{"id":5133,"date":"2014-06-30T03:47:40","date_gmt":"2014-06-30T03:47:40","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=5133"},"modified":"2014-06-30T03:47:40","modified_gmt":"2014-06-30T03:47:40","slug":"hdfc-life-click2invest-online-ulip-cheaper-than-mutual-fund","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/hdfc-life-click2invest-online-ulip-cheaper-than-mutual-fund\/","title":{"rendered":"HDFC Life Click2Invest \u2013 Online ULIP Cheaper than Mutual Fund?"},"content":{"rendered":"<figure id=\"attachment_5137\" aria-describedby=\"caption-attachment-5137\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5137 size-medium\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest-300x175.png\" alt=\"HDFC Click2Invest \u2013 Should You Invest?\" width=\"300\" height=\"175\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest-300x175.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest.png 580w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-5137\" class=\"wp-caption-text\"><strong>HDFC Click2Invest \u2013 Should You Invest?<\/strong><\/figcaption><\/figure>\n<p>HDFC Life encouraged with the response on its Online Term Plan Click2Protect has recently launched its online ULIP called <strong>Click2Invest<\/strong>. This is the first ULIP offered online exclusively after the IRDA new Regulations in 2010.<\/p>\n<h2>Click2Invest &#8211; Salient Features:<\/h2>\n<ul>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">HDFC Life Click2Invest can be bought only online<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">As no insurance advisors are involved in the sale of this ULIP \u2013 the costs are kept low<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">There are no Policy Allocation Charges or Policy Administration Charges in the policy<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">There is Fund Management Charges of 1.35% and Mortality Charges depending on your age<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">You can pay the premium Monthly or Annually<\/span><\/li>\n<li><strong>Some plans may not give Tax Benefit<\/strong> (For getting tax benefit the Life Insurance offered should be 10 times the annual premium paid. <a href=\"http:\/\/www.apnaplan.com\/life-insurance-changes-in-budget-2012\/\">Click to read details<\/a>)<\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">There are 8 investment options to choose from \u2013 Equity dominant, Balanced and Debt dominant<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_5141\" aria-describedby=\"caption-attachment-5141\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5141\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Salient-Feature.png\" alt=\"HDFC Life Click2Invest - Salient Features\" width=\"1024\" height=\"867\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Salient-Feature.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Salient-Feature-300x254.png 300w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-5141\" class=\"wp-caption-text\"><strong>HDFC Life Click2Invest &#8211; Salient Features<\/strong><\/figcaption><\/figure>\n<h2>Investment options:<\/h2>\n<p>There are 8 options to choose from.<\/p>\n<figure id=\"attachment_5134\" aria-describedby=\"caption-attachment-5134\" style=\"width: 961px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5134\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Fund-Options.png\" alt=\"HDFC Life Click2Invest - Fund investment Options\" width=\"961\" height=\"668\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Fund-Options.png 961w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Fund-Options-300x208.png 300w\" sizes=\"(max-width: 961px) 100vw, 961px\" \/><figcaption id=\"caption-attachment-5134\" class=\"wp-caption-text\"><strong>HDFC Life Click2Invest &#8211; Fund investment Options<\/strong><\/figcaption><\/figure>\n<h2>Whats good about HDFC click2invest?<\/h2>\n<h3>1. The expense in the plan is low<\/h3>\n<p>There are <strong>no policy allocation charges or Policy Administration charges<\/strong>, which reduce the initial corpus to be invested in most other ULIPs. This in turn impacts the returns.<br \/>\nThere are only two charges \u2013 <strong>Fund Management Charge of 1.35% and Mortality Charges<\/strong> depending on your age.<br \/>\nIf you check the illustration below, you would find <strong>the net return is 6.55% on the gross return of 8%.<\/strong> This means only 1.45% is the net expense in the plan. Almost all (except Quantum Tax Saving Fund) Tax Saving equity mutual funds (ELSS) have expense ratio in excess of 1.5%, which means t<strong>he HDFC ULIP is cheaper than most ELSS Funds.<\/strong><\/p>\n<figure id=\"attachment_5138\" aria-describedby=\"caption-attachment-5138\" style=\"width: 661px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Benefit-Illustartion.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5138 size-large\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Benefit-Illustartion-1024x611.png\" alt=\"HDFC Life Click2Invest - Benefit Illustartion\" width=\"661\" height=\"394\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Benefit-Illustartion-1024x611.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Benefit-Illustartion-300x179.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Life-Click2Invest-Benefit-Illustartion.png 1922w\" sizes=\"(max-width: 661px) 100vw, 661px\" \/><\/a><figcaption id=\"caption-attachment-5138\" class=\"wp-caption-text\"><strong>HDFC Life Click2Invest &#8211; Benefit\u00a0Illustration\u00a0<em>(Click to Enlarge)<\/em><\/strong><\/figcaption><\/figure>\n<h3>2. Life Insurance<\/h3>\n<p>As this is ULIP, it also carries death benefit which maximum of<\/p>\n<ul>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">Sum assured (10\/7 times the annual premium or 1.25 times in case of single premium)<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">Fund value or<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">105% of the premiums paid<\/span><\/li>\n<\/ul>\n<p>So <strong>the nominee is assured of at least the sum assured part as soon as you enroll in the policy<\/strong>.<\/p>\n<h3>3. Tax Free Returns<\/h3>\n<p>The sum received on maturity, surrender or maturity is tax free <em>(Single Premium and People with more than 55 Years of age paying annual premium payment <a href=\"http:\/\/www.apnaplan.com\/life-insurance-changes-in-budget-2012\/\">would not get tax benefit<\/a><\/em>)<\/p>\n<h3>4. Free Switches<\/h3>\n<p>The ULIP allows 4 free switches between funds in a year. You can use this to shift your investment between debt and equity fund as per your asset allocation plan. You can also book profits from time to time by transferring money from equity to debt fund.<\/p>\n<p>Also as the policy nears maturity it would be good idea to switch slowly to debt funds. You can do all this without any charges or tax implication.<\/p>\n<h2>What\u2019s bad about HDFC click2invest?<\/h2>\n<h3>1. Complex Product<\/h3>\n<p>As most ULIPs, HDFC click2invest too is complex product and so it would be very difficult even for a well educated person to understand all the clauses and if and buts of the plan.<\/p>\n<h3>2. No Tax Benefit in some cases<\/h3>\n<p>Single Premium and People with age of 55 Years or more even with annual premium payment <a href=\"http:\/\/www.apnaplan.com\/life-insurance-changes-in-budget-2012\/\">would not get tax benefit <\/a>as their sum assured is less than 10 times the annual premium. <em><strong>Unfortunately HDFC Life has not made it clear in the policy document and I am sure this would lead to some misselling!<\/strong><\/em><\/p>\n<h3>3. There is locking of 5 years<\/h3>\n<p>Even if you surrender the policy before completion of 5 years, the life insurance cover ceases and the fund is transferred to Discontinued Fund (offering just 4%) and can be withdrawn only after completion of 5 Years.<\/p>\n<h3>4. Expensive than Liquid Mutual Funds<\/h3>\n<p>Though the total expense of\u00a0the ULIP is less than most equity mutual funds but is higher than most liquid mutual funds. So if you want to choose the Income, Bond or Conservative Fund you would do better investing in Debt oriented Mutual Funds<\/p>\n<h3>5. The\u00a0Returns vary with Age<\/h3>\n<p>Higher your age at the time of taking the policy lower would be your return. This is mainly because for higher age the mortality charges go up and dents the returns.<\/p>\n<h3>6. Commitment for Paying Premium for 5 Years<\/h3>\n<p>You need to pay the premium every year at least for 5 Years. If you don&#8217;t your life insurance cover ceases to exist and the fund is transferred to\u00a0Discontinued Fund offering just 4%.<\/p>\n<h2>Who should invest?<\/h2>\n<p>Financial Advisors generally advised to keep insurance and investment separate and I too agree with them.\u00a0Nevertheless HDFC Click2Invest suits those who<\/p>\n<ul>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">Want to<strong> invest for longer maturity periods<\/strong> (say for more than 10 Years) as the low cost benefit accrues on longer periods<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">Are <strong>young<\/strong> as the return would be impacted by your age (and also tax benefits)<\/span><\/li>\n<li>Would be paying Premium for at least 5 Year come what may!<\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">And\u00a0comfortable with investing in mix of Insurance and Investment<\/span><\/li>\n<\/ul>\n<h2>Conclusion:<\/h2>\n<p>HDFC Click2Invest ULIP is being offered only online and hence has enabled HDFC Life to cut a lot of expenses. It\u2019s truly a low cost plan especially if\u00a0you compare with ELSS (Tax Saving Mutual Funds). But as with most ULIPs, it\u2019s a complex product to understand. Therefore most financial advisors advise to keep insurance and investment separate.<\/p>\n<p>Also note that Single Premium and People with age of 55 Years or more even with annual premium payment\u00a0<a href=\"http:\/\/www.apnaplan.com\/life-insurance-changes-in-budget-2012\/\">would not get tax benefit<\/a>. <strong>So anyone with age more than 55 Years should totally avoid this ULIP<\/strong>.<\/p>\n<p>You might want to invest if you are looking for longer maturities to benefit from low cost and want to use the switching benefit for asset allocation. <strong>Personally I would keep away due to its complexity and its non-flexible nature.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>HDFC Life encouraged with the response on its Online Term Plan Click2Protect has recently launched its online ULIP called Click2Invest. This is the first ULIP offered online exclusively after the IRDA new Regulations in 2010. Click2Invest &#8211; Salient Features: HDFC Life Click2Invest can be bought only online As no insurance advisors are involved in the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5137,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[5,103],"tags":[2333,2335,2337,2332,49,2334,2336],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest.png",580,339,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest-300x175.png",300,175,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest.png",580,339,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest.png",580,339,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest.png",580,339,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest.png",580,339,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/HDFC-Click2Invest-\u2013-Should-You-Invest.png",120,70,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":17,"uagb_excerpt":"HDFC Life encouraged with the response on its Online Term Plan Click2Protect has recently launched its online ULIP called Click2Invest. This is the first ULIP offered online exclusively after the IRDA new Regulations in 2010. Click2Invest &#8211; Salient Features: HDFC Life Click2Invest can be bought only online As no insurance advisors are involved in the&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/5133"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=5133"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/5133\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/5137"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=5133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=5133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=5133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}