HDFC Life Click 2 Wealth is a Unit Linked Non-Participating Life Insurance Plan. Thus, HDFC click 2 wealth plan offers market linked returns and provides life protection for you and your family.
Table of Contents
HDFC Click 2 Wealth Plan- Options
The plan comes with three plan variants given below:
- Invest Plus Option for Insurance cum Investment
- Premium Waiver Option to protect milestones for dependents
- Golden Years Benefit Option for retirement planning with whole life cover
Invest Plus Option: An option that provides life cover and takes care of your Investment needs by providing accumulated Fund Value at Maturity.
The premium waiver option manages all of your financial obligations while you are away. In the event of proper death, all upcoming premiums shall be waived and paid by the company.
Under Premium Waiver option, Policy Proposer is different from the Life Assured under the policy.
The policy is continued even if the proposer dies during the term of the policy. In such a case Life assured becomes the policyholder and future premiums are paid by the company.
The accumulated fund value is paid at Maturity. The Life Assured will become the Policyholder upon Death of the Policyholder.
For instance Mahesh buys HDFC Click 2 Wealth Premium waiver option for 20 years and sum assure is 10 lac. In unfortunate event of death of Mahesh, the Life cover will be transferred to life assured. Since Mr. mahesh is no more, the company will pay all future premiums.
The policy maturity benefit will be given on the maturity date to the family.
Golden Years benefit Plan
Under Golden Years benefit plan option, you have to give premium for limited duration. The maximum premium paying duration can be up to 70 years.
In theis plan the life cover is valid till age 99. If person survive till age 99, the sum assured is given to the person and plan is closed. In the event of death before this time fund value is given.
One can also opt for Systematic Withdrawals in this plan.
HDFC Click 2 Wealth plan- Eligibility
| Parameters | Invest plus | Premium Waiver Option | Golden Year Benefit Option |
| Age at Entry | Life Assured: 0 years (30 days) to 60 years | Life Assured: 0 years (30 days) to 60 years Proposer: 18 years to 65 years | Life Assured: 0 years (30 days) to 60 years |
| Age at maturity | 18 years to 75 years | 18 years to 75 years | 99 years |
| Minimum Premiums | Single: Rs. 24,000 Annual: Rs.12,000 Half-yearly: Rs.6,000 Quarterly: Rs.3,000 Monthly: Rs.1,000 | -Same- | -Same- |
| Maximum Premiums | No Limit | No Limit | No Limit |
| Policy term | 10 to 40 years | 10 to 40 years | 99 minus Age at Entry |
| Premium Payment Term | Single Pay, Limited: 5, 7 and 10 years Regular: 10 to 40 years | Limited: 5, 7 and 10 years Regular: 10 to 40 years | Limited Pay: 10 to 70 minus Age at Entry |
HDFC Click 2 Wealth plan- Choose your Sum Assured
| Parameter | Parameter | Minimum | Maximum |
| Sum Assured | Single Pay | 1.25 x Single Premium | Maximum Sum Assured shall be as per Board Approved Underwriting Policy (BAUP). |
| Sum Assured | Regular & Limited Pay | 10 x Annualized Premium | Maximum Sum Assured shall be as per Board Approved Underwriting Policy (BAUP). |
| Sum Assured | Top-up | 1.25 x Top-up Premium | Maximum Sum Assured shall be as per Board Approved Underwriting Policy (BAUP). |
Maturity benefit
The accumulated Fund value is given at maturity. One can also take fund value at maturity in periodical installments under settlement option.
Fund Value calculation
Total No. of Units* NAV of Fund
Illustration
| Plan Option | Invest Plus | Premium Waiver | Golden Years |
| Age at Entry in years | 35 | 35 (Life Assured) 40 (Proposer) | 35 |
| Annual Premium (INR) | 50,000 | 50,000 | 50,000 |
| Sum Assured (INR) | 5,00,000 | 5,00,000 | 8,75,000 |
| Policy Term (years) | 20 | 20 | 64 |
| Premium Payment Term (years) | 20 | 20 | 35 |
| Maturity value at an Assumed Investment return – 8% p.a. | 21,90,010 | 21,23,700 | 5,18,47,753 |
| Maturity value at an Assumed Investment return – 4% p.a. | 13,88,581 | 13,43,799 | 73,84,712 |
HDFC Life Click 2 Wealth -Fund Options
HDFC Life Click 2 Wealth gives you option of 11 different funds to invest your money. Each fund has its own Investment policy.
The fund categories are based on asset allocation between equity, debt and money market instruments.
You can invest in a combination of funds by allocating your fund between different fund options.
You can also switch between funds using the fund switch option at any time without any charge.
| Fund Name | Money Market Instruments, Cash & Deposits*, Liquid mutual funds | Government Securities, Fixed Income Instruments & Bonds | Equity and equity related instruments | Risk & Return Rating |
| Diversified Equity Fund | 0% to 40% | 0% to 40% | 60% to 100% | Very High |
| Bluechip Fund | 0% to 20% | -NA- | 80% to 100% | Very High |
| Balanced Fund | 0% to 20% | 0% to 60% | 40% to 80% | Moderate to High |
| Bond Fund | 0% to 60% | 40% to 100% | – | Moderate |
| Discovery Fund | 0% to 10% | 0% to 10% | 90% to 100% | Very High |
| Equity Advantage Fund | 0% to 20% | 0% to 20% | 80% to 100% | Very High |
| Opportun- ities Fund | 0% to 20% | – | 80% to 100% | Very High |
| Liquid Fund | 0% to 100% | – | – | Very low |
| Bond Plus Fund | 0% to 20% | 30% to 100% | 0% to 50% | Moderate to High |
| Secure Advantage Fund | 0% to 20% | 0% to 20% | – | Moderate |
| Sustain- able Equity Fund | 0% to 20% | 0% to 20% | 80% to 100% | Very High |
| Flexi Cap Fund | 0% to 20% | 0% to 20% | 80% to 100% | Very High |
Death Benefit
Death Benefit – Invest Plus
In case of unfortunate death, Higher of three will be given
- Total Sum Assured
- Fund Value
- 105% of Total Premiums paid
Death Benefit- Premium Waiver Plan
In the unfortunate event of Proposer’s death All future premiums are waived off. Future premium will be paid by the company and fund value is paid at maturity.
Life cover will be continued for Life Assured until the Policy matures. The maturity benefits will be payable upon maturity.
Fund Management Charge:
| Fund Type | Charges |
| Liquid Fund, Bond Plus Fund & Secure Advantage Fund | 0.80% p.a. of the fund value ( Charged Daily) |
| Diversified Equity, Blue Chip, Balanced, Bond, Discovery, Equity Advantage and Opportunities Funds | 1.35% p.a. of the fund value ( Charged Daily) |
| Mortality Charge | taken each month depends on ages of the life assured & the proposer (for Premium Waiver option) and level of cover. |
| Partial Withdrawal Charge | Nil |
| Switch Charge | Nil |
| Premium Redirection Charge | Nil |
| Discontinuance charge | Nil |
| Miscellaneous Charge | Nil |
Special benefits – HDFC Click 2 Wealth
- Special Addition: Get 1% of Annualized premium as special additions to your Fund Value for first 5 years
- Return of Mortality Charges (ROMC) on Maturity. In case of Premium Waiver option, Mortality charges pertaining to only the Life Assured would be refunded.
- ROMC will not be available for the policies where the Waiver of premium benefit is triggered due to the death of the Proposer.
- Systematic Transfer plan strategy for advantage of Rupee Cost Averaging
- Premium payment options of Single Pay, Limited pay and Regular Pay
How does Golden Years Benefit option work?
With the Golden Years Benefit option, the Life Assured must pay premiums for a fixed period of time (up to the age of 70 at the most) in order to receive life insurance coverage until the age of 99.
the policyholder may also choose a systematic withdrawal service to generate regular post-retirement income from the accumulated money,
Partial Withdrawal
You can withdraw money from your funds to meet any future financial emergencies. Lump sum partial withdrawals can be made from your funds after 5 complete policy years, provided the Life Assured is at least 18 years of age.
Surrender
Yes, you can surrender your policy subject to lock in period of 5 years.
Once you surrender your policy, your risk cover will cease and surrender benefit will be paid out depending upon the year in which the policy is surrendered. Please refer to product brochure for more details.
Tax Benefit
Premiums paid by an individual or HUF under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.
The maturity amount is exempt from tax under Section 10 (10D) of the Income Tax Act, 1961.
What amount will be paid, if one survive the entire term?
On survival of the life assured till the end of the Policy Term (maturity) under all options, Life Assured will receive the Fund Value as a lump sum benefit.
Return of Mortality Charges (ROMC)
At maturity date, the total amount of mortality charges deducted in respect of the insurance cover of Life Assured throughout the policy (including mortality charge deducted on top-up Sum Assured as applicable) will be added to the fund value.
For Golden Years Benefit Option, which has a whole of life policy term, the total cumulative amount of mortality charges deducted will be added to the fund value at the end of policy year coinciding or immediately following 70th birthday of Life Assured.
This benefit will not be applicable in case of a surrendered, discontinued or Paid-up policy.
It can be added only if all due premiums have been paid.
ROMC will not be available for the policies where the Waiver of premium benefit is triggered due to death of the Proposer.
HDFC Click to Wealth -Review
HDFC Click to Wealth plan have really low charges w.r.t fund management charges and at maturity mortality charges will also be refunded.
HDFC CLICK To Wealth – Death Benefit Review
Suppose Mr. Anand buys the Invest Plus Option. In the event of unfortunate death of Mr. Anand, his nominee will be paid- the amount which will be higher of three below mentioned benefits.
- Total Sum Assured
- Fund Value
- 105% of Total Premiums paid
Now in Premium Waiver Option Example – Mr. Suresh 35 years, buys the policy, SA 10 lac for his daughter of 8 years.
In the event of death of Mr. Suresh, there will be no lump sum payment to the family. The sum assured will be transferred to Suresh’s daughter and future premiums will be paid by the company.
Under Golden Years Option, the death benefit will be given to the family. This option is same Invest Plus option.
HDFC CLICK To Wealth – Maturity Benefit Review
Let’s take the same examples as above the fund value will be given at the maturity. Remember the charges are deducted on fund value and not on your premium paid. For instance if you pay Rs 50K,
| the HDFC Click to Wealth – Maturity Benefit Review | |
| Plan Option | Click to Wealth |
| Age at Entry | 30 Years |
| Sum Assured | 15 lac |
| Premium yearly | 1,20,000 |
| Term | 15 years |
| Maturity benefit if money Entire sum invested in Bluechip Fund – Return 10.57% | 44 lac |
| If 100% money invested in bond Fund – Return @8% | 35 lac |
| This value without deduction of charges. After deduction of charges the money value will be low |
Compare HDFC Click to Wealth vs ELSS and Term Plan
The same amount of investment ( 1.20 lac per annum)in ELSS mutual Fund, the maturity value is around 50 lac.
If one invest in ELSS and term insurance at the age of 30 year, the premium for 1 crore term insurance along with accidental death benefit of Rs 25 lac, the cost is around 12000 per annum.
So if invested in combination of ELSS and term plan, then the person will be better off, in terms of return and risk coverage.
