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HDFC Life Uday

HDFC Life Uday is a non-linked, participating saving life insurance plan. It offers benefits like guaranteed additions and bonuses, while ensuring that the insured’s family receives a lump sum benefit in the event of his or her death.

About HDFC Life: HDFC Life Insurance Company is a joint venture between housing finance institution HDFC Ltd. and global investment company Standard Life Aberdeen. The company is among the leading life insurance providers in India, offering a range of individual and group insurance solutions that meet different life stage needs of customers. As on March 31, 2019, the company is reported to have 38 individual products, 11 group products and 8 optional rider benefits in its portfolio.

(Note - All the information contained in this page has been sourced from the official website of HDFC Life Insurance.)

Features of HDFC Life Uday Plan

The key features of HDFC Life Uday are as follows:

  • Multiple term option to suit the policyholder’s needs:
  • Pay premiums for 8 years and avail cover for 12 years or 15 years
  • Pay premiums for 10 years and avail cover for 15 years
  • Guaranteed additions of 3% p.a. in the first five policy years.
  • Bonus is declared at the end of each financial year.
  • Additional death benefit in the event of death due to an accident.
  • After the policy has acquired a Guaranteed Surrender Value (GSV), the death benefit will continue for the next one year, even if the individual misses a premium payment.

Benefits of HDFC Life Uday Plan

The benefits offered by HDFC Life Uday are as under:

Maturity Benefit

If the life assured survives till the maturity date, he or she will receive the aggregate of:

  • Sum assured on maturity
  • Accrued Guaranteed Additions
  • Accrued Reversionary bonus, Interim bonus and Terminal bonus (if any)

Death Benefit

If the life assured passes away, the insurer will pay the nominee the highest of: \

  • Sum Assured on demise + Accrued Reversionary Bonuses + Accrued Guaranteed Additions + Interim bonus (if any) + Terminal bonus (if any)
  • 105% of premiums paid till date Where Sum Assured on Death is higher of:
  • Sum assured on maturity, which is the absolute amount of benefit guaranteed to be paid on policy’s maturity
  • An absolute sum assured to be paid on demise - which is equal to the Sum Assured on Maturity
  • 10 times AP for entry age up to 50 years and 7 times AP for entry age higher than 50 years

Accidental Death Benefit

In the event of the life assured’s demise during the policy term, an additional sum equal to sum assured on death is paid.

Auto Cover Continuance

For a reduced paid-up policy, the entire death benefit shall continue for one year (Auto Cover Continuance period) from the date of first unpaid premium. This cover applies only to the basic death benefit and not to the additional accidental death benefit. During the time of death benefit payment, in the Auto Cover Continuance period, the due but unpaid premium shall not be deducted from the benefit payable.

The basic death benefit payable during this one year will be the higher of:

  1. Sum Assured on demise + Accrued Guaranteed Additions + Accrued Reversionary Bonus (if any) + Interim Bonus (if any) + Terminal Bonus (if any)
  2. 105% of Premiums paid The additional accidental death benefit, in the auto cover continuance period, will be reduced to paid-up sum assured on demise. The Guaranteed Additions and Reversionary Bonuses accrued till due date of first unpaid premium shall be paid on demise. No further Guaranteed Additions or Reversionary Bonus shall accrue to the insurance policy.

Eligibility Criteria - HDFC Life Uday

Particular Details
Policy Term12 years /15 years
Premium Paying Term8 years or 10 years
Minimum Entry Age18 years
Maximum Entry Age55 years
Minimum Maturity Age30 years
Maximum Maturity Age70 years
Minimum Sum Assured on MaturityRs. 28,465
Maximum Sum Assured on MaturityNo limit subject to Board approved underwriting policy

Source: HDFC Life Uday Brochure

Premium Details

Individuals can choose to pay premiums on a monthly, quarterly, half yearly or annual basis. The premium details are as under:

Frequency of premium paymentMinimum instalment premium
MonthlyRs. 500
QuarterlyRs. 1,250
Half YearlyRs. 2,500
AnnualRs. 5,000

Maximum instalment premium - No limit

Documents Required for Buying HDFC Life Uday

An individual will have to submit certain documents to avail HDFC Life Uday. The documents include:

  • Identity Proof - PAN card, Aadhaar card, Passport, etc.
  • Address Proof - Aadhaar card, Passport, Driving license, etc.

Exclusions

Suicide: In the event of death due to suicide, within 12 months:

  • From the date of risk commencement of the policy, the policyholder’s nominee shall be entitled to 80% of the premiums paid, provided the policy is in-force.

  • From the date of revival of the policy, the policyholder’s nominee shall be entitled to an amount which is higher of 80% of the premiums paid till the date of demise or the surrender value as available on the date of demise.

Review

HDFC Life Uday is a traditional non-linked ‘with profit’ plan that offers insurance protection. The policy comes with benefits like guaranteed additions and bonuses, while ensuring that the life assured’s loved ones are financially secure in the event of his or her demise. Individuals are given multiple term options and flexibility in premium payment to suit their preference.

FAQs on HDFC Life Uday Plan

Can I avail a loan against HDFC Life Uday plan?

One can take a loan under the policy, provided it has acquired a surrender value.

What is the maturity benefit offered under HDFC Life Uday plan?

If the life assured survives till the maturity date, he or she will receive the aggregate of

  • Sum Assured on maturity
  • Accrued Guaranteed Additions
  • Accrued Reversionary bonus, Interim bonus and Terminal bonus, if any.

What is the auto cover continuance feature?

Under this facility, for a reduced paid-up policy, the entire death benefit will continue for one year (Auto Cover Continuance period) from the date of first unpaid premium. It will apply only to the basic death benefit, and not to the additional accidental death benefit.

What is the minimum entry age to avail HDFC Life Uday plan?

The minimum entry age under HDFC Life Uday plan is 18 years.

What are the modes of premium payments toward HDFC Life Uday plan?

One can choose to pay their premiums annually, half yearly, quarterly or monthly

What are the tax benefits that can be claimed under HDFC Life Uday plan?

Premiums paid are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The maximum deduction that can be claimed under this section is Rs. 1,50,000 during a financial year. Additionally, the proceeds from the policy are tax-free in the hands of the receiver under Section 10 (10D) of the Income Tax Act, 1961.

How much is the guaranteed additions offered with HDFC Life Uday plan?

The Guaranteed Additions shall accrue at 3% of 'Sum Assured on maturity' in the first 5 years of the policy. The additions are paid at maturity or demise, whichever occurs first. If the policy is surrendered, the surrender value of Guaranteed Additions shall be payable.

Is direct tax applicable to HDFC Life Uday plan?

Tax will be deducted at the applicable rate from the payments made under the plan, according to the provisions of the Income Tax Act, 1961.