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HDFC Life Click 2 Invest ULIP Review 2018

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HDFC Life Click 2 Invest ULIP plan has created a huge buzz by offering Zero Allocation Charges. In-fact this is the first online ULIP plan with 100% Premium Allocation, No Policy Administration Charge, No discontinuance charges and Only FMC & Mortality Charges applicable.

This plan has many other benefits on paper to get customer attraction, but does HDFC Life Click 2 Invest really able to clean the image of ULIP plans in our country?

Let’s review HDFC Life Click 2 Invest Ulip plan and find out whether this plan deserve a place in your income tax saving investment.

HDFC Life Click 2 Invest ULIP Plan Review

HDFC Click 2 Invest Ulip Plan Key features

Before proceeding with our typical calculation of long term return and finding the best alternative let’s check out the key features this plan is offering

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  • This plan is called as Super ULIP as Zero Allocation Charges.
  • The good thing is, there is no discontinuation charges, at least some relief for those who want to surrender this plan in future after realizing the fact of ULIP plans.
  • But you can’t surrender this plan before 5 year. So here is the tweak HDFC Life applied.
  • One can choose from 8 different types of funds between Equity or Balanced fund or Debt fund.
  • One can go for 4 free switches between funds in a year. Beyond that will be chargeable.
  • One can go for partial-withdrawal after completing of 5 year.
  • On death of policy holder his/her family will get highest of these 3: Sum assured or Fund value or 105% of premium paid
  • You can buy HDFC Life Click 2 Invest ULIP plan online.
  • Maximum term is available 20 years only.
  • Pay premium for entire term or choose between terms (5 years, 7 years, and 10 years) available under Limited Investment term.
  • On maturity survivor will get the fund value as maturity benefit.
  • Enjoy income tax benefit under section 80C and 10(10D) like other insurance plans.

HDFC Click 2 Invest Premium & Maturity Calculation

Now one good thing about HDFC Life is that in their online portal they provide a calculator to calculate the premium and other financial data. I am going to use the same and explain how the return will be.

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Age = 30 years
Policy Term: 20 years (max)
Investment Term = 20 years
Premium: Rs 1000 (monthly) = 12,000 / year
Life Cover = 10 times yearly premium = 1,20,000

So till maturity I have to invest 12,000 X 20 = 2,40,000. And as per the calculator the maturity benefit will be as below
Return with 4% = 3,07,422
Return with 8% = 4,73,421

You can verify this data using the same calculator. Visit hdfc click 2 invest brochure for complete details.

Should I buy HDFC Life Click 2 Invest online ULIP plan?

To answer this questions one should know about how ULIP plans works and there are many disadvantages of ulip plans if you look for a short term return. HDFC Life Click 2 Invest is also not at all different from that list.

If you have noticed, one can surrender Click 2 Invest only after 5 years period. If you try before that, you have to pay 4% of annual return toward discontinuation fund charges. Now, if you are ready to bear a 5 year lock-in period, then why not try ELSS mutual fund or tax exempted FD schemes? I am sure they will give better return on investment.

Although HDFC is promising many charges are waived off, but still the fund management charges(1.35%) are higher than mutual fund charges(1.00%). If you don’t have enough knowledge on mutual fund, then spend some time and start investing in any popular or recommended ELSS fund on SIP basis.

Again, if you are looking for a life cover then do you think the life cover you will get with this plan is enough for your family? There is no alternative of a term insurance plan and one shouldn’t buy an insurance scheme when he/she is targeting for a return only.

HDFC Life Click 2 Invest : Final verdict

The very basic thing about any ULIP product is, it will take some time to get some gain from a ulip policy. In the initial years every ULIP plan has many charges to settle down and those are handled from the premium amount paid by you and me only.

So, if you are looking for a short term investment, then ulip can’t be an option for you. But in longer term E.g. more than 15 years, one can expect a moderate return of 6-7% from your ulip investment. Look for long term wealth creating by following the simple rule: buy a term plan and invest in mutual fund via SIP way. Hope this HDFC click 2 invest review is useful.

HDFC Life Click 2 Invest ULIP Review 2018
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65 Comments

  1. Suhail Suhail

    Hi Santanu,

    I am planning for my retirement and currently i am 34 yrs old. Which is the best option to opt for?

    ELSS of Pension plan?

    • As per my understanding it’s ELSS only, as pension plans will not give much return. If you have at least 15 years before retirement, then Mutual Fund ways is the best option for retirement.

  2. sudhakar sudhakar

    Hi Santanu,

    Mutual funds are not good for short term? because If I see some fund performances on their historical data, even for 6 months or one year also they have showed good returns like 33%, 24% in one year especially in mid cap. please advise.

    • For short term there are specific category of funds like liquid funds, ultra short term funds etc.

  3. sudhakar sudhakar

    Hi Santanu,

    I have recently taken click 2 invest ULIP after 10 days of research and policy bazar Guys ate my head with continuous calls. I took for 75K annual premium for 7 years term, planned to take the fund on completion of 5th year , if the fund value is good. I have still 20 days of free look in period to come out from this. I am thinking to quit it and invest in mutual funds, what you advise on this?
    my second question is, I have 2 lakhs spare money and planning to invest in mutual funds, is it good If I invest one time choosing 4 good funds and investing 50K in each. or it is better if I go with SIP on 4 funds. please advise

    • As you have the money ready, you can go for lumpsum investment in mutual fund. Regarding ULIP, I think it’s your call, as you have to bear the loss of surrender value.

  4. could you please be more specific as what kind of charges you are referring to manage HDFC Click to invest ULIP plan? As policybazaar guys said they provide 4 times free swithiching + zero service tax. So I dont think when you invest you switch before 4-5 months at least. So please explain what charges are you referring regarding ULIP plan managing.

  5. Akhil Rai Akhil Rai

    Hi Santanu and Team,

    This Review page is very helpful while going through everybody concerns and opinions. I have also enrolled HDFC Life Click 2 Invest for 10,000/Month for 5 years through policy bazaar agents as they have convinced me through performance of fund by showing lot of web pages like money controlled about the Opportunity funds, Balanced fund, Government funds and taking the averages of all those which were coming around 20-25% return on that taking it safer side 16% returns. Though mine is not finalized yet as it’s past 4 days only am planing to cancel it. As I was looking for safer investment with high return on that kind. I do already have Icici Prudential Wealth 2 which i have started on March 2011 and paid 1,00,000 annual Premium for scheduled 5 yrs with 10 yrs maturity period right now fund value is 6,37,000 only which too keeps fluctuating. Here in this blog I have seen most of us have concerns about HDFC Life click 2 invest. Please Santanu guide as more on it or for those who already have enrolled in lock time period.

    Thanks and Regards
    Akhil Rai

    • If you have better alternative investment like stock market or equity mutual fund then you can exit after completing 5 years. But in case you are happy with a moderate return of avg 7%, you have to wait till maturity.

  6. Sreenivas Sreenivas

    Sir,
    I am an engineer getting 50000 salary per month. I have a one year daughter and i like to invest for my ‘Child’s education/ Marriage’. My savings are about 20000. Kindly suggest me how to gain maximum wealth with moderate risks. Shall i invest 10000 per month in conventional ULIP/SBI SUkanya Samridhi scheme and another 10000 in mutual funds. I am about to take a term insurance plan for 1 cr. for insurance purpose.Thanks in advance.

  7. Ruchir Singhal Ruchir Singhal

    Hi,

    I have just taken the hdfc click 2 invest plan with 5000 pm as installment for 5 years. Currently its distributed as 50% – income fund and 50 % – opportunities fund.

    Have I taken right decision. Will I get the benefit or will I get loss?

    Please help me.. I have still 30 days period to cancel this

    • I think you have to decide the same as per your own requirement only.

    • I had also invest in this plan pls confirm its benificial or not ?

  8. sudhir shrivastava sudhir shrivastava

    I invest in “HDFCLIFE clicktoinvest” monthly 1500/- for 10 yrs so please tell me how much money will I get after 10yrs. and explain me.

  9. pardeep pardeep

    hi sir,
    i want to invest for my child, please suggest me best plan

    • Start a SIP in mutual fund for more than 10 years.

  10. joy joy

    i have a corpus for single premium policy. i need the money back after 10yrs for higher education. i can spare the 10 yrs, no need of fund in between, but the corpus is must for the objective to fulfill for child. it should be pure investment.
    can you pl suggest some good options?

    • I think for good return Mutual Fund is the best option. If you don’t want to take risk, then look for NSC or Bonds.

  11. Kunal Nayak Kunal Nayak

    Hi,

    I am 32 years old and was miss sold Click2Invest from HDFC in Oct’15. At that time I did not have much exposure to equity or debt.
    I have gone through many blogs that ULIP are not good. I already have a term plan and require investment only. Till now I have quarterly paid Rs.35500/- (3 quarters paid) Total investment is Rs.50000/- annually. I have kept is at Equity plus and balanced equity fund.
    If I surrender; there are no charges however my fund will be moved to discontinued Fund and will provide flat 4% interest of premiums paid after 5 years completion only.

    Should I continue for remaining 4 years or shall I discontinue or invest in ELSS.
    The premium paying term is 5 years and after that there is no locking period.

    • ULIP plans are good if you stay invested for long term as there are many charges to maintain a ULIP plan. You have to think what you want to do, but I think there is a lock in period as well before which you can come out.

  12. Sakthi Sakthi

    Hi,
    KINDLY PROVIDE UR COMMENTS QUICKLY.ITS URGENT.

    Dear Santanu,
    I have bought Hdfc click2invest plan , almost month ago(single premium of INR 40000). I have paid the premium But IT IS NOT YET ISSUED, due to some pending formalities. After reading all the above review, now I’m confused about my decision. I choose to invest for tax benefit, (as advised by agent). But after research I have realised, tax benefit is extremely low for single premium (jus10% of sum assured). KINDLY suggest, what should I do”? 1) Shall I continue with it? 2) Or may I cancel it? (3) If I cancel, what will be the charges ? as my policy is not yet started and it does not have any fund value. Will they give me my full premium amount.? Or they will apply heavy cancellation charges.? Any idea how much cancellation will cost to me? Thanks in advance. Kindly provide UR reply soon, as Hdfc is chasing me for pending formalities.

    • Pls contact your insurance company. They should assist your query.

  13. Piyush Piyush

    Hi Abhi,

    I want to invest in HDFC Click to life2 ULIP for 20 years with the yearly premium of 65000 Rs.
    I am looking for a good return after 20 years. Is this the best policy as suggested by policy bazar ?

    Or there are any other options where I can get much better returns.

  14. Imran khan Imran khan

    Hi santanu I have taken the hdfc life click to invest plan online through policy Bazar. The policy Bazar guys told me the grace period is 45 days but when I have received some mail it shows the grace period is 15 days.I have taken the policy for 15 year. With annual premium of 25000. Is it good for or I will discontinued this as till now I have not signed any bond papers etc. Is there any good investment with same amount for tax benefits and return both.please suggest.

    • If you consider only income tax benefit and looking for debt investment, I think PPF is best.

  15. Yash Khare Yash Khare

    Hi Santanu,

    I am working in an IT firm from past 2 years. Age – 25.

    I had invested in Click2Invest(Quaterly 15k – paid premium two times till now i.e. a total of 30k). I am thinking of discontinuing it coz almost everywhere online I am seeing that click2invest is not good. As per the TnC of Click2Invest I know that I wont be getting my 30k back before 5 years. I know I should have consulted before buying it.
    HDFC life ppl have automatically invested 100% into Opportunity Fund – Not sure what is it all about.

    Suppose I have Rs.5000 a month which I can invest as an investment/insurance. I don’t have much knowledge about these investment/insurance stuffs.

    In a layman language , I want to invest(which should include tax savings) my Rs.5000(or more if you say) a month to somewhere where I could get good return after maturity period(can be 10/10+ years) as well as I want to have a life insurance cover so that in case of any mishappening my dependents would get something.

    As you have already mentioned above that one should not combine investment and insurance , can you please suggest me how I should divide my Rs.5000 to achieve above.

    • Buy a term plan and then rest of the money in SIP.

      • Ashim Ashim

        Click to invest is also an SIP right?
        And instead of putting money in ppf can’t we choose bond in Click to invest ??

        If not click to invest can you suggest another better SIP plan ??? Urgent

  16. GAURAV GAURAV

    HI

    I am investing 50 k qtrly from past 1.5 year on HDFC ULIP CLICK TO Invest for a total period of 5 years.

    Can you please guide me, that can I expect atleast the amount which I Paid as qtrly premium over the 5 years lock in period as return.Will there be any further deduction in the total amount paid.

    Please advice

  17. santhi santhi

    Hi Santanu,
    I see a gradual dip in gold price for last couple of years. What is your opinion on the same. Do you see a dip in gold price in the coming years? Or is it just a speculation?

    Regards

    • Frankly speaking I am not an expert in speculation.:)
      I just follow simple rules of diverse investment. Means, if you have buffer to invest some money after putting as per your expected investment tools then you should buy some gold. Gold will always be in attention. But its not like you should put everything for gold as it may grow in future. Same rule applied for stock market also.

  18. k sandeep raju k sandeep raju

    hiii santhanu

    Sandeep here..i just wanted to knw the how does Mutual fund and ULIP makes difference as such both the products are market link..infact the mutual fund has got high risk appetite(high Risk high gain) when compared with ULIP..i agreed that ULIP has lots of charges when compared to mutual fund and these charges are also deducted upfront and then invested in fund but even mutual fund has got the expenses ratio(FMC) which is close to 2.25%- 3.75% which are directly debited from units..i have just checked the comparison of MF & ULIP with growth of 15% each(as assuming 15% growth)..kindly find the Excel comparison with this mail..i have compared MF Vs ICICI PRUDENTIAL ELITE WEALTh 2

    • As per my knowledge, ULIP has many charges inside to manage the funds. That actually eat up your return on investment.
      I hope you are comparing the return of both for a longer period of more than 15 years of time.

  19. Saksham Saksham

    Hi Shantanu,

    I am looking to invest for tax exception unnder 80c. After some search i narrowed down to Axis Long Term Equity Fund. However, policybazaar recommended hdfc click 2 invest as it gives 80c+10D as well.
    I am looking for 1 time investment with decent interest. Policybazzar told that there is around 5% deduction under fund management in case of Axis mf too. So considering this, is hdfc click to invest a better choice?
    Thanks

    • I think you can use online calculators to compare both Axis Long Term Equity Fund & HDFC Life Click 2 Invest to understand how much they will return. When you invest in any ULIP plan, you should know the charges you have to bear which is not there for Mutual Fund investments.

  20. mahesh mahesh

    Hi Santanu,

    I am planning invest 50K per year in Tata Balanced Fund. I am new to mutual funds. This is save to my income tax and to get good returns (non taxable). Please advice. I already have jeevan anand for 16 years (already 5 years completed). 21K per year. My annual package 7 Lakhs.

    • Please try to understand how a ULIP & Mutual fund work in actual and then as per your risk taking ability choose the plan.

  21. gagan gagan

    Hi santanu,
    I brought hdfc life click2invest opportunity fund 5 years plan and yearly paid 48000rs please suggest me my decision right or wrong ?

    • Hi Gagan, I hope you have taken this decision as per your financial goals only, your risk taking abilities and by knowing how much return you can get and what are the other best alternative of this investment.

  22. Prashant Prashant

    Hi Santanu,

    I am planning for SIP 3000/month for 7 or 8 years, could you please suggest me right option to go for.

    Thanks,
    Prashant

    • I am using FundsIndia platform for SIP investment and found their advises really worthy.

  23. Rakesh Patil Rakesh Patil

    Hello, Sir

    Nice article Sir, I am confuse where should i invest money because after 5 year i needed money for home.

    Can you please suggest me which one is best for 5 year + Tax Saving.

    Thank
    RP

    • Hi Rakesh, As you have 5 years time then i will save divide your money and start investing mutual fund via SIP and put rest of the amount for tax saving FD schemes. I think this will balance your risk of investment. You can also discuss with a certified financial planner to get more tips. 🙂

  24. Satish Satish

    Hi santanu,

    NEED YOUR ADVICE.

    recently i bought HDFC click2invest for 12000/ pm for 20 years through policy bazar.
    I did not want to choose it, my 1st choice was mutual fund.
    But the policy bazar guy convinced me to go for it…as it will have more returns compare to any mutual fund.
    he showed me in money control web site as it how performing in last 3 years i.e 25% returns in opportunity fund.
    Now by going through your article i doubt whether it will at least 10% returns.

    If you will suggest i will withdraw it as i have not submitted the documents.

    • Hi Satish, Again you are asking for suggestion from another person. I think you should listen to your plan and targets rather listening to anyone.
      Definitely if you would have asked me before investing, i would definitely said that Mutual fund for long term. But right now, you can think about an exit and switch to MF if you are ready to bear some loss. As you may not get the money invested for premiums of Clck2Invest.

  25. Pratap Pratap

    I have purchase HDFC click 2 invest the annual premium is 1 lakh(25k quarterly) for 15 year for investment purpose. How much average return I should except after 15 year(in rupees )and what would be the rate of return(in percentage) ? Should I cancelled it or not because its only 10 days old.

    • I don’t think you can cancel now as per ULIP rules. Please check out the surrender or paid up clause for your policy and act accordingly.

    • rajinder rajinder

      can top premiums be paid in hdfc ulip…i plan to go for 1000 mnthly plan.
      whats the maximum top up i can add monthly

      • I think you can contact HDFC people for this.

  26. Azhar Azhar

    i am planing to buy HDFCLife-Click2Invest ULIP Plan. Is it good choice?
    what are the drawbacks of this?

    want to invest for 15 yr, 2K/month

    • Hi Azhar, ULIP plans are very complex in calculation and good for long term investment. If you understand how ULIP plans work and then want to invest, then I can say 15+ year investment is fine. But if you don’t know the charges involve in ULIP, then better understand first and then proceed for investment.

      • Subhankar Dey Subhankar Dey

        Hi Santanu,

        I have read all the above points and your suggestions in the post regarding investing in HDFC Click2Invest. But we still have 8 different funds to select and invest correct. Will all of that, fetch me returns as per you calculated borderlining 4-8%. I would like to mention that the guy from policybazaar asked me to invest in this and specifically in the opportunity fund which, he showed, had a 33% one year and 25% for 3 years annual returns. What is the worst case scenerio for this investment, since the risk factor for that fund is very high. Does it has a possibility to erase my entire investment. Or would it be better if i invest in balanced or blue chip funds.
        How will it be different in case i wish to invest in the above said bonds but instead in a mutual fund.

        • Actually all the data are historical and bank people use them to attract customers. Mutual fund has a locking period of 3 years, that means no point to check one year return. Research with 3-5 year return. by the way this kind of policy is also good depending on investors risk taking capacity. If you want to low risk income then definitely you can invest this plan for long term.

  27. pritam pritam

    Dear Sir,

    I buy HDFC lick to invest in balance fund, I pad 1000 monthly for last eight months and I invest it for total 5+5 years.
    My sum assured is 120000 Rs after 10 years should I believe on it..?? Because my fund value is always come less than what I pad to HDFC.
    Please suggest me what can I do…!!

  28. HKISIS HKISIS

    Hi
    I am planning to buy ULIP for my kid’s education and planning to invest 100,000 a year for 20 years. looking at the charges on ULIP it doesnt gives more return..what is your suggestion which plan is good?

    Thanks.

    • I think if your investment horizon is more than 15 years, then ULIP is not a bad investment option.

  29. Dorababu Dorababu

    How good this one HDFC Life Super Income Plan, can you share some information. I am planning for 10-15 years policy with best returns. I can pay up to 150000 per year, so could you please suggest me the best options available.

  30. Mayure Gupta Mayure Gupta

    Hi Santanu, Thanks for sharing this information; its very helpful. Further I am planning to invest INR 5000/month for short term investment say 5 years, please advise the best plan/investment mode in the market. Although I have communicated with Policy bazaar guys; they have advised the same ULIP plan but for longer duration. My main criteria is that I need good returns with tax benefits and low risk; await your reply.

    Thanks,
    Mayure

    • Hi Mayure,

      As per my knowledge, ULIPs are good when you invest for more than 10+ years. As per your requirement I think tax benefit FDs or ELSS mutual fund is the best options. You can also go for a Recurring Deposit, if income tax saving is not a criteria.
      I hope this is useful. 🙂

  31. Kannan Kumar Kannan Kumar

    Sir,

    i Buy month of April -15 HDFC LIFE SANCHAY , but i didnot get any douments for this policy

    my queastion is suppose i cansel this policy immediate how much deduct my premium amount?

    i am relly upset about this policy last couple month…
    please let me know ASAP

    • How come you did not get any document? I think you should visit HDFC Life office asap and discuss about your concerns.

  32. Abhi Abhi

    Hi Santanu, Can you suggest me on this please?
    I bought HDFCLife-Click2Invest ULIP Plan and paid premium for one quarter (Quarterly-9000/-; Annually-36000) so far. This was totally for Investment purpose. I believe, I made a wrong choice. What can I do at this point?
    Can I discontinue this now? If yes, will I get 9000 back, may be after some dedcution?

    • Hi Abhi,

      Generally ULIP plan has a 5 year lock-in period. If you want to surrender before that your fund will be transferred to discontinued bracket. And a 4% interest will be paid till 5 year completion.

      So here it could be you may loose 9000 or your 9000 may be locked for 5 year. I am not sure about that, may be you can give a call to HDFC people. Either way you have to forget your 9000.

      The good point here is you have understood before it’s too late. As from life cover point of view ULIP is not all good. And if you look for 15+ years ULIP plan can return 7-8% interest, but Mutual fund investment will be able to return even more than 10-12%.

      I think for life cover you can look for HDFC C2P (with 10K yearly premium you can buy around 80+ lakh life cover). And for investment purpose you can follow the below thumb rule

      Life Cover : Pure term plan ( around 1 crore at least)
      Short Term (6 month – 3 years) : Bank FD, RD, even kotak 6% account
      Long Term (More than 10+ years) : PPF, MF Investment, Bonds, Gold

      If you have good understanding of stock market, then best option would be investing via SIP way in Direct Mutual funds for long term. Anyway based on your risk taking capacity you have to choose the investments. Gold is also a very good option. You can check out this article for further understanding http://www.mydailylifetips.com/start-investing-in-gold-for-long-term/

      I hope this will be useful for you. I am not a financial planner, this is my perception towards investment. Let me know if you have further query. And I am expecting your reply here after talking with HDFC guys 🙂

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