Unit Linked Insurance Plans Offered By HDFC Life Insurance
Updated On Nov 23, 2021
Table of Contents
Through a strategic alliance with Standard Life, a European investment company, HDFC Bank has built up a large portfolio of unit-linked contractual terms. These plans were created with care to satisfy the financial needs of people from different walks of life.
From investment to retirement accounts, and from child to retirement plans, HDFC Life provides a program to help people invest to achieve financial security.
Unit Linked Insurance Plans (ULIPs) from HDFC Life combine investment and insurance benefits in one modest premium. When a person buys a ULIP, a portion of the money goes toward providing insurance coverage for the person who will be assured, while the rest goes into stock investments. Applicants can choose from a variety of programs based on their financial goals and tolerance for risk.
The benefits of HDFC Life's unit-linked insurance plans are numerous:
- Section 80 C and Section 10 of the Income Tax Act exempt the premiums paid for ULIPs, as well as the benefits received (10D)
- Guaranteed death benefits or, if appropriate, maturity benefits
- Some HDFC Life ULIPs include partial withdrawal capabilities, demonstrating that they are liquid enough in an emergency.
- Changing between different investment fund selections boosts market results.
- Although some of these plans are tailored for short-term investors, they are ideal for long-term investors.
- In case of pregnancy problems, diagnosis of malignant cancer of female organs, and/or death of a spouse, HDFC Life Smart Woman Plan includes a premium waiver as well as premium support for the next three years (with Elite option only)
Understanding ULIPs Offered By HDFC Life Insurance
Below are a few key ULIPs under HDFC:
1. HDFC Life SL Crest plan
The Life SL Crest is a short-term unit-linked plan that allows people to meet their financial goals in ten years while also protecting them from unforeseeable catastrophes.
Features and benefits of the HDFC Life SL Crest plan are as follows:
- You can pay a premium for a limited time under this plan.
- The four types of funds offered under the plan are Income, Balanced, Blue Chip, and Opportunities Funds.
- It's possible to get a payout of up to 20 times the policyholder's annual premium.
2. HDFC Life Click2Invest
Click2Invest is an online-only ULIP that invests mostly in B-fund alternatives and provides market-linked returns. This plan is intended to provide financial security to the policyholder and their family while also functioning as an appropriate investment option.
The following are some of the features and benefits of the HDFC Life Click2Invest plan:
- The plan offers a total of eight funds, each with its own risk and returns profile.
- A policy's length might range from 5 to 20 years.
- Customers can pick from three premium payment options: single, regular, or limited (5, 7, and 10 years).
- The Income Tax Act's Sections 80C and 10 (10D) provide tax incentives.
3. HDFC Life Pension Super Plus
As the name implies, the Pension Super Plus is a plan that focuses on helping individuals establish a pension fund. This approach aids people in saving enough money to enjoy a financially secure retirement.
Features and benefits of HDFC Life Pension Super Plus:
- The Pension Super Plus plan offers the advantage of pre-retirement savings to help people become financially secure.
- This plan provides three different insurance terms as well as four different premium payment options to fulfill the needs of the working class.
- All premiums will be deposited into a medium-risk, medium-return fund.
- In the event of the policyholder's death, the proceeds might be given to the nominee as an annuity or a lump sum payout.
A unit-linked insurance plan (ULIP) is a kind of insurance coverage that mainly involves coverage as well as alternative investments. ULIPs' quality is primarily influenced by changes in the financial markets. In a Unit Linked Policy, the client is responsible for the vast majority of equity investment. Investments in ULIPs are not always guaranteed to yield a profit.
Also read - Top 5 ULIPs In India
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.