Assignment-1 ULIP Products of HDFC Bank

ULIP: An Introduction In Unit Linked Insurance Plans (ULIP), the investments made are subject to risks associated with the capital markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you should make your investment choice after considering your risk appetite and needs. Another factor that you need to consider is your future need for funds. HDFC Standard Life offers you a variety of unit-linked insurance products to suit your goals - be it for your retirement planning, for your health, for your child's education and marriage or for investment purposes. Who can invest? Those who wish to closely track their investments: Unit linked plans allow policy takers to closely monitor their portfolios. They also offer the flexibility to switch your capital between funds with varying risk-return profiles.

Individuals with a medium to long term investment horizon : ULIPs (Unit Linked Plans) are ideal for individuals who are ready to stay invested for relatively long periods of time. Those with varying risk profiles: Across the seven funds offered, the equity component varies from zero to a maximum of 100 per cent. Thus there is a choice of funds available to all types of investors - from risk-averse investor to those investors who have strong risk appetite. Investors across all life stages: This plan category offers a variety of plans which can be opted for depending upon the life stage you are in and your needs and financial liabilities at that point in time.

How Is It Structured? In a Unit Linked Plan (ULIP), the premiums you pay are invested in the funds chosen by you after deducting allocation charges and charges including those for managing funds, policy administration and for providing insurance cover are deducted from the funds by cancelling certain units. The value of each unit of a fund is determined by dividing the total value of the fund's investments by the total number of units.

Servicing A Unit Linked Plan Single Premium: The policy holder is required to pay the entire premium amount as a lump sum at the beginning of the policy term.

Regular Premium Payment (annually, semi-annually or monthly): The policy holder has to pay the pre-determined premium amount periodically i.e. annually, semiannually or monthly, depending upon the premium payment term opted for.

Number of Premium Paying Years: This depends on the term of the policy that you have chosen. In most cases, the policy term and the number of premium paying years (in case of regular premiums) are the same. However, some policies give the insured the option of choosing the number of premium paying years.

Charges The following charges are deducted from your policy towards the cost of benefits and administration services provided by HDFC Standard Life Insurance Administration charges: A fee is charged for administration of your policy every month. Administration charges are deducted by cancelling units proportionately from each of the funds you have chosen.

Fund management charges: These charges are towards meeting expenses related to managing the fund. This is charged as a percentage of the fund's value and is deducted before arriving at the net asset value of the fund. Switch charges: You can switch between the funds available to suit your changing needs and goals. In a policy year, a fixed number of such switches are available free of cost. Subsequent to this, each switch would attract a certain charge. These charges are deducted by cancelling units proportionately from each of the funds you have chosen. Surrender charges: These charges are levied for premature encashment of units. They are charged as a percentage of the fund value and depend on the policy year in which the policy has been surrendered. Mortality Charges: Depending upon the age, and the amount of cover, these charges are levied towards providing a death cover to the insured. Premium Allocation Charge: This charge is deducted as a fixed percentage of the premium received, and is usually charged at a higher rate in the initial years of a policy. This charge varies depending upon whether the policy is a single premium or regular premium policy, the size of the premium, premium frequency and payment mode. Partial Withdrawal Charges: Lump sum withdrawals are allowed from the fund after the lapse of three years of the policy term and subject to pre- specified conditions. However, such withdrawals attract charges, as mentioned in the respective policy brochures.

Switching Between Funds HDFC Standard Life Insurance offers you the flexibility to switch between funds available under a unit linked plan. You may wish to switch between equity and debt funds, in times when there is market volatility or interest rate fluctuations. At times, changes in your financial standing, liabilities or risk profile may also require that you change your investments accordingly.

Making Withdrawals You may also make partial withdrawals from your funds after a certain specified period, subject to a partial withdrawal charge. The withdrawal amount should be at least the minimum prescribed withdrawal amount and the fund must not fall below the minimum fund value after the withdrawal. You can make a full withdrawal of your policy before its maturity date. However, surrender charges will be applicable in this case. ULIPs from HDFC Life Having known the various advantages that ULIP offers, it is advisable to choose the right plan depending on your age group and the corresponding goals at various life stages. HDFC Life offers different ULIPs which are just right for you and can help you meet your specific financial objectives.

HDFC SL YoungStar Super Premium Children insurance plans help build savings so that over time there is enough to finance your childs education, marriage, house or car. HDFC SL YoungStar Super Premium, a unit -linked insurance plan (ULIP) designed to accumulate savings for your child's future, even in your absence. Every parent naturally wants the best for his or her child in every sphere, particularly education. Best-in-class education is no longer a luxury; its a must-have for anyone who wants to excel in his or her career. But that is easier said than done, given the escalating cost of education at premier institutes coupled with increasing competition. Fortunately for you, help is at hand. Children insurance plans help build savings so that over time there is enough to finance your childs education, marriage, house or car.

Features

Flexibility to choose from 4 funds to suit your risk appetite: 1. Income Fund: Higher potential returns due to higher duration and credit exposure. 2. Balanced Fund: Dynamic equity exposure to enhance the returns while the debt allocation reduces the volatility. 3. Blue chip Fund: Investments in large cap equities. 4. Opportunities Fund: Investments in mid-cap equities. Flexibility to select premium amount no ceiling on maximum premium Flexibility to select tenure of 10, 15 - 20 years Flexibility to select the Sum Assured

Advantages

Save Benefit - In case of unfortunate death of the parent or a critical illness 1. Sum Assured is paid to the beneficiary (child) 2. No need to pay any further premiums as we will pay 100% of the future premiums 3. On maturity, fund value is again paid to the beneficiary Save-n-Gain Benefit - In case of unfortunate death of the parent or a critical illness 1. Sum Assured is paid to the beneficiary (child) 2. No need to pay further premiums as we will pay 50% of the future premiums towards the policy and 50% of the premiums to the beneficiary on the premium due date 3. On maturity, fund value is paid to the beneficiary

Customize a plan suited for your child with the premium, Sum Assured and the plan option of your choice Manage your investment fund(s) either by switching across fund options or re-directing future premiums into a different fund option Hassle-free policy issuance on the basis of a Short Medical Questionnaire eliminating tedious medical tests Tax benefits subject to provisions contained under sections 80C and 10(10D) of the Income Tax Act 1961 Paying premiums is convenient with access to multiple modes credit card, internet banking, cheque, auto debit facility

DFC SL ProGrowth Super II HDFC SL ProGrowth Super II is a smart savings-cum-insurance unit linked plan that will help you to provide the finest for your family, be it today or tomorrow. This ULIP aims to help you achieve long term savings.

Features

Flexibility to select term of 10 years or from 15 to 30 years Flexibility to choose from a range of funds 1. Income Fund 2. Balanced Fund 3. Blue Chip Fund 4. Opportunities fund Flexibility to choose Sum Assured multiple Avail of hassle-free annual premium option

Advantages The savings plan gives you flexibility to choose from the following 8 options: 1. 2. 3. 4. 5. 6. 7. 8. Life Option = Death Benefit Extra Life Option = Death Benefit + Accidental Death Benefit Life & Health Option = Death Benefit + Critical Illness Benefit Extra Life & Health Option = Death Benefit + Critical Illness Benefit + Accidental Death Benefit Life & Disability Option = Death Benefit + Accidental Total & Permanent Disability Benefit Extra Life & Disability Option = Death Benefit + Accidental Death Benefit + Accidental Total & Permanent Disability Benefit Life & Health & Disability Option = Death Benefit + Critical Illness + Accidental Total & Permanent Disability Benefit Extra Life & Health & Disability Option = Death Benefit + Accidental Death Benefit+ Critical Illness + Accidental Total & Permanent Disability Benefit

This plan provides valuable protection to your family in case you are not around. In case of your unfortunate demise during the policy term, we will pay the Sum Assured and your total fund value to your family. Plan can be availed by filling short medical questionnaire, which may not require you to go for medicals.

You can manage your investment funds either by switching funds from one fund to another or by redirecting future premiums into other funds Tax benefits under section 80C and 10(10D) of Income Tax Act 1961 subject to provisions contained therein. Paying premiums is convenient with access to multiple modes credit card, internet banking, cheque, auto debit facility

HDFC SL ProGrowth Flexi It's prudent to be prepared all the time so that you can meet your lifes goals in a manner that secures your finances. HDFC SL ProGrowth Flexi, a savings-cum-insurance unit-linked plan (ULIP) that enables you to provide financial security to your loved ones. Features

Flexibility to choose one of two benefit options: 1. Life Option = Death Benefit 2. Extra Life Option = Death Benefit + Accidental Death Benefit Flexibility to Range of funds to choose from: 1. Income Fund 2. Balanced Fund 3. Bluechip Fund 4. Opportunities Fund Flexibility to choose any sum assured multiple from 10 to 40 of the annual premium

Advantages

The investment plan also provides invaluable protection to your family. In case of your unfortunate demise over the policy term, we will pay the greater of the Sum Assured or your total fund value to the nominee On maturity, you can take the Fund Value at the prevailing unit prices as lump sum or you can opt for settlement option Flexibility to move your accumulated funds from one fund option to another anytime or redirect future premiums into a different selection of funds Tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961 subject to provisions contained therein Paying premiums is convenient with access to multiple modes credit card, internet banking, cheque, auto debit facility

HDFC Life Click2Protect As a modern woman, its time to shoulder the responsibility for your familys financial security. HDFC Life Click2Protect is an online term insurance plan which helps you secure your familys financial independence at the click of a button. Ensure your parents, spouse and child are taken care of in your absence. Features A womans role todays household has never been more powerful. As you become an equal stakeholder in all your family decisions, make sure your family can live with their head held high even when you are not around. A term insurance plan can help you ensure your childs dreams, your or parents financial security, or your home loan are secured in your absence. Features An affordable premium can help you avail sufficient cover to fulfill your familys needs. Hassle- free premium payment in annual mode Choose the policy term of 10/15/20/25/30 years as per your need Choose sum assured to suit your requirement ranging from Rs 10 lakh to Rs 10 crores Your premium paying term will be the same as the policy term you choose Being a term plan there is only a death benefit

Advantages Easy to purchase, at the click of a button in simple steps Lower premium for women and non-tobacco users Flexibility to choose sum assured and policy term Tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961 Paying premiums is convenient with access to multiple channels credit card, internet banking, cheque, auto debit facility

HDFC Life Pension Super Plus You wait for the day when you can retire and pursue your interests - full time. This is possible only if you have assurance of post-retirement income. Presenting, HDFC Life Pension Super Plus Plan, a unit-linked pension plan designed to build a corpus over the policy term so that you can enjoy post-retirement life. Features Additional premium allocation rate of 102.5% from 11th year onwards Assured benefits on maturity (vesting) with 101% of all premiums paid till date including top-up premiums Flexibility to plan your retirement date and choose policy term Guaranteed regular income on the annuity purchased from us. Advantages At the end of the policy term, you will receive higher of the fund value or assured benefit of 101% of all premiums paid including top-up premiums Premiums invested in a fund that allocates assets dynamically between equities and fixed income assets At vesting (on maturity), you have the opportunity to purchase an annuity from a range of options. You will get guaranteed income for life for yourself and your spouse. You also have the option to commute up to 1/3rd of the benefit at vesting tax-free as per prevailing tax laws In the event of your demise during the policy term, your nominee will receive the death benefit Benefit from long term investing with Premium Allocation Rate of 102.5% from 11thyear onwards HDFC Life Smart Woman Plan, a life insurance policy for women that gives wings to your aspirations. The plan ensures your savings grow leaving you free to pursue your career and continue making a difference to those around you. You always wanted to make a difference in the lives of your loved ones. This is what gives true happiness. In your own way, you did what it took to keep them happy with their satisfaction always being a priority for you. Now that you are independent and have complete charge of your finances, some amount of planning can go a long way in fulfilling dreams for yourselves and your loved ones. Presenting, HDFC Life Smart Woman Plan, a life insurance policy for women that give wings to your aspirations. The plan ensures your savings grow leaving you free to pursue your career and continue making a difference to those around you. It also provided options which cater to specific life events of women with respect to their health, career and marriage.

Features Options to choose from 4 funds to suit your risk appetite: 1. Income Fund: Higher potential returns due to higher duration and credit exposure 2. Balanced Fund: Dynamic equity exposure to enhance the returns while the debt allocation reduces the volatility 3. Blue chip Fund: Investments in large cap equities 4. Opportunities Fund: Investments in mid-cap equities You can select any of the 3 Benefit Options, each created to meet specific needs such as: 1. Pregnancy complications or birth of child with congenital disorder 2. Diagnosis of malignant cancer of female organs 3. Death of spouse (Only with Elite option) Classic Under this option you can avail of premium waiver benefit with funding of next 3 years premiums. Premier Under this option you can avail of premium waiver benefit with funding of next 3 years premiums and periodic cash payouts of 100% of next 3 years premiums. Elite Under this option you can avail of premium waiver benefit with funding of next 3 years premiums and periodic cash payouts of 100% of next 3 years premiums along with coverage for death of spouse. Flexibility to choose the sum assured Convenience to choose policy tenure of 10/15 years

Advantages Uninterrupted savings with waiver and funding of premiums for next 3 years on the following events 1. Pregnancy complications or birth of child with congenital disorder 2. Diagnosis of malignant cancer of female organs 3. Death of spouse (Only with Elite option) Additional periodic cash payouts under Premier and Elite options Flexibility to make partial withdrawals to meet contingencies Avail of hassle-free annual premium payment option Tax benefits subject to provisions contained under sections 80C and 10(10D) of the Income Tax Act 1961 Paying premiums is convenient with access to multiple modes credit card, internet banking, cheque, auto debit facility.

For more details on risk factors, terms and conditions, please read the Product Brochure carefully and/or consult Financial Consultant before taking a decision.

HDFC SL Crest Get access to high returns through stock market linked investments. Invest your surplus to get both returns and protection for your family, through our 4 fund options, designed to meet your varied investment needs. HDFC SL Crest is a well-managed savings plan that channelizes your money in an optimum manner. Features Free Asset Allocation: Flexibility to invest in any of the 4 funds available, create your own investment strategy by switching or redirecting future premiums Flexibility to choose sum assured multiple between 10 times to 20 times annual premium No limit on maximum premium In case of your unfortunate demise during the policy term, we will pay the higher of the sum assured (less partial withdrawals) or the total fund value or minimum death benefit (105% of the total premiums paid till date) to your nominee Plan can be availed by filling short medical questionnaire, which may not require you to go for medicals

Advantages Get benefit of investing in a shorter horizon. Pay premiums for just 5 years and enjoy a policy term of 10 years Tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961 Paying premiums is convenient with access to multiple modes credit card, internet banking, cheque, auto debit facility.