Gaining Maximum Returns by Investing in HDFC Life Click 2 Invest
HDFC Life Click 2 Invest is a plan offered by HDFC under Unit Linked Insurance Plan which provides the opportunity to boost your monetary gains as well as protection against life risks. A distinct feature of the plan is that it has very low costs of applicable charges compared to other plans in the same category. Since it is a Unit Linked plan, it reaps excellent benefits if you invest in it for a longer period of time. Moreover, it offers great tax savings since it is an investment cum insurance plan. The plan was launched on 5th September 2017.
Under the HDFC Click 2 Invest, the policyholder has the option to invest either monthly, quarterly, half-yearly or yearly basis. You can also choose the term for which you want to invest, ranging from five to 20 years. The term for paying the premium is also not fixed, hence, you can select it based on your preferences among five, seven, of 10 years – or even yearly. The insured sum is decided according to the amount of premium you have selected and your age. Moreover, the money paid by you is eligible to be invested in the funds or bonds chosen by you. You can select from eight different funds in which you want to invest your amount. The units of the fund which you have selected will be allotted according to the amount invested and selected funds. These funds are calculated according to the NAV which changes every day. Hence, it gives you the option to track how your investment is performing, day wise. However, the plan requires that you should keep this plan on for at least five years. Also, this means that you don’t have the option to withdraw any cash from it till that period.
Features of HDFC Click 2 Invest
- As a unit linked plan it has the options of Limited, Single, and Regular Pay options.
- You have the option to choose from eight different funds – Equity Plus, Diversified Equity, Blue Chip, Opportunities, Balanced, Income, Bond, and Conservative funds.
- There are no premium allocation and administration charges. Fund management charge of 1.35% per year of the value of fund and is charged on daily basis. Mortality charges is charged per month which offers you the death benefits. The charges are calculated with the cancellation of the units you have chosen in proportion to each of the fund. Discontinuity charges are nil.
- It is recommended that you pay all the premiums for the premium term you have chosen and keep yourself invested for full duration to gain long-term benefits.
- You can avail the option of premium redirection. It means, you are eligible to pay your future premiums towards purchasing units from other funds at any time of the term of the policy. However, you are permitted to make only four of such re-directions in a year.
- You can also transfer all your accumulated funds to any other fund of your choice any time between the period of policy. You can do four such transfers in a year.
- You are also eligible for making four partial withdrawals in a year which can only be done after completion five years. If you want to make additional partial withdrawals, a minimal charge of Rs. 250 will be levied. However, if you are applying for HDFC life Click 2 Invest online, you only have to pay Rs. 25. Same is the case with every transfer made after the four prescribed ones.
- If you want to discontinue paying your premiums, you can do this in following ways:
- If you discontinue the premiums before the policy has completed five years – The total value of the fund at the time of completion of grace period for paying premiums will get transferred to the Discontinued Policy Fund. This will also cease your life cover. At this point of time, you are eligible for earning an interest rate of minimum 4%. Moreover, you would be charged with a fund management charge of 0.5% and there would be no other charges. As the five years would be completed, the policyholder will get all the funds.
- If you discontinue the premiums after five years have been completed – Under this scenario, you have the option for either withdrawing all the remaining funds or converting it to a paid policy after the policy has completed the grace period of paying premiums.
- If you want the revival of a terminated policy, you can opt for paying off all the skipped premiums. Apart from that, you also have to adhere to any criteria for underwriting prescribed under the policy. The skipped premiums can be paid without any interest.
- There is also a feature of settlement of the maturity amount. Under this, you have the option to carry forward the amount at the maturity of a policy for more than five years. The settlement of the maturity amount will be done by dividing the units held by you by 5 and you are eligible for getting 1/5th of such units per year. Any units which exist at that time would be continually invested in your funds with a small charge of fund management. However, you won’t be eligible for any life cover under such a period and you are also not permitted for transferring or withdrawing the amount partially.
- HDFC Click 2 Invest has no option for availing loans.
- The grace period is up to 15 days if you have chosen to pay the premiums on a monthly basis and is 30 days if you have chosen any other mode.
Benefits of HDFC Click 2 Invest
- On the maturity of HDFC Click 2 Invest, the insured person is eligible to receive the full value of fund.
- You can avail the proceeds from the maturity in the equally divided monthly installments for the duration of five years under the settlement option.
- At the event of death of the policyholder, the nominee is eligible for getting the higher among these three values – sum assured, total fund value or 105% of the premiums paid till death.
- You are eligible for tax benefits under Section 80C for the payable premiums and under Section 10(D) for the claims. It is important to note that the yearly premium must not be more than 10% for availing such exemption.
- You have the option to withdraw the amount partially or completely whenever you want between the term of the policy. However, you must be at least 18 years old to be eligible for making this withdrawal.
Risk Factor and Other Details of the Fund Options
| Funds | Strategy | Debt or Equity | Nature of Risk and Returns |
| Equity Plus | For generating long-term capital gains equal to or more than Nifty returns | Equity | Extremely High |
| Diversified Equity | For gaining long-term capital gains by investing in companies with higher potential | Equity | Extremely High |
| Blue Chip | Gaining exposure in equities with large capital and other related instruments | Equity | Extremely High |
| Opportunities Fund | Gaining exposure in medium-cap equity instruments | Equity | Extremely High |
| Balanced Fund | Boosting the returns due to dynamic nature of equity while reducing the volatile nature by allocating in Debt | Balanced between debt, equity, and market linked | Medium to High |
| Income Fund | Increased potential of gaining returns due to long duration and exposure to credit | Balanced between Debt and market linked | Medium |
| Bond Fund | Actively allocated among instruments generating fixed income | Debt and market linked | Medium |
| Conservative Fund | Instruments with fixed income and government securities for short terms and gaining stable returns | Debt and market linked | Less |
Eligibility Criteria
| Criterion | Minimum | Maximum |
| Entry age | 30 days | 60 years |
| Maturity Age | 18 years | 75 years |
| Premiums | Single pay – Rs. 24000
Annual Pay – Rs. 12000 Sem-Annual – Rs. 6000 Quarterly – Rs. 3000 Monthly – Rs. 1000 |
Nil (depends on underwriting criteria) |
| Sum Assured | Fixed (Single Pay) – 125% of payable premium
Fixed (Regular and Limited) with age below 55 years – 10x of annual premium Fixed (Regular and Limited) with age above 55 years – 7 times of annual premium
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| Term of policy | 5 – 20 years | |
| Term for paying premium | Single Pay
Limited – 5, 7, and 10 years Regular – 5 – 20 years |
FAQs
Q1. What are the special requirements for investing in HDFC Life Click 2 Invest as an NRI?
Investor needs to submit the true copy of passport, and the address of the oversea permanent residence. If any of such documents is in a foreign language, they have to be translated into English.
Q2. How do I update my contact details in online Mutual Fund account?
For updating your E-mail ID, you have to approach your nearest branch for registering you for your statements. After the company receives the form, the changes will reflect in the next 15 working days. After that you will start receiving your Mutual Fund statements.
Q3. How to use mobile banking for managing Mutual Fund account?
You can login to HDFC net banking site with your customer ID and net banking password. Then click on Mutual Fund option. A Mutual Fund account number will be generated. There are various options on the left side like Redeem, Switch and Purchase. Choose any of the option for which you want service. Select your Mutual Fund account number and you can start your transactions.