HDFC UL YoungStar Champion policy - how the calculation happens about returns?

Hello,

I Have concern about my HDFC UL YoungStar Champion policy, I pay monthly premuim amount 3000/- , and the locking period is for 3 years. And my concern is will i get what i invested i.e., 3000*36 = 108000+ the Nav added after 3 year of locking period. Please help me in understanding how the calculation will be and the returns. I invested in this policy with keeping in mind that i atleast will get the value that i spent for the investment. Your help in this regards will be greatly appreciated.

Thanks in advance.
Viday N

@via email

First check about the plan
Charges - HDFC Unit Linked YoungStar Champion include administration charges of Rs. 60 per month, fund management charges of 1.25% per annum charged daily of the fund’s value, and premium allocation charge of 40% of the premium in the 1st year, 30% in 2nd year and 2% from 3rd year onwards upto the 15th year.

Additional Benefit - In case of sudden demise during the policy term, the beneficiary receives the sum assured. In addition to this, 50% of the original regular premium is paid by the company for the rest of the policy term. On maturity, the fund value is paid out to the beneficiary.

Bumper Additions (Only on Maturity) - On maturity after 15 years, the entire Allocation Charge i.e. 70% of annualised premium is paid back to the policyholder.

So if you invest 36000 (12X3000) every year than invested amount in units for you would be -
First Year 36000 - (14400 + 450 + 60) = 21090
Second Year 36000 - (10800 + 450 + 60) = 24690
Third Year on wards 36000 ( 7200 + 450 + 60) = 28290

For returns you need to check the fund in which you have invested in (you can check this on HDFC Life website on daily basis). I have just picked the best performing and worst performing funds for you -
Liquid Fund II - 13.3219
Growth Fund II - 08.3767

After three years you will get the money back. But, it will be less because the charges have been deducted for the three years. You have to check the NAV value for the current fund value at the time of surrender. Read T&C of the policy.