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HDFC Life Insurance - Invest Wise Plan

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The product does not qualify for tax benefits and the life cover is too low HDFC Life Insurance's Invest Wise Plan

 

PRODUCT FEATURES: 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 and 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 short medical questionnaire (SMQ). There are five non-guaranteed funds to choose from depending on your risk appetite.

WITHDRAWALS: The product allows lump sum partial withdrawals from your funds after five years from date of premium payment. The partial withdrawal amount should be at least Rs 10,000, while the maximum amount can be 50 per cent of the single premium throughout the policy term.

LIFE COVER: The sum assured will be 1.1 times the single premium. That means if your premium is Rs 1,00,000, then your life cover will be Rs 1,10,000.

DEATH AND MATURITY BENEFITS: The death benefit is divided into two 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 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.

CHARGES: The premium allocation charge is 2.5 per cent for premium of Rs 25 000 up to Rs 10,00,000 and 1.5 per cent for premium paid above Rs 10,00,000.

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

Firstly, the product does not qualify for tax benefits. So, even if the product gives you very high return, these will be fully taxable depending on your tax slab. Secondly, the life cover is too low. Mutual funds will provide you better tax efficiency and also score on costs factor. For a financial goal that has to be met in 15 years, you can consider diversifying your money into best performing equity mutual funds and a part in public provident fund (PPF). When you approach the goal, shift the money in debt fund to avoid risk.

Happy Investing!!

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You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1.ICICI Prudential Tax PlanInvest Online

2.HDFC TaxSaver Invest Online

3.DSP BlackRock Tax Saver Fund Invest Online

4.Reliance Tax Saver (ELSS) Fund Invest Online

5.Birla Sun Life Tax Relief '96 Invest Online

6.IDFC Tax Advantage (ELSS) Fund Invest Online

7.SBI Magnum Tax Gain Scheme 1993 Invest Online

8.Sundaram Tax Saver Invest Online

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver Mutual Funds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

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