HDFC Life Insurance
HDFC Life Insurance Click 2 Retire Plan

HDFC Life Click 2 Retire

The post-retirement days of our life come up with more worries and tensions as old age people tend to need more medical attention, and we also need to fulfill our certain dreams and responsibilities, whereas our regular flow of income gets stopped. To solve your problem, HDFC Life Insurance Company has come up with Click 2 Retire plan, which is a unit-linked retirement policy. This policy helps you to ensure that there is an adequate investment made to build your retirement corpus so that you can live the golden days of your life without any financial tensions. It helps you to achieve your retirement goals by planning well in advance. The risk under this policy has to be borne by the life assured only. To know more about this plan, have a look at the following details.

Eligibility Criteria

Entry ageMinimum – 18 years, Maximum – 65 years
Vesting ageMinimum – 45 years, Maximum – 75 years
Premium payment termSingle pay, 8 years, 10 years, and 15 years
Policy term10 years, and 15 to 35 years
Premium payment frequencySingle pay, annually, half-yearly, quarterly and monthly
Grace period15 days and 30 days
Free look-in period30 days
Minimum premium (annually)Rs. 24,000 (For regular and limited pay options)
Maximum premiumNo upper limit

HDFC Life Click 2 Retire Coverage Details

This plan has come up with a sack full of benefits and facilities. Let us have a look at the following table to know more about its advantages.

Vesting BenefitYour policy vests at the end of the policy term, and your Maturity (Vesting) Benefit will be equal to fund value, or assured vesting benefit, whichever is higher.
Death Benefit

In the case of the unfortunate and untimely demise of the policyholder during the policy term of an active policy, the beneficiary or the nominee will receive the higher of the following:

  • Fund value
  • 105% of the total premiums paid to date.
Tax BenefitsIt is available as per the prevailing tax laws.
Loan FacilityIt is available only after the fifth policy year, and it is subject to the terms and conditions of the company.
Utilization of Policy Proceeds

On vesting – You will be eligible to commute up to 60% and utilize the balance amount to purchase an immediate annuity or deferred annuity from the insurer or from another insurer fulfilling the terms and conditions of the company. you can also extend the accumulation period or deferment period within the same policy only if you are below the age of 60 years.

On death – In that case, the nominee can withdraw the entire proceeds of the policy. Or else, he/she can utilize the entire proceeds or part thereof for purchasing an immediate annuity or deferred annuity at the then prevailing annuity rate from the insurer.

What Are The Special Features Of HDFC Life Click 2 Retire?

Apart from the above general benefits, this plan has come up with some special advantages that have made the plan unique and popular among consumers. Have a look at the following mentions to know about it.

Deferment of Vesting Age

You can intimate the insurer about the deferment of the retirement age anytime before annuitization. You even have the flexibility to postpone the vesting date any number of times subject to the maximum vesting age of 75 years, provided you are below the age of 60 years. In that case, the funds will move to Pension Conservative Fund, and all applicable charges will continue to be deducted.

Discontinuance of The Policy

If you fail to pay the premium even within the grace period, the policy will be discontinued, and you are eligible to avail of the following benefits:

  • Discontinuance within the lock-in period – The fund value after deducting the applicable discontinuance charges, will be credited to the discontinued policy fund, and the risk cover and rider cover, if any, will cease. In the case of a single premium policy, the life assured will have the option to surrender the policy anytime during the lock-in period.
  • Discontinuance after the lock-in period – The policy will be converted into a reduced paid-up policy with a paid-up sum assured. In that case, either you can revive the policy or can opt for the complete withdrawal of the policy. For a single premium policy, the policyholder still has the option to surrender the policy anytime.

Revival of The Policy

If you want to revive your discontinued policy, you can do it within 3 consecutive years from the date of the first unpaid premiums and it is subject to the board-approved underwriting policy of the insurer. In that case, all the due and unpaid premiums which have not been paid have to be paid without charging any interest or fee. A few charges will be levied as per the terms and conditions of the policy.

If the policy is purchased as QROPS (Qualifying Recognized Overseas Pension Scheme) – If you buy this policy as QROPS through the transfer of UK tax relieve assets, you will be eligible to avail of the following advantages:

  • Benefits on Vesting – Access to the benefits from policy proceeds both in the form of commutation and Annuitisation, will be restricted till the policyholder attains 55 years of age or vesting age, whichever is later.
  • Benefits on Surrender or Discontinuance – In that case, the same will happen till the policyholder attains 55 years or vesting age or the end of the lock-in period, whichever is later.
  • Cancellation Within The Lock-in Period – The proceeds from cancellation in the free look period will only be transferred back to the Fund House from where the money was received.
  • Overseas Transfer Charge – For this overseas transfer charge, the HDFC Life Insurance Company will be liable. The company will deduct an amount to the extent of the applicable tax charge from the policy fund value and remit the same to Her Majesty Revenue & Customs (HMRC).

Exclusions of HDFC Life Click 2 Retire

If you want to have a comprehensive idea about a policy and want to avoid future complexities, it is important to know the exclusions of the policy side by side with its benefits. So, here are the mentions of the general exclusions of the HDFC Life Click 2 Retire policy.

  • Anything that does not satisfy the terms and conditions of the company will fall under the category of exclusions.
  • Any kind of breach of the law will be counted as an exclusion.
  • In the case of death arising out of suicide within 12 months from the date of commencement of the policy or from the date of revival of the policy, the nominee or the beneficiary will be eligible to receive the fund value as available on the date of intimation of death.

Premium Calculation of HDFC Life Click 2 Retire

After the inclusions and exclusions of the policy, the next vital part is the premium calculation, as it can give you a clear idea of how much you need to pay for this policy and whether it is feasible for you or not. For that reason, here is an example that will give you a complete illustration.

Suppose Mr. Mehta, a 36-years-old, Mumbai-based businessman purchased HDFC Life Click 2 Retire Policy. Let us find out how much premium amount he has to pay to reach his desired retirement corpus for the given data.

Age36 years
Estimated retirement corpusRs. 1 crore
Policy term24 years
Age of retirement60 years
Premium payment term8 years
Premium payment frequencyAnnual
Assumed interest rate8%
Annual premiumRs. 40,054

Frequently Asked Questions

It is calculated as the following:

[101% +1% * (Policy Term minus Premium Paying Term)] * Total premiums paid to date.

The following charges are applicable to this policy:

  • Guarantee of charges – As per the guidelines of IRDAI.
  • Fund management charge – The Fund Management Charge is 1.35 % per annum of the fund value. This charge is charged daily and is a percentage of the unit funds.
  • Investment guarantee charge – For different fund options, the charges differ.
  • Statutory charges – Statutory Taxes and Levies as applicable would be charged.
  • Miscellaneous charges – For example, Alteration Charge.

Alteration of premium, policy term, premium paying term, and partial withdrawals are not allowed. However, change in frequency of premium payment is allowed anytime.

The unit price of a fund is set as per the guidelines of IRDAI. The unit price of Unit Linked Funds will be computed as the following:

Market Value of Investments held by the fund plus the value of any current assets less the value of current liabilities and provisions, if any.

If the nominee is minor, in that case, the insured person may appoint any person to receive the money secured by the policy in the event of the policyholder’s death during the minority period of the nominee. The manner of appointment is to be laid down by the insurer.

To have a clear idea about how much you should invest to build a retirement corpus, you need to keep in mind certain factors, such as your current age, your vesting age, your financial background, your needs, your future requirements, etc. Only after evaluating and assessing all the potential parameters, you can fix the amount. It has been found that generally, an amount ranging from 10% to 25% of the individual’s income is invested towards securing a comfortable retirement.