HDFC Life Capital Shield is an investment cum insurance plan offered by HDFC Life. HDFC Life is one of the leading life insurance providers offering individual and group insurance. HDFC Life has about 414 branches and presence in 980+ cities and towns in India. The company has also established a liaison office in Dubai.
HDFC Life Capital Shield Plan offers the potential of higher returns, by investing a part of your money in equity and the balance in debt, while also providing you with life cover. The allocation in the debt fund increases over time, thereby providing investors protection on their investments.
Note: All information has been sourced from the official website of HDFC Life.
The key features of this plan are:
The death benefit payable will be the sum assured which is the highest of:
The maturity benefit payable will be higher of Fund Value or Assured Maturity Benefit, where Assured Maturity Benefit is 101% * “Total Premiums” paid till date) less the Total Partial Withdrawals made till date (if any). Where “Total Premiums” shall be:
Premiums paid is invested, net of premium allocation charges and managed using the Capital Shield Management Strategy, a unique fund management strategy specially designed for HDFC Life Capital Shield. This strategy ensures that policyholder’s capital enjoys the benefits of potential equity growth while also staying protected.
There are 2 Funds available under this strategy:
(i) Capital Growth Fund – An equity oriented fund to provide medium to long term capital appreciation with a high level of risk.
(ii) Capital Secure Fund – A debt oriented fund to provide capital preservation and safety with a low level of risk.
As a part of this strategy, your premium (net of premium allocation charges) will be utilised to purchase units of the Capital Growth Fund and the Capital Secure Fund.
The percentage allocation in Capital Growth Fund and Capital Secure Fund will be as per policyholders age at policy inception and the Sum Assured opted for. The fund value will also be rebalanced to achieve the proportions set out. The allocation in Capital Growth Fund will keep decreasing in subsequent policy years to decrease the exposure to equity, thus helping policyholders keep their capital protected.
You can make lump sum partial withdrawals from your funds after the first 5 years of your policy term. Tax Benefits - Tax benefits under Section 80C of the Income-tax Act, 1961, may be available to an individual or HUF for the premiums paid, subject to the conditions/ limits specified therein. Benefits received under a life insurance policy may be exempt under Section 10 (10D) of the Income Tax Act, 1961, subject to the conditions specified therein.
The eligibility criteria for this plan is:
| Parameters | Minimum | Maximum | |
|---|---|---|---|
| Premiums | Single Pay | Single : Rs. 48,000 | |
| Limited Pay (5 years) | Annual: Rs. 48,000 Half-yearly: Rs. 24,000 Quarterly: Rs. 12,000 Monthly: Rs. 4,000 |
||
| Sum Assured for Single Premium | Entry Age less than 45 years | 125% of Single Premium | |
| Entry Age equal to 45 years and above | 110% of Single Premium | ||
| Sum Assured for Limited Premium | Entry Age less than 45 years | 10 times Annualised Premium | |
| Entry Age between 45-54 years | 7 times Annualised Premium | 10 times Annualised Premium | |
| Entry Age equal to 55 years and above | 7 times Annualised Premium | ||
| Policy Term | 10 years | ||
| Premium Payment Term | Single Limited: 5 years | ||
| Minimum Entry Age | 8 years | ||
| Maximum Entry Age | 60 years | ||
| Minimum Maturity Age | 18 years | ||
| Maximum Maturity Age | 70 years | ||
Loyalty Additions - Loyalty Additions are added to the fund in the form of additional units from the end of 6th policy year onwards, provided all due premiums have been paid.
| Policy Year | Loyalty Additions (as a % of average Fund Value) |
|---|---|
| 6 | 0.50% |
| 7 | 0.50% |
| 8 | 0.75% |
| 9 | 0.75% |
| 10 | 1.50% |
HDFC Life Capital Shield is an excellent investment option for you and your family. This plan offers the potential of higher returns, by investing a part of your money in equity and the balance in debt, while also providing you with life cover.
Suicide - In case of death due to suicide within 12 months from the date of inception of the policy or from the date of the revival of the policy, the nominee or beneficiary of the policyholder shall be entitled to the fund value, as available on the date of death.
