HDFC Life Click 2 Retire is an online unit linked pension plan which offers the policyholder a chance to secure themselves financially post retirement. If anything is certain, it is that retirement will come to all of us. The HDFC Click 2 retire allows policyholders to build a corpus that will allows them to continue enjoying their lifestyle post retirement and to meet the rising cost of living and the ever increasing inflation.
Key Features of HDFC Life Click 2 Retire
- The policy is a straightforward hassle free policy designed to increase your wealth and as such is free of many added on charges such as no entry or premium allocation charges, no exit charges and no mortality charges.
- The charges levied are policy administration charges, fund management charges, investment guarantee charges and miscellaneous charges arising out of policy alteration requests put forth by the policyholder.
- The policy offers an assured vesting benefit that allows policyholders to capitalise on any upside in the market and secure the financial future post retirement
- The policy provides for a death benefit
- Provides a choice of 6 investment funds to maximise returns
- The plan comes in 2 options, limited pay and single pay
- It’s never too early to start planning for retirement, the policy offers a low entry age of 18 years
- The maturity or vesting period is also lower at only 45 years
- The policy offers a surrender benefit equal to the fund value at the time of surrendering the policy.
- On discontinuance, the policy can either be revived or the proceeds can be completely withdrawn.
Benefits of the Plan
Maturity Benefit: The policy offers a maturity benefit or vesting benefit which is the higher of either the fund value or the assured vesting benefit. The assured vesting benefit is calculated as [101% + 1% * (policy term minus premium paying term)] * total premiums paid. If the policy has reached maturity, the policyholder can postpone the vesting date by moving it to a later date. This can be done any number of times provided the policyholder is below 55 years and is subject to a maximum of 75 years. The policy when deferred will continue to provide death cover and assured vesting benefit but will be calculated as per maturity date at the time of policy inception
Death Benefit: If the life assured passes away while the policy is in effect, the nominee assigned will receive death benefit which is higher of either the fund value or 105% of the total premiums paid till date.
Maturity benefit can be claimed in the following ways. One third of the benefit needs to be taken out as a tax free lump sum according to tax regulations. The remainder needs to be converted into Annuity which has to be purchased from HDFC. The policyholders can also choose to either convert the entire payout in to annuity by purchasing a separate annuity plan or use the proceeds to purchase a single premium deferred pension plan from HDFC
Eligibility Criteria for the Plan
- The Minimum age for entry is 18 years as at last birthday and the Maximum age for entry is 65 as at last birthday.
- The minimum maturity age is 45 years and the maximum maturity age is 75 years
- Premium payment term for policy terms that are either 10 years or 15 to 35 years is single pay or 8 years or 10 years. Premium payment term for policy terms that are either 15 to 35 years is 15 years.
- Premium payment modes are single pay, annual, half-yearly, quarterly and monthly
- The minimum premium amount to be paid is Rs 50,000 for single pay premium, for regular or limited pay, the minimum premium for annual payments are Rs 24,000, half-yearly payments are Rs 12,000, quarterly payments are Rs 6000 and monthly payments are Rs 2000
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017