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Will HDFC Life Click 2 Achieve be a prudent choice for your child’s future?
Will it help your child to pursue his/her dream?
Every child possesses limitless potential and they deserve nothing but the finest education. Strategic Financial Planning is necessary to combat the escalating fees and financial requirements.
Are you making sure that your savings and investments are prudently done? In this article, let us evaluate the performance of the HDFC Life Click 2 Achieve plan by reviewing the Advantages (Pros) and Disadvantages (Cons).
This Research Analysis will help you gain clarity and guide you in choosing the Right Investment product catering to your Financial Needs and Requirements.
Let’s get started!
Table of Contents
1.) What is HDFC Life Click 2 Achieve?
2.) What are the Features of HDFC Life Click 2 Achieve?
3.) Who is Eligible to invest in HDFC Life Click 2 Achieve?
4.) What are the Benefits of HDFC Life Click 2 Achieve?
5.) HDFC Life Click 2 Achieve Grace Period, Lapse and Paid-up Policy, Revival
6.) HDFC Life Click 2 Achieve Free Look Period
7.) Surrendering HDFC Life Click 2 Achieve
8.) Advantages of HDFC Life Click 2 Achieve
9.) Disadvantages of HDFC Life Click 2 Achieve
10.) HDFC Life Click 2 Achieve Research Methodology
- HDFC Life Click 2 Achieve Benefit Illustration – IRR Analysis
12.) HDFC Life Click 2 Achieve VS Other Investment Return
- HDFC Life Click 2 Achieve Vs Pure Term Insurance + PPF / ELSS
- HDFC Life Click 2 Achieve VS HDFC Life Guaranteed Income Insurance Plan.
- HDFC Life Click 2 Achieve VS HDFC Life Smart Pension Plan
13.) Final verdict on HDFC Life Click 2 Achieve
1.) What is HDFC Life Click 2 Achieve?
HDFC Life Click 2 Achieve is a Non-Linked, Non-Participating, Individual, Savings Life Insurance Plan.
It is meticulously designed to offer versatility, presenting you with a spectrum of options to safeguard your loved ones’ futures and attain your financial objectives.
It allows you to shape your financial future in alignment with your unique aspirations and needs.
2.) What are the Features of HDFC Life Click 2 Achieve?
- Life Insurance Cover ensures the financial security of your family.
- Flexibility to receive the Guaranteed Benefits as a lump sum or as regular income
- Premium Offset Feature allows you to offset your premium against Survival Benefit payout
- Survival/Income Benefits can be deferred and allowed to accrue and taken as lumpsum when required
- There are 2 plan options available.
- ) Option 1: Smart Student.
- ) Option 2: Dream achiever
- Option 1 is specifically designed for students and option 2 is common for all.
3.) Who is Eligible to invest in HDFC Life Click 2 Achieve?
| Smart Student | Dream Achiever | |
| Minimum Age at Entry | 30 days | 30 days |
| Maximum Age at Entry | 13 years | 65 years |
| Minimum Age at Maturity | 19 years | 18 years |
| Maximum Age at Maturity | 23 years | 85 years |
| Minimum Premium Paying Term | 5 years | |
| Maximum Premium paying term | 10 years | 35 years |
| Minimum Policy Term | 10 years | |
| Maximum Policy Term | 23/20 years | 40 years |
| Minimum Sum Assured | ₹ 50,000 | |
| Maximum Sum Assured | No Limit | |
4.)What are the Benefits of HDFC Life Click 2 Achieve?
i.) HDFC Life Click 2 Achieve Option 1: Smart Student
HDFC Life Click 2 Achieve Option 1Death Benefit
Death Benefit is the higher of:
- Sum Assured on Death (10 times Annualised Premium)
- 105% of Total Premiums Paid
- Surrender Value on date of death
HDFC Life Click 2 Achieve Option 1 Survival Benefit
Survival Benefits can start from the policy year when the life assured is aged either 16 years or 18 years, as chosen by the policyholder at inception.
It is payable in the last 3,4, or 5 policy years, as chosen by the policyholder at inception.
HDFC Life Click 2 Achieve Option 1 Maturity Benefit
The last installment of the Survival Benefit is payable on maturity. Apart from that, there is no additional maturity Benefit payable.
HDFC Life Click 2 Achieve Option 1 Other In-built Feature
Outstanding Achievement Award – An amount equal to 2 times the Annualised Premium will be paid if the child (Life Assured) achieves any of the achievements as mentioned in the policy brochure.
- Waiver of Premium on Death.
- Waiver of Premium on Critical Illness
- Waiver of Premium on Total and Permanent Disability.
ii.) HDFC Life Click 2 Achieve Option 2: Dream Achiever
HDFC Life Click 2 Achieve Option 2: Death Benefit
Death Benefit is the highest of:
- Sum Assured on Death (as chosen by the policyholder – Minimum 7 times Annualised Premium)
- 105% of Total Premiums Paid
- Surrender Value on date of death
HDFC Life Click 2 Achieve Option 2 Survival Benefit
The Survival Benefit amount for each year is chosen by the policyholder at inception
HDFC Life Click 2 Achieve Option 2 Maturity Benefit
As chosen by the policyholder at inception, the Sum Assured on Maturity shall be payable at the time of Maturity.
In addition to it, the investor can opt to receive Income Benefits throughout the income term. Which starts from the date of maturity.
HDFC Life Click 2 Achieve Option 2 Other In-built features (Extra premium payable)
- Waiver of Premium on Death.
- Waiver of Premium on Critical Illness
- Waiver of Premium on Total and Permanent Disability.
5.) HDFC Life Click 2 Achieve Grace period, Lapse And Paid-up Policy, Revival
i.) Grace period
The grace period for monthly premium frequency is 15 days without any penalty and 30 days for other frequencies.
ii.) Lapse and Paid-up policy
If an unpaid premium is due even after the grace period expires, if the policy has not acquired a Guaranteed Surrender Value by then the Policy shall Lapse.
The policy becomes reduced paid-up if it has acquired a Guaranteed Surrender Value.
The policy shall acquire a Guaranteed Surrender Value (cash value) upon the payment of at least the first two years’ premiums.
iii.) Revival
Your Lapsed /paid-up policy can be renewed within 5 years starting from the due date of the first unpaid premium and before the policy term expires.
6.) HDFC Life Click 2 Achieve Plan: Free Look Period
In case you are not agreeable to any of the policy terms and conditions, you have the option of returning the policy within 15 days from the date of receipt of the policy.
The Free-Look period is available for 30 days for policies purchased through Distance Marketing.
If you are interested to know more you can go through HDFC Life Click 2 Achieve Policy Brochure
7.) Surrendering HDFC Life Click 2 Achieve
The policy shall acquire a Guaranteed Surrender Value (cash value) upon the payment of at least the first two years’ premiums. The Surrender Benefit will be the highest of GSV (Guaranteed Surrender Value) or SSV (Special Surrender Value).
8.) Advantages of HDFC Life Click 2 Achieve
- Option to decrease premiums after completion of 5 policy years.
- Changes in Premium Payment frequency and income Benefit frequency are allowed.
- Policy loans will be available subject to a maximum of 80% of the surrender value.
- Juvenile Critical Illness Cover is available on payment of an additional premium.
9.) Disadvantages of HDFC Life Click 2 Achieve
- Plan option once chosen can’t be changed after inception.
- Some of the features are available at an extra premium.
- There is no maturity Benefit under the Smart Student plan option.
10.) HDFC Life Click 2 Achieve Plan: Research Methodology
Now, we are heading towards the analytical part. HDFC Click 2 Achieve allows the investor to customise the plan based on the requirement.
There is flexibility in receiving the Benefit either as a regular income in the name of Survival Benefit or as a lump sum amount in the name of maturity Benefit.
This review segment deals with the calculation of the return. You can compare the returns with other investment returns as well =.
HDFC Life Click 2 Achieve Plan: Benefit Illustration – IRR Analysis
A 35-year-old male opts for the Dream Achiever option under HDFC Life Click 2 Achieve. The sum Assured is ₹ 10 Lakhs. The policy term and the premium paying term are 15 years. The annual premium amount is ₹ 1 Lakh.
| Male | 35 years |
| Sum Assured | ₹ 10 Lakhs |
| Policy Term | 15 years |
| Premium paying term | 15 years |
| Annualised premium | ₹ 1 lakh |
| Plan option | Dream Achiever (Lumpsum) |
| Age | Year | Annualised premium / Maturity Benefit | Death Benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 |
| 45 | 11 | -1,00,000 | 10,00,000 |
| 46 | 12 | -1,00,000 | 10,00,000 |
| 47 | 13 | -1,00,000 | 10,00,000 |
| 48 | 14 | -1,00,000 | 10,00,000 |
| 49 | 15 | -1,00,000 | 10,00,000 |
| 50 | 16 | 24,05,585 | |
| IRR | 5.70% |
Since the policyholder has chosen the Lumpsum Benefit, there is no Survival Benefit.
The final maturity value here is ₹ 24,05,585. The IRR calculation for this cash flow is 5.70%. Here the Survival Benefit is deferred, even in such case the IRR is below par than even a debt instrument return.
If you opt for Survival Benefit under HDFC Click 2 Achieve, then the returns will be at rock bottom.
11.) HDFC Life Click 2 Achieve Plan VS Other Investment Returns
All the Benefits are customisable under HDFC Click 2 Achieve. But the returns don’t look that promising. Now, let us compute the returns for similar investments.
Instead of investing the money in the HDFC Life Click 2 Achieve Plan, if you invest it in an alternate investment combination, what will be the outcome? Before investing we need to set aside a premium for life cover as HDFC Lick 2 Achieve offers life cover as well.
i.) HDFC Life Click 2 Achieve Plan VS Term Insurance + PPF / ELSS
Now let us assume the same metrics as seen in the above illustration and work out the IRR. The premium for a pure term life insurance for a sum assured of ₹ 10 lakhs would cost ₹ 5000 per annum.
The policy term and the premium paying term are 15 years. In the earlier illustration, the same would cost ₹ 1 Lakh. This leaves a balance of ₹ 95,000 for investment.
| Pure Term Insurance Policy | |
| Sum Assured | ₹ 10 Lakhs |
| Policy Term | 15 years |
| Premium paying term | 15 years |
| Annualised premium | ₹ 5,000 |
| Investment | ₹ 95,000 |
Minding your goal and time horizon is very important while choosing an investment vehicle. Investors with high-risk profiles can go for equity instruments and investors who are risk-averse can settle with debt instruments.
Make sure your risk profile aligns with the investment’s risk profile.
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death Benefit | Term Insurance premium + ELSS | Death Benefit |
| 35 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 46 | 12 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 47 | 13 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 48 | 14 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 49 | 15 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 50 | 16 | 25,76,533 | 37,22,405 | ||
| IRR | 6.51% | 10.71% | |||
PPF Account and ELSS are chosen here to illustrate the returns under debt and equity asset classes respectively. The final maturity value under the PPF account is ₹ 25.76 Lakhs.
The pure-term life insurance along with PPF investment yields an IRR of 6.51%.
ELSS maturity values are subject to capital gains tax. The tax calculation is given below and the required tax amount is set aside from the proceeds. The post-tax maturity value under ELSS is ₹ 37.22 Lakhs.
The pure-term life insurance along with ELSS investment yields an IRR of 10.71% (post-tax return).
| ELSS Tax Calculation | |
| Maturity value after 15 years | 39,66,562 |
| Purchase price | 14,25,000 |
| Long-Term Capital Gains | 25,41,562 |
| Exemption limit | 1,00,000 |
| Taxable LTCG | 24,41,562 |
| Tax paid on LTCG | 2,44,156 |
| Maturity value after tax | 37,22,405 |
Working out the IRR reveals that investing separately for life goals is always the right choice. Because the returns are higher than the inflation rate.
These investments have an upper hand over traditional life insurance policies in terms of returns as well as liquidity.
ii) HDFC Life Click 2 Achieve VS HDFC Life Guaranteed Income Insurance Plan.
Let us look at the key features to understand the plan better:
- 11% to 13% of Guaranteed income per annum of Basic Sum assured.
- You will receive the Guaranteed Lumpsum on Maturity.
- Death Benefit is paid even during the income payout period.
If you wish further insights on the Plan’s Benefits, Advantages, and IRR Analysis we recommend you read our blog post on: HDFC Life Guaranteed Income Insurance Plan(GIIP) – A Complete and Comprehensive Review
iii) HDFC Life Click 2 Achieve VS HDFC Life Smart Pension Plan
The features will help you get a basic picture of how this policy works.
- Three fund options to choose from.
- Through Market return, you can build your retirement corpus.
- Loyalty additions will boost your fund value.
If you looking for such sort of pension- oriented investment products you can refer to our article on:HDFC Life Smart Pension Plan Review- A Good or Bad Investment?
12.) Final verdict on HDFC Life Click 2 Achieve
HDFC Life Click 2 Achieve aims to cater to goals that require periodic payment spread over 3 – 4 years. Based on your Financial Requirements you can customize your plan.
Funding a goal with lumpsum is different from funding a goal that requires resources across different time frames. On that note, HDFC Life Click 2 Achieve helps you to customise the Survival Benefit which is an added advantage.
Other than that, HDFC Life Click 2 Achieve is a traditional life insurance policy offering mediocre returns. The return on investment due to Hefty Charges and High Agent Commission is lesser than the inflation rate, resulting in a deficit in the corpus required for the goal.
In essence, it neither provides you with appropriate life cover nor helps you in achieving your goals.
Term policies offer a high coverage amount at lower premiums compared to other life insurance products.
They provide straightforward life coverage without investment or savings components, ensuring financial protection for your family.
For life goals, build a diversified investment portfolio. Keeping investment separate from insurance is the right path to reach your goals.
Never let your Investment Choice or Decision get manipulated by inputs from Social Media Sites like Quora, Facebook, Twitter, etc. Consult your financial planner to choose investments based on your requirements.
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