HDFC Life Click 2 Wealth Plan

HDFC Life Click 2 Wealth Plan Summary

This is an interesting offering which can offer good returns for investors. It has very low charges – lower than even some mutual funds and hence can be looked at in case you wish to grow your money and save taxes along with the life insurance cover.

This plan has even lower charges than the low cost Click 2 Invest Plan which HDFC Life had launched earlier.

Policy TypeUIN

Note: There was an earlier version of this plan with UIN 101L133V01.

How this plan works – This works like any other investment plan option. You can decide on the amount of money you want to pay – it could be monthly, quarterly, half-yearly or yearly. You can also choose to pay a single premium as lumpsum. The plan has 3 Options – Invest Plus, Premium Waiver & Golden Year Benefits Option. Your age, the amount you are investing and the Option you have selected are the main factors determining the amount of cover in the plan. The money paid by you can be invested in 10 funds of your choice. The returns of your investments will depend on how your funds perform. There are additional benefits like Special Additions & Return of Mortality charges.

Steps to proceed:

  1. Decide on which of the 3 plan options you want to take
  2. Decided on the amount of investment
  3. Choose your fund option

We will understand this plan in detail with examples.

Important – In this plan, you have to stay invested for at least 5 years. You cannot withdraw your investment before 5 years.

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Low level of charges
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Return of Mortality Charges
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Special Additions

Compare this plan with other Investment Plans

HDFC Life Click 2 Wealth Plan - Key Features

Low level of charges
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only Fund Management Charge and Mortality Charges for the life cover provided are applicable

Return of Mortality Charges
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  • Return of Mortality Charges on Maturity

Special Additions
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get 1% of Annualised premium added to your Fund Value

Premium Waiver Benefit
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  • Premium Waiver Benefit in case something happens to you

10 funds options
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  • 10 funds options to invest your money

Tax exemptions
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  • Tax exemptions under Sec 80C and Sec 10(10D)

We will understand each of the above mentioned points and more in the sections bel...

HDFC Life Click 2 Wealth Plan - Benefits

Invest Plus Option -

This is the most basic option and best for maximising your returns. You get a life cover and the money invested in the funds of your choice will pr...

Premium Waiver Option

Here the concept of Proposer and Life Assured comes into play. In case of death of the Proposer, all future premi...

Golden Years Benefit Option

This option not only helps with your retirement planning but also leaves behind something for your loved ones. The life cover will continue till th...

Return of Mortality Charges -

At the time of maturity, the basic mortality charges will be added to the Fund Value provided all premiums have been paid on time. Effectively, on ...

Special Additions -

For Regular and Limited Pay Policies, 1% of the Annualized premium will be added to the Fund Value at the time of allocation of premium for the fir...

Settlement Option -

You can choose to take the maturity benefits in installments over a period of maximum 5 years. Keep in mind that, during this period the investment...

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 D...

Grace period -

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

Tax Benefits -

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 amou...

Fund Options in HDFC Life Click 2 Wealth Plan

Important - The returns in your plan will depend on your choice of funds. So it is very important to choose them wisely. If you choose a Low Risk fund, the chances of returns will not be very high. If you are staying invested in 5 years or more it may make sense to go a bit aggressive on the type of fund as the chances of better returns will be higher. These funds are managed by experienced fund managers of HDFC Life.

Fund Name Fund Composition Risk & Return Rating
Money Market Instruments, Cash, Deposits, Liquid Mutual Funds
Government Securities, Fixed Income Instruments, Bonds
Diversified Equity 0% to 40% 0% to 40% 60% to 100% Very High
Blue Chip 0% to 20% - 80% to 100% Very High
Balanced 0% to 20% 0% to 60% 40% to 80% Moderate to High
Bond 0% to 60% 40% to 100% - Moderate
Discovery 0% to 10% 0% to 10% 90% to 100% Very High
Equity Advantage 0% to 20% 0% to 20% 80% to 100% Very High
Opportunities 0% to 20% - 80% to 100% Very High
Liquid 0% to 100% - - Very Low
Bond Plus 0% to 20% 30% to 100% 0% to 50% Moderate to High
Secure Advantage 0% to 40% 60% to 100% - Moderate

Apart from investing your money in any of the funds mentioned above, you can also avail the Systematic Transfer Plan (STP) - You can invest money in the Bond Fund and Liquid Fund and then transfer a fixed amount every month into any of the more aggressive funds in regular monthly instalments over a period of 12 months. This is most useful for those who are paying through the Annual mode of payment.

Eligibility Criteria in HDFC Life Click 2 Wealth Plan

You can decide on the amount of premium which you want to pay and also select from one of the three plan options given in this chart.

  Invest Plus Premium Waiver Golden Years
Age at Entry 30 days to 60 years 30 days to 60 years
Proposer- 18 to 65 years
30 days to 60 years
Age at Maturity 18 to 75 years 18 to 75 years 99 years
Policy Term 10 to 40 years 99 - Age at Entry
Premium Payment Term Single & Limited - 5, 7 & 10 years
Regular - same as policy term
Limited - 5, 7 & 10 years
Regular - same as policy term
Limited - 10 to (70-Age at Entry)
Min Premium Single - Rs. 24,000
Annual - Rs. 12,000
Half yearly - Rs. 6,000
Quarterly - Rs. 3,000
Monthly - Rs. 1,000
Max Premium No limit subject to underwriting
Sum Assured Single Premium - 125% of Premium
Limited & Regular Premium - 10 x Annualised premium
TopUp - 1.25 x Topup Premium

HDFC Life Click 2 Wealth Plan - FAQs

angle right iconWhat happens when you stop paying the premiums before 5 years?

If the premiums are not paid by the end of the grace period, the plan will be withdrawn and discontinued. This is what will happen:

  • There will be no more risk coverage offered.
  • The Fund Value on the date of discontinuance will be moved to the “Discontinued Policy Fund”.
  • This fund will now earn a minimum guaranteed interest rate of  4% (as per current regulations).
  • A Fund Management Charge of 0.5% per annum would be applicable.
  • No other charges would be deducted.
  • The Fund Value will be paid out at the end of 5 years and the policy terminates
  • At any point, you can revive the policy by paying the pending premiums. You do not have to pay any interest charges on the delayed payments.

That pretty much explains how HDFC Life Click2Wealth Plan works and the benefits you get out of it. It is a very low cost plan, comparable and even better than a lot of mutual funds of the charges front. If you are looking for tax savings, life cover and flexibility to manage your funds, this plan is indeed a good option to consider. If you have any questions on this plan, drop in a line in the comments and we will be happy to help out.

Charges in HDFC Life Click to Wealth Plan

This is where this plan really scores. There are no charges except the Fund Management Charge. Even the Mortality Charges are returned in case of survival till the end of the policy term. 

Fund Management Charge - 0.8% per annum for LIquid Fund, Bond Plus Fund & Secure Advantage Fund and 1.35% per annum for the rest of the 7 Funds which are available.

Mortality Charge - This will depend on your age and the amount of cover. This charge is deducted every month.

Partial Withdrawal Charge - Nil

Switching Charge - Nil

Premium Redirection Charge - Nil