HDFC Life Uday

Features of HDFC life Uday

• The policy is a non linked insurance plan.
• The policy is of an individual basis.
• The Uday policy offers guaranteed additions of 3% of the sum assured for the first 5 years of the policy.
• The policy provides life cover with a standard death benefit and also has an added benefit that covers accidental death.
• The policy offers options for premium payment terms that help you customize the plan as per your requirements.
• The policy provides rebates for any sum assured above RS 2 lakh.
• The policy allows you to enjoy life cover for one year from the last missed premium payment through the guaranteed surrender value status.
• The policy allows for a loan.
• At the end of every financial year, a percentage of the minimum sum assured is added to the policy in the form of bonuses.
• The free look period of the policy is 15 days from the date of purchase of the policy. This free look period is extended to 30 days if the policy has been acquired through online or electronic purchase (distance marketing).
• The policy allows you to enjoy the applicable tax benefits on the premiums paid and the returns received.
• Nomination and assignment are allowed under this policy and the nominations can be made at any time before the policy attains maturity.

How the Plan Works

The HDFC Life Uday plan is a simple policy and works as follows. While purchasing the policy, choose the preferred assured sum with the minimum amount being RS 28,465. Then choose the term of the policy and the term of premium payments. The premium payment term is a minimum of 8 years and a maximum of 10 years. As the policyholder continues paying the required premiums on the dates assigned, he or she would continue to enjoy life cover and when the policy reaches maturity the policyholder will receive a lump sum as a maturity benefit. This maturity benefit includes guaranteed additions of 3% p.a of the sum assured for the first 5 years of the policy. In the unfortunate case that the policyholder dies during the term of the policy and if all premiums are paid then nominee assigned will receive the death benefit.

Benefits

Below are the benefits of HDFC Life Uday:

• Maturity Benefit: If the policyholder survives till the date of maturity, then at the time of maturity the policyholder will receive the maturity benefit which is equal to the assured sum and added benefits of the guaranteed additions and bonuses
• Guaranteed addition: The policy offers guaranteed additions which are calculated as a percentage of the sum assured. The guaranteed additions are credited to the policy at the rate of 3% p.a of the sum assured only for the first 5 years of the policy.
• Bonuses: The policy offers bonuses such as the reversionary bonus. This bonus is calculated as a percentage of the sum assured at the date of maturity and is declared at the end of every financial year. This bonus is credited to the policy and is payable only at date of maturity of the policy or the death of the policyholder. The policy also offers a non guaranteed bonus called the terminal bonus which is paid out on maturity of the policy or death of the policyholder at the discretion of the company.
• Death benefit: In the unfortunate event of the policyholder's death the policy provides death benefit that is paid out to the nominee and is equal to either the sum assured on death along with any accrued guaranteed additions plus accrued reversionary bonuses plus any terminal bonus or the death benefit will be equal to 105% of all premiums paid, whichever is higher. This policy also covers accidental death. In case the policyholder dies due to an accident then the nominee will receive the above death benefit along with an additional benefit equivalent of 100% of the sum assured on death.

Premium Discontinuance

If the policyholder decides to discontinue payment of premiums, they can revive the policy within 2 years from the date of the first missed premium payment. This revival request will attract a charge of RS 250 for processing. In the event the policyholder decides to surrender the policy, the policy would acquire a guaranteed surrender value within 2 years if all premiums have been paid and the premium payment term is 10 years. If the premium payment term is 8 years then the guaranteed surrender value will be attained after 3 years of paying all premiums. The Guaranteed surrender value that the policyholder will receive if they surrender the policy is equal to the aggregate of the percentage of premiums paid and the aggregate of any accrued guaranteed additions and accrued bonuses.