Recommendations :No

Name of the policy :

A brief desciption :

HDFC SL Crest is a popular and unique ULIP providng 2 categories for investment viz. Highest NAV Guarantee Fund, which if chosen guarantees the minimum NAV at Rs 15 or the highest NAV recorded daily during the first 7 years of the Highest NAV Guarantee Fund and Free Asset Allocation which provides an option of selecting any of the 5 funds provided. However returns are restricted due to high charges levied. Moreover Sum assured is miniscule which is not sufficient to cover an earning member of the family having dependents. So it is advisable to to go for a simple term plan and invest the extra money elsewhere and earn higher returns.

Started date :

Type of policy :
Insurance cum Investment

Category :

Insurance :
Min- 10 times AP Max- 20 times AP

Returns expected :
8%-10% (The performance would be less than a performing equity diversified mutual fund)

Entry age :
14-55 Years

Surrender :
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. If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.

Minimum amount :
Min- 50,000 Max- No limit

Mortality Charges :
The amount is not clearly specified, it depends upon the age of the policy holder and cover taken

Unique features :
It is a popular ULIP providing 2 strategies for investment

Premium Allocation Charge Year 1 :0%
Premium Allocation Charge Year 2 :0%
Premium Allocation Charge Year 3 :0%
Premium Allocation Charge Year 4 :0%
Premium Allocation Charge Year 5 :0%
Fund Management Charge :1.35% p.a. of the fund value charged daily
Surrender/ Premium Discontinuance Charge Year 1 :Lower of 6% of AP, 6% of FV, Rs. 6,000
Surrender/ Premium Discontinuance Charge Year 2 :Lower of 4% of AP, 4% of FV, ` 5,000
Surrender/ Premium Discontinuance Charge Year 3 :Lower of 3% of AP, 3% of FV, ` 4,000
Surrender/ Premium Discontinuance Charge Year 4 :Lower of 2% of AP, 2% of FV, ` 2,000
Surrender/ Premium Discontinuance Charge Year 5 and above :Nil

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