- Life Insurance Policy
- What is a Life Insurance Policy?
- Types of Life Insurance Plans
- Why Buy a Life Insurance Policy?
- Conditions to Buy a Life Insurance Policy
- Key Terms about Life Insurance
- Life Insurance Benefits
- Select Life Insurance Plan
- Steps to buy Life Insurance Plan
- Documents Required
- Save taxes with Life Insurance Plan
- Riders in Life Insurance
- Life Insurance FAQ's
- Articles on Life Insurance
What Is a Life Insurance Policy?
In simple terms, a life insurance policy is a financial contract between an insurance company and a policyholder where the former promises to pay a lump sum amount in case of disability/death of the latter. The lump sum amount depends on the terms of the insurance policy. After maturity, you will get back your paid premiums in case of no disability/death.
A life insurance policy is a great choice for the main earner of the house to ensure that his/her family can have backup money in their unfortunate demise.
Types of Life Insurance Plans
-
Term Insurance Plans
Term plans are typically low cost life insurance plans that provide full protection and financial stability to your loved ones in case of any unforeseen events.
Know More -
Savings Plans
Our Savings and Investment plans are life insurance plans that offer you multiple avenues to save and grow your money.
Know More
-
ULIP Plans
HDFC Life offers you a variety of ULIP products depending on your risk appetite and financial goals.
Know More -
Retirement Plans
Retirement and Pension Plans provide you with financial security so that when your professional income starts to ebb, you can still live with pride without compromising on your living standards.
Know More -
Children's Plans
Successful parenting is no mean accomplishment.A huge contributor to this success is financial planning for your child's future needs at the right age!
Know More -
Group Insurance Plans
HDFC Life offers various group life insurance policies that help employers/trusts with meeting their employee benefit liability obligations in a simple , efficient and cost effective manner and helping employees to secure their family’s financial independence in case of untimely demise or critical illness.
Know More -
SHAURYA Plans
Sales and after sales service from individuals who have in-depth understanding and appreciation of Armed forces, police & paramilitary , their lifestyle and protection
Know More -
Discontinued Insurance Plans
List of HDFC Life Products which have been discontinued and are now closed for sale. These life insurance products continue to be serviced by the HDFC Life Customer Service
Know More
Important Terms About Life Insurance Plans in India
Some important terms revolving around life insurance policy in India are:
Sum Assured
It is the amount the insurance company will pay the insured person’s nominees in case of the insured’s demise. Suppose a person purchases a life insurance plan of Rs. 2 crores and pays for the life insurance policy. Now, in the case of that person's demise, his nominee will receive the sum of Rs. 2 crores. The sum assured should cover at least 15-20 years of annual income as a general rule.
Life Assured
It refers to the person for whom the insurance policy is purchased. The policyholder and the life assured need not be the same person. For instance, if you purchase the policy for yourself, you are the policyholder and the life assured. However, if you purchase a policy for your wife and pay the premiums, you will be the policyholder while your wife will be the life assured.
Death Benefit
It is the sum that the insurance company will pay the policyholder in case of the insured person's demise during the policy term.
Maturity Benefit
Some insurers pay a certain amount to the policyholder It’s the amount that the person receives if he survives his policy term.
Riders
These are optional add-ons that can provide additional coverage at the discretion of the insured person.
Free Look Period
If you have bought a life insurance policy but want to cancel it, you have the option of returning the policy to us stating the reasons thereof, within 15 days from the date of receipt of the policy. The Free-Look period for policies purchased through Distance Marketing (specied below) will be 30 days. On receipt of your letter along with the original policy documents, we shall arrange to refund the premiums paid subject to deduction of the expenses incurred by us on medical examination, if any, and stamp duty. Distance Marketing refers to insurance policies sold through any mode apart from face-to-face interactions such as telephone, internet etc
Life Insurance Plans are simple to understand!
Tune in to this video to know about our Life Insurance Plans.
How to Select the Right Life Insurance Plan for Yourself and Your Family
A life insurance policy protects your family in your absence. Therefore, selecting the right insurance policy with the appropriate coverage is crucial. A higher coverage than required will increase the premium burden, while a lower coverage will paralyse the entire purpose of financial protection.
The following steps will help you select the right insurance policy:
- Determine your goals for life insurance.
- Select the right insurer. You can evaluate based on the Individual Death Claim Settlement Ratio (CSR).
- Evaluate the amount you have to pay as the premium and find the policy offering the best deal
- Analyze the Inclusions and Exclusion of your Insurance cover continue evaluating your life insurance needs regularly.
Steps to Buy Life Insurance Policy Online
Nowadays, insurance policies can be brought online. Follow these steps to purchase a life insurance plan online:
Visit the website of HDFC Life.
Fill in the details like name, tobacco/smoking habits, date of birth, contact information, income details and expected sum assured.
You will see various plans and their features, benefits and premium amounts. Pick the best option according to your preference.
Fill out the insurance application form. This will include details about the policyholder like personal information, income details, lifestyle habits, nominee details, etc.
Upload the documents required and KYC proof (this can include ID proof, address proof, health reports, and other documents).
You can pay the required premium online. You will receive a confirmation on your linked email after your payment is successful.
After your policy gets issued, we will send you a confirmation through SMS and Email.
Documents Required to buy Life Insurance Plan in India
For life insurance plans in India, the following documents need to be submitted:
- PAN card of the life assured.
- Photo Identity proof of the life assured.
- Age proof of the life assured.
- Photographs of the life assured.
- Address proof of the life assured.
- Income proof of the life assured.
- Medical examination report of the life assured (if required by the insurer).
- Duly filled in life insurance proposal form.
Note: Depending on the application requirements, further documents or medicals may be asked
How to Save Tax with Life Insurance Policy?
Life insurance plans protect you financially from mishaps and act as a tax planning tool. The premiums paid for life insurance policy can be claimed as deductions under Section 80C of the Income Tax Act, 1961. The amount of deduction available is up to Rs. 1,50,000 per financial year. Also, the proceeds received from the life insurance policy are exempt under section 10(10D) of the Income Tax Act, 1961*, provided the premiums do not exceed 10% of the sum assured.
Riders in Life Insurance
Riders are the additional benefits that can be added by the policyholder with the policy at a nominal cost. Riders enhance your insurance cover, qualitatively and quantitatively.
HDFC Life Income Benefit on Accidental Disability Rider
UIN: 101B013V03
Get additional income benefits over and above your Sum Assured in the event of total permanent disability due to an accident.
HDFC Life Critical Illness Plus Rider
UIN: 101B014V02
We pay a lump sum amount equal to Rider Sum Assured upfront if diagnosed with of any of the specified critical illnesses.
HDFC Life Protect Plus Rider
UIN: 101B016V01
Get protected with a proportion of Rider Sum Assured in case of accidental death or partial/total disability due to accident or diagnosed with Cancer
FAQs on Life Insurance Policy
1 What is life insurance?
Life insurance is a mutual contract or agreement between a policyholder and the insurance company. In exchange of insurance premium paid, the company pledges to pay a sum of money to the beneficiaries of the policy after a certain term or upon the policyholder's death.
2 Why is life insurance useful?
Life insurance is useful to ensure you have a savings plan for the future. It allows you to have a continuous source of income after you retire, or if your earnings dip due to any accident or illness. It not only helps insure a policyholder’s life but also helps your family maintain the same lifestyle after you are no more, it also provides for other financial contingencies you may have.
It can allow you a steady income after you retire, help you pay your debts, save your business in case of death, and offers tax benefits too.
3 How much does life insurance cost?
The amount of premium you pay depends on the life cover you want to get for yourself. The sum of the life cover expected needs to be calculated basis the number of dependents, your annual income, your household expenses. You will also have to factor in your outstanding loans, children's education needs etc to figure out the amount your family will need to sustain in case of your death. All these factors help you calculate the premium you have to pay for taking out a life insurance policy.
4 What are the different options available for premium payments?
Premiums can be paid monthly, quarterly, half-yearly, and annually based on the policy terms. Some policies even provide a one-time premium payment option.
5 What are the consequences of non-payment of premium?
If you miss the premium payment, you will have a grace period of 30 days from the payment due date. If the premium is not paid within the grace period, the policy might lapse and all associated benefits would be lost. You will have to pay the revival premium or any other charges to revive the policy and further continue the policy benefits.
6 How can I file the claim in case of insured person's demise?
Most insurance companies provide an online facility to file a claim with the insurance company. Further, you can file a claim with the insurer by visiting their office. After providing all necessary information and submitting requisite documents, the insurance company will process your claim.
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance solutions - protection, pension, savings, investment, annuity and health.
Popular Searches
- term insurance plan
- term insurance calculator
- Investment Plans
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- personal accident insurance
- saral jeevan bima yojana
- income tax calculator
- pension calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- benefits of term insurance calculator
- what is term insurance
- why to invest in life insurance
- Ulip vs SIP
- tax planning for salaried employees
- how to choose best child insurance plan
- tips for buying retirement plan
- 1 crore term insurance
- HRA Calculator
- Annuity From NPS
- 2 crore term insurance
- 5 crore term insurance
- 1.5 crore term insurance
- Retirement Calculator
- Pension Calculator
- What is Investment
- Best Investment Plans
- Money Back Policy
- Zero Cost Term Insurance
*Tax benefits are subject to conditions under Sections 80C, & Section 10(10D) and other provisions of the Income Tax Act, 1961. Tax Laws are subject to change from time to time.
**Online Premium for Life Option, Male Life Assured, Non-Smoker, 25 years of age, Policy term of 30 years, Regular pay, Annual frequency, exclusive of taxes and levies as applicable. (Annualized Premium of 9214/365=25.7)
#7% online discount available on 1st year premium only!
#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved.
ARN - ED/01/24/8134