Reveiw of HDFC Click2Invest-A cheapest online ULIP

A few months back HDFC Life launched an online cheapest ULIP product called HDFC Click2Invest. This product claims itself as the game changer due to its offer of very low charges. However, can we still consider mixing Insurance with Investment?

HDFC Click2Invest

Few of the features highlighted with this product are as below.

  • You can buy this ULIP Plan online.
  • This product offers “No Policy Allocation Charges”.
  • In addition, there will be “No Policy Admin Charges”.
  • Premium paying options like single pay, limited payment options like 5 yrs, 7 yrs, 10 yrs or regular payment.
  • You have options to choose 8 types of funds.

Below is an eligibility criterion of this investment.

HDFC Click2Invest_1

Please note the highlighted area of above image. Considering the current tax rules, if you invest in single premium or your age is above 55 years of age then there will be no tax benefit on maturity, which is usually available for Life Insurance Products.

Maturity or Death Benefits

At maturity, you will receive the value of the fund as on maturity date. However, in case of death, the nominee will receive the highest of below three options.

  • Sum Assured,
  • Fund Value,
  • 105% of premiums paid.

Charges

This plan claims to be charges only two types of charges.

  • Fund Management Charges-This will be 1.35% of fund value per year.
  • Mortality Charges-It depends on age and the sum assured opted by buyer.

Surrender of this policy

If you surrender within 5 years of policy term, then it is considered as discontinued policy. So, accordingly benefits will be payable. If you surrender after 5 years, then you will receive the fund value as on date.

Loan Facility

This plan offers no loan facility during the policy period.

Whether can we consider this plan for buying?

Advantages-

  • This plan offers lowest charges among existing ULIPs. As buying, this plan is online and no intermediaries involved. Therefore, this is a cost efficient way of investing than the typical insurance buying. When we consider the cost of fund management charges, it is very much at competitive rate compared to mutual fund expenses.
  • You have 4 free switching options in a year within available fund types.
  • You can withdraw partially 4 times a year once the policy completes 5 years.
  • A few reviews mentioned that lock in about 5 years is negative point. However, I feel it as an advantage. Reason is equity investment is for the long term. Hence, I consider this as a positive point rather than negative.

Disadvantages

  • There will be no tax benefit on maturity to those who opt for a single premium or the aged above 55 years. Reason is, in both the cases the eligibility for Sec.10 (10D) fails. Hence attract tax on maturity (But death claim is tax-free).
  • In case of death claim, you will receive only the highest of sum assured, fund value or 105% of premiums paid. Whereas if you opt for term insurance along with other investments, you get the term insurance sum assured along with investing amount value. Because this is Type I ULIP, where in on death nominee will receive either sum assured or fund value (whichever is higher). In such type of insurance policies mortality charges usually go down as the fund value increases. Another type of ULIPs is called Type II. In such type of ULIPs, on death nominee will receive both sum assured along with fund values. However, mortality charges under such type of plans will be higher than Type I.
  • Higher the age means higher mortality charges. This charge is deducted from your fund value. So, lesser investable amount for investors. Hence younger the age more benefit.
  • Leading negative point towards ULIPs is tracking the fund performance. We hardly have data on that. If data available also it is hard for one to come out. Because even though this plan offers free surrender after 5 years, but what about the insurance cost if one want to buy after paying 5 years? It cost more to buy insurance after 5 years than having it now. This is a reason why you should avoid clubbing insurance with investment.
  • If you try to protect the required life insurance by buying this plan, then one must be ready to pay higher premium. So hard for few to manage required life cover than simply buying term insurance.
  • Few reviews suggested to invest in the name of spouse or kids to avoid the higher mortality charges. However, if your spouse is not earning then is she really need life insurance? This question applies to kids too.

133 Comments

  1. Hi Basavaraj!! I am Rupa 24 age, I earn 30k per month and On Jan 2019, I purchased the click2invest plan for 3k per month. I have paid three premiums until now. Now I realized that this is not good for investment.

    1. Shall I cancel this now? If I cancel it now, will I get my 9k what I have paid now? Are there any charges applicable?

    2. I am looking only for investment? What is a good plan for this? ELSS/MF/Any other?

    3. Any term plan required for me now? Or just the medical insurance provided by my employer is enough?

    4. Any retirement plan for my Mother (Age 44) Unemployed.

    Thanks in advance for your help.

    Reply
    • Dear Rupavathi,
      You have an option to cancel within 15 days from the date of policy period without loss. I think that period has already lapsed. Hence, you have either pay it for 5 more years and then surrender or you have to forget of what you paid already. Regarding term life insurance, it is required (in fact a Life Insurance) for those who have financial dependents. Hence, take a call based on your dependents. Medical Insurance is different from the Life Insurance (Term Life Insurance) and hence don’t compare both. Sadly there are no such retirement plans under my purview.

      Reply
      • Thanks for your reply.
        But I don’t understand why you say to forget the premium paid. If I surrender it now, I think the corpus will move the govt returns and I can withdraw after the lock-in period. Is it not the case?

        Regarding term insurance, any suggestions for me since I already said my income(30k) per month.

        Reply
  2. Hi Basavraj,
    We can now see that the HDFC Click2Invest fund performance is good since last 4 years.
    Earlier you had cited one reason of not investing in this because it lacked performance history.
    Is your advice still same?
    Are ULIPs always bad ?
    If not then in which case ULIP is good ?
    Thanks,
    Santosh

    Reply
  3. Hi Basavraj. I have been paying Rs 15K per month in HDFC Click2Invest Opportunity Fund ULIP since last 1.5 years. However, I also have term insurance purchased which fulfills my required insurance needs. Is it advisable to surrender HDFC Click2Invest policy right away and use the premium to invest in equity based mutual funds to gain better returns?

    Reply
    • Dear Tushar,
      It is always best to not to combine insurance with investment. However, to discontinue the policy and surrender the same you have to pay for at least 5 years. Otherwise, you have to forget the amount of what you paid.

      Reply
      • but if you surrender the policy befor 5 yr so your all funds will be shifted to discontinuance fund in which you will get a return of atlest 5% fixed by company and your all money will be return back after 5 years.

        Reply
  4. Hi Basavraj,
    I am planning to start investment 10 lakhs/year for 5 years. And looking for the best returns. Kindly help me in suggesting best plans? Someone suggested me to go with HDFC Click2Invest where I can get good rate of return + Protection. Do you recommend this?

    Reply
    • Dear Anjanna,
      Either use Bank FDs or Ultra Short Term Debt Funds. Never be in the trap of these products.

      Reply
      • Thanks a lot for your valuable advise. I was checking Ultra Terms and most of them are giving around 7% -8.5% returns which is almost equivalent to FD. What is the best life protection plan?

        Reply
        • Dear Anjanna,
          You are looking for INVESTMENT then why PROTECTION PLAN?

          Reply
          • Hi Basavaraj,
            Actually I was looking for Investment cum Protection. Could you please what are disadvantages of ULIPs?

            Reply
          • okay but mam if you invest in fd or rd so you will get only 8% of return maximum and also at maturity you have to pay tax to the government if your growth is more than one lakh and after 5 or 10 year when you will take your money out so you are not even able to satisfy your need because the inflation rate will increase and the growth which you have generated dont fulfill your dreams

            Reply
  5. My income is 37k per month.

    I want to invest 17k in short term period for tax benefit. Yes I know

    Now section 80C give you 1,50,000 tax saving. So, I want to take full advantage of it.

    So, I found that : Aditya birla sun life tax relief 96 can give upto 45,000 rs of tax benefit (Cleartax.in).

    Now, where do I invest 1,05,000 for tax saving in short period of time for high return ?

    Option :

    HDFC click 2 invest ?

    Or any other ?

    Please advice.

    Reply
  6. Hi,

    I’m 26yrs male, unmarried and my income is around 30K, I want to save money in the form of Mutual funds.
    Suggest me is there any way to save money for future use instead of mutual funds?

    If mutual funds is ur ans, can I go with HDFC Click2invest plan by paying 1k/mnth of tenurity 5yrs?
    Suggest me if there were any other plans?

    Reply
    • Raja-Hard to say anything without knowing much about your financial life.

      Reply
  7. not that mutual funds will attract 10 % ltcg and ulip are tax free if premiums are paid yearly.what are your calculations is it wise to go for ulip like hdfc click to invest

    Reply
    • Rajeev-But what about the liquidity issue? What if the fund manager not performing well? You have to stick with same product forever. This is not the case with MF.

      Reply
  8. Hi Mr. Basavaraj, Good Morning!
    My Name is Rajendher i am an NRI, 2 days before i purchased HDFC Click to invest 17k per Month for 5 Years, my questions are regarding this as below,
    1) this is an Insurance Policy or Investment (actually i was looking for Retirement Plan)?
    2) on Maturity i will receive all Sum Assured (any Hidden Charges or Tax is there)?
    3) on Maturity in worst case (if Market fall down badly) i will Receive at least my Invested amount?
    4)if this is the insurance Policy it will cover from day one and if something happens how much nominee will be getting?
    5) if i want to cancel the Policy is there any waiting Period and charges are there?
    6) when i was purchasing the Policy Bazaar sale person told me the company is offering now i mean for January-2018 waiver of GST and its applicable for all the 5 Years of Payments is it True and where can i find this in the policy?

    Thanks in Advance for your Time and for your Advice’s.

    Regards,
    Rajendher.

    Reply
    • Rajendra-1) Investment+Insurance.
      2) Please refer above post about what you will receive at maturity.
      3) No taxes but how much you receive is explained in above post.
      4) The coverage is equal to higher of the Sum Assured, Fund Value or 105% of premiums paid.
      5) You can now cancel within the free-look-in period.
      6) Sales tactic. Just stay away from gimmicks.

      Reply
      • Dear Mr. Basavaraj,
        actually i was looking for retirement pension plan, Please advise me weather continue this HDFC Click to invest or can i cancel this and go for new Retirement Plan?

        just for your info, i have 2 LIC Premiums, so i dont think i need the Insurance here.

        your advise is highly appreciated.

        Thanks,
        Rajendher.

        Reply
        • Rajendher-Never combine Insurance with Investment. Hence, better to close it.

          Reply
          • thanks for your advise, kindly advice me which retirement plan is good for me?

            Reply
  9. HELLO Basavaraj
    i need ur help in matter related to investment i m a diabetic type 1 insulin dependent and facing problem in investment bazaar. with this suffering i cant take any policy as few investor replied i need ur suggestion as of common investor rule with less investment more reurn. i was told of two policies after long chase one is HDFC click 2 invest and bajaj allianz future gain. i m totally blank but wants to invest with effective return moreover i dont have idea how to divide %age ration among different of policy. kindly suggest me out of these and if u know more better way to invest in which fund or policy reply thanks

    Reply
    • Rahul-If your requirement is INVESTMENT, then why you are looking for ULIP?

      Reply
      • sir I m totally blank as how to invest with low and high or mid safe returns i enquire someone from whom i got info to invest in these 2 policies kindly help me out as with my medical ground i could safely manage. shall i go with SIP mutual funds or normal funds , which be the best /better to go with as sip needs min. 5 yrs lock as read in one of ur sip links if shorter which way to invest in mkt ur opinion is must as from ur past mkt exp.

        Reply
  10. Hi Basavaraj,
    Kindly suggest best ULIP plan for short term period.

    Reply
  11. I’m 30 year old male married and having baby. Planning for Term plan.
    1. ICICI Prudential (or) HDFC Click2 Protect?
    2. Is it good to go for Riders like- Accidental, Critical Illness?
    3. In case of Critical illness is opted will the cover be provided for one time or multiple times till the SA is met?

    Reply
    • Krishna-1) For me both are good.
      2) NO, buy them separately from general insurers.
      3) Please refer the policy document before jumping. In my view, it is better to buy separate insurance.

      Reply
      • Can you please suggest best General insurers?

        Reply
        • General insurers providing both Accidental & Critical Illness benifits.

          Reply
        • Krishna-It is hard to say BEST. Because my best not your best.

          Reply
          • Dear Sir,
            1. I have taken AEGON Life Term plan last week. I have filled all me details accurately except one error my Weight entered as 76 instead of 86 by mistake. All my medicals are done. How do i rectify this error, please suggest.
            2. I’m planning for Lumpsum ELSS for Rs. 75,000 in best performing funds at 50:50 (AXIS Long Term Equity, Tata INDIA Tax savings funds). Is this a good plan?

            Reply
            • Krishna-1) If the policy issued is against medical test, then you no need to worry about this.
              2) Without knowing your waiting period and financial goals, it is hard for me to guide.

              Reply
              • 1. Policy was issued after all medical tests were conducted.
                MER, ECG, ALI 11, CBC, COTININE, Height & Weight, Physical examination.
                2. I already have PPF (planned for maturity at 2031) and investing around Rs. 75,000 per annum. Additionally i would like to invest around 50K – 75K per annum in MFs and considering waiting period of 8 – 10 years. In such case, is lumpsum ELSS investment fine?
                3. Can you please suggest b/w SIP and Lumpsum investment for MF?

                Reply
                • Krishna-1) Then let your insurer find your exact values. Why you are worrying?
                  2) If you are long-term investor (5+ years) and did proper asset allocation, then why to worry about monthly or lump sum?
                  3) Refer my blog posts related to MF.

                  Reply
                  • Thanks for your insights. Your posts related to MF ELSS were very helpful.
                    1. I’m planning for Lump sum in AXIS Long term Equity fund. Which is better Regular Growth (or) Direct Growth?
                    2. Is the Capital Gains from ELSS maturity taxable?

                    Reply
                    • Krishna-1) It depends on your comfort with managing your funds and portfolio. If you feel you are capable of doing on your own, then go with DIRECT.
                      2) NO. As such funds are considered as equity funds, the redemption after 3 years will be tax-free.

  12. 1. Can you be my financial advisor?
    2. What the hell is this ulip and sip? I am confused and unable to understand.
    3. I want have some minimum around 45L after twenty years. Willing to invest 2000 per month. I bought HDFC CLICK TO INVEST plan now I’m feeling like I’m betrayed where it has got much criticism of less value. So please guide me. I’m 23 years old married. Expecting a baby on Oct 4 2017.

    Reply
  13. Hi Basavraj,
    I’ve invested in two policies online :
    1) ICICI PRULIFE FUTURE GROWTH (15-20 YEARS)
    2) HDFC CLICK2INVEST (5 YEARS)

    The advisor assured me a minimum of 8% benefit on both and said that it will be mentioned in my policy as well. I’m not too sure if I’ve made a right choice or if there are better options available than this. Please advise as I still have time to cancel these policies and get full refund.

    Regards,
    Navneet

    Reply
    • Navneet-You are already invested in these two ULIPs. Check whether that 8% mentioned in policy bond or not. If not, then contact the same adviser and you have all rights to sue him. There is no law in India which makes any adviser to assure anything when it comes to ULIPs especially. Hence, first immediately be in touch with your adviser or concerned insurance company.

      Reply
      • Hi Basavraj,

        The advisor mentioned that ICICI FUTURE GROWTH is not a ULIP but a traditional plan which uses average rupee concept. I’m yet to receive my policy documents (as i did registration just 2 days back) so can only check on 8% once I receive the docs.

        My question is – is ICICI FUTURE GROWTH policy really worth investing 15 years on?

        Reply
        • Navneet-Stay away from all such dummy products. NO regulator allow an adviser to give you the guarantee of 8% on life insurance. Hence, your advisor himself now a BIGGEST CHEATER for you.

          Reply
          • Thanks! Appreciate your guidance.

            Reply
  14. Hi,

    is it worth going ELSS mutual funds or open-ended?

    Reply
      • wealth creation……….as I have some gap under 80c ……am checking with you if ELSS schemes will perform good

        Reply
        • Sudhakar-Keeping money in FD is also wealth creation. Do specific with your time horizon, financial goal, return expectancy and the cost of that goal. NO products on this earth are good or bad. But using wisely as per your requirement is BEST.

          Reply
  15. my son is going to become 18 yrs after two months. i am looking for insurance for my son but could not find the best possible way. if i opt for term insurance then they are asking for monthly income, so the remaining option is ulip.
    should i buy ulip plans, any advice

    Reply
    • Akshay-Insurance is required to him only when someone financially dependent on him. Otherwise it is waste to buy an insurance.

      Reply
  16. I see that if i directly invest in hdfc opprotunities fund, the fund has expense ratio of 2.14 %. But if I invest in hdfc click2invest, it has fund management expesnes as only 1.35 %.

    Am I missing something here? Is it like if I invest in clic2invest product, the total charges will be 2.14 (hidden) + 1.35 % ??

    If my above calculation is wrong, isn’t it better to opt for click2invest with 100% allocation only in hdfc opportunities fund for 15 years?

    My plan is to invest 5k per month for 15 years. Just thinking whether to buy the opportunities fund directly or buy it through 100% allocation via click2invest product as the expense is only 1.35 %. Please help. (Assume that I have already decided to invest only in opportunities fund for 15 years for 5k… I have other plans for other funds and diversification) …

    Reply
    • Bhargav-Charges may be lower. But how about liquidity? What is the track record of fund manager? What is the track record of fund? Why I have to risk my money for the sake of ONLY expenses??

      Reply
      • Ok.. Got it. Thanks for your valuable inputs. But will it depend on the fund manager as I don’t see his role other than putting money accordingly into the respective MF’s as per the customer wish.

        I am anyhow planning to invest for 15 years and hence I am not worried about the liquidity.

        Actually I am not much worried about investing in any specific fund, but my real question is if I invest through click2invest in any of these given 8 funds, will the charges be lesser than directly investing in them. Somehow I am not conviced that this can be true as I feel that the 1.35 % charges will be added to the expenses already incurred in the MF which they are not disclosing here. I am not getting an answer from anyone on this. So trying to find out the truth..!

        Reply
        • Bhargav-You are not worrying about liquidity? What if the fund not performing well? You will still continue? Equity investment is not like investing today and forget for next 15 years.
          I am unable to understand “if I invest through click2invest in any of these given 8 funds, will the charges be lesser than directly investing in them”??

          Reply
  17. I want to buy a Term policy from LIC or MaxLife and want to invest monthly 6000 for my children future for 2 years. please suggest me appropriate plans. PPF or SIP what is better.

    Reply
  18. Hi Basavaraj,
    I have already invested in Click2Invest ULIP plan of HDFC life. My premium amount is Rs100,000 per year and the policy term is 20 years. Is it really worth or not?I want gain 1 cr. for 10 yrs for my child education.Please suggest me where should I invest?

    Reply
  19. Sir, I would like to invest 2k permonth per for 20 years to create a corpus of 45 lac after 23 yr for my childs marraige, along with this I want tax benefit of 80 C and non taxable maturity benefits also, Suggest me where to invest . Don’t need any insurance cover.

    Reply
    • Siddiqui-Use PPF in debt and in equity products like ELSS in the ratio of 25:75.

      Reply
  20. Hi Basavaraj ,

    I am first time investor and looking to get best suggestion from you to buy best plan to save tax and to get good return.
    I have plan to invest 5K every month for 5 years to get good return + save tax. Could you suggest me a best plan to opt??
    An advisor from Policy Bazaar has advised me to invest Rs6000 p.m in HDFC CLICK2INVEST ULIP asd it is giving tax benifits plus 8-14% of returns.

    PLEASE ADVISE

    Reply
    • Dilip-Your intention is to INVEST, then why you are going for INSURANCE product? If your time horizon is 5 years, then go for tax saving FDs.

      Reply
      • I don’t have much idea in investments, but from what I know my understanding is FDs are one time big investments and there returns is 7-8 % ( not as good as ULIP ).

        If you can suggest my any good plan for below two things that will be very helpful
        1. short term investment(5 years ) for tax saving and good returns where I can invest monthly around 5k
        2. Long term for 20 years, can pay monthly 5k

        I can not pay one time big deposit all I am looking for is monthly installments.

        Thanks in advance

        Reply
  21. Hi Basavaraj,

    I just gone through your article, found its really a very good effort that you are putting up to understand the people on investment. I am looking here to get best suggestion out from you to buy best plan to save tax and to get good return.

    I have plan to invest 5K every month for 5 years or 10 years to get good return + save tax. Could you suggest me a best plan to opt??

    Reply
    • Ken-First define your goal perfectly. There is a big gap of 5 years between 5-10 years.

      Reply
  22. Hi Sir,

    I am Amiya Ranjan from Vishakhapatnam.

    Today i brought HDFC click to invest plan with Rs 3000/months. with following options

    Blue chip fund: 30%
    opportunity fund: 30%
    Balance fund: 20%
    Bond Fund: 20%

    I purchased this plan through policybazar. They shown me the above funds are performing well from last two years. Also I have checked the performance of the above funds in moneycontrol website. The performance shown as below.

    Absolute return in Bluechip Fund in last two years: 20.20%
    Absolute return in opportunity Fund last two years: 37.90%
    Absolute return in balance fund in last two years last two years: 21.81%
    Absolute return in Bond fund in last two years last two years: 21.10%

    If we see these figures then it looks attractive. But still I want your suggestion to continue with plan or shall I discontinue this plan as I am in free look period of 15 days.

    Waiting for your reply.

    Reply
    • Amiya-Whether 2 years fund performance enough to judge an equity product? POlicybazaar acts like agents. Never rely on anyone (including me). Do research on your own. If it really suits your investment need, then go ahead. In my view avoid such ULIPs.

      Reply
      • Thank You Sir for your suggestion. But the main problem is that I don’t have any idea on market. I request you to kindly suggest me to invest wisely to have good returns in long term.

        My age is 31.

        I have one LIC started in 2008 for which I am paying Rs 13,000/Year and one ULIP plan (Bharti Axa Brite star EDGE) started in 2011 for which I am paying Rs 26,000/Year.

        I am still continuing with above two policies.

        My monthly income is Rs 57,000.

        Now I want to invest Rs 5000 per month. But I am not able to find a Mutual fund to invest.

        Kindly suggest me.

        Reply
        • Amiya-Without knowing much about your financial goals, it is hard for me to guide.

          Reply
      • Nothing special financial goal as of now. But I have kids, which age is 1 year. I want to keep ready minimum 50 lacs for him in next 15 years. Kindly suggest me.

        Reply
        • Amiya-Use Debt:Equity in ratio of 30:70. For Debt, use PPF. For equity, use one large cap fund and one small and mid cap fund.

          Reply
          • Thank you Sir for your suggestion. I have selected the below mutual funds.

            Large Cap: SBI Blue Chip Fund (G)

            Small & Mid CAP: DSP BlackRock Micro Cap Fund – Regular Plan (G)
            Franklin India Smaller Companies Fund (G)
            Mirae Asset Emerging Bluechip Fund (G)

            Please suggest which one is the best for investment.

            Reply
  23. Hi Basavraj,
    I am 36 years old working with annual income of 6.3 L I have LIC policy of jeevan anand Sum assuerd 5lackh with yearly premium of 25K.I want to buy retirement policy.
    Thinking of
    1) SBI retireSmart
    2) SBI wealth Builder
    3) Any Reitirement policy of LIC if offered

    or any other policy or mutual fund you can suggest.
    Also i read your reviews but have a doubt . please let me know why we should not mix investemt with insurance.
    Thanks

    Reply
    • Veena-Stop running behind any product which claims to me made for RETIREMENT or PENSION. The only solution for you is to create your own retirement corpus by investing wisely in equity mutual funds (if goal is long term) and some part in debt products.

      Reply
  24. Dear Sir,

    Excellent again! I am becoming FAN for your articles.
    Need your expert advice in my scenario. I am 32 year Old and have recently taken Max Life for term plan.
    Initially 8 years and 3 years ago I also purchased LIC Bima Gold for 25000 yearly and Jeevan Anand for 25000/- yearly respectively. That that point of time I was not having Ideas on Insurance and Investment also I was Miss sold Click 2Invest as well for Rs,50,000/- per year In 2015 October.

    Now that I have understood rules of Equity and Term combinations. Should I surrender / Paid up LIC’s and also Ulip as well? Once I surrender Ulip they will move to disconnected Fund and will yield only 4% per year of Fund value.

    Please suggest!

    Reply
      • Thanks for revert however I had already paid Rs, 37500/- to HDFC ulip and I have planned to make LIC paid up.
        So do you mean that along with term plan I should only continue with ELSS / MF and PPF.

        Rest all I can make paid up or discontinue?

        Also some people suggested me that make LIC paid up and continue with ULIP it is not that bad.

        I do not have any issues in paying premiums as investment however I want to be sure that my hard earned saving goes correctly in right directions.

        Please suggest on how to proceed.

        Reply
        • Kunal-Yes, you must discontinue the other forms of insurance products which combine insurance with investment. ULIP is also dangerous and illiquid product like endowment plans. Turning policy to paid up is beneficial when you are about to reach the policy maturity date.

          Reply
  25. Hi, Basavaraj,
    I’m 21 and a first time investor, I want to invest my saving of around 6000 per month for a long term plan, an advisor from Policy Bazaar has advised me to invest Rs6000 p.m in CLICK2INVEST ULIP for 20 years, and he has promised if I keep 100% of my money into Opportunity Fund for 12-14 years and after that If I switch to bonds then I can attain avg Compound Interest of 14% and can get 55-60 Lakh as the maturity amount. What would you like to suggest me? Is he right? Is there amy chance of attaining that interest rate of 14% ?

    Reply
    • Piyush-Follow simple yet long term rule, never combine insurance with investment.

      Reply
  26. sir
    i have taken the hdfc click2invest
    for 10 years with 5000 pm as premium
    is it ok for long term??

    Reply
      • For Investment purpose

        Reply
        • Apporv-My suggestion is that to always separate investment with insurance.

          Reply
  27. Hi Basavaraj,

    Recently i have taken Click2Invest ULIP plan of HDFC life. My premium amount is Rs 42,000 per year and the policy term is of 20 years. Now i am thinking better i had invested on PPF as the interest rate is almost same.

    Reply
  28. I have taken just hdfc clik to invest can you tell me this is good or bad investment..not completed all procedure but can i should have to take finally or not to invest in this plan.please reply me.

    Reply
  29. Hello Basavaraj
    I am just 21. I have not invest before, this is my first time in investment. I am just thinking about invest in HDFC Click2invest Online ULIP for 5 years (3000 rs per month, SIP Mode). Is this decision whether right or wrong?
    Please suggest me best, and also please tell why is it wrong or right.

    Reply
    • Santanu-Completely wrong. Because first point you have to understand is not to combine insurance with investment. Also, 5 years is short term investment. So avoid any such investments which lock-in your money, no past record and not sure of return.

      Reply
  30. Hi Basavraj,

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

    One more thing 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.

    Reply
    • Yash-In one way you claim layman, but invested in HDFC. When I suggest you to separate insurance with investment, then first understand your insurance requirement. It must be around 15-20 times of your yearly income. When it comes to investing, understand first your financial goals. Then chose the products.

      Reply
  31. HI ,
    I want to take HDFC click to invest policy for 5 year . i do not have any Life insurance .
    my age is 27 years and want to invest 20000 per year .
    please let me know how it is for me ?
    what is means of single premium ?
    i want to take this one for tax saving + life insurance + getting min 10-12 % return .

    Thanks ,
    Sachin

    Reply
    • Sachin-Never combine your insurance with investment. It is wrong to go with ULIPs. Check my review of the same. If your intention is insurance, then buy term insurance. If your intention is investment and tax saving, then chose the product which matches your goal.

      Reply
  32. Hi Basavaraj,
    I am planning to invest 3000 /month for next 15 years in ULIP.
    Which ULIP plan is better among in terms of returns, charges etc.
    1.HDFC click2 invest
    2.ICICI Pru Wealth Builder
    3.SBI Life

    Regards,
    Sandeep

    Reply
      • Then could you pls suggest where should I invest. Is ULIP not a good option as it gives tax benefits and good returns as well. ?
        I have already a term insurance plan of LIC.

        Regards,

        Sandeep

        Reply
        • Sandeep-What do you mean by GOOD RETURNS? Please let me know what you understood about ULIPs good returns.

          Reply
          • Hi Basavaraj,

            As per my understanding, ULIP plan gives minimum 8% compound interest. There is locking of 5 yrs. of period. They 10 times life cover also. I have checked some ULIP plans on the net and they have given min. 13% returns for last 10 years.

            Thanks

            Sandeep

            Reply
            • Sandeep-Whether you consider ULIP as invest or insurance product?

              Reply
              • I am considering it as investment only as I already have a term insurance plan.

                Thanks.

                Reply
                • Sandeep-Then why to lock your investment? Why to invest in a product which not have historical data? Why to risk my money by investing and giving it to someone new?

                  Reply
  33. Dear sir

    I do have invested in this click2invest. I want to know when and how to make a fund switch.

    Thank you

    Reply
    • Kishore-Switching entirely depends on your take of equity and debt.

      Reply
  34. hi,
    i am newer to your port, i need term plan of 1 cr with low premium and for 60 year cover to my family also, then which one is suitable for me ? please give me guideline

    Reply
  35. Hi Basavaraj,

    I have read in your one of the article how these online agents sells particular policy. I made some comparison of online term plans on so called website and purchased Aegon Religare online term plan of Rs.2.00 Crs (Rs.1.5 Cr + Rs.0.50 Cr Accident Rider) last year. Prior to that i had purchased HDFC Life Click2Protect term plan of Rs.1.00 Cr. While purchasing Religare i cancelled my HDFC policy considering benefits of religare policy.

    After purchasing religare policy i came to know that its settlement ratio is just 66.82% (Third Last).

    Now my question is that did i make right decision of cancelling HDFC & buying Religare Policy?

    Thanks,
    Shreyas

    Reply
    • Shreyas-Don’t worry too much about settlement ratio. If you filled data perfectly without hiding anything then you can continue the same.

      Reply
  36. Hi Basu,

    Appreciate your work!!!!!!

    I became daily visitor of your site. Thank god that i have got this 🙂

    My Friend has got some LIC Policy where she paid 20,000(Monthly 3000+ ;paid for 5 months already) which is endowment policy. After reading so many articles i felt this should not be continued. I have requested him to close this and take Term policy.

    Whether this decision is correct?

    Reply
    • Chandra-No doubt a best decision. Because if he/she continue to pay for the sake of getting back of what already paid, they commit more mistake for life long of a policy period.

      Reply
  37. Hi,

    What if you buy this ULIP now with SA 10x Annual premium to avail tax free maturity amount.. and suddenly next year Govt makes all ULIP maturity amount taxable? In such case will the old ULIPS which one has bought now also will be taxed at maturity?

    Recently government change tax structure for Debt funds and no exemption was given to the earlier investors.

    Reply
    • Kunal-Anything can happen if you presume the politicians vote back theory 🙂

      Reply
  38. Hi, Thanks for your review. Few things I would like to mention..Though you have already touched upon discontinuance, the highlight of the product is that no discontinuance charges are levied even on non-payment of premium in first 5 policy years.
    Tax exemption applicability for single premium products (most products offer SA as 125% of SP) remains same across the industry. Also the negatives of the product are generic for ULIPs and not specific to this product.

    Reply
    • Swati-They have not mentioned the charges if you surrender it before 5 years. But they specifically mentioned that they consider it as “Discontinuance of Premium”. So without penalty there will be no such free surrender before 5 years. Whether few negative features applies to this product alone or to generic ULIPs, but when we consider as an investor then we need to concentrate on individual product rather than generic.

      Reply
      • Sir my age is 38 years and I want to get a retirement plan. I want that I will got minimum 10000 pension per month when I have 60 years. I am able to invest 36000 thousand per annual for 20 years. Plan also cover my insurance but main motive is pension only. Please suggest me the best plan. I am thinking about HDFC click to retire and click to invest. What is your opinion HDFC or other.

        Reply
        • Daljit-You are looking mainly for pension product, then why insurance? Stay away from any such pension plans. Try to accumulate the same through investment of mutual funds.

          Reply
          • Sir please suggest me the best plan of pension.

            Reply
            • Daljit-Sadly NONE. You have to create your own pension plan by using debt and equity.

              Reply

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