HDFC Life Group Unit Linked Future Secure Plan

What is HDFC Life Group Unit Linked Future Secure Plan?

The HDFC Life Group Unit Linked Future Secure Plan is a Non-Participating Group Unit-Linked Insurance Plan (ULIP) designed for companies to provide financial benefits to their employees. This plan combines life insurance with investment opportunities, allowing businesses to build a fund for various employee benefits, such as gratuity and leave encashment.

Features of HDFC Life Group Unit Linked Future Secure Plan

The key features of HDFC Life Group Unit Linked Future Secure Plan are as follows:

• Investment Options: Access to various money market, debt, and equity instruments.

• Flexible Contributions: Master policyholders can pay premiums at their convenience.

• Member Flexibility: New members can join anytime; existing members can leave whenever they choose.

• Extra Allocation: Opportunity for additional contributions in the first policy year.

• Market-Linked Investment: Option for investments linked to market performance with a capital guarantee after a 2-year waiting period.

• Large Contributions: Enhanced fund additions for contributions of ₹1 Crore or more.

• Investment Control: Policyholders can make unlimited switches between available investment options.

• Built-in Sum Assured: Automatic sum assured of ₹10,000, in addition to the death benefit for selected non-superannuation schemes.

• Tax Benefits: Income tax advantages for both the master policyholder and scheme members.

Eligibility Criteria for HDFC Life Group Unit Linked Future Secure Plan

Investment Options under HDFC Life Group Unit Linked Future Secure Plan

The Master Policyholder can choose from one or both investment options at the start of the policy:

Option A – Market Linked

Invests in market-linked funds with no capital guarantee. You can choose from multiple funds based on your risk preference.

Option B – Market Linked with Guaranteed Benefits

Offers a guarantee of 100.1% return on net contributions (contribution minus any benefit payments), with these conditions:

• Each contribution is tracked separately for guarantee calculation.

• The guarantee applies after two years from the contribution date, ensuring 100.1% return at exit.

• Benefit payments are deducted on a First In, First Out (FIFO) basis.

Benefits of HDFC Life Group Unit Linked Future Secure Plan

The key benefits of the HDFC Life Group Unit Linked Future Secure Plan are as follows:

• Death Benefits:

  • For Defined Benefit Schemes: Benefit is calculated as per scheme rules and paid by canceling units at prevailing NAV, limited to available fund value or guaranteed benefit (for Option B).

  • For Defined Contribution Schemes: Higher of the Member Fund Value or Guaranteed Benefit (for Option B). An additional ₹10,000 is paid for non-superannuation schemes under Option B.

• Maturity Benefits: No benefits are payable on maturity under either option.

• Exit Benefits (Retirement/Resignation/Termination):

  • For Defined Benefit Schemes: Benefit is calculated as per scheme rules and paid by canceling units at prevailing NAV, subject to available fund value or guaranteed benefit (for Option B).

  • For Defined Contribution Schemes: Higher of the Member Fund Value or Guaranteed Benefit (for Option B).

• Other Scheme Rule Benefits: For both Defined Benefit and Contribution Schemes, benefits are paid as per scheme rules, subject to available fund value or guaranteed benefit (for Option B).

• Survival Benefits: No survival benefits are payable under either option.

Policy Details of HDFC Life Group Unit Linked Future Secure Plan

• Large Fund Additions: Additional units are allocated monthly based on average fund size, with pooling benefits for group companies.

• Extra Allocation: Extra allocation in the first policy year is recovered over a specified period.

• Surrender Benefits: 

  • Option A: Fund value minus surrender charges.

  • Option B: Higher of fund value or guaranteed benefit for contributions older than two years and fund value for newer contributions, minus surrender charges.

• Top-Up Premiums: Allowed only to address scheme underfunding.

• Partial Withdrawals: Not allowed.

• Fund Switching: Unlimited fund switches are allowed within the chosen option. For Option B, guarantees apply after a two-year waiting period post-switch.

• Premium Redirection: Future contributions can be redirected to other funds within the chosen option.

• Loans: Loans are not available under the policy.

• Free-Look Cancellation: Policyholders can cancel within 30 days of receiving the policy and receive a refund after deducting applicable charges.

How the Plan Works?

Following is a step-by-step guide to how the HDFC Life Group Unit Linked Future Secure Plan works:

• Flexible Contributions: Master policyholders can decide when and how much to pay into the scheme.

• Investment Options: Funds can be allocated to various money market, debt, and equity instruments, allowing for diverse investment strategies.

• Extra Allocation: In the first policy year, there is an option for additional allocation of contributions.

• Market-Linked Returns: Investments are linked to market performance, with a capital guarantee return after a waiting period of two years.

• Member Management: New members can join at any time, and existing members can leave whenever they wish.

• Sum Assured: An in-built sum assured of Rs. 10,000 is provided in addition to the death benefit.

• Investment Control: Policyholders can switch between different investment funds without limits, giving them control over their investments.

Suicide Exclusion Criteria

The suicide clause is not applicable under the HDFC Life Group Unit Linked Future Secure Plan. If the insured passes away due to suicide within one year of the coverage start date or entry date, the full death benefit will still be paid. This ensures complete financial support to the nominee during difficult times, offering peace of mind and protection without exceptions.