Private Insurers

HDFC Life Click 2 Wealth – Review and Calculators

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HDFC Life Click 2 Wealth – details, review and Premium-Maturity Calculators. Click 2 Wealth is a unit-linked life insurance plan with lower charges, comparable to mutual funds. Only the fund management charges and mortality charges (Risk coverage charges) are applicable to this plan.

Low charges, along with flexible investment options, risk coverage, and tax benefits make it a good long term investment plan.

HDFC Life Click 2 Wealth – Key Features

  • Term of the plan can be selected between 5 to 20 years
  • Premium payment can be done in 1, 5, 7, 10 years or a period equal to the policy term.
  • 101 % of the premium will be allocated to the fund for the first five years.
  • Mortality charges will be refunded at the time of maturity.
  • 8 fund options are available to invest and can be selected based on the risk appetite.
  • At maturity, you will receive the accumulated fund value which is the product of the number of units available and the then prevailing unit price.
  • Death coverage will be the higher of
    1. Sum Assured
    2. Fund value
    3. 105% of premiums paid
  • Partial withdrawal and settlement option available.
  • Three plan options to maximize the benefits
    • Invest Plus Option for Insurance cum Investment
    • Premium Waiver Option to protect the future needs for dependents
    • Golden Years Benefit Option for retirement planning with whole life cover
  • Systematic Transfer plan strategy for the advantage of Rupee Cost Averaging

Eligibility Conditions and Restrictions – HDFC Life Click to Wealth

Age at entry30 days65 Years
Age at maturity18 Years75 Years
Policy Term5 Years20 Years
Premium AmountSingle        – Rs 24,000
Annual       – Rs 12,000
Half Yearly – Rs 6,000
Quarterly   – Rs 3,000
Monthly     – Rs 1,000
No Limit
Golden Years Benefit Option30 days60 Years
Premium Paying TermSingle Premium
Limited Payment – 5, 7 and 10 Years
Regular  – Same as policy term
One Year
Sum Assured Calculation
Single premium1.25 times of Premium
Limited and RegularHigher of (1) 10 times Annualized Premium
(2) 0.5 x T* x Annualized Premium
Top up1.25 x Top-up Premium

*Value of T is defined as Policy Term for Invest Plus and Premium Waiver Option and 70 minus Age at Entry for Golden Years Option.

Benefits of HDFC Life – Click 2 Wealth

Maturity Benefit

The pattern of Maturity Benefit varies based on the investment option selected.

Invest Plus Option: Maturity Benefit shall be available at the end of the term chosen by the policyholder. The benefit amount will be the fund value available at that time and is arrived by multiplying the number of units available with the Net Asset Value (NAV) of the fund.

For example: If the number of units available is 10,000 and the NAV of the fund is 34.25 the maturity amount will be 10,000 X 34.25 = 3,42,500.

Consider a person aged 30 Years investing in this option. The details of the policy will be as follows.

PlanPremium Paying termPolicy TermAnnualized Premium
Invest Plus20 Years20 Years1,00,000
Invest plus option of hdfc life click 2 wealth

The maturity amount can be obtained as a single lump sum amount or as installments, thanks to the Settlement Option. Read more about settlement option later in this post.

Premium Waiver Option: In case of Proposers unfortunate death, all future premiums will be paid by the company. The Policy continues with risk cover for Life Assured and the accumulated Fund Value is paid on Maturity. On the death of the Policyholder, the Life Assured will become the Policyholder.

Consider a person of age 40 investing in this plan for his daughter aged 10 years. The details of the plan will be as follows.

PlanAge of DaughterTerm / PPTUnfortunate death of proposer
Premium Waiver10 Years20/20After 5 years

Golden Years Benefit Option: This plan option offers you the solution to build your fund value while also having life cover for the whole of life (till 99 years of age). Option for a systematic withdrawal facility is there to generate recurring post-retirement income from your accumulated fund.

Consider a person aged 50 Years investing for his retirement benefits in this option. The details of the policy will be as follows.

PlanAge of ProposerTerm / PPTRetirement Benefits
Golden Years Benefit option50 YearsWhole life / 10 Yearsfrom 70 Years of age

HDFC Click 2 Wealth Calculator

Online calculator for HDFC Life Click to Wealth is intended to provide you all the details of the plan in a simple and easy to understand way. Provide your details such as age, term, premium payment period, etc and get the calculations. Comparison of various investment options is also provided in this powerful online calculator.

If you are unable to view the calculator here, click to open HDFC Click 2 Wealth calculator.

Death Benefit: Benefits payable in case of unfortunate death.

The death benefit of the policy shall be the highest of:

  1. Total Sum Assured (Basic Sum Assured + additional sum assured through top-ups) less partial withdrawal made (if any).
  2. Fund Value (No of units * NAV)
  3. 105 % of the total premium paid

Benefits if the premium payment is discontinued

This plan has a grace period of 15 days for monthly mode and 30 days for other modes. If you have not paid your premium by the expiry of the grace period, then you will have the following options:

  1. To revive the policy within a period of 2 years from the date of discontinuance, or
  2. To completely withdraw from the policy without any risk cover and receive the discontinuance value at the end of the lock-in period of 5 policy years.

If the premiums are discontinued before completion of 5 policy years – Once the grace period for paying premiums gets over,

  • Fund Value at that time will move to the Discontinued Policy Fund.
  • Your risk cover will cease.
  • Here you would earn an interest rate of a minimum of 4% (this is as per the current regulations).
  • A Fund Management Charge of 0.5% would apply and there would be no other charges.
  • After 5 policy years, the funds will be paid to the policyholder.

You stop paying the premiums after completion of 5 policy years – After the grace period of paying premiums gets over, you have the following options:

  1. Withdraw your money and close the policy
  2. Convert the policy to paid-up and continue with a reduced sum assured. Your investments can be withdrawn anytime later
  3. Revive the policy by paying the due premiums and continue with the plan. This has to be done within 2 years of the date of discontinuance.

The revival of your policy – You can revive your discontinued policy by paying all the missed premiums and on meeting any applicable underwriting criteria of the company. No interest will be charged on the missed premiums.

Special provisions to enhance fund values

1. Return of mortality charges (ROMC) at maturity

At the maturity date, the total amount of mortality charges deducted in respect of insurance coverage of the life assured throughout the policy will be added to the fund value. Mortality charges deducted for top-up Sum Assured also will be refunded.

For the Golden Years Benefit Option, as it is a whole life plan, the mortality charges will be added to the fund value at the end of policy year coinciding or immediately following the 70th birthday of the life assured.

Note: ROMC benefit will not be applicable for surrendered, discontinued or Paid-up policies. It will not be applicable for policies where the Waiver of Premium benefit is triggered due to the death of proposer.

2. Special Fund Addition

For Regular and Limited Premium policies, 1% of annualized premium shall be added to the premium for the first 5 policy years. On the other hand for single premium policies , 1% of the single premium shall be added at the time of allocation of single premium. This facility shall be available for all the three modes of the policy viz, Invest Plus, Premium Waiver Option and Golden Years Benefit Option.

3. Claw-back Additions

Company may provide special fund additions called non-zero positive claw back additions at specific intervals, to comply with the reduction in yield requirement, after the first five years of the contract, as per the IRDA regulations from time to time.

Top-up of premiums

Policy holder has the options of paying top-up premiums subject to following conditions.

  • Top-up premiums are not permitted in the last five years of the contract.
  • Total Top-up Premiums cannot exceed the sum total of the regular/limited premiums paid till that point of time or initial single premium paid, as applicable.
  • Top-Up Premium will carry a Sum Assured of 125% of the amount of Top-Up Premium

HDFC Click 2 Wealth – Fund Options

Fund NameFund CompositionRisk & Return Rating
Money Market Instruments, Cash, Deposits, Liquid Mutual FundsGovernment Securities, Fixed Income SecuritiesEquity
Equity Plus0% to 20%0% to 20%80% to 100%Very High
Diversified Equity0% to 40%0% to 40%60% to 100%Very High
Blue Chip0% to 20%80% to 100%Very High
Opportunities0% to 20%80% to 100%Very High
Balanced0% to 20%0% to 60%40% to 80%Moderate to High
Income0% to 20%80% to 1000%Moderate
Bond0% to 60%40% to 100%Moderate
Conservative0% to 60%40% to 100%Low

Read more: Fund switching techniques for ULIP policies

Charges Applicable for HDFC Click 2 Wealth

Fund Management Charge (FMC)

0.8% per annum of the fund value for liquid fund and 1.35% per annum for all other funds. Deducted on daily basis.

Mortality charge

Mortality rates for HDFC Life Click to Invest
  • Mortality charge is levied for providing the death benefit in the policy.
  • The rate is guaranteed for the entire duration of the policy term.
  • Mortality charges are levied every month at applicable rates.
  • For premium Waiver Option the sum at risk for proposer will be the present value of future premiums discounted at 5%

As mentioned earlier, the entire mortality charges deducted will be refunded at the time of maturity.

In addition, only if you request for partial withdrawal, fund switch and premium redirection a charge of Rs 250 per request or a reduced charge of Rs 25 per request (if executed through the company’s web portal) will be charged. First 4 partial withdrawals, 4 fund switches and 4 premium redirections in a policy year are free.

Settlement Option

The policyholder can avail the settlement option to get maturity benefits in installments, subject to certain conditions.

ExamplePayout FrequencySettlement PeriodTotal number of installmentsProportion of units redeemed per installments
1Annual4 Years425%
2Quarterly1 Years425%
3Semi-annual5 Years1010%

Download Brochure of HDFC Click 2 Wealth

Download Brochure of HDFC Click 2 Invest

Read more: New Endowment Plus – ULIP policy from LIC of India – Everything you should know

Disclaimer: This article is intended to provide information about the plan in an easy to understand way. For more details visit the official web site of HDFC Life Click 2 Wealth Plan.

Anish L J

Anish L J is a 'Financial Planner' and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.

10 thoughts on “HDFC Life Click 2 Wealth – Review and Calculators

  • There is any tax benifit i.e. 80C , 10(10D) etc

    • This plan is eligible for sec 80C rebate as the annual premium does not exceed 10% of sum assured. And it will be eligible for section 10(10D) exemption also.

  • What is the minimum and maximum returns we can expect? Can the Returns go negative?

    • I am not in a position to assure you any range as far as returns are concerned. I depends on the market performance and nothing else.

  • If i am paying 12.5k/month upto 10th yr(1.5lacs), after completing 10th yr or on 11th year onwards can i take pe sion from this policy or i have to wait upto 70th birth year to avail this benefit.

    • You can take a pension from the policy if after completing the premium paying term if you have opted for Golden Years benefit option in the plan (Through systemetic Withdrawal).

  • Hello,

    Referring to the Calculator and chart below it, can you please let me know how is charges for Year 1 coming to INR 38,818, if I consider the following?
    – premium paying term is 5 yrs,
    – entry age : 35 yrs
    – policy term is : 15 yrs
    – premium paying term : 5 yrs.
    – assumed interest rate : 8%

    As per their policy doc clarified by Phone Customer Service team for HDFC Click 2 Wealth, only following charges are there:
    > 1.35% (Fund Management Charges) +
    > 1.075% (Mortality Charge) is being charged +
    > 1% Service Tax on above percentages
    = INR 10,275

    So, how is the calculator showing INR 38,818 above for year 1?

    • Dear Goutham,
      Thank you for your mail. I have looked into the error you mentioned in the calculator. What you said is right. There was a bug in the software. I have rectified it. Now I am getting the charge around 7700. Rates and charges were taken as per the circular of the plan. There could be slight changes in the actual values. Further, the fund management charge is deducted on a daily basis in this plan. In the calculator, it is deducted on an annual basis. I will try to incorporate the daily deduction of the FM charges in the software soon. Thank you again for notifying me of the error.

  • To add to it, the Annual Premium is INR 3 Lakhs.

    • See the answer for the query posted earlier.

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