Private life insurer HDFC Life has launched Click2Invest - ULIP, a unique online unit linked insurance plan with minimum charges and a range of investment options.
The plan invests 100 per cent of the premium and only charges fund management fee (1.35 per cent) and a risk premium for mortality cover.
On this aspect, it directly competes with ELSS mutual funds and at the same time retains all the flexibility offered by ULIPs. Click2Invest offers the choice of eight funds for investment keeping in mind the market outlook, time horizon and the needs of the customer.
According to Srinivasan Parthasarathy, Chief Actuary and Appointed Actuary of HDFC Life insurance, the plan is also significantly cheaper than offline ULIP plans available in the market today as there is no distribution cost and the mortality charges are lower for the online customer segment due to lower risk perception.
Sanjay Tripathy, Senior EVP-Marketing, Product, Digital & Ecommerce, HDFC Life, said, “We are extremely delighted to bring to our customers Click2Invest – ULIP, a most convenient, transparent and cost-effective online buying experience, which we feel will transform the way life insurance-cum-savings plans are bought in our country. IRDA had set out its customer focused regulatory changes by introducing Charge Cap regulations in 2010 making ULIPs cost-efficient compared to earlier versions and now HDFC Life has taken a step further by launching Click2Invest.”
This plan provides a benefit of premium payment options of Single Pay, 5 Pay, 7 Pay, 10 Pay or Regular Pay.