HDFC Life New Group Unit Linked Plan

What is HDFC Life New Group Unit Linked Plan?

The HDFC Life New Group Unit Linked Plan is a unit-linked insurance plan created for employers and trustees to manage employee benefit schemes easily. It helps build a fund for future needs like gratuity, leave encashment, and other employee benefits. This plan is flexible, transparent, and cost-effective. It supports trustees in fulfilling their responsibilities while maximizing investment returns. It provides a complete solution to meet employee obligations efficiently, ensuring smooth management of benefit schemes with proper long-term financial planning.

Features of HDFC Life New Group Unit Linked Plan

The key features of the HDFC Life New Group Unit Linked Plan are listed below:

• Wide Range of Funds: Choose from debt-oriented and equity-oriented funds based on your investment goals, as choosing the best SIP depends on long-term financial goals.
• Flexible Premium Payments: Enjoy the freedom to select premium payment modes that suit your budget and convenience.
• Investment Control: Switch between funds anytime to align with market trends or your financial plans.
• Built-in Insurance Coverage: Get life insurance protection with a minimum cover of ₹10,000.
• Tax Benefits: You can avail of income tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, which benefits both you and your employer.

Eligibility for HDFC Life New Group Unit Linked Plan

Benefits of HDFC Life New Group Unit Linked Plan

The key benefits offered by the HDFC Life New Group Unit Linked Plan are as follows:

• Benefits on Death or Survival: The policy remains active until terminated by either party, with no fixed maturity date. On the death of an eligible member, an additional Rs. 1,000 is paid to the master policyholder, along with amounts from the unit-linked funds.
• Benefits when a Member Leaves: The master policyholder receives the claim amount from the policy fund, which is paid to the beneficiary. The maximum payable amount is the Fund Value.
• Benefits on Surrender: On surrender, the unit value minus any surrender charges is paid to the master policyholder, as per the charges outlined in the policy.
• Large Fund Discount: Extra units are added monthly to schemes with large funds, based on the size of the scheme’s fund value, at a rate of 1/12th of the applicable discount on the last working day before the policy’s monthly anniversary.
• Investment Options: The policy offers 6 fund options, allowing trustees to choose investments based on the risk profile and preferences of members or company policies.

Policy Details of HDFC Life New Group Unit Linked Plan

1. Charges and Benefits:
   • Fund Management Charge (FMC): Charged daily at 1.25% per annum of the fund value, reviewable up to 1.35% per annum with IRDAI approval.
   • Mortality Charge: ₹1 per ₹1,000 of the sum assured, plus applicable taxes are levied.
   • Premium Allocation Charge: Deducted from the contribution, with the remainder invested in units. Allocation depends on direct or intermediary-secured schemes.
   • Surrender Charge: 0.05% of the unit fund (capped at ₹5,00,000) for withdrawals before the third policy anniversary.
   • Claw-back Additions: Added annually from the fifth policy year to meet reduction-in-yield regulations.
2. Alterations to Charges: FMC may increase to 1.35% per annum with IRDAI approval; premium allocation charges are fixed, and additional switches beyond 12 per year cost ₹40 each.
3. Free-Look Cancellation: Policy can be cancelled within 30 days, with refunds of allocated and unallocated premiums after deducting risk premiums, medical exam expenses (if any), and stamp duty.
4. Grace Period: Not applicable for single premium policies.

How HDFC Life New Group Unit Linked Plan Work?

The HDFC Life New Group Unit Linked Plan works in the following way: 

• Group Coverage: Provides life insurance and investment benefits for employers, associations, or groups to ensure financial security for members.
• Premium Contributions: Sponsors pay premiums, which are invested in unit-linked funds as per the chosen options.
• Fund Choices: Offers multiple fund options with varying risk levels to align with group objectives and risk preferences.
• Unit Allocation: Premiums are converted into units, and the fund value depends on market performance and unit prices.
• Life Cover: Ensures a fixed sum assured is paid to members’ beneficiaries in case of death.
• Maturity Benefits: Pays the accumulated fund value to the sponsor or members at maturity as per plan terms.

Suicide Exclusion Criteria

The HDFC Life New Group Unit Linked Plan does not apply a suicide exclusion clause. This means that if the insured member dies due to suicide within one year from the effective date of coverage or entry date, the full death benefit will be paid to the nominee. This provision ensures financial protection for the policyholder's beneficiaries without restrictions in such cases.