HDFC Life Click 2 Wealth Plan

only Fund Management Charge and Mortality Charges for the life cover provided are applicable

• Return of Mortality Charges on Maturity

get 1% of Annualised premium added to your Fund Value

• Premium Waiver Benefit in case something happens to you

• 10 funds options to invest your money

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

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

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 provide the investment component. 

Maturity Benefit - 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 later in detail.

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

• Fund Value
• Total Sum Assured less any partial withdrawals made during the 2 year period immediately preceding the date of death
• 105% of the premiums paid

This is how the plan would work for a 35 year old who pays Rs. 50,000 annually for a policy term of 20 years and has selected the Invest Plus Option of Click 2 Wealth.
 

The 8% & 4% per annum returns are not guaranteed and are just to give you an estimate. The returns may be higher or lower depending on how your funds perform.

Here the concept of Proposer and Life Assured comes into play. In case of death of the Proposer, all future premiums will be waived and will be paid by the insurance company. The policy will continue and after the death of the Proposer, the Life Assured will become the policyholder.

Let us understand this concept. You can be the Proposer and the Life Assured can be your spouse or child also. In case of your death, all future premiums will be paid by the insurance company and the investments will continue till the end of the policy term. After your death, the Life Assured will become the policy holder. 

Note: In this option, the mortality charges for both the Proposer and the Life Assured will be deducted as long as both are alive. So the overall returns would be lower compared to the Invest Plus option, if taken to maturity.

Maturity Benefit - 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 later in detail.

Death Benefit - In case of the death of the Life Assured, the nominee will get the highest of the following:

• Fund Value
• Total Sum Assured less any partial withdrawals made during the 2 year period immediately preceding the date of death
• 105% of the premiums paid

This is how the plan would work for a 40 year old who pays Rs. 50,000 annually for a policy term of 20 years and has selected the Invest Plus Option of Click 2 Wealth.
 

The 8% & 4% per annum returns are not guaranteed and are just to give you an estimate. The returns may be higher or lower depending on how your funds perform.

You will notice that the returns in this Option is slightly less than the Invest Plus Option. That is because the mortality charges for both the Proposer and Life Assured are being deducted in this 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 the age of 99 years. Here the policy term will be till you attain the age of 99 years. You can choose a premium payment term from 10 years to the time you attain the age of 70. Post that your life cover will continue but you do not need to pay any premiums.

To generate a retirement income, you can set up a systematic withdrawal plan. You will receive money at regular intervals by way of partial withdrawals from your accumulated fund. The balance amount of your fund will be paid as Maturity Benefit in case you survive till the age of 99.

Maturity Benefit - At the end of the policy term of 99 years 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 later in detail.

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

• Fund Value
• Total Sum Assured less any partial withdrawals made during the 2 year period immediately preceding the date of death
• 105% of the premiums paid

This is how the plan would work for a 35 year old who pays Rs. 50,000 annually for a premium payment term of 35 years and has selected the Invest Plus Option of Click 2 Wealth. The policy term would be 64 years (99 - Age at Entry).
 

The 8% & 4% per annum returns are not guaranteed and are just to give you an estimate. The returns may be higher or lower depending on how your funds perform.

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 surviving, the charges deducted for providing the life cover are being paid back to you. This benefit is not offered in case of surrendered, discontinued or paid-up policies. Also not applicable in the Waiver of Premium Option is triggered.

In the case of Golden Years Benefit Option, these charges are added after the policyholder attains the age of 70 years.

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 first 5 policy years. For Single Pay Policies, it is 1% of your Single premium alloted at the beginning itself.

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 risk is borne by you - that means, if there is a drop in the value of your funds, you will have to bear that yourself.

No loans are available in this plan.

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 tax benefits on premiums and maturity to be applicable completely. The Maturity and Death Benefits are tax exempt under Sec 80D.