Ulip Product

8/12/2019 Ulip Product

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Assignment-1

ULIP Products of HDFC Bank


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ULIP: An Introduction

InUnit Linked Insurance Plans (ULIP), the investments made are subject to risks associated with

the capital markets. This investment risk in investment portfolio is borne by the policy holder.Thus, you should make your investment choice after considering your risk appetite and needs.

Another factor that you need to consider is your future need for funds. HDFC Standard Life

offers you a variety of unit-linked insurance products to suit your goals - be it for yourretirement

planning,for your health, for your child's education and marriage or for investment purposes.

Who can invest? Those who wish to closely track their investments: Unit linked plans allow policy

takers to closely monitor their portfolios. They also offer the flexibility to switch your

capital between funds with varying risk-return profiles.

Individuals with a medium to long term investment horizon: ULIPs (Unit LinkedPlans) are ideal for individuals who are ready to stay invested for relatively long periodsof time.

Those with varying risk profiles: Across the seven funds offered, the equity componentvaries from zero to a maximum of 100 per cent. Thus there is a choice of funds available

to all types of investors - from risk-averse investor to those investors who have strong

risk appetite.

Investors across all life stages: This plan category offers a variety of plans which can beopted for depending upon the life stage you are in and your needs and financial liabilities

at that point in time.

In a Unit Linked Plan (ULIP), the premiums you pay are invested in the funds chosen by you

after deducting allocation charges and charges including those for managing funds, policy

administration and for providing insurance cover are deducted from the funds by cancelling

The value of each unit of a fund is determined by dividing the total value of the fund'sinvestments by the total number of units.

Servicing A Unit Linked Plan Single Premium: The policy holder is required to pay the entire premium amount as a

lump sum at the beginning of the policy term.

Regular Premium Payment (annually, semi-annually or monthly): The policy holderhas to pay the pre-determined premium amount periodically i.e. annually, semiannuallyor monthly, depending upon the premium payment term opted for.

How Is It Structured?

certain units.
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Number of Premium Paying Years: This depends on the term of the policy that youhave chosen. In most cases, the policy term and the number of premium paying years (incase of regular premiums) are the same. However, some policies give the insured the

option of choosing the number of premium paying years.

ChargesThe following charges are deducted from your policy towards the cost of benefits and

administration services provided by HDFC Standard Life Insurance -

Administration charges: A fee is charged for administration of your policy everymonth. Administration charges are deducted by cancelling units proportionately from

each of the funds you have chosen.

Fund management charges: These charges are towards meeting expenses related tomanaging the fund. This is charged as a percentage of the fund's value and is deducted

before arriving at the net asset value of the fund.

Switch charges: You can switch between the funds available to suit your changing needsand goals. In a policy year, a fixed number of such switches are available free of cost.Subsequent to this, each switch would attract a certain charge. These charges arededucted by cancelling units proportionately from each of the funds you have chosen.

Surrender charges: These charges are levied for premature encashment of units. Theyare charged as a percentage of the fund value and depend on the policy year in which the

policy has been surrendered.

Mortality Charges: Depending upon the age, and the amount of cover, these charges arelevied towards providing a death cover to the insured.

Premium Allocation Charge: This charge is deducted as a fixed percentage of thepremium received, and is usually charged at a higher rate in the initial years of a policy.This charge varies depending upon whether the policy is a single premium or regular

premium policy, the size of the premium, premium frequency and payment mode.

Partial Withdrawal Charges: Lump sum withdrawals are allowed from the fund afterthe lapse of three years of the policy term and subject to pre- specified conditions.

However, such withdrawals attract charges, as mentioned in the respective policy

brochures.

HDFC Standard Life Insurance offers you the flexibility to switch between funds available under

a unit linked plan. You may wish to switch between equity and debt funds, in times when there ismarket volatility or interest rate fluctuations. At times, changes in your financial standing,

liabilities or risk profile may also require that you change your investments accordingly.

Switching Between Funds


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Making WithdrawalsYou may also make partial withdrawals from your funds after a certain specified period, subject

to a partial withdrawal charge. The withdrawal amount should be at least the minimumprescribed withdrawal amount and the fund must not fall below the minimum fund value after

the withdrawal. You can make a full withdrawal of your policy before its maturity date.

However, surrender charges will be applicable in this case.

ULIPs from HDFC Life

Having known the various advantages that ULIP offers, it is advisable to choose the right plandepending on your age group and the corresponding goals at various life stages.

HDFC Life offers different ULIPs which are just right for you and can help you meet your

specific financial objectives.


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HDFC SL YoungStar Super Premium

Children insurance plans help build savings so that over time there is enough to finance yourchilds education, marriage, house or car. HDFC SL YoungStar Super Premium, a unit -linked

insurance plan (ULIP) designed to accumulate savings for your child's future, even in your

absence.

Every parent naturally wants the best for his or her child in every sphere, particularly education.Best-in-class education is no longer a luxury; its a must-have for anyone who wants to excel inhis or her career. But that is easier said than done, given the escalating cost of education at

premier institutes coupled with increasing competition. Fortunately for you, help is at hand.

Children insurance plans help build savings so that over time there is enough to finance yourchilds education, marriage, house or car.

Features

Flexibility to choose from 4 funds to suit your risk appetite:1. Income Fund: Higher potential returns due to higher duration and credit

exposure.2. Balanced Fund:Dynamic equity exposure to enhance the returns while the debt

allocation reduces the volatility.

3. Blue chip Fund:Investments in large cap equities.4. Opportunities Fund:Investments in mid-cap equities.

Flexibility to select premium amountno ceiling on maximum premium Flexibility to select tenure of 10, 15 - 20 years

Flexibility to select the Sum Assured

Advantages

Save Benefit- In case of unfortunate death of the parent or a critical illness1. Sum Assured is paid to the beneficiary (child)2. No need to pay any further premiums as we will pay 100% of the future

premiums

3.

On maturity, fund value is again paid to the beneficiary Save-n-Gain Benefit- In case of unfortunate death of the parent or a critical illness

1. Sum Assured is paid to the beneficiary (child)2. No need to pay further premiums as we will pay 50% of the future premiums

towards the policy and 50% of the premiums to the beneficiary on the premiumdue date

3. On maturity, fund value is paid to the beneficiary
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Customize a plan suited for your child with the premium, Sum Assured and the planoption of your choice

Manage your investment fund(s) either by switching across fund options or re-directingfuture premiums into a different fund option

Hassle-free policy issuance on the basis of a Short Medical Questionnaire eliminatingtedious medical tests

Tax benefits subject to provisions contained under sections 80C and 10(10D) of theIncome Tax Act 1961

Paying premiums is convenient with access to multiple modes credit card, internetbanking, cheque, auto debit facility


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DFC SL ProGrowth Super II

HDFC SL ProGrowth Super II is a smart savings-cum-insurance unit linked plan that will helpyou to provide the finest for your family, be it today or tomorrow. This ULIP aims to help you

achieve long term savings.

Features

Flexibility to select term of 10 years or from 15 to 30 years Flexibility to choose from arange of funds

1. Income Fund2. Balanced Fund3. Blue Chip Fund4. Opportunities fund

Flexibility to choose Sum Assured multiple Avail of hassle-free annual premium option

Advantages

Thesavings plan gives you flexibility to choose from the following 8 options:

1. Life Option = Death Benefit2. Extra Life Option = Death Benefit + Accidental Death Benefit3. Life & Health Option = Death Benefit + Critical Illness Benefit4. Extra Life & Health Option = Death Benefit + Critical Illness Benefit +

Accidental Death Benefit

5. Life & Disability Option = Death Benefit + Accidental Total & PermanentDisability Benefit

6. Extra Life & Disability Option = Death Benefit + Accidental Death Benefit +Accidental Total & Permanent Disability Benefit

7. Life & Health & Disability Option = Death Benefit + Critical Illness + AccidentalTotal & Permanent Disability Benefit

8. Extra Life & Health & Disability Option = Death Benefit + Accidental DeathBenefit+ Critical Illness + Accidental Total & Permanent Disability Benefit

This plan provides valuable protection to your family in case you are not around. In caseof your unfortunate demise during the policy term, we will pay the Sum Assured and

your total fund value to your family.

Plan can be availed by filling short medical questionnaire, which may not require you togo for medicals.
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You can manage your investment funds either by switching funds from one fund toanother or by redirecting future premiums into other funds

Tax benefits under section 80C and 10(10D) of Income Tax Act 1961 subject toprovisions contained therein.



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HDFC SL ProGrowth Flexi

It's prudent to be prepared all the time so that you can meet your lifes goals in a manner thatsecures your finances. HDFC SL ProGrowth Flexi, a savings-cum-insurance unit-linked plan

(ULIP) that enables you to provide financial security to your loved ones.

Features

Flexibility to choose one of two benefit options:1. Life Option = Death Benefit2. Extra Life Option = Death Benefit + Accidental Death Benefit

Flexibility to Range of funds to choose from:1. Income Fund2. Balanced Fund3. Bluechip Fund4. Opportunities Fund

Flexibility to choose any sum assured multiple from 10 to 40 of the annual premium

Advantages

The investment plan also provides invaluable protection to your family. In case of yourunfortunate demise over the policy term, we will pay the greater of the Sum Assured or

your total fund value to the nominee

On maturity, you can take the Fund Value at the prevailing unit prices as lump sum oryou can opt for settlement option

Flexibility to move your accumulated funds from one fund option to another anytime orredirect future premiums into a different selection of funds

Tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961 subject toprovisions contained therein



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HDFC Life Click2Protect

As a modern woman, its time to shoulder the responsibility for your familys financial security.

HDFC Life Click2Protect is an online term insurance plan which helps you secure your familys

financial independence at the click of a button. Ensure your parents, spouse and child are taken

care of in your absence.

Features

A womans role todays household has never been more powerful. As you become an equal

stakeholder in all your family decisions, make sure your family can live with their head held high

even when you are not around. A term insurance plan can help you ensure your childs dreams,

your or parents financial security, or your home loan are secured in your absence.

Features

An affordable premium can help you avail sufficient cover to fulfill your familys needs.

Hassle- free premium payment in annual mode

Choose the policy term of 10/15/20/25/30 years as per your need

Choose sum assured to suit your requirement ranging from Rs 10 lakh to Rs 10 crores Your premium paying term will be the same as the policy term you choose

Being a term plan there is only a death benefit

Advantages

Easy to purchase, at the click of a button in simple steps

Lower premium for women and non-tobacco users

Flexibility to choose sum assured and policy term

Tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961 Paying premiums is convenient with access to multiple channels credit card,

internet banking, cheque, auto debit facility


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HDFC Life Pension Super Plus

You wait for the day when you can retire and pursue your interests - full time. This is possible

only if you have assurance of post-retirement income. Presenting, HDFC Life Pension Super

Plus Plan, a unit-linked pension plan designed to build a corpus over the policy term so that you

can enjoy post-retirement life.

Features

Additional premium allocation rate of 102.5% from 11th year onwards Assured benefits on maturity (vesting) with 101% of all premiums paid till date including

top-up premiums

Flexibility to plan your retirement date and choose policy term Guaranteed regular income on the annuity purchased from us.

Advantages

At the end of the policy term, you will receive higher of the fund value or assured benefitof 101% of all premiums paid including top-up premiums

Premiums invested in a fund that allocates assets dynamically between equities and fixedincome assets

At vesting (on maturity), you have the opportunity to purchase an annuity from a range ofoptions. You will get guaranteed income for life for yourself and your spouse. You also

have the option to commute up to 1/3rd of the benefit at vesting tax-free as per prevailing

tax laws

In the event of your demise during the policy term, your nominee will receive the deathbenefit

Benefit from long term investing with Premium Allocation Rate of 102.5% from11thyear onwards

HDFC Life Smart Woman Plan, a life insurance policy for women that gives wings to your

aspirations. The plan ensures your savings grow leaving you free to pursue your career and

continue making a difference to those around you.

You always wanted to make a difference in the lives of your loved ones. This is what gives true

happiness. In your own way, you did what it took to keep them happy with their satisfaction

always being a priority for you.Now that you are independent and have complete charge of your finances, some amount of

planning can go a long way in fulfilling dreams for yourselves and your loved ones.

Presenting, HDFC Life Smart Woman Plan, a life insurance policy for women that give wings toyour aspirations. The plan ensures your savings grow leaving you free to pursue your career and

continue making a difference to those around you. It also provided options which cater to

specific life events of women with respect to their health, career and marriage.


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Features

Options to choose from 4 funds to suit your risk appetite:1. Income Fund:Higher potential returns due to higher duration and credit exposure2. Balanced Fund:Dynamic equity exposure to enhance the returns while the debt allocation

reduces the volatility

3. Blue chip Fund:Investments in large cap equities4. Opportunities Fund:Investments in mid-cap equities You can select any of the 3 Benefit Options, each created to meet specific needs such as:

1. Pregnancy complications or birth of child with congenital disorder2. Diagnosis of malignant cancer of female organs3. Death of spouse (Only with Elite option)

Classic Under this option you can avail of premium waiver benefit with funding of next 3years premiums.

Premier Under this option you can avail of premium waiver benefit with funding of next 3years premiums and periodic cash payouts of 100% of next 3 years premiums.

Elite Under this option you can avail of premium waiver benefit with funding of next 3 yearspremiums and periodic cash payouts of 100% of next 3 years premiums along with coverage fordeath of spouse.

Flexibility to choose the sum assured Convenience to choose policy tenure of 10/15 years

Advantages

Uninterrupted savings with waiver and funding of premiums for next 3 years on the followingevents

1. Pregnancy complications or birth of child with congenital disorder2.

Diagnosis of malignant cancer of female organs3. Death of spouse (Only with Elite option)

Additional periodic cash payouts under Premier and Elite options Flexibility to make partial withdrawals to meet contingencies Avail of hassle-free annual premium payment option Tax benefits subject to provisions contained under sections 80C and 10(10D) of the Income Tax

Act 1961

Paying premiums is convenient with access to multiple modes credit card, internet banking,cheque, auto debit facility.

For more details on risk factors, terms and conditions, please read the Product Brochure carefullyand/or consult Financial Consultant before taking a decision.


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HDFC SL Crest

Get access to high returns through stock market linked investments. Invest your surplus to get

both returns and protection for your family, through our 4 fund options, designed to meet your

varied investment needs. HDFC SL Crest is a well-managed savings plan that channelizes your

money in an optimum manner.

Features

Free Asset Allocation: Flexibility to invest in any of the 4 funds available, create yourown investment strategy by switching or redirecting future premiums

Flexibility to choose sum assured multiple between 10 times to 20 times annual premium No limit on maximum premium In case of your unfortunate demise during the policy term, we will pay the higher of the

sum assured (less partial withdrawals) or the total fund value or minimum death benefit

(105% of the total premiums paid till date) to your nominee

Plan can be availed by filling short medical questionnaire, which may not require you togo for medicals

Advantages

Get benefit of investing in a shorter horizon. Pay premiums for just 5 years and enjoy apolicy term of 10 years

Tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961 Paying premiums is convenient with access to multiple modes credit card, internet

banking, cheque, auto debit facility.

Documents

Ulip Product