HDFC life Click 2 invest – different but no different

by Manikaran Singal on June 26, 2014 Total Views: (103)

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


  1. Charges: There is no Allocation, administration charges in this policy. There’s a fund management charge of 1.35% and being an insurance plan there’s mortality charges too. ULIP charges are also subjected to service tax.
  2. Discontinuation: There are no discontinuance fund charges. But if you discontinue the premium payment before the minimum tenure of 5 years, then the risk cover will cease and the fund value as on date of discontinuance will be moved to discontinue fund portfolio where you will get minimum guaranteed interest rate @ 4% p.a. You will be able to withdraw the funds only after completion of minimum of 5 years tenure.
  3. Partial Withdrawal: You can also make partial withdrawal after completion of 5 policy years. First 4 withdrawals in single policy year is free, subsequent withdrawals will be charged.
  4. Switch and Re direction:  You may also switch the invested amount to some other funds of your choice or even redirect the premium payments.
  5. Surrender: You can surrender the policy in between, but if you do it with in first 5 years, your fund value will be shifted to discontinued fund and can be withdrawn only after 5 years.
  6. Settlement: There’s one settlement option too, where you can claim the maturity proceeds in monthly installments for 5 years. But as in accumulation phase, even in settlement phase investment risk will be borne by you.

HDFC life Click 2 Invest – Should you invest?


The reason this plan is different but no different for me is the charge and investment structure. Where ULIPs are generally full of charges, this plan has no charges at all. Mortality charges are meant to be there being an insurance plan and fund management charges are due to investment structure attached to it.

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.

On the other side investments products like mutual funds, PPF, bank FDs, Post office schemes etc. all are so flexible and one can invest as per his requirement and manage comfortably.


Even though hdfc life click 2 invest is devoid of all unnecessary charges, I am still not convinced to advise on investing in this. My advice is still the same keep insurance and investments separate.  Buy adequate insurance cover through term insurance plans and do investments in pure investment products as per your short and long term goals and risk profile. Keep your investments simple and flexible.

How do you find hdfc life click 2 invest? Do you agree with my views?

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

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{ 6 comments… read them below or add one }

Rajiv Ahuja June 26, 2014 at 11:42 am

I fully agree with your observations.


Manikaran Singal June 27, 2014 at 5:43 am

Thanks Rajiv.


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


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.



manoj July 2, 2014 at 9:13 am


Can you suggest any pure invest plans?


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


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