10 to 35 years (except 11 to 14 years). At the end of the policy term, the higher of Fund Value or assured vesting benefit is paid as Maturity Benefit. 
However, if the Annuitant dies within the policy tenure, the higher of Fund Value or 105% Total Premiums paid, are accumulated as Death Benefit. The nominee has an option to take this amount as annuity from or to withdraw the proceeds. Upon the payment of this benefit, the Policy terminates and no further benefits are payable.

 

Key Features of HDFC Life Click 2 Retire Plan

  • Online hassle free buying process
  • Zero Premium Allocation Charge
  • Limited and Single pay options
  • Lower vesting age of 45 years
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Benefits you get from HDFC Life Click 2 Retire Plan

Death Benefit – In case of death of the Annuitant within the Policy Tenure, the nominee will receive the following:-

  • Fund Value
  • 105% of the total premiums paid till date.

Maturity Benefit – When the policy matures, the higher of the below will be paid to the policyholder

  • Fund Value
  • Assured Vesting age 

Deferment of vesting age: - The deferment of vesting date (retirement date) can be intimated any time before annuity:-

  • Policyholder can postpone the vesting date any number of times subject to the maximum vesting age of 75 years, provided s/he is below an age of 55 years
  • On postponement of vesting date, Assured Vesting Benefit and Death Benefit will continue to apply.
  • The Assured Vesting Benefit will be the same as that calculated on the policy term chosen at the inception of the policy.
  • The funds will move to Pension Conservative Fund and all applicable charges will continue to be deducted.
Income Tax Benefit: - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and 1/3rd of the Maturity proceeds are tax free under section 10(10)A subject to fulfilment of terms and conditions

 

Benefit Illustration of HDFC Life Click 2 Retire Plan

A person working in MNC aged 40 years plans his retirement corpus and realizes that he has not gathered enough money during his working years that will take care of your expenses once he retires. He was expecting a corpus of Rs. 30 lacs, out of which his current investments and superannuation funds would earn him a total of approximately Rs. 10, 50,000 i.e. only 35% of total money required. Let’s see how HDFC Life Click 2 Retire will help him achieve his retirement goal.
Below chart depicts working of the plan over the entire policy term. 


 

Eligibility conditions & other restrictions in HDFC Life Click 2 Retire Plan

Eligibility

Minimum

Maximum

Entry Age of Annuitant (in years)

18

65

Age at Vesting / Maturity (in years)

45

75

Payment modes

Yearly, Half-Yearly, Quarterly and Monthly

Premium Payment Term (Years)

Policy Term (Years)

Single pay

10,15 to 35

8 pay

10,15 to 35

10 pay

10,15 to 35

15 pay

15 to 35



 

Additional Features and Benefits of HDFC Life Click 2 Retire Plan

  • Riders – There are No Additional Riders in this plan
  • Investment Fund Options
  1. Pension Equity Plus Fund
  2. Pension Income Fund
  3. Pension Conservative Fund 
  • Partial Withdrawal – is not allowed in this plan.
  • Modifications: - Alterations of premium, policy term, and premium paying term are not allowed. Change in frequency of premium payment is allowed anytime.
  • Freelook: - If the policyholder is not convinced with the Terms and Conditions of the policy, s/he can cancel the policy within 30 days from the date of receipt of the policy document
 

Charges in HDFC Life Click 2 Retire Plan

Premium Allocation Charge – Nil
Policy Administration Charge - Nil
Fund Management Charge– the Fund Management Charge is 1.35 % p.a. of fund value. This charge is charged daily, and is a percentage of the unit funds. 
Investment Guarantee Charge– as shown in the table below:-

Fund

Investment Guarantee Charge

Pension Equity Plus Fund

0.50% p.a.

Pension Income Fund

0.50% p.a.

Pension Conservative Fund

0.10% p.a.

Discontinuation Charge—Nil
Mortality Charge —Nil
Service Tax would be applicable on the charges depending on the applicable rates.

 

What happens if?

You stop paying the premium before 5 years - 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. The Discontinued Policy Fund will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee.
The policy can be revived as well but within a period of 2 years from the Date of Discontinuance of the Policy or before completion of the Lock-in period of 5 policy years, whichever is earlier.

You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.

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, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.

You want a loan against your policy - There is no loan available under this plan.
 
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