HDFC Life Uday

About HDFC Life Uday plan

The HDFC Life Uday plan is a combination of a traditional non-linked “with profit” plan along with insurance coverage. The plan helps you to save and protect your money for your family’s future. The plan not only provides guaranteed additions + bonuses + tax benefits but also death benefit in the case of the untimely demise of the insured individual. Additional death benefits are provided if the insured individual dies an accidental death.

Let’s understand this plan in brief before getting into its details.

How Does the Plan Work?

Firstly, the individual who wants to be insured decides the premium paying term (PPT) and the policy term of his/her choice. The individual then selects the sum assured on maturity.

Let’s understand the benefits offered with this plan:

Guaranteed Additions – Guaranteed additions at the rate of 3% per annum will be paid for the first five years of the policy. Guaranteed additions will be paid at the time of maturity or death.
Note: If the policy is surrendered, the surrender value of the guaranteed additions will be paid.

Maturity Benefits – If the insured individual survives till the maturity date, s/he is eligible to get the following benefits:

• Sum assured on maturity
• Accrued guaranteed benefits
• Accrued reversionary bonus, interim bonus, and terminal bonus (if any)

Death Benefits – Presuming the insured has paid all premiums regularly, in case of the unexpected death of the insured individual during the policy term, the nominee receives the higher of the following:

• Sum assured on death + accrued guaranteed additions + accrued reversionary bonuses (if any) + interim bonus (if any) + terminal bonus (if any)
• 105% of the premiums paid

Here, the sum assured on death will the highest of the following:

• Sum assured on maturity
• An absolute amount assured to be paid on death, which, in this case, is equal to the sum assured on maturity
• 10 times annualized premium for entry age up to 50 years and 7 times annualized premium for entry age greater than 50 years.

Note: In case of accidental death of the insured, an additional benefit equal to 100% of sum assured on death will be paid to the nominee.

Why Should I Buy This Plan?

Along with the benefits mentioned earlier, here are some more features that the HDFC Life Uday plan comes with:

• Tax Benefits – Tax treatment for premiums paid under the plan will be as per Section 80(C) and tax treatment for benefits received will be as per Section 10(10D).
  Note: These benefits are subject to prevailing tax laws.
• Policy Loan – Once the policy has acquired surrender value, the insured can avail a loan against the surrender value of the policy.
• Free-look period – The individual is advised to go through the policy thoroughly. If s/he finds any objections to the terms and conditions of the policy, s/he can cancel the policy within 15 days (the free-look period) by giving a signed written notice to the insurance company stating the reasons for objection of the policy along with the original policy document. Only then will the individual be entitled to a refund of the premium paid, excluding few charges like stamp duty charges.
  • Grace period – The plan provides a grace period of 30 days from the due date of unpaid premium (15 days for monthly mode) in which payment of premium without interest will be allowed. During the grace period, the policy shall continue to be in force for all the insured events. If the premium is not paid within the grace period, the policy will lapse and will be subject to the non-forfeiture benefit.

Who Should Buy This Plan?

The HDFC Life Uday plan can be purchased by those above 18 years and up to 55 years of age. The plan is a perfect combo of protection and savings and proves to be of great support in fulfilling your life goals.

Riders

No riders are available with this plan.