HDFC Life Insurance: Invest Wise Plan

HDFC Life Insurance's Invest Wise Plan:

**  It is a single premium unitlinked insurance policy (Ulip) with a fixed tenure of 15 years. The minimum premium is Rs. 25,000, while there is no limit on the maximum premium.

**  The entry age is 45 to 70 years & the maximum policy maturity age is 85 years.

**  If you do not want to go for medicals, you are given the option of answering a SMQ (short medical questionnaire). There are five (5) non-guaranteed funds to choose from depending on your risk appetite

**  The finance product allows lump sum partial withdrawals from  funds after five (5) years from date of premium payment. The partial withdrawal amount should be minimum Rs. 10,000, while the maximum amount can be 50% of the single premium throughout the policy term.

 **  The sum assured will be only 1.1 times the single premium. That means if your premium is Rs. 1 lakh, then your life cover will be Rs. 1.10 lakh

** The death benefit is divided into two (2) parts. In case a policyholder dies before 60 years of age, then whichever amount is greater of the total fund value or / the sum assured minus the withdrawals during the past two (2) years is paid out.

**  For death benefit on or  / after 60 years, whichever amount is greater than the total fund value or /  the sum assured (minus the withdrawal made after attaining age 58 years) is paid. On maturity, the fund value is paid to the policyholder as maturity benefit.

**  The premium allocation charge is 2.5% for premium of Rs. 25 000 up to Rs. 10,00,000 and 1.5% for premium paid above Rs. 10,00,000.

** The fund management charge is 1.35%  of the fund value, the policy administration charge is 0.05% to 0.17% of the premium paid & miscellaneous charge is Rs. 250 per request.

** Mainly,  the product does not qualify for incoem tax benefits &  the life cover is very low.  So, even if the product gives you very high return, these will be fully taxable depending on your tax slab. 

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