HDFC life Click 2 invest – different but no different

by Manikaran Singal on June 26, 2014 Total Views: (610)


HDFC life has come up with one of its kind unit linked insurance plan with name HDFC life Click 2 invests. Why it is unique is because it is devoid of many charges that generally ULIP insurance plans have. It doesn’t have any allocation charge, administration charge and even the discontinuation charge. HDFC life click 2 invest can be bought online only and thus does not have any distribution cost attached too. But even after its no charge structure, does it make sense to invest in HDFC click 2 invest insurance plan. Let’s find out.

hdfc life click 2 invest

HDFC life click 2 invest – Key features

 

HDFC Life click 2 invest is an online unit linked insurance policy. Like any other ULIP you have to decide on the premium you want to pay, depending on which you will be covered with insurance. As in ULIP insurance cover will be the multiples of premium you pay.

Premium you pay after deduction of allocation charges (which is NIL in this product) will get invested in the fund option you chose. There are 8 fund options available for investors in this plan.

With a single, limited and regular premium pay option the maximum policy term available is of 20 years.  You keep on paying the premiums and at maturity you will get the fund value accumulated or at death your nominees will get highest of the following:

  • Sum Assured
  • Fund value
  • 105% of the premium paid

HDFC life click 2 invest – eligibility and other conditions

 

hdfc life click 2 invest

HDFC life click 2 invest – Other Features

 

Manikaran Singal

Founder and Chief Financial Planner at Good Moneying Financial Solutions
He’s MBA ( Finance) gold medalist, a CERTIFIED FINANCIAL PLANNER and SEBI Registered Investment adviser. An ex banker , having a decade long experience in financial services industry he manages clients across the globe. He’s an active member of Financial Planners’ Guild India ( An association of practicing SEBI registered Investment advisers). He's very passionate in the financial planning space and with a view to spread financial literacy among masses he writes blog articles and also contributes and quoted in various media publications like Money control, Indian express, Business Bhaskar, Dainik Bhaskar, Money mantra magazine etc. He also delivers training on Various personal finance topics to various corporate houses. You may get in touch with him at info@goodmoneying.com

Recommended for you:

Pages: 1 2

{ 9 comments… read them below or add one }

Rajiv Ahuja June 26, 2014 at 11:42 am

I fully agree with your observations.

Reply

Manikaran Singal June 27, 2014 at 5:43 am

Thanks Rajiv.

Reply

Parthiban T June 28, 2014 at 3:51 am

Dear Mr.Singal,

“My advice is still the same keep insurance and investments separate”… is not just a simple sentence for this article.. It have real life meaning & implication. I learned this after loosing.

After separating insurance and investment, at present I feel more secure & flexible, than before.

Thanks for Quoting.

- Partho

Reply

Manikaran Singal July 7, 2014 at 9:25 am

Dear Mr Partho

What i can understand from your comment is you have bitter experience with the package of insurance and investments. Can i request you to share your experience for the benefit of other readers.

I am sure you can make other people’s financial life better by not letting repeat the same mistakes again.

regds

Reply

manoj July 2, 2014 at 9:13 am

HI,

Can you suggest any pure invest plans?

Reply

Manikaran Singal July 7, 2014 at 10:02 am

Bank FD, PPF, Post office schemes, Mutual funds, Tax free bonds etc. all are pure investments plan

Reply

sumedh September 22, 2014 at 5:00 pm

Come on…it’s a pretty good option considering it’s tax exempt…debt funds aren’t…and you can switch between asset classes easily…that’s pretty cool…

Reply

parul September 24, 2014 at 5:37 pm

Ur idea of keeping investment n insurance separate looks like old tag line… They are offering 9 funds and hdfc has a past records of giving competitive return as mutual fund.. I have a ulips which is giving me average of 25% since 2006. I have played the game of timely switching once in 2 years . IF I continue doing so with this I can earn much more tax free under sec 10(10) d… This is a awesome product in the market.. n what more u can expect from a company… just 1.35% pa with full transperancy.. is better than 2.5% in mutual funds where many cost are hidden…

Reply

Manikaran Singal September 30, 2014 at 11:21 am

Your ULIPs are generating 25% ( i assume this is per annum though you have not mentioned it) since 2006, that’s a pretty nice return. And if you as an investor is getting this much return after allocation, administration, FMC and Mortality charges…that’s a gain commendable. because generally investments generate returns but investors don’t enjoy the same.
I also appreciate your game of “timely” switching once in 2 years, as i have never been able to time the market. Parul, you are really a Smart Investor.

Though i have already mentioned my points of contention, but just to reply your comment, i would like to reiterate the same….

” The main point of contention to me is the ULIP investment structure. I mean i have never been able to answer the question of why should someone invest in ULIP or even endowment, for investments or insurance or for both?

If this is for insurance, then will the investor be able to pay enough premium and that too regularly to buy adequate insurance cover? Say for e.g. If a healthy nonsmoker male needs an insurance cover of Rs 20 lakh, then in case of HDFC life click 2 protect (term insurance) he will pay Rs 3798/- p.a. of premium, where as in case of HDFC life click 2 invest or any insurance ULIP plan he needs to shell out Rs 2 lakh p.a.

Even if one has enough money to pay for premium, how one can be sure that he’ll be able to answer this commitment every year (at least from next 5 years)

If this is for investments looking at low fund management charges, then how would you track the funds performance, compare it among peers and above all by any chance you find that funds are not performing as expected, what options you are left with. You have to continue with this structure and keep on paying the premium for at least 5 years and if you don’t you will get returns of discontinuance fund account.”

I still find Bank FDs, Mutual funds etc. are much more easily manageable, and pls note that no charges are hidden in those products.

Reply

Leave a Comment

Previous post:

Next post: