HDFC Life Click 2 Retire

HDFC Life Click 2 Retire

by Editor

HDFC Life Click 2 Retire – Overview

HDFC Life Click 2 Retire is a Unit Linked retirement plan that can be purchased online. The plan provides market linked returns and helps an individual to achieve his/her goals of retirement by planning in advance. With affordable premium rates, this ULIP provides maximum benefits and allows an investor to start investing in it as early as 18 years. The plan offers regular income during the retired period and provides death benefits if the policyholder dies during the tenure of the policy.

HDFC Life Click 2 Retire – Key Highlights

  • An online ULIP pension plan.
  • Gives the option to start investing in it as early as 18 years.
  • Guaranteed visiting benefit.
  • Lower maturity/ vesting age of 45 years.
  • Single, Limited, and Regular pay options are available under one roof.
  • Death benefits are provided to the nominee of the insured.
  • The plan also provides tax benefits under section 10A and section 80C of the Income Tax Act, 1961.

HDFC Life Click 2 Retire – Eligibility

EligibilityMaximumMinimum
Entry Age (Years)65 (Years)18 (Years)
Maturity Age (Age)75 (Years)45 (Years)
Premium Payment OptionLimited and Single Pay
Plan Term10 years or 15 to 30 years
Premium Payment TermFor Single Pay – Once

For Limited Pay –

For Term of 10 Years or 15 – 35 Years: 8 or 10 Years

For Term of 15 to 35 Years – 15 Years

Annual Amount of PremiumMonthly – Rs.2, 000

Quarterly –Rs.6, 000

Half-Yearly – Rs.12, 000

Annually – Rs.24, 000

Single Pay – Rs.50, 000

HDFC Life Click 2 Retire – Benefits

Vesting / Maturity Benefits

Policy vesting is another term for policy maturity. A policy vests on completion of the policy term. The vesting benefit is higher of ‘Assured VestingBenefit’or ‘Fund Value’. The calculation of ‘Assured Vesting Benefit’ is as follows:

  • [101% + 1% * (Policy Term-(minus) Premium Paying Term)] * Total paid premiums

An insured has an opportunity to buy the annuity from the list of options at the time of maturity. This ensures lifetime income for the insured and his/her spouse.

Death Benefit

In case of unfortunate demise of the policyholder during the policy tenure, his/her nominee gets the death benefit, which can be higher of the below mentioned:

  • 105% of the premiums that are paid.
  • Fund value

The policy terminates soon after that and no more advantages will be paid.

Option to Deferment Vesting Date

An insured can intimate the insurance company about the deferment of the visiting date before the date of annuitisation. There is no limit on the number of postpones of the vesting date, however, the maximum vesting age is 75 years. Moreover, an insured is allowed to deferment vesting date until he/she is below the age of 55 years. Once an insured opts to deferment the vesting date, his/her death benefits and assured vesting benefits continue to enforce. In addition to this, all the applicable charges will continue to deduct and the fund will be moved to ‘Pension Conservative Fund’.

Income Tax Benefits

As per Section 10A of the Income Tax Act, 1/3rd of the maturity returns are free of tax. In addition to this, the premiums for life insurance paid up to Rs.1, 50, 000 are eligible for income tax deduction under Section 80C of the Income Tax Act.

HDFC Life Click 2 Retire – Exclusions

There are no exclusions to this plan.

HDFC Life Click 2 Retire –Additional Benefits

Free Look Period

If the insured is not satisfied with the terms and conditions of the plan, he/she is eligible to cancel the plan within one month from the date of receiving of the policy documents.

Partial Withdrawals

Partial withdrawals are not allowed in this plan.

Riders

There are no riders offered in this policy.

Modifications

A policyholder is not eligible to make any alterations or modifications in policy term, premium or premium paying term.

Investment Fund Options

The plan provides three fund options:

  • Pension Income Fund
  • Pension Equity Plus Fund
  • Pension Conservative Fund

Grace Period

The time period during which the policy stays in-force even after the premium payment’s due date. The grace period of HDFC Life Click 2 Retire is 30 days with quarterly, annual, and semi-annual frequencies. However, for a monthly premium payment, the grace period is 15 days.

HDFC Life Click 2 Retire – Charges

The charges are:

  • Policy Administration Charges: Nil
  • Premium Allocation Charges: Nil
  • Charges of Fund Management: The fund management charges are 1.35% per annum of the fund value. This is charged on a daily basis and is a specific percentage of the unit funds of the plan.
  • Morality Charge: Nil
  • Discontinuation Charge: Nil
  • Charges of Investment Guarantee: As mentioned in the table below:
FundCharges of Investment Guarantee
Pension Income Fund0.50% per annum
Pension Equity Plus Fund0.50% per annum
Pension Conservative Fund0.10% per annum

Note: Service charges are applied on these charges as per the applicable current rates.

HDFC Life Click 2 Retire – FAQs

Question 1: What is the requirement of HDFC Life Click 2 Retire Plan?

Answer: One of the biggest challenges that every working individual face is to make sure to accumulate enough funds for retirement so that he/she has not to beg in-front of anybody for day to day requirements. The rising living cost and inflation are making it necessary to start investing in retirement fund as soon as possible. With so many retirement plans, it may become difficult for one to select the most suitable plan. However, HDFC Life Click 2 Invest is introduced with the intention to provide the best retirement investment at a really affordable price.

Question 2: List the applicable charges for HDFC Life Click 2 Retire Plan?

Answer: This plan only has Investment Guarantee Charges and Fund Management Charges. A charge of Rs.250 is levied on this plan for the alterations according to IRDAI’s Section 35(j). However, if a request is claimed via the web portal of the company, then the policyholder is charged Rs.25 for every request raised. This charge can vary subject to Rs.500 cap and prior approval from the IRDAI.

Question 3: Is it a traditional plan or market linked plan?

Answer: It is a Unit Linked Pension Plan.

Question 4: Can I take a loan against this plan?

Answer: No, this plan does not provide any facility of loan against it.

Question 5: How long does the employer take to process the claim?

Answer: As soon as the HDFC Life gets all the required documents through the claimant, they make the payout of the claim within one month. However, if some investigation is needed before making the payout, then this is intimated to the policyholder immediately. Therefore, the payout is made as per the results of the investigation.

Question 6: How is the insurer informed for a rejected claim?

Answer: In case of claim rejection, the insurer gets a letter having the reason for rejection. Most of the times, this letter is sent to the insured within 10 days of this decision making.

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