Returns since inception
|
8.32%
|
7.47%
|
9.41%
|
9.58%
|
12.46%
|
9.84%
|
9.91%
|
9.07%
|
Key Features |
HDFC Life Click2Invest is an online unit linked Insurance policy with only 1.35 % p.a. charge structure. The rest of the premium amount is invested.
There is an option of partial withdrawal after the first 5 years of the policy are complete. The first 4 withdrawals are free in a year. The investor has 8 fund options. The Investor can discontinue the policy without any discontinuation charges. But if you Switching the premium payment to a different fund is possible. Surrender of policy is possible. |
Entry Age |
Minimum – 30 days and Maximum – 65 years.
|
Maturity Age |
Minimum – 18 years and Maximum – 75 years
|
Policy Term |
It can be from 5 years to 20 years.
|
Premium Payment |
There are 3 options for premium payment –
Single Premium Limited Premium – For tenure of 5,7 and 10 years. Regular Premium – For tenure of 5 to 20 years. |
Sum Assured |
At maturity or at death, the sum assured will be the highest of the following:
– Sum Assured – Fund Value or – 105% of the premium paid |
Benefits |
The investor gets tax benefits under Sec 80 C and Sec 10(10 D) of Income Tax Act.
The plan has very low expenses, as there are no allocation charges or administrative charges. The plan gives the option to switch between funds It is possible to discontinue the plan without any discontinuance charges. There are different premium payment terms and the investor can choose the one that is suitable for him/her |
Disadvantages |
The policy can be surrendered only after 5 years though there is an option to discontinue the fund before that.
Tax benefits are not available for people above the age of 55 years The premium to be paid is higher than a normal life insurance policy. If the investor is looking at it solely from an insurance perspective, he/she needs to research other life insurance products. |
Comments |
A Unit Linked Plan tries to mix insurance and investment. Many experts agree that this may not be such a good thing. Investment products like Mutual funds. PPF give equitable or better returns with lesser expenses. Insurance should only be treated as protection agaist unforeseen exigencies. Buying a life insurance policy or term insurance policy will work out cheaper.
But it still gives the dual advantage of insurance and investment. If that is your goal, you can buy a ULIP, HDFC Life Click2Invest is one of the cheapest options available and has good features like fees switching between funds and provision of discontinuing. You need to study it very well, understand investment policy, track expenses, the funds that it is investing in and actively make changes (like switching funds) as required. |
Fund & Benchmark |
Income Wealth Builder Fund
|
BlueChip Wealth Builder Fund
|
Opportunities Wealth Builder Fund
|
Balance Fund Life Super-II
|
Have you invested in this product? What is your view on it?
The author can be reached at [email protected]
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