HDFC Life is back with new online retirement plan “HDFC Click 2 Retire”. It is an online unit linked plan offering market linked returns with minimum charges. HDFC Click 2 Retire plan can help you to achieve your financial goal of retirement by forward planning. HDFC Life Click 2 Retire ULIP offers exclusive features and multiple benefits. Should you invest in Click 2 Retire for your retirement?
HDFC Life Click 2 Retire Features
- HDFC Click 2 Retire is an online ULIP Plan for retirement.
- Assured vesting benefit + Gain from upside in the market.
- Lower Vesting / Maturity age -45 years.
- Premium payment can be single pay, 8 years, 10 years, 15 years.
- Death Benefit either higher of the fund value of policy or 105% of premium paid.
- Tax Benefit under section 80 C.
Who can purchase HDFC Life Click 2 Retire?
HDFC Life Click 2 Protect can be taken by any individual. This is subject to following age limit.
What is time period for which premium needs to be paid?
Benefit of HDFC Life Click 2 Retire
Your policy vests at the end of the policy term, and your Maturity (Vesting) benefit will be higher of following –
- Fund Value or
- Assured Vesting Benefits – [101% +1% x (Policy Term minus Premium Paying Term)] x Total premiums paid
For Example Mr. Rakesh age 40 years decide to invest in HDFC Click 2 Retire with single payment of 15 Lakh. He selects policy term 15 years. Let’s take a look at vesting benefits.
Fund Value – At assumed rate of 8% returns his fund value would be 34.84 Lakhs and at assumed rate of 4% his fund value would be 19.78 Lakhs.
Assured Vesting Benefit – [101% +1% x (15-1)] x 15 Lakh = 17.25 Lakhs
Hence, Mr.Rakesh vesting benefit will be 34.84 Lakhs.
Note:- Return shown here in above fund value is assumed estimated return.
In case of unfortunate demise of policy holder before the end of policy term, nominee will receive the higher of the following –
- Fund Value or
- 105 % of the total premiums paid till date
What are the charges applicable on ULIP?
- No Premium Allocation Charges – 100% of your premiums are invested.
- The Fund Management Charge is 1.35 % p.a. of fund value.
- No Policy Administration Charges
- No Mortality Chagres
- Investment Guarantee charges 0.1% to 0.5% as pre fund selection
Should you invest in HDFC Click 2 Retire?
Positive of Click 2 Retire –
- You can purchase this policy online.
- Fund Management charges and investment guarantee charges are very less.
- Other charges like premium allocation charges and policy administration charges are zero.
Negative of Click 2 Retire –
- It is pure ULIP plan without risk coverage.
- Assured Vesting Benefit is very low. Fund value is totally depends on market value.
- You can expect 6-8% return from this plan.
- No benefit if you discontinue policy before 5 years.
Hope your doubts about Click 2 Retire ULIP are clear. If your objective behind investment in this ULIP is retirement I would not recommend investing. You should invest in equity or mutual funds rather than investing in this plan. Equity or mutual fund can give return in range of 12-15% in long term.
If your objective behind investment in this ULIP is risk cover it is better to buy term plan and not ULIP.
What is your take on Click 2 Retire Online ULIP Plan?