HDFC Life Uday Plan

Death Benefit

In case of the Life Assured’s death during the policy term, the company will pay to the nominee the highest of the following:

• Sum Assured on Death + Accrued Guaranteed Additions + Accrued Reversionary Bonuses + Interim bonus (if any) + Terminal bonus (if any)
• 105% of premiums paid till date

Sum Assured on Death is higher of:

• Sum Assured on Maturity, which is the absolute amount of benefit guaranteed to be payable on maturity of the policy
• An absolute amount assured to be paid on death, which in this case is equal to the Sum Assured on Maturity
• 10 times Annualized Premium for entry age up to 50 years and 7 times Annualized Premium for entry age greater than 50 years

Accidental Death Benefit

In case of the Life Assured’s unfortunate demise due to an accident during the term of the policy, an additional sum equal to Sum Assured on Death is payable to the nominee.

Auto Cover Continuance

Under this feature, for a reduced paid-up policy the full death benefit shall continue for a period of one year (Auto Cover Continuance period) from the date of first unpaid premium. Auto Cover Continuance applies only to the basic death benefit and not to the additional accidental death benefit. At the time of payment of death benefit during the Auto Cover Continuance period, the due but unpaid premium shall not be deducted from the benefit payable.

Maturity Benefit

Maturity benefit is payable on the survival of the Life Assured till the completion of the policy term. Maturity benefit is payable as an aggregate of

1. Sum Assured on maturity
2. Accrued Guaranteed Additions
3. Accrued Reversionary bonus, Interim bonus and Terminal bonus, if any.

Guaranteed Additions

The plan provides you with additional boosters in the form of Guaranteed Additions, at the rate of 3% of 'Sum Assured on maturity' during the first 5 years of the policy. The Guaranteed Additions are payable at maturity or death, whichever is earlier. In case of surrender, the surrender value of Guaranteed Additions will be payable.

Bonus

The plan is eligible for the bonuses declared by the company.A simple Reversionary Bonus which is declared at the end of each financial year and is payable either on death or on maturity, whichever event happens first. A Terminal Bonus may be added to a policy which depends on the actual future experience it is not a guaranteed benefit.

Loan Benefit

Loan facility is available under this plan. The policyholder can avail loan under the policy provided the policy has acquired a surrender value and subject to the terms and conditions.

Surrender Value

Guaranteed surrender value (GSV) plus the surrender value of the bonuses, which is a percentage of accrued bonuses is payable if at least three full years premiums have been paid. The GSV shall be a percentage of total premiums paid.

Tax Benefit

The plan offers tax benefits under section 80C  and section 10 (10D) of the Income Tax Act, 1961.

Inbuilt accidental death benefit rider is available with this plan.No additional rides are available with this plan.

Let us understand the plan with the case study of Rahul.

• Name of Life insured: Rahul
• Occupation: Sales Manager
• Age of Life insured: 32 years
• Family Structure: A wife (appointed as a nominee) and a 2 year old kid
• Policy term: 15 years
• Sum Assured: Rs 5 Lacs

Scenario 1: If Rahul dies during the policy term

The benefits are payable to the nominee (Rahul’s wife)  which is the highest of the following:

• Sum Assured on Death (Rs 5 Lacs) + Accrued Guaranteed Additions + Accrued Reversionary Bonuses + Interim bonus (if any) + Terminal bonus (if any)
• 105% of premiums paid till date

Scenario 2: If Rahul survives the policy term

Rahul will receive an aggregate of the following as maturity benefit:

• Sum Assured on maturity (Rs 5 Lacs)
• Accrued Guaranteed Additions
• Accrued Reversionary bonus, Interim bonus and Terminal bonus, if any.

Scenario 3: If Rahul dies an accidental death

Rahul’s nominee will receive an additional sum assured of Rs 5 Lacs along with the death benefit as the accidental death benefit rider  benefit is inbuilt in the plan.