Quick Overview
The HDFC Click 2 Wealth plan is designed to support long-term wealth creation alongside life cover. It offers multiple plan variants, funding options, and payout structures, making it appear flexible on paper. But before you invest, the real question is whether Click 2 Wealth is actually worth it.
In this guide, we break down the plan’s key features, drawbacks, riders, and whether you should opt for it.
HDFC Life: Performance Metrics
Takeaways:
- HDFC Life maintains a consistently high claim settlement ratio, placing it among the most reliable insurers in India.
- The insurer’s ASR indicates balanced claim payouts across both low- and high-value claims.
- An exceptionally low complaint volume suggests efficient servicing and a smoother claims experience.
- HDFC Life’s solvency ratio sits above the Insurance Regulatory and Development Authority of India (IRDAI)’s minimum requirement of 1.5x.
- HDFC Life is one of the largest private insurers in India by business volume, reinforcing its market credibility.
Note: These numbers reflect HDFC Life as an insurer across all of its life insurance offerings. They improve confidence in claim servicing, but they do not automatically make Click 2 Wealth a good investment product.
Key Features of HDFC Life Click 2 Wealth Plan
When the policyholder dies, the payout will be whichever of the following is the highest:
- Sum assured (minus any recent partial withdrawals)
- Current fund value
- 105% of all premiums paid
The policyholder can take the fund value in a lump sum or in periodic instalments for up to 5 years from maturity or death, subject to conditions.
HDFC Life Click 2 Wealth Variants
Invest Plus
This is the core investment-focused variant of the plan. It provides life cover along with market-linked returns, under which the nominee receives the accumulated fund value at maturity.
Premium Waiver
In the event of the policyholder’s death, the insurer pays any outstanding future premiums, and the policy continues until maturity. It is most meaningful when the policyholder/proposer is different from the life assured, such as a parent buying for a child.
Golden Years Benefit Option
This option is designed for individuals planning for post-retirement income. It allows policyholders to accumulate a corpus during the policy term and then receive systematic payouts during the income phase.
Choice of Investment Funds in HDFC Click 2 Wealth
HDFC Life Click 2 Wealth gives policyholders access to 20 investment funds (across equity, debt, and balanced strategies), and that is one of the plan’s biggest strengths. You can allocate money across multiple funds, not just one, and move between them using unlimited free switches during the policy term.
Fund Boosters in Click 2 Wealth
- Return of Mortality Charges (ROMC)
At maturity, the policy adds back to the fund value the total mortality charges deducted for the life cover of the life assured, including those deducted on the top-up sum assured.
ROMC is not available if the policy is surrendered, discontinued, or made paid-up. It is also not available where the waiver of premium benefit is triggered because of the proposer’s death. - Special Additions
For regular pay and limited pay policies, HDFC Life adds 1% of the annualized premium to the fund value at the time of premium allocation for the first five policy years. For single pay policies, it adds 1% of the single premium at inception. Importantly, this benefit is available across all three plan options.
Premium Illustration
The policy brochure of HDFC Life Click 2 Wealth shows a simple example of a 35-year-old male covered, paying annually for 20 years, with 100% of the premium invested in the Liquid Plus segregated fund. These numbers are illustrative and not guaranteed.
Riders Available with Click 2 Wealth
- Income Benefit on Accidental Disability Rider Linked
Provides a steady income payout if the policyholder suffers an accidental disability, helping maintain financial stability during recovery and beyond. - Protect Plus Rider Linked
Offers an additional lump-sum payout upon death or upon specified critical conditions, strengthening overall protection for the policyholder’s family.
Drawbacks of HDFC Life Click 2 Wealth Plan
High Fund Management Charges
Complex Product Structure
5-Year Lock-in Period
Restriction on Top-Ups
ULIP vs Term Insurance: Which is Better?
For insurance, let us consider the example of the premiums for HDFC Life’s flagship term offering, Click2Protect Supreme Plus.
We’re considering healthy profiles of non-smokers living in a Tier-1 city like Delhi (pincode: 110010), covered for a sum assured of ₹1 Crore until age 65. The premiums are indicative only and may vary based on your age, health conditions, lifestyle choices, and underwriting decisions.
From an Insurance Perspective
With HDFC Life Click2Protect Supreme Plus, you can get ₹1 Crore of life cover for roughly ₹10,000-₹15,000 per year. In comparison, a ULIP like HDFC Life Click 2 Wealth requires a much higher premium (₹50,000 in the illustration) but offers only around ₹5 Lakh of cover.
From an Investment Perspective
The Click 2 Wealth illustration shows returns in the range of 4%-8%, in line with regulatory guidelines. However, these returns are market-linked, not guaranteed, and are reduced by multiple charges within the ULIP structure. For context, the illustrations show that the net returns are in the range of 6.7-6.9% after accounting for all charges, if the fund's gross return is 8%.
Instead, separating investments from insurance often works better. After buying a low-cost term plan, the remaining funds can be invested in several options. PPFs and FDs do not carry explicit expense ratios or ongoing management costs, while mutual funds, especially direct plans and index funds, are also relatively low-cost, often with expense ratios below 0.5%.
You can also check out our comprehensive guide on ULIPs vs term insurance for more details.
Why Choose Ditto for Term Insurance?
At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Aaron below love us:
- No-Spam & No Salesmen
- Rated 4.9/5 on Google Reviews by 15,000+ happy customers
- Backed by Zerodha
- 100% Free Consultation
You can book a FREE consultation. Slots are running out, so make sure you book a call or chat on WhatsApp now!
Ditto’s Take on HDFC Life Click 2 Wealth
HDFC Life Click 2 Wealth bundles insurance and investments, but the trade-off isn’t great because you get low life cover for a high premium, while layered charges and a 5-year lock-in reduce flexibility and net returns.
A cleaner strategy is to separate the two: buy a pure term plan, such as HDFC Life Click2Protect Supreme Plus, for adequate coverage, and invest the rest in simpler, lower-cost options.
However, if you’re ineligible for a term insurance plan (due to occupation, income, or medical reasons), you can still consider applying for this ULIP plan as an alternative life coverage.
Frequently Asked Questions
Last updated on:
