Exploring ULIPs offered by HDFC

Updated On Nov 02, 2021

Exploring ULIPs Offered by HDFC
Conclusion

A ULIP, or Unit Linked Insurance Plan, is a type of insurance that combines protection and investment, as well as insurance and wealth building, into a single policy.

A ULIP works by setting away a portion of your payment for life insurance and investing the balance in funds of your choosing. These funds will provide market-linked returns and can be equities, debt, or a combination of the two. Divide the entire value of the investment by the number of units to find the value of your fund's unit. After subtracting charges by canceling a specified number of units, your premium is invested in the fund that you pick. These are fees for things like insurance and investment management.

Exploring ULIPs Offered by HDFC

Below are a few types of ULIPs offered by HDFC:

HDFC Life Click2Invest

Charge Structure with the Fewest Numbers
Choose from 11 different fund alternatives.
Single Pay, 5 Pay, 7 Pay, 10 Pay, or Regular Pay are premium payment alternatives.
A policy term of 5 to 20 years is recommended.
Secure Managed Fund charges 0.80% p.a. of the fund value on a daily basis.
For all other funds, a daily fee of 1.35 percent of the fund value is payable.
Discontinued Policy Fund receives 0.50 percent of the fund's value per year.

HDFC Life Click 2 Wealth

Get the best of both worlds: market-linked profits and financial security.
To get the most out of your money, choose from ten funds and use the unrestricted free switching option.
Only the Fund Management fee is applied to the management of your money, while the Mortality fee is applied to your life insurance.
For the first five years, receive a Special Addition of 1% of the premium assigned to your fund.
If you choose the premium waiver option, all future premiums will be waived, and your fund will remain invested even if the proposer dies.
If you're seeking post-retirement income, opt for a systematic withdrawal from your accounts.

HDFC SL Youngstar Super Premium

Based on the premiums you are ready to pay annually, you can choose the amount you desire as the sum assured. You also have the option of choosing the premium amount, as there is no maximum premium limit.

You have the option of choosing between 10-, 15-, or 20-year terms.
It includes Free Asset Allocation with no additional fees, offering you the option to invest in one of four fund options:
Fund for Earnings
The fund that is well-balanced
Fund for Possibilities
On the policy and based on your eligibility, you may also be eligible for tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961.

HDFC Life ProGrowth Plus

If you have a credit card, you can pay your premiums in EMIs.
You can choose the amount of the sum assured as long as it is a multiple of the annual premium between 10 and 40.
To cover unexpected expenses, you can make partial withdrawals.
You'll have the ability to pick between two benefit options:
All Death Benefits are included in the Life Option.
All Death Benefits, as well as Accidental Death Benefit, are included in the Extra Life Option.
On the policy and based on your eligibility, you may also be eligible for tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961.

Conclusion

Unit-Linked Insurance Policies (ULIPs) from HDFC Life are a combination of income and security policies. These plans combine life insurance benefits with market-linked assets that are subject to capital market risks. HDFC Life ULIP includes investing in debt or equity funds, depending on your risk tolerance and financial objectives. ULIPs also offer tax advantages on premium payments, allowing you to fulfill your long-term objectives of safeguarding your child's future, accumulating money, and planning your retirement.