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Term Insurance 5904 views November 21, 2019
HDFC Life is one of the largest and most successful life insurance companies in India. It has a wide range of life insurance policies on offer, including the best-selling term insurance plans. The HDFC Life term plans are much sought after because they offer wholesome coverage at a very affordable rate.
Table of Contents
What is HDFC Term Insurance Plan?
The term plan from HDFC Life is a life insurance policy that offers coverage for your life. They offer a pure life cover. You can compare life insurance and buy the best term insurance plan in India from HDFC Life. The HDFC Life Click 2 Protect Plus insurance plan and the Click 2 Protect Health insurance plan are among the very best available in the country. You can choose an appropriate policy period and a suitable coverage amount. In case you die within the policy period, your family receives a death benefit and the policy ends. If you outlive the policy period, the insurer does not pay anything to you.
Types of HDFC Term Plans
HDFC Click 2 Protect Life is a popular term insurance plan that comes with three variants – Life Protect Option, Life & CI Rebalance Option and Income Plus Option – along with with a return of premium option too.
Let’s Check These Three Term Plan Variants
The timing of death benefit payment is obvious across term plans and HDFC Life is no exception. If the policyholder dies during the policy term, the death benefit is payable to the concerned nominee (s). Let’s check below the term plan variants of HDFC Life and their respective benefits.
Life Protect Option – The death benefit remains higher of the sum assured on death and 105% of the total premiums paid. If you opt for a single-pay policy, the sum assured on death remains the highest of 125% of single premium, sum assured on maturity and basic sum assured. For limited and regular pay term plans, the sum assured on death remains the highest of 10 times the annualized premium, sum assured on maturity and basic sum assured.
Life & CI Rebalance Option – The basic sum assured gets divided between Life Cover SA and Critical Illness SA. At the time of cover commencement, HDFC Life will set the life cover SA nd CI SA at 80% and 20% of the basic sum assured, respectively. For policies that are in force, CI SA will increase every policy anniversary, starting from the first policy anniversary, every year. However, life cover will reduce by the same amount. The amount gets calculated by the below formula
30% x Basic Sum Assured + Policy Term, where the Basic Sum Assured (Life Cover SA + Critical Illness SA) will remain the same across the policy term. Upon the critical illness claim, Life Cover SA will remain fixed at the level which remain applicable by that time and the same SA will continue till the end of the policy term.
The death benefit payable to nominee remains the highest of the following-
- Sum Assured on Death
- 105% of premiums paid
- Life Cover SA
For single-pay policies, the sum assured on death is the higher of
- 125% of single premium
- Sum assured on maturity
For Limited Pay and Regular Pay policies, the sum assured on death remains higher of
- 10 times the annualized premium
- Sum assured on maturity
In case of diagnosis of any covered critical illness, the applicable critical illness (CI) SA will be paid to the policyholder. Subsequently, all future premiums will get waived off and the life cover will continue.
Income Plus Option – You get a life cover for the chosen policy term and regular monthly income from 60 onwards as well as a lump sum payout on maturity. A monthly income of 0.1% of the basic sum assured is payable in arrears, commencing from the policy anniversary after 60th birthday and continues till death or policy maturity, whichever happens before.
The death benefit remains higher of –
- Sum assured on death
- 105% of total premiums paid
Minus total survival benefits paid till the date of death
In case of Single-pay policies, the sum assured on death is the highest of
- 125% of Single Premium
- Sum Assured on Maturity
- Basic Sum Assured
For limited and regular pay policies, the sum assured on death is the highest of
- 10 times the annualized premium
- Basic Sum Assured
- Sum assured on maturity
Maturity Benefits
If you have selected the Return of Premium option, you can get back all your premiums paid towards the policy in case you survive throughout the policy period.
Features of HDFC Term Insurance Plan
Long Policy Period
The HDFC Life term plan offers an extended life cover. A policyholder can stay covered for a maximum of 25 years from the time he buys the life insurance policy. This is a huge advantage as a person can keep his loved ones secured for a long duration. The premium needs to be paid for the entire duration to ensure a continuous and uninterrupted life cover.
Flexible Terms
There are many benefits of the HDFC Life term plan. One of them is the flexibility on offer. A policyholder can make the plan more customized by adding some term insurance riders. Then, he can choose to pay the premium yearly, semi-yearly, quarterly or monthly. He can also surrender the plan if there is such a requirement, provided the surrender value is acquired by the time he wants to do it.
Easily Available
Different types of online term insurance plan can be bought digitally with the click of a button. It thus becomes easy for you to buy a term plan from HDFC Life. This apart, you can also pay your term life insurance premiums online. You can also use the premium calculator to see how much the term cover will cost, even before you purchase a plan. These digital benefits make the HDFC Life term plan much sought after.
Multiple Payout Options
Depending upon the requirement of your nominees, you can decide how the sum assured will be paid out to them if you die within the policy period. You can opt for a lump sum option where the entire amount will be paid in one go. Or you can opt for the staggering benefit where it will be paid in parts over a period of time.
Huge Market Share
HDFC Life enjoys a large share of the market. This means many people across India trust the HDFC Life term plan. This happens because the term life insurance plan from this particular insurance company is loaded with features that you can see. This fact also validates the trustworthiness of HDFC Life.
High Claim Ratio
And finally, the company has a high claim settlement ratio of over 97%. This is undoubtedly a huge pointer towards the efficiency and the professionalism of HDFC Life Insurance Company.
If you are looking for the best term insurance plan in India, consider getting a term cover from HDFC Life.
How Buying HDFC Term Insurance Plan Will Make Your Family Safe?
Buying term insurance can make your family safe in many ways. If you die, the insurer will offer them a sum assured against your term insurance plan. This sum can help them in the following ways:
- Paying their Bills – Running a family involves making several payments in a month. From paying all the utility bills such as the electricity bill, phone bill, water bill to paying rent, many payments need to be done on a regular basis. If your income stops, your family can use the coverage amount to pay for their expenses and continue with their lifestyles.
- Paying for Education – If you have young children, the school or college fees need to be paid. Also, there has to be a lump sum amount to pay for their higher studies. The money received from the term insurance plan can be used for these purposes.
- Paying for Healthcare – Every family needs to spend money on their healthcare needs. If someone has a chronic illness or undergoes a medical emergency, they need the funds to get treated properly. A portion of the sum assured can be used for this.
- Clearing Mortgages and Loans – If you die without repaying your loans and mortgages, your family can use the term insurance death benefit to do so, without having to exhaust their own savings. It would be very unfair of you to expect your aged parents or young children to pay your loans off. It may become a huge financial burden for them. Get one of the HDFC Life term plan and protect your loved ones from such situations.
It is, therefore, important to buy a good term insurance plan from a reliable insurer like HDFC Life. When you do so, you guarantee the financial well-being of your loved ones.
Premium Payment of HDFC Term Insurance Plans
To enjoy uninterrupted services, it is important to pay the premium on time. HDFC Life, therefore, allows you to pay the premium online in a few minutes. Just visit the official website of HDFC Life, click on the ‘Pay Premium’ link, enter your policy number and date of birth, and click on ‘Proceed’. After that, you’ll need to choose from the payment options – Net banking, Debit/Credit Card, Wallet. After choosing from the list, pay the premium to complete the transaction online. You can also make the payment via cheque or demand draft if you are not comfortable doing so online.
What Should Your Dependents do to Get the Claim Amount In case of Your death?
In case you die during the policy term of the HDFC Term Insurance Plan, your dependents should file a claim by intimating the insurer about your death either online or at its nearest branch. HDFC Life settles the claim only when the details so submitted are genuine. Let’s check out the claim process.
Claim Intimation
As said earlier, one can intimate the claim either online or at the branch. Your dependents need to mention their as well as your details, besides quoting the policy number.
Next Stage – Document Submission
In case of online intimation, you need to upload documents and submit the claim. Whereas, in offline applications, one needs to submit the documents to the nearest branch in person.
Claim Evaluation Begins Afterward
HDFC Life will then begin to evaluate the claim by checking the documents and other details thoroughly. It can either approve, reject or repudiate the claim based on its authentication process.
Documents Required for Making a Claim
Documents may differ based on the type of death. We’ve shown below the documents required for each of the cases. Take a look!
Natural Death
- Death certificate issued by the government or relevant authority
- Inclusion of NEFT in the death claim form
- Original Policy Document
- Photo Identity and Residence Proof of the Claimant
- Medical Records upon death and illnesses in the past
- Bank passbook or personalized cancelled cheque
- Medical cause of death certificate in case of death in a hospital
Unnatural Death (Suicide/Murder/Accidental Death)
In these cases, the below-mentioned documents would be required in addition to the ones mentioned above.
- First Information Report (FIR)
- Police Inquest Report
- Panchnama
- Post Mortem Report
For deaths due to natural calamities/disasters, documents will remain the same as in the case of natural death.
Critical Illness Claim Documents
For this claim, there is no need for a death certificate as it is for an illness. However, some of the documents presented in case of natural death will remain the same here too. Besides that, one needs to submit the below-mentioned documents for a successful claim settlement.
- Critical illness claim form
- Present and past medical records
- Diagnostic test reports
The Final Word
Keeping in mind all the points mentioned above, it can safely be said that the HDFC term plan is very handy and useful. Get a good policy and stay secured in every possible manner.
FAQs
What are the documents required while buying HDFC term plan?
Basic KYC documents, along with the applicant’s salary proof are required.
Do the HDFC term plan also offers joint policies for spouses?
Yes, joint term insurance plans are available.
Do I need to buy HDFC term plan even if I am not married?
Yes, it will help you later on when you marry and have kids.