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Top Low Cost HDFC ULIP Plans

ULIP plans are the most preferred financial products that can offer the benefit of both the worlds –investment and insurance. With the reformed ULIP products in the market, low-cost ULIP products have garnered more limelight. With the online availability and structural changes in the product, cost-efficient ULIP plans are now advised by many financial planners and advisers as a good investment product. HDFC being the leading private insurer with high claim settlement ratio, has introduced many low-cost ULIP products with attractive features. Let’s take a look at some of the low-cost HDFC ULIP Plans.

Types of Low Cost HDFC ULIP Plans

HDFC Life Click 2 Retire Plan

It’s a retirement plan offered on digital platform. The policy can be purchased by any person aged between 18-65 years. Age at maturity ranges from 45-75 years. This plan is available in limited pay, single pay and regular pay option. Rs.24000 is the minimum limit on annual premium. There is no upper limit on premium. Policy term can vary from 10 to 35 years.

HDFC SL ProGrowth Maximiser Plan

It’s a plan that gives both capital appreciation as well as life protection. The policy can be purchased by a person aged between 14-65 years. Maximum age at maturity is 75 years. This plan is available only in single pay option with minimum premium of Rs. 50000. There is no upper limit on premium. 10 years is the policy term. 10 times of single premium paid can be the maximum sum assured in the plan. It also allows top-ups.

HDFC SL Crest Plan

The plan comes with limited pay option of premium payment for only 5 years. The policy can be purchased by a person aged between 14-65 years. Maximum age at maturity is 65 years. Plan can start with an annual premium of INR.50000 with no upper limit. 10 years is the policy term. Sum assured can be up to maximum of 20 times of annualised premium.

Click 2 Invest HDFC Life Plan

An online plan that provides dual benefit of life cover and wealth creation. The policy can be purchased by a person aged between 0-65 years. Age at maturity ranges from 18-75 years. Policy term can vary from 5-20 years. Plan can be purchased with annual premium of Rs.12000 with no upper limit.

FAQ’s on Top Low Cost HDFC ULIP Plans

Is it worth to buy a life insurance cover from HDFC life?

HDFC Life is one of the leading private insurance companies in India. The company offers diverse range of life insurance products such as protection plans, savings, retirement plans, child plans and women specific plans. Here are few good reasons to buy life insurance cover from HDFC life.

  • The company has honoured 97.8% individual claims and 99.27% of group claims in the year 2017-18
  • The products are offered with innovative features at a competitive rate
  • Company has been consistently awarded for technology adoption, introduction of innovative products and also as the best insurance company
  • HDFC life is also known for superior quality of customer service and claim settlement.

What is the claim settlement ratio of HDFC life?

Claim settlement ratio is expressed in percentages (number of claims settled/total number of claims reported) for the financial year. As declared by IRDAI (Insurance Regulatory and Development Authority of India), HDFC life’s claim settlement ratio for the FY 2016-17 is 97.62%. The company has consistently maintained a trend of high claim settlement ratio over the past few years.

Why should I prefer HDFC ULIP plans?

Post the introduction of new ULIP guidelines, ULIPs have emerged as low-cost investment options. Specifically, HDFC ULIP plans have greater features and benefits along with cost advantage. Here are some simple reasons that makes HDFC ULIP plans a preferred choice.

  • HDFC ULIP plans offered on digital platform comes with best features at a very low cost.
  • Return of mortality charges, loyalty additions and additional allocations etc. are some of the amazing features.
  • HDFC ULIP gives various fund option to invest. Fund options can be chosen according to the risk profile.
  • ULIPs being the hybrid product, a mix of investment and insurance, is unaffected by the imposition of long-term capital gain tax on equity investments.
  • ULIPs are the highly tax-efficient long-term investment product that can provide optimised return.

What are the ULIP charges?

ULIP is an insurance cum investment product. As it is market-linked plan, it allows you to invest in various funds depending on your risk appetite along with an option to switch. ULIP is also a long-term tax-saving investment plan that comes with five year lock in period. Hence, there are multiple types of charges involved to provide the benefit of both insurance and investment. Premium allocation, mortality, administration charges, fund management charges, switching charges and discontinuation charges etc. are some of the major charges involved in ULIP.

What are the various ULIP charges that are levied by an insurance company?

Below are the major ULIP charges levied by an insurance company.

  • Premium allocation charges: It is deducted from the received premium at a fixed percentage. It’s a charge paid up-front.
  • Mortality charges: It is amount charged to provide insurance coverage. Charge may vary depending on various factors like age, health history and coverage amount etc.
  • Administration charges: Percentage of fund value or a fixed amount of money is charged as policy administration charge throughout the policy term.
  • Fund management charges: This is levied to manage the funds chosen for investment. This is charged on a daily basis before arriving at the NAV. The maximum allowed is 1.35 % per annum.
  • Switching charges: In every ULIP plan, limited number of fund switches are available in a year. Subsequent switches are charged.
  • Premium redirection charges: Redirecting your premium to different type of funds are charged by the insurance companies.
  • Premium discontinuation charges: Premium payment for the initial five years is compulsory. Any discontinuation will be charged.

What are some of the top low-cost HDFC ULIP plans that are worth buying?

Here are some of the top low-cost HDFC ULIP Plans that are also tax-efficient in every which way.

  • Click 2 Invest HDFC Life Plan: This plan comes with very low-cost due to its availability on online medium. There is ‘nil’ premium allocation charges, discontinuation charges and policy administration charges. Tax benefits are available on premium. Switches, death benefits and maturity benefits are not subject to taxation.
  • HDFC Life Click 2 Retire Plan: Online retirement plan that comes with ‘nil’ premium allocation charges, discontinuance charges, policy administration charges and mortality charges. 1.35% per annum is the fund management charges levied. Again, this is a tax efficient plan. However, the annuity pay-outs may attract tax.
  • HDFC SL ProGrowth Maximiser Plan: This is a single premium plan that involves minimal charges.
  • HDFC SL Crest Plan: 1.35% p.a is the fund management charges. Except for the first 2 years, the plan involves lesser charges along with many tax benefits.

What are the features and benefits of HDFC SL Crest Plan?

Some of the best features and benefits of HDFC SL Crest plan are:

  • It offers you flexibility to choose from four different fund options-
  • Blue chip fund that invests in 80% in large-cap equities to maximise the return and 20% in money market instruments.
  • Opportunities fund that invests 80%-100% into mid-cap equities that has very high risk and return potential.
  • Balanced fund to give moderate to high return
  • Income fund that invests majorly into liquid mutual funds to provide moderate return

  • Flexibility to choose the sum assured- it can vary from 10 to 20 times of annualised premium.

  • Higher of sum assured or fund value is paid out as death benefit
  • Premium has no upper limit
  • No medical test required
  • Offers EMI facility on HDFC bank credit card
  • Fund value on maturity can be availed in equal instalments over five years

What are the features and benefits of Click 2 Invest HDFC Life Plan?

Some of the best features and benefits of Click 2 Invest HDFC Life Plan are:

  • Plan offers you eight different funds to choose from that can suit to every risk profile. Fund options are
  • Equity plus fund
  • Diversified equity fund
  • Blue chip fund
  • Opportunities fund
  • Balanced fund
  • Bond fund
  • Income fund
  • Conservative fund
  • Maturity proceeds can be received in lump sum or in five equal instalments over five years
  • Higher of sum assured or fund value is paid out as death benefit
  • Four free partial withdrawals are allowed every year after completion of lock-in period
  • Four free fund switches are allowed every year
  • Four premium redirections are free of cost

What are the features and benefits of HDFC Life Click 2 Retire Plan?

Some of the best features and benefits of HDFC Life Click 2 Retire Plan are:

  • The plan offers three different fund options to choose from –pension equity plus fund, pension income fund and pension conservative fund.
  • The plan promises an assured vesting benefit equal to (101%+1%of difference between policy term and premium paying term)* total premiums paid
  • If policyholder’s age is below 55 years, then vesting age can be postponed
  • 1/3rd of maturity value can be commuted and the remaining can be drawn as pension.

What are the features and benefits of HDFC SL ProGrowth Maximiser Plan?

Some of the best features and benefits of HDFC SL ProGrowth Maximiser Plan are:

  • The plan offers you four fund options to choose from- blue chip fund, opportunities fund, balanced fund and income fund
  • Higher of sum assured or fund value is paid out as death benefit
  • Maturity proceeds can be availed in five equal instalment in five years over settlement option.
  • Top-ups can be done in single premiums of minimum of Rs.10000