Why HDFC Life Click2Invest Plan Is A Good Choice?
Updated On Nov 03, 2021
Table of Contents
A non-participating unit-linked life insurance plan that provides market-linked returns while also protecting your family financially.
- There are 11 different funds to choose from depending on your investment goals.
- Depending on your demands, you can get the fund's value at maturity or in periodic installments.
- If any financial emergencies arise make a partial withdrawal from funds.
- According to current tax laws3, tax benefits may be possible.
- Flexibility to save on a regular basis for a set period of 5, 7, or 10 years, or to pay once under Single Pay.
- There are only a few fees.
- To get the maturity benefit in periodic payments, choose the Settlement Option.
- If the Life Assured is at least 18 years old, you can make partial withdrawals from your assets once 5 policy years have passed.
- The Income Tax Act of 1961 governs the taxation of individuals and corporations. Changes in tax rules may impact tax benefits.
Why HDFC Life Click2Invest Plan Is A Good Choice?
Below are a few reasons why HDFC Life Click2Invest Plan is a good choice:
This Strategy Operates In The Following Way
You set the monthly investment amount (you can invest in annual, quarterly, half-yearly, or single-mode also). You can then choose between 5 and 20 years as the policy's term. You have the option of paying your premiums over a 5, 7, or 10 year period, or every year of the policy's duration. Your life cover is calculated automatically based on the premium amount and your age. The money you pay is invested in one of eight funds.
Charges Are Modest
- 5 years, 7 years, 10 years, or a single premium payment period are available.
- Invest your money in one of these eight funds.
- Sections 80C and 10 of the Internal Revenue Code exempt individuals from paying taxes (10D)
Maturity Benefit
At the conclusion of the policy term, you will get the Fund Value. For example, if you own 1,000 units and the NAV is Rs. 53.26, the Fund Value is Rs. 53,260. You can withdraw your money over a 5-year period.
Maturity Amount Settlement Option
You have the option of deferring the maturity amount for a period of five years. The units you own at maturity will be split by five, and you will receive 15 units each year. The Fund Management Charge will apply to the current units, which will continue to be invested in your funds. During this time, there will be no risk cover. During this time, there will be no switching or partial withdrawal allowed.
Death Benefit
The nominee will receive the highest of the following in the event of the policyholder's death:
- The Worth of the Fund
- Guaranteed Payment
- The premiums paid are worth 105 percent of the total.
Partially Or Completely Withdrawing Your Funds
After 5 policy years, you can make a partial or complete withdrawal of your funds at any time. To make partial withdrawals, however, you must be at least 18 years old.
Premium Redirection
You can pay your future premiums to buy units from any other fund of your choice at any time. In one policy year, you are granted up to four free premium redirections.
Switching
At any time, you can transfer your accrued cash to another fund. In one policy year, you are entitled to up to four free swaps.
Conclusion
That pretty much sums up how the HDFC Life Click2Invest Plan works and the advantages it provides. This plan is a fantastic option to explore if you're searching for tax savings, life insurance, and financial freedom. If you have any queries about this plan, please leave a comment and we'll be pleased to assist you.
Also read:
Understanding The Basics Of ULIP Investments
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.
