HDFC Life Investment Plans 5 Years
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HDFC 5 Years Investment Plans

HDFC life insurance company is one of the best insurers in the market which also deals in several forms of investment plans. Established in the year 2000, HDFC life is a partnership among HDFC Ltd., biggest housing finance group and Standard Life Aberdeen plc (one of the world’s largest investment companies). They have joined hands to provide customers with a variety of coverage and investment products inclusive of protection, pension, savings, Investments, health, children, and women! With this kind of diverse portfolio, the employer strives to meet personal safety and wealth-improving needs and offer custom designed financial solutions for everyone.

About HDFC Life Investment Plans

HDFC Life is offering a wider range of effective investment plans that will go well with the financial needs of a person. It offers the safety cover along with the enhancement opportunities of wealth. Both financial savings and market-linked plans are being presented to make sure great wealth along with comfort.

Insurance and investment is a pretty safe financial tool that will secure your future. Savings and investment plan provide lump sum finances to meet your future expenses. Several coverage companies which include HDFC life provide a huge range of savings and investment plans.

Why HDFC Life Investment Plans?

HDFC is offering a wide range of financial savings and investment plans with varying capabilities and advantages to suit your requirements. You can avail numerous benefits to make sure that your funds are growing. The plan paves the way toward a greater systematic method to investment so you reap your financial dream with none hassles.

The company offers different forms of investment options that have been highlighted below.

1. HDFC Life Sanchay

It is a non-participating insurance plan, which provides guaranteed benefits along with the flexibility to choose your investment horizon. Guaranteed benefits of 220% to 325% of the sum assured on maturity depending upon the policy term.

2. HDFC Life Capital Shield

This plan protects your investment from market risks with an assured maturity benefit of 101% of total premiums paid.

3. Pension plans

It is another form of life insurance. It serves various benefits such as term plans and endowment plans – which are popular as protection plans. While protection plans are geared to financially secure the individual’s family on his death, pension plans aim at providing for the individual and his family if he lives on.

Contributions towards pension are covered under Section 80CCC(sub-section under Section 80C) of the Income Tax Act. The aggregate limit of deduction under all the sub-sections of Section 80C cannot exceed Rs 1.5 lakhs.

At the time of maturity, 1/3rd of the accumulated pension amount is tax-free whereas the balance 2/3rd treated as income and taxed at the marginal tax rate. The amount is tax-free upon the death of the beneficiary.

4. Health insurance or Mediclaim

Health insurance which is popular by the name of Mediclaim covered expenses that incurred from an accident/hospitalization. It will also cover pre and post-hospitalization expenses, subject to the sum assured.

Health insurance offers tax benefits. Insurance premium up to Rs 20,000 for senior citizens and Rs 15,000 for others is eligible for tax benefit. If the policyholder pays Rs 15,000 as premium on his own policy and Rs 20,000 for his parent, a senior citizen, he can claim a tax benefit of Rs 35,000 (Rs 15,000+20,000).

5. NPS

The NPS or the New Pension Scheme is regulated by the Pension Funds Regulatory and Development Authority – PFRDA. Any citizen of India over the 18 – 60 years age can participate in it. It is highly cost-effective as fund management charges are low. The fund managers manage the money in three separate accounts having distinct asset profiles viz. Equity (E), Corporate bonds (C) and G Government securities (G). Investors can choose to manage their portfolio actively (active choice) or passively (auto choice).

6. Tax-saving mutual funds

Investments in mutual funds, are also popular by the name of equity-linked savings scheme (ELSS), qualify for tax benefits. The amount invests in stock markets, among other assets, and are more suited for investors with medium to high-risk appetite. Investments are locked in for three years.

Investments towards mutual funds will be liable to get the tax benefits under Section 80C of the Income Tax Act up to a maximum of Rs 1.5 lakhs. Proceeds on death/maturity are tax-free under Section 10(D).

Useful Tips

Customers might calculate the life cover or the sum assured further to reading numerous parameters such as earnings, dependents, debts, liabilities and so forth. Whether or not it's far an endowment plan, term plan or unit-linked plan amongst others, you need to choose a life cover that can easily go well with your requirements. You can additionally compare the benefits provided by exclusive coverage plans to understand in which you suit in and thereby make a knowledgeable selection.

One might do well to review one’s investment desires to 0 in on the styles of savings and investments plans most suitable. Numerous elements including the timeframes, risk, economic popularity and tax position amongst others need to be considered earlier than choosing any savings and funding plan. Additionally, the level of product fees and the charge of returns must additionally be looked into to make a right assessment of your targets.

Last updated on 21-12-2020