HDFC Life Classic One

HDFC Life Classic One is a Unit Linked Single Premium Life Insurance Plan that comes with a unique option that offers life coverage for two individuals wherein a lump sum of 10 times the single premium is offered on the second death of the two lives assured. This plan also offers loyalty additions that will help you boost your fund value.

Why you need this Plan ?
  • Single Premium Savings Plan with Life cover
  • Option of Single and Joint Life cover
  • Investment flexibility with 9 funds: Unlimited free switches allowed
  • Benefit of rupee cost averaging(STP)
  • Option to choose 10 times the single premium insurance cover
    • Single Life Coverage Variant: On survival until maturity the Fund Value will be paid.
    • Joint life Coverage Variant: On survival until maturity of at least one of the lives assured, Fund Value will be paid.

    Fund Value will be calculated by multiplying balance units in your fund(s) by the then prevailing unit price(s). Your policy matures at the end of Policy Term and all risk cover ceases.

    You can take your Fund value at maturity in periodical instalments under Systematic Withdrawal Plan. Please refer the section on Systematic Withdrawal Plan below for more details.

  • Single Life Coverage Variant: On survival until maturity the Fund Value will be paid.
  • Joint life Coverage Variant: On survival until maturity of at least one of the lives assured, Fund Value will be paid.

Fund Value will be calculated by multiplying balance units in your fund(s) by the then prevailing unit price(s). Your policy matures at the end of Policy Term and all risk cover ceases.

You can take your Fund value at maturity in periodical instalments under Systematic Withdrawal Plan. Please refer the section on Systematic Withdrawal Plan below for more details.

    • Single Life Coverage Variant: Sum Assured on death is payable as a lump sum on death of the life assured during the Policy Term.
    • Joint life Coverage Variant: Sum Assured on death is payable as a lump sum on the second death of the two lives assured during the Policy Term.

    Sum Assured on death is the highest of:

    • Total Sum Assured less an amount for Partial withdrawals made, if any (as detailed below), where Total Sum Assured is Basic Sum Assured plus any additional Sum Assured in respect of Top-ups,
    • Total Fund value where Total Fund value includes Single Premium Fund Value plus Top-up Premium Fund value
    • 105% of Total premiums paid (including Top-up premiums, if any)

    The partial withdrawals to be deducted from the Total Sum Assured shall be:

    • For death2 before attaining age 60: all  partial withdrawals (except from the Top-up Fund Value) made during the two year period immediately preceding the date of death.
    • For death on or after attaining age 60: all partial withdrawals (except from the Top-up fund value) made within two years before attaining age 60 and all the partial withdrawals made after attaining age 60

    Upon payment of Death Benefit, the policy shall terminate and no further benefits shall be payable.

    In addition, if Joint Life coverage variant is opted then, on first death3, the fund value will be set to be higher of 125% of Single premium or balance in the unit fund.

    Further in case of death of one of the lives, the surviving life assured will have an option to either:

            1. fully withdraw this amount and continue the policy with the coverage as per the policy provisions, OR

            2. not withdraw any amount and continue the policy with the coverage as per the policy provisions

    The restriction of withdrawal during first 5 years shall not apply in this case since this is a contingency withdrawal.

    If the surviving life opts for Option 1, then a lump sum mortality charge shall be deducted from the fund value towards future mortality cover to be provided to the surviving life.

    This lump sum mortality charge shall be determined as a present value of future mortality charges discounted at the prevailing 10-yr G-Sec yield less 2%.

    2For Joint Life Coverage Variant, age of the last survivor shall be considered.

    3Not applicable on death due to suicide

  • Single Life Coverage Variant: Sum Assured on death is payable as a lump sum on death of the life assured during the Policy Term.
  • Joint life Coverage Variant: Sum Assured on death is payable as a lump sum on the second death of the two lives assured during the Policy Term.

Sum Assured on death is the highest of:

  • Total Sum Assured less an amount for Partial withdrawals made, if any (as detailed below), where Total Sum Assured is Basic Sum Assured plus any additional Sum Assured in respect of Top-ups,
  • Total Fund value where Total Fund value includes Single Premium Fund Value plus Top-up Premium Fund value
  • 105% of Total premiums paid (including Top-up premiums, if any)

The partial withdrawals to be deducted from the Total Sum Assured shall be:

  • For death2 before attaining age 60: all  partial withdrawals (except from the Top-up Fund Value) made during the two year period immediately preceding the date of death.
  • For death on or after attaining age 60: all partial withdrawals (except from the Top-up fund value) made within two years before attaining age 60 and all the partial withdrawals made after attaining age 60

Upon payment of Death Benefit, the policy shall terminate and no further benefits shall be payable.

In addition, if Joint Life coverage variant is opted then, on first death3, the fund value will be set to be higher of 125% of Single premium or balance in the unit fund.

Further in case of death of one of the lives, the surviving life assured will have an option to either:

        1. fully withdraw this amount and continue the policy with the coverage as per the policy provisions, OR

        2. not withdraw any amount and continue the policy with the coverage as per the policy provisions

The restriction of withdrawal during first 5 years shall not apply in this case since this is a contingency withdrawal.

If the surviving life opts for Option 1, then a lump sum mortality charge shall be deducted from the fund value towards future mortality cover to be provided to the surviving life.

This lump sum mortality charge shall be determined as a present value of future mortality charges discounted at the prevailing 10-yr G-Sec yield less 2%.

2For Joint Life Coverage Variant, age of the last survivor shall be considered.

3Not applicable on death due to suicide

     Loyalty Additions will be allocated as extra units at the end of the 10th Policy year provided the policy is in force and no Partial Withdrawals have been exercised.

     Loyalty additions will be higher of:

    1. Total Premium allocation charge and Policy Administration charge deducted on your policy till date
    2. 5% of Single Premium

     The charges considered for Loyalty Additions shall exclude taxes and levies, if any.

    For Online cases only, Loyalty additions will be allocated as extra units at the end of the 7th  and 10th  policy years provided the policy is in force and no Partial Withdrawals have been exercised.

    Table below provides Loyalty Additions (as a % of Single Premium):

    Policy Year

    Loyalty Addition

     

    2%

    10

    3%

    Loyalty Additions will be allocated between the funds in the same proportion as the value of total units held in each fund at the time of allocation.

    Loyalty additions once added to the fund are irreversible. The policyholder is eligible to make Partial Withdrawals in subsequent years and the already allocated loyalty additions would be a part of the fund value, which would be paid at maturity.

    Special Joining Addition- (For online cases only)

    Special Joining Addition of 1% of Single Premium shall be added to the Fund Value of policies with a Single Premium of 15 lakhs or higher at policy inception.

 Loyalty Additions will be allocated as extra units at the end of the 10th Policy year provided the policy is in force and no Partial Withdrawals have been exercised.

 Loyalty additions will be higher of:

  1. Total Premium allocation charge and Policy Administration charge deducted on your policy till date
  2. 5% of Single Premium

 The charges considered for Loyalty Additions shall exclude taxes and levies, if any.

For Online cases only, Loyalty additions will be allocated as extra units at the end of the 7th  and 10th  policy years provided the policy is in force and no Partial Withdrawals have been exercised.

Table below provides Loyalty Additions (as a % of Single Premium):

Policy Year

Loyalty Addition

 

2%

10

3%

Loyalty Additions will be allocated between the funds in the same proportion as the value of total units held in each fund at the time of allocation.

Loyalty additions once added to the fund are irreversible. The policyholder is eligible to make Partial Withdrawals in subsequent years and the already allocated loyalty additions would be a part of the fund value, which would be paid at maturity.

Special Joining Addition- (For online cases only)

Special Joining Addition of 1% of Single Premium shall be added to the Fund Value of policies with a Single Premium of 15 lakhs or higher at policy inception.

    The Policyholder can avail of the settlement option for maturity benefit, subject to the following conditions:

    1. The policyholder has the option to take the fund value in periodical installments over a period which may extend to 5 years.
    2. The first installment will become payable on the maturity date
    3. The policyholder shall be given a choice to decide the payout frequency and the settlement period at the time of opting for settlement option. The payout frequency and the settlement period once selected cannot be altered any time. The units will be redeemed systematically in equal installments during the settlement period. This is illustrated further with 3 examples.

    Example

    Payout frequency

    Settlement period

    Total number of installments

    Proportion of units redeemed per installment (% ofnumberof units at maturity date)

    1

    Annual

    4 years

    4

    25%

    2

    Quarterly

    1 year

    4

    25%

    3

    Semi-annual

    5 years

    10

    10%

    1. The Fund Value at Maturity is greater than or equal to Rs 1 Lakh.
    2.   The risk cover ceases and the fund continues to be invested during this period.
    3.   The only charge levied on the fund during the settlement period is the Fund Management Charge.
    4.  The policyholder will be unable to exercise any partial withdrawals or switches during the settlement period.
    5. During the settlement period, the policyholder shall have an option to withdraw the Total Fund value at any time without levying any charge.

The Policyholder can avail of the settlement option for maturity benefit, subject to the following conditions:

  1. The policyholder has the option to take the fund value in periodical installments over a period which may extend to 5 years.
  2. The first installment will become payable on the maturity date
  3. The policyholder shall be given a choice to decide the payout frequency and the settlement period at the time of opting for settlement option. The payout frequency and the settlement period once selected cannot be altered any time. The units will be redeemed systematically in equal installments during the settlement period. This is illustrated further with 3 examples.

Example

Payout frequency

Settlement period

Total number of installments

Proportion of units redeemed per installment (% ofnumberof units at maturity date)

1

Annual

4 years

4

25%

2

Quarterly

1 year

4

25%

3

Semi-annual

5 years

10

10%

  1. The Fund Value at Maturity is greater than or equal to Rs 1 Lakh.
  2.   The risk cover ceases and the fund continues to be invested during this period.
  3.   The only charge levied on the fund during the settlement period is the Fund Management Charge.
  4.  The policyholder will be unable to exercise any partial withdrawals or switches during the settlement period.
  5. During the settlement period, the policyholder shall have an option to withdraw the Total Fund value at any time without levying any charge.

    Apart from choosing your basic fund allocation, you can also choose to avail Systematic Transfer Plan (STP)which gives you the benefits of rupee cost averaging.

    1. You can invest all or some part of your investment in Income Fund, Bond Fund or Conservative Fund and transfer a fixed amount in regular monthly installments into any one of the following funds: Equity Plus Fund, Diversified Equity Fund, Blue Chip Fund, Opportunities Fund, Discovery Fund or Balanced Fund.
    2. The transfer will be done in 12 equal installments. The transfer date can be either 1st or 15th of every month as chosen by you.
    3. At the time of transfer, the required number of units will be withdrawn from the fund chosen, at the applicable unit value, and new units will be allocated in the chosen destination fund.
    4. The minimum transfer amount is Rs. 5,000.
    5. The Systematic Transfer Plan will be regularly processed for you till the Company is notified, through a written communication, to discontinue the same. Systematic Transfer Plan will not apply if the source Fund Value is less than the chosen transfer amount.
    6. No additional charges apply on selecting Systematic Transfer Plan

Apart from choosing your basic fund allocation, you can also choose to avail Systematic Transfer Plan (STP)which gives you the benefits of rupee cost averaging.

  1. You can invest all or some part of your investment in Income Fund, Bond Fund or Conservative Fund and transfer a fixed amount in regular monthly installments into any one of the following funds: Equity Plus Fund, Diversified Equity Fund, Blue Chip Fund, Opportunities Fund, Discovery Fund or Balanced Fund.
  2. The transfer will be done in 12 equal installments. The transfer date can be either 1st or 15th of every month as chosen by you.
  3. At the time of transfer, the required number of units will be withdrawn from the fund chosen, at the applicable unit value, and new units will be allocated in the chosen destination fund.
  4. The minimum transfer amount is Rs. 5,000.
  5. The Systematic Transfer Plan will be regularly processed for you till the Company is notified, through a written communication, to discontinue the same. Systematic Transfer Plan will not apply if the source Fund Value is less than the chosen transfer amount.
  6. No additional charges apply on selecting Systematic Transfer Plan
    1. Premium allocation charge– Single Premium: 2%, Top Up Premium: 1%

        Premium allocation charge(For online cases only ) - NIL

    1. Policy administration charge – 0.04% per month of the single premium subject to the cap of Rs 500 per month. This charge may be increased subject to prior approval from IRDAI.
    2. Fund Management Charge – 1.35% p.a. of the Fund Value, adjusted to the NAV on a daily basis. For Discontinued Policy Fund, an FMC of 0.50% p.a. is applicable
    3. Mortality Charge – The amount of the charge taken each month depends on age(s) of the life assured, life coverage variant, Sum Assured on death at that point and Fund Value.

        In case of Joint Life coverage variant, one mortality charge will be charged till the first death and another lower mortality charge will be charged till the second death.

    1. Partial withdrawal charge: Nil
    2. Switching charge:Nil
    3. Discontinuance charge – The table below provides the discontinuance charge when policy is discontinued in different policy years:

    Where the policy is discontinued during the policy year

    Charge 

    1

    Lower of 1% *(SP or FV) subject to a maximum of Rs.6000/-

    2

    Lower of 0.5% *(SP or FV) subject to a maximum of Rs. 5000/-

    3

    Lower of 0.25%* (SP or FV) subject to a maximum of Rs. 4000/-

    4

    Lower of 0.1% *(SP or FV) subject to a maximum of Rs. 2000/-

    5 and onwards

    Nil

    SP – Single Premium; FV – Fund Value on the date of discontinuance

    This charge will be deducted by cancellation of units. No discontinuance charges are imposed on Top-up premiums.

    This charge can be increased to the maximum cap allowed by IRDAI from time to time, subject to prior approval from IRDAI.

    INDIRECT & DIRECT TAXES:

    Indirect Taxes: Taxes and levies as applicable will be charged and are payable by you by any method including by levy of an additional monetary amount in addition to premium and/or charges. Direct Taxes: Tax will be deducted at the applicable rate from the payments made under the policy, as per the provisions of the Income-tax Act, 1961.

  1. Premium allocation charge– Single Premium: 2%, Top Up Premium: 1%

    Premium allocation charge(For online cases only ) - NIL

  1. Policy administration charge – 0.04% per month of the single premium subject to the cap of Rs 500 per month. This charge may be increased subject to prior approval from IRDAI.
  2. Fund Management Charge – 1.35% p.a. of the Fund Value, adjusted to the NAV on a daily basis. For Discontinued Policy Fund, an FMC of 0.50% p.a. is applicable
  3. Mortality Charge – The amount of the charge taken each month depends on age(s) of the life assured, life coverage variant, Sum Assured on death at that point and Fund Value.

    In case of Joint Life coverage variant, one mortality charge will be charged till the first death and another lower mortality charge will be charged till the second death.

  1. Partial withdrawal charge: Nil
  2. Switching charge:Nil
  3. Discontinuance charge – The table below provides the discontinuance charge when policy is discontinued in different policy years:

Where the policy is discontinued during the policy year

Charge 

1

Lower of 1% *(SP or FV) subject to a maximum of Rs.6000/-

2

Lower of 0.5% *(SP or FV) subject to a maximum of Rs. 5000/-

3

Lower of 0.25%* (SP or FV) subject to a maximum of Rs. 4000/-

4

Lower of 0.1% *(SP or FV) subject to a maximum of Rs. 2000/-

5 and onwards

Nil

SP – Single Premium; FV – Fund Value on the date of discontinuance

This charge will be deducted by cancellation of units. No discontinuance charges are imposed on Top-up premiums.

This charge can be increased to the maximum cap allowed by IRDAI from time to time, subject to prior approval from IRDAI.

INDIRECT & DIRECT TAXES:

Indirect Taxes: Taxes and levies as applicable will be charged and are payable by you by any method including by levy of an additional monetary amount in addition to premium and/or charges. Direct Taxes: Tax will be deducted at the applicable rate from the payments made under the policy, as per the provisions of the Income-tax Act, 1961.

For Single Life

Age at entry (last birthday)
 
MIN
0years 4
 
MAX
40years
Age at maturity (last birthday)
 
MIN
18 years
 
MAX
50 years
Single Premium (SP)
 
MIN
Rs.200,0007
 
MAX
No limit8
Policy Term
 
MIN
10 years
 
MAX
50 minus Age at
Entry
Sum Assured (for entry age less than 45)
 
MIN
1.25 x
Single Premium
 
MAX
10 x
Single Premium
Sum Assured (for entry age 45 and above)
 
MIN
1.10 x
Single Premium
 
MAX
10 xSingle
Premium

For Joint Life

Age at entry (last birthday)
 
MIN
18years
 
MAX
80years 5
Age at maturity (last birthday)
 
MIN
28years
 
MAX
90years6
Single Premium (SP)
 
MIN
Rs.2,00,000 7
 
MAX
No limit8
Policy Term
 
MIN
10years
 
MAX
90minus Age at
Entry 6
Sum Assured
 
  • 10 x Single Premium

ELIGIBILITY FOR JOINT LIFE

The relationship between the two policyholders can be the spouse/child/parent/grandparent/co-borrower. Other relationships such as that under partnership firms may also be considered as long as there is an insurable interest10 between the two individuals. For all the mentioned relationships, the cover will be granted up to the extent of insurable interest only. Insurable interest will be established at the time of issuing policy and cover shall be issued only where need for insurance is satisfied as per underwriting norms of our Board Approved Underwriting Policy (BAUP).

4Risk cover starts from date of commencement of policy for all lives including minors. In case of a minor life, the policy will vest on the Life Assured On attainment of age 18 years.
5Applicable for both the lives for Joint Life Coverage Variant
6Higher of two ages in case of Joint Life Coverage Variant.
7The minimum Single Premium is Rs. 1,00,000 where the proceeds are from a contract issued or administered by the Company.
8There is no absolute maximum single premium amount. However, premium amount shall be accepted subject to both medical and financial underwriting as per our Board Approved Underwriting Policy.
9Sum assured applies to both lives in case of joint cover and is paid only on the death of both the lives
10One individual is said to have an ‘insurable interest’ in the other when one stands to gain or benefit from the continued existence and well-being of the other, and would suffer a financial loss if there is damage to the other.

FAQs

HDFC Life Classic One is a Unit Linked Single Premium Life Insurance Plan that comes with a unique option of Joint Life coverage on second death basis that offers life coverage for two individuals wherein a Sum Assured of 10 times the single premium is offered on the second death of the two lives assured.

Classic One provides life insurance cover on Single and Joint Life basis and the returns are tax free under section 10(10D) for Sum Assured =10 times of Single Premium

 

The relationship between the two policyholders can be the spouse/child/parent/grandparent or co-borrower. Other relationships such as that under partnership firms may also be considered as long as there is an insurable interest between the two individuals. For all the mentioned relationships, the cover will be granted up to the extent of insurable interest only. Insurable interest will be established at the time of issuing policy and cover shall be issued only where need for insurance is satisfied as per underwriting norms of our Board Approved Underwriting Policy (BAUP).

HDFC Life Classic One gives you option of 9 different funds to invest your money. Each fund has its own Investment policy, based on asset allocation between equity, debt and money market instruments. You can invest in a combination of funds by allocating your fund between different fund options. Also, you can switch between funds using fund switch option at any time without any charge.

You can choose to avail Systematic Transfer Plan (STP) which gives you the benefits of rupee cost averaging. The transfer will be done in 12 equal instalments. The transfer date can be either 1st or 15th of every month as chosen by you.

 

You have the option of paying Top-up premiums with a minimum top-up premium is Rs. 10,000. Total Top-up should not exceed the amount of Single Premium paid. Top-up premiums are not permitted during the last 5 years of the contract.

The policyholder has the option to take the maturity benefit in periodical instalments over a period, which may extend to 5 years, first instalment payable on the maturity date. The risk cover ceases and the fund continues to be invested during this period.

 

On survival of the life/lives assured till the end of the Policy Term (maturity) you will receive your Fund Value as a lump sum

Fund Value will be calculated by multiplying balance units in your fund(s) by the then prevailing unit price(s).

On first death, the fund value will be set to be higher of 125% of Single premium or balance in the unit fund. The surviving life can fully withdraw this amount and continue the policy with the coverage as per the policy provisions or not withdraw any amount and continue the policy with the coverage as per the policy provisions

For Single Life Coverage Variant, Sum Assured on death is payable as a lump sum on death of the life assuredduring the Policy Term. For Joint life Coverage Variant, Sum Assured on death is payable as a lump sum on the second death of the two lives assured during the Policy Term.

The Policyholder has the option of making partial withdrawals. The Life Assured should be at least 18 years of age. The minimum Partial Withdrawal amount is Rs. 10,000 and shall not be allowed within first five policy years. The fund value after any partial withdrawal and any applicable charges (including applicable taxes and other statutory levies, if any) is not less than the 25% of the single premium and the maximum amount of partial withdrawals that can be done throughout the policy term from the basic fund value is 50% of the single premium.

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