In Unit Linked Plans, the investments made are subject to risks associated with the capital markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you should make your investment choice after considering your risk appetite and needs.

Another factor that you need to consider is your future need for funds. HDFC Standard Life offers you a variety of unit-linked insurance products to suit your goals – be it for your retirement planning, for your health, for your child’s education and marriage or for investment purposes.

In a Unit Linked Plan, the premiums you pay are invested in the funds chosen by you after deducting allocation charges and charges including those for managing funds, policy administration and for providing insurance cover are deducted from the funds by cancelling certain units. The value of each unit of a fund is determined by dividing the total value of the fund’s investments by the total number of units.

The following charges are deducted from your policy towards the cost of benefits and administration services provided by HDFC Standard Life Insurance –

• Administration charges: A fee is charged for administration of your policy every month. Administration charges are deducted by cancelling units proportionately from each of the funds you have chosen.
• Fund management charges: These charges are towards meeting expenses related to managing the fund. This is charged as a percentage of the fund’s value and is deducted before arriving at the net asset value of the fund.
• Switch charges: You can switch between the funds available to suit your changing needs and goals. In a policy year, a fixed number of such switches are available free of cost. Subsequent to this, each switch would attract a certain charge. These charges are deducted by cancelling units proportionately from each of the funds you have chosen.
• Surrender charges: These charges are levied for premature encashment of units. They are charged as a percentage of the fund value and depend on the policy year in which the policy has been surrendered.
• Mortality Charges: Depending upon the age, and the amount of cover, these charges are levied towards providing a death cover to the insured.
• Premium Allocation Charge: This charge is deducted as a fixed percentage of the premium received, and is usually charged at a higher rate in the initial years of a policy. This charge varies depending upon whether the policy is a single premium or regular premium policy, the size of the premium, premium frequency and payment mode.
• Partial Withdrawal Charges: Lump sum withdrawals are allowed from the fund after the lapse of three years of the policy term and subject to pre-specified conditions. However, such withdrawals attract charges, as mentioned in the respective policy brochures.

HDFC Standard Life Insurance offers you the flexibility to switch between funds available under a unit linked plan. You may wish to switch between equity and debt funds, in times when there is market volatility or interest rate fluctuations. At times, changes in your financial standing, liabilities or risk profile may also require that you change your investments accordingly.

You may also make partial withdrawals from your funds after a certain specified period, subject to a partial withdrawal charge. The withdrawal amount should be at least the minimum prescribed withdrawal amount and the fund must not fall below the minimum fund value after the withdrawal.

You can make a full withdrawal of your policy before its maturity date. However, surrender charges will be applicable in this case.