HDFC Life ClassicAssure Plus Plan
A participating insurance plan with a guaranteed reversionary benefit and the option to select the duration for paying premiums is HDFC Life ClassicAssure Plus. Throughout the duration of the policy, the plan offers cash protection against early death. The strategy is perfect for achieving long-term financial objectives including paying for your child’s higher education dreams, setting up a fund for your future aspirations, and building a financial safety net to protect your loved ones’ future aspirations. With the policy, you can choose to pay premiums for a policy period of 10 or 15 years for a maximum of 7 years, or a term of 15 or 20 years for a maximum of 10 years.
Read on to know more about the HDFC Life ClassicAssure Plus plan, its eligibility, inclusions, exclusions, premium illustration, and more.
Here is the eligibility criteria for HDFC Life ClassicAssure Plus plan.
|Minimum Entry Age||8 years||3 years||30 days|
|Maximum Entry Age (years||55||60||55|
|Premium Paying Term (years)||7||7 or 10||10|
|Maximum Maturity Age (years)||65||75 Years|
|Minimum Sum Assured on Maturity (In Rs.)||49,447||48,032||73,516|
|Maximum Sum Assured on Maturity||No limit, subject to satisfactory underwriting|
Salient Features & Benefits of HDFC Life ClassicAssure Plus
Here are the salient benefits and features of HDFC Life ClassicAssure Plus.
- Maturity Benefit – When the policy reaches maturity, the Life Insured would receive a Maturity Benefit equal to the Basic Sum Assured plus the Reversionary Bonus, and the Policy would be canceled. After the policy tenure, a terminal bonus may also be paid.
- Grace Period: Monthly premium payments have a grace period of 15 days, while other payments have a grace period of 30 days. The coverage expires if the policyholder doesn’t pay within the grace period.
- Policy Termination or Surrender Benefit: After paying the payments for two or three full years, the policyholder is free to cancel the coverage. The Guaranteed Surrender Value or the Special Surrender Value will be higher than the Surrender Value.
GSV equals the sum of all annual premium payments, including vested bonuses, multiplied by the GSV Factor.
- Free Look Period: As long as there hasn’t been a claim, you have 15 days from the time you receive the policy documents to decide whether or not you like the coverage and terms and conditions.
- Discount on High Sum Assured: A 5% discount on the base premium is given to the policyholder when the sum assured under the contract is Rs. 10 lakh or more. You will also receive a guaranteed reversionary bonus while the premium is being paid.
- Policy Loan: Once your policy has reached its surrender value, you may apply for a policy loan up to 80% of the policy’s surrender value, if necessary. The policyholder must be at least 18 years old when applying for the loan, and the interest rate is 14% annually.
- Revival: By the terms and circumstances we may occasionally specify, you may reinstate your lapsed/paid-up policy within 5 years of it lapping or getting paid up. You must pay all past-due premiums, interest on past-due premiums, a revival fee of up to Rs. 250, and all applicable taxes to revive your policy. The Company has the right to change this fee as it sees fit. 9.5% per year is the current interest rate for resurrection. You are eligible to receive all contractual benefits following the policy’s revival.
- Income Tax Benefit – Section 80C permits the deduction of up to Rs. 1,000,000 in annual life insurance premiums from taxable income, whereas section 10(10)D permits the taxation of the maturity benefit if certain conditions are met.
- Death Benefit – If the Life Insured passes away during the term of the policy, the nominee receives the greater of:
The fundamental Sum Assured
- A 10x increase over the annualized premium
- 105% of all premium payments
The policy would be canceled along with the Death Benefit of the Reversionary Bonus accrued up to the date of death.
What is Not Included Under HDFC Life ClassicAssure Plus?
The nominee or beneficiary of the policyholder shall be entitled to at least 80% of the total premiums paid up to the date of death or the surrender value available as on the date of death, whichever is higher, provided the policy is in force, in the event of death by suicide within 12 months from the date of commencement of risk under the policy or the date of revival of the policy, as applicable.
Premium Illustration- How Does it Work?
Let’s take an example to understand!
A man, named Mr. Meena Kumar, who is working as a software engineer at Cognizant, Gurgaon, is looking to buy a plan that perfectly caters to your retirement financial goals. As he is working in a private firm, he wants to safeguard the financial future of his family members. When he was searching for the best retirement plan, he then stumbled upon HDFC Life ClassicAssure Plus on the internet. Also, he even asked his relatives, family, and friends, and many people in his circle suggested he buy HDFC Life ClassicAssure Plus for maximum financial protection after retirement.
|Sum Assured||Premium||Policy Term||Premium Paying Term||Frequency||Riders||Total Benefit|
|Rs. 20,00,000||Rs. 3,76,995||10 Years||7 Years||Annual||Critical Illness rider||Rs. 38,29,950|
|Rs. 50,00,000||Rs. 4,80, 524||10 Years||7 Years||Half-Yearly||–||Rs. 95,72,039|
Frequently Asked Questions
Modifications to the premium payment period, policy term, premium amount, or sum assured are not permitted under the HDFC Life ClassicAssure Plus policy. Although it is possible to vary the premium frequency, doing so may also change the premium amount.
A loan of up to 80% of the surrender value of the HDFC Life ClassicAssure Plus policy may be obtained by the policyholder once it reaches that amount.
The policy may be assigned or transferred to a different person in whole or in part. The reason for the assignment or transfer should be stated in the document. The insurer will assess a fee for the assignment or transfer of the policy. The insurance provider may or may not grant the request.
If the policy assignment rejection has you unhappy, you have 30 days after receiving the insurer’s notice of denial to submit a claim to IRDAI.
The savings and investment plan’s goal is quite distinct from a pension plan’s. When you reach retirement age, the pension plan is set up to give you a consistent income. A savings and investment plan is created to help a person achieve their long-term financial objectives. This involves setting up a fund for your future goals, paying for your child’s school, etc. This kind of strategy serves as a safety net to safeguard your financial situation all your life.
Therefore, it is advised to enroll in a savings or investment plan if you want to make use of the policy’s benefits not just in your retirement years but also in the future.