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Offers guaranteed returns

Monday, November 22, 2010
By Manoj Aswani

HDFC SL Crest is a unit-linked insurance policy which provides highest NAV returns and guarantee on returns
Key Features
  • Benefit of highest NAV on maturity
  • Premium to be paid for a limited period
  • A minimum guaranteed NAV of Rs.15 at maturity 
Eligibility Criteria
Minimum Age at Entry
14 years
Maximum Age at Entry
55 years
Maximum Age at Maturity
65 years
Minimum Policy Term
10 years
Maximum Policy Term
10 years
Premium paying modes
Option of Single Premium
Death Benefit – Basic sum assured or the fund value, whichever is higher, is paid to the nominee on the death of the policy holder
Before attainment of age 60 years
Greater of the two is paid –
1)     Sum Assured (less all withdrawals made during the two year period immediately preceding date of death)
2)     Total Fund Value
On or after attainment of age 60 years
Greater of the two is paid –
1)          Sum Assured (less all withdrawals made after age 58)
2)          Total Fund Value
Maturity Benefit – At the end of the policy term, the policy holder will receive the fund value. Since there are different types of funds under this policy, the maturity benefits to the policy holderwill vary accordingly as under –
Option 1: If Highest NAV Guaranteed fund is opted then the fund value will be computed based on the NAV which will be higher of –
  • Guaranteed NAV subject to a minimum guaranteed NAV of Rs.15
  • NAV on date of maturity    
Option 2: If Free Asset Allocation option is opted, then the fund value as on the maturity date is paid to the policyholder
Surrender Benefit - If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
Additional options
Top up
Not allowed
Not allowed
Partial withdrawal
-       Minimum amount to be withdrawn = Rs.10,000
-       The maximum partial withdrawal that can be done throughout the policy term is 300% of the original regular premium.
Premium Allocation Charges
Premium Year
Allocation Charges
1st Year
2nd Year
3rd Year
4th Year
5th Year
Fund Management Charges
The fund management charge for this policy is 1.35% p.a.
Even thought the premium allocation charges are low and attractive, the fund management charges of ULIP plans from other companies are lower than HDFC SL Crest.
Loan Facility
This policy provides a loan facility to the policy holder. The maximum loan that can be availed under this policy is lower of either –
  • 40% of the surrender value or
  • One annual premium 
Tax Benefit
The policy offers the existing tax benefits -
  • Under Section 80C, premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable income each year
  • Under Section 10 (10D), the benefits you receive from this plan are exempt from tax, subject to mentioned exclusions
By providing the benefit of minimum guaranteed NAV of Rs.15 at maturity through Highest NAV guarantee fund, HDFC SL Crest does assure the policy holder of some basic returns from the policy. So all those who wanted to invest in ULIPs but haven’t done so, because of the latest chaos around ULIP are feeling encouraged to invest in the plan.

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