HDFC Life Smart Protect Plan

What is HDFC Life Smart Protect Plan?

HDFC Life Smart Protect Plan is a Unit Linked, Non-Participating, Individual Life Insurance Savings Plan. It is designed to address your long-term savings needs while also providing financial protection in the form of a life cover. This ULIP plan aims to help you secure your family's future by offering the potential for market-linked returns along with enhanced protection. It helps you plan for a bright future, including children’s education, retirement, and long-term wealth creation, by ensuring your money grows and your wealth is protected against unforeseen events.

Features of HDFC Life Smart Protect Plan

The HDFC Life Smart Protect Plan comes with a range of features designed to meet diverse needs:

• Choice of Plan Options: You have the option to choose from four different investment plan options to fit your specific needs and maximize your benefits. These options are Level Cover, Level Cover with Capital Guarantee, Decreasing Cover, and Decreasing Cover with Capital Guarantee.

• Decreasing Cover Option: Under the Decreasing Cover and Decreasing Cover with Capital Guarantee plan options, you have the option to reduce your death benefit after a chosen initial Level Cover Period.

• Capital Guarantee: The Level Cover with Capital Guarantee and Decreasing Cover with Capital Guarantee plan options offer a minimum Assured Benefit on Maturity.

• Fund Options: You can choose from 9 different fund options for investment under the Level Cover and Decreasing Cover options. For the Capital Guarantee options, premiums are invested in the Capital Growth Fund and Capital Secure Fund.

• Unlimited Free Switching: Under the Level Cover and Decreasing Cover options, you can switch between the available fund options unlimited times without any charges.

• Loyalty Additions: The plan offers various Loyalty Additions, including the return of mortality charges, premium allocation charges, fund management charges, investment guarantee charges (for specific plans), and a loyalty addition at maturity.

• Systematic Transfer Plan (STP): Available under the Level Cover and Decreasing Cover options, STP allows you to systematically transfer a fixed amount from the Bond Fund to other equity-oriented funds.

• Premium Payment Options: You can choose between Limited Pay (5 to 12 years) and Regular Pay (25 to 40 years) options under the Level Cover and Decreasing Cover plan options.

• Premium Redirection: Under the Level Cover and Decreasing Cover options, you can redirect your future premiums to different fund options without any charges.

• Partial Withdrawals: You have the option to make partial withdrawals after the completion of five policy years, subject to certain conditions.

• Top-Up Premium: Under the Level Cover and Decreasing Cover options, you can pay top-up premiums subject to certain conditions.

• Settlement Option: You can choose to receive the maturity or death benefit in installments over a period of up to 5 years.

Eligibility Criteria for HDFC Life Smart Protect Plan

All ages are expressed as on the last birthday. Risk cover starts from the date of commencement of the policy for all lives, including minors.

Benefits of HDFC Life Smart Protect Plan

The benefits of this HDFC ULIP plan payable depend on the plan option chosen:

1. Level Cover:

   • Death Benefit: The nominee receives the highest of (i) Total Sum Assured (less partial withdrawals made in the two years preceding death), or (ii) Fund Value, or (iii) 105% of Total Premiums Paid.

   • Maturity Benefit: On survival, you receive the Fund Value at Maturity plus Loyalty Additions payable at Maturity.

2. Level Cover with Capital Guarantee:

   • Death Benefit: The nominee receives the highest of (a) Total Sum Assured (less partial withdrawals made in the two years preceding death), or (b) Fund value, or (c) 105% of Total Premiums Paid.

   • Maturity Benefit: On survival, you receive the higher of (Fund Value at Maturity plus Loyalty Additions payable at Maturity, Assured Benefit), where Assured Benefit is equal to Total Premiums Paid less Total Partial Withdrawals made. This option guarantees a minimum Assured Benefit at maturity.

   

3. Decreasing Cover:

   • Death Benefit: The nominee receives the highest of (i) Total Sum Assured applicable in the year of death (less partial withdrawals made in the two years preceding death), or (ii) Fund value, or (iii) 105% of Total Premiums Paid. The Sum Assured decreases after the chosen Level Cover Period.

   • Maturity Benefit: On survival, you receive the Fund Value at Maturity plus Loyalty Additions payable at Maturity.

4. Decreasing Cover with Capital Guarantee:

   • Death Benefit: The nominee receives the highest of (i) Total Sum Assured applicable in the year of death (less partial withdrawals made in the two years preceding death), or (ii) Fund value, or (iii) 105% of Total Premiums Paid. The Sum Assured decreases after the chosen Level Cover Period.

   • Maturity Benefit: On survival, you receive the higher of (Fund Value at Maturity plus Loyalty Additions payable at Maturity, Assured Benefit), where Assured Benefit is equal to Total Premiums Paid less Total Partial Withdrawals made. This option guarantees a minimum Assured Benefit at maturity.

   • Loyalty Additions: The plan offers various loyalty additions during the policy term and at maturity:

   • Return of 2X to 3X Mortality Charge: Starting from the 11th policy year, a multiple (2X or 3X depending on the policy year) of the mortality charge deducted 120 months prior is added back to the fund.

   • Return of 2X Premium Allocation Charge: 2 times the total Premium Allocation Charges collected in policy years 1 to 4 are added back at the end of policy years 10 to 13, respectively.

   • Return of Fund Management Charge (FMC): The sum total of FMC charges collected throughout the policy term is payable at maturity.

   • Return of 2X of Investment Guarantee Charge: Applicable only under Option B and D, 2 times the sum total of guarantee charges collected is payable at maturity.

   • Loyalty Addition at Maturity: An additional amount of up to 2.5X of the Annualized Premium is added at maturity, depending on the premium payment term.

Riders Under HDFC Life Smart Protect Plan

You can enhance your protection with the following rider options:

1. HDFC Life Income Benefit on Accidental Disability Rider - Linked (UIN: 101A038V01)

   • Provides a benefit equal to 1% of the Rider Sum Assured per month for the next 10 years in case of accidental total permanent disability.

2. HDFC Life Protect Plus Rider - Linked (UIN: 101A037V01)

   • Pays a benefit as a proportion of the Rider Sum Assured in case of accidental death, partial/total disability due to accident, or diagnosis of cancer, as per the option chosen.

3. HDFC Life Health Plus Rider – Linked (UIN: 101A034V01)

   • Provides a lump sum benefit on the diagnosis of any of the covered 60 Critical Illnesses or a proportionate benefit on the diagnosis of Early Stage Cancer / Major Cancer, depending on the plan option chosen.

4. HDFC Life Waiver of Premium Rider – Linked (UIN: 101A035V01)

   • Waives future premiums for the base policy and any other attached rider in case of death, disability, or diagnosis of any listed critical illnesses of the Rider Life Assured.

For Option C (Decreasing Cover) and Option D (Decreasing Cover with Capital Guarantee), riders are offered only during the Level Cover Period. The rider Policy Term and Premium Payment Term must be consistent with the base policy's terms.

Additional Details of HDFC Life Smart Protect Plan

1. Fund Options

   • For Level Cover and Decreasing Cover options: Diversified Equity Fund, Bond Fund, Equity Advantage Fund, Discovery Fund, Sustainable Equity Fund, Flexi Cap Fund, Midcap Momentum Fund, Nifty Alpha 30 Fund, and Top 500 Momentum 50 Fund. You can choose to allocate your premiums across one or more of these funds.

   • For Level Cover with Capital Guarantee and Decreasing Cover with Capital Guarantee options: Premiums are allocated between Capital Growth Fund and Capital Secure Fund.

2. Discontinued Policy Fund

   • In case of policy discontinuance during the lock-in period, the fund value is transferred to the Discontinued Policy Fund. The asset allocation for this fund is as per regulatory requirements, currently including Money Market Instruments (0% to 100%) and Government Securities (60% to 100%). A minimum guaranteed interest rate is applicable to this fund, currently 4% p.a.

3. Flexibilities

   • The plan offers flexibilities such as fund switching (unlimited and free under specific options), premium redirection (free under specific options), partial withdrawals after 5 policy years, top-up premiums (under specific options), and a settlement option to receive benefits in installments. A Systematic Transfer Plan is also available under specific options.

4. Non-Forfeiture Benefits 

   • The plan outlines procedures for policy discontinuance due to non-payment of premiums, both during and after the lock-in period of five years. It also provides details on the revival of discontinued policies.

5. Policy Loan

   • No policy loans are available under this product.

6. Tax Benefits

   • Tax benefits may be available as per the provisions of the Income Tax Act, 1961, as amended from time to time. You are advised to consult your tax advisor for more information.

7. Automatic Termination/Foreclosure Conditions

   • The policy may be foreclosed if the Fund Value becomes insufficient to deduct monthly charges after providing sufficient notice, but not within the first five years.

8. Cancellation in the Free-Look Period

   • If you disagree with any policy terms, you can return the policy within 30 days of receipt for a refund of the unit value, unallocated premium, and charges levied (subject to deductions for risk charges, medical expenses, and stamp duty).

9. Alterations

   • Certain alterations like fund switches, premium redirections, premium frequency changes, and increases in policy/premium payment terms may be possible subject to the company's underwriting policy.

10. Liquidity

    • Linked Insurance products do not offer any liquidity during the first five years of the contract. You will not be able to surrender/withdraw the invested money completely or partially until the end of the fifth year.

Exclusions Under HDFC Life Smart Protect Plan

Suicide Exclusion:

In case of death due to suicide within 12 months from the date of commencement or revival of the policy, the nominee will be entitled to the fund value as available on the date of intimation of death. Any charges other than Fund Management Charges (FMC) and guarantee charges recovered after the date of death will be added back to the fund value.