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HDFC Life Capital Shield

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.

Features of HDFC Life Capital Shield

The key features of this plan are:

  • The plan comes with Assured Maturity Benefit of 101% of total premium paid in order to protect your investment from market risks.
  • Option to pay premiums only once or for a limited period of 5 years.
  • Loyalty Additions are available from the end of the 6th policy year onwards to boost the Fund Value.

Benefits of HDFC Life Capital Shield

Death Benefit

The death benefit payable will be the sum assured which is the highest of:

  • Sum Assured less an amount for Partial withdrawals made, if any (as detailed below)
  • Fund value
  • 105% of total premiums paid till the date of death

Maturity Benefit

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:

  • For Single Pay policies: Single Premium
  • For Limited Pay policies: 5 times the Annualised Premium

Capital Shield Management Strategy

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.

Partial Withdrawal

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.

Eligibility Criteria for HDFC Life Capital Shield

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

Other Benefits of HDFC Life Capital Shield

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%

Why should you buy HDFC Life Capital Shield?

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.

Documents Required to buy HDFC Life Capital Shield

  • Application/Proposal Form
  • KYC - Proof of ID and Address
  • Income Proof - Bank Account Statement
  • Medical Check-up/Report if required.
  • Bank Transaction Mandate Form


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.