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Term Insurance

Term Insurance are pure life insurance products that offer life coverage for a specified tenure or term. ...Read More

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Secure Your Family's Future with Term Insurance.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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What is Term Insurance?

image-star image-star image-star image-star image-star image-star image-cloud image-cloud image-cloud moon What is Term Insurance?

Term Insurance is a life insurance policy that offers coverage for a fixed number of years - the “term” of the policy. If the insured individual dies when the policy is active, a death benefit is paid to the nominees of the insured individual.

A basic variant of term insurance plan has no cash value which means, if the insured person survives the term of the policy, the policy does not return any value, with the exceptions of plans like Term Insurance with Return of Premium etc.

You can buy term insurance policy which can provide a certain corpus to your dependents in event of your demise, they would be able to sustain the same lifestyle or pay off existing liabilities without compromising on their dreams thanks to the sum assured which they would receive from life insurance.

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Why Do I Need Term Insurance?

Despite the many features and benefits of term insurance plans, some people are still not sure how these policies impact them. Here’s a look at six crucial reasons why you need term insurance:

Term Plan To Protect Your Family

To Protect Your Family

Your family depends on you emotionally and financially. You may want to help your parents secure a better retirement or pay for your child’s higher education. The payout from a term plan can help your family achieve their goals even if something were to happen to you.

Term Insurance To Protect Your Assets

To Protect Your Assets

Many young people today require loans to help them purchase a vehicle or a home. If something were to happen to you while you are repaying a loan, your family may have to deal with your loss, the loss of your income and a new financial burden. If they are unable to repay the loan, they risk losing the asset. The payout from a term plan can help your family deal with debt and protect your assets.

Term Policy To Cope with New Lifestyle Risks

To Cope with New Lifestyle Risks

Every day we hear about the rise in lifestyle diseases and the incidence of critical issues such as heart problems and cancer. Your term plan can offer some financial support as you deal with such a diagnosis and come to terms with recovery and recuperation. You can use the BMI calculator to get a better understanding of your fitness in terms of height & weight.

Term plans for Low premium and attractively large cover

Low premium and attractively large cover

The coverage offered by a term insurance policy can be substantial and the premium for such a cover would be quite affordable. Thus such a product should be at the foundation of one’s financial portfolio as it offers excellent protection

Term plans for Financial dependents are protected

Financial dependents are protected

The primary purpose of a term plan is to protect the financial dependents of the policy holder in the case of the latter’s unfortunate demise. The death benefit offered by a term life insurance policy can be substantial and enable financial dependents to manage livelihood related expenses as well as achieve their financial goals. Therefore a term insurance plan would offer tremendous peace of mind to the policyholder as the well-being of the financial dependents would be taken care off even in the former’s absence.

Term plans for Riders

Riders

A term insurance policy can be equipped with multiple riders. These riders are quite useful and can augment a term insurance policy by offering enhanced protection. Some of these riders include accelerated death benefit rider, accidental death benefit, critical illness rider, waiver of premium rider etc. Including these riders may bump your premium slightly but the value that you would get out of them could be tremendous.

Term Insurance Plans

The most cost-effective way to secure your family’s financial future.

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Why Buy Term Insurance Online?

Here are some benefits of purchasing a term insurance policy

High protection at low premiums

High protection at low premiums

Term life insurance policies are accessible to the masses since they provide a large cover at relatively low premiums. The earlier in life you buy term insurance, the lower the premium.

Add ons

Add ons

Due to unfortunate circumstance, the policyholder may be incapacitated due to an accident or the diagnosis of a critical illness. This would impact the income earning capability of the policyholder. In such cases, the policyholder’s family may find it difficult to manage expenses. To protect oneself against such scenarios, one can consider augmenting the term insurance plan with multiple add-ons or riders. Examples of some of these add-ons include critical illness coverage, accidental disability rider etc. A critical illness cover would provide a lump sum amount which is equivalent to the death benefit if the policyholder is diagnosed with any of the covered critical illnesses. The accidental disability rider will ensure that the policyholder gets paid a regular monthly income which would be a certain percentage of the sum assured for a specified period.

Financial security

Financial security

The death of the breadwinner of the family is not only distressing, but it also brings about financial liabilities. Term plan ensures that daily expenses do not suffer as a result of the insurer’s death. The pay-out resulting from the term insurance plan can be received in the form of a lump sum or in the form of instalments to enable the family to cope with their living expenses.

Convenience

Convenience

Buying term insurance online offers unparalleled convenience, allowing a faster and easier process compared to traditional methods through insurance agents. It eliminates the need for physical visits, streamlining the purchasing experience.

Affordability

Affordability

Online term insurance plans tend to be more cost-effective as they bypass intermediaries, resulting in competitive rates. The absence of agents reduces administrative costs, translating into more affordable options for policyholders.

Simplicity

Simplicity

The online buying process of term insurance is straightforward. Visit the insurer's website, fill in details, choose a suitable term plan, make the payment, and activate the policy. This efficient process takes only a few minutes, enhancing the overall user experience.

Comprehensive Features

Comprehensive Features

Online term insurance plans offer a range of features such as death benefits, maturity benefits, tax advantages, and flexible premium payment options. These features are tailored to provide customers with optimal coverage, ensuring financial security.

Who Should Buy Term Insurance Plan?

Let’s take a look at who should buy term insurance:

Parents

Parents

Parents always worry about their children’s future. A term plan provides parents with peace of mind. They can rest assured that their family and child's will be taken care of financially even if something were to happen to them. By providing a financial safety net, they never have to worry about their child giving up on their dreams.

Young Workers

Young Workers

Young professionals who have few financial liabilities, such as a vehicle loan or a personal loan EMI, can opt for a term plan. They ensure that their parents and loved ones have the financial means required to pay off their debts if anything happens to them. However, it's a good decision to buy term insurance early, as this ensures your premiums remain unchanged for life.

Newly-weds

Newly-weds

Couples who recently married can benefit from a term plan. The policy will provide financial support for their spouse when they need it the most. A term plan is a critical part of every good financial plan for young couples who want to enjoy financial independence.

Working Women

Working Women

Young women today are occupying board rooms and managing their finances as well. Many assume the role of the sole breadwinner and support their loved ones financially. With a term plan, these women can secure the financial future of their parents, spouse and children. The payout from such a policy could help take care of any outstanding debts or even help their loved ones meet future financial goals..

Taxpayers

Taxpayers

Term insurance policies offer certain tax benefits that allow taxpayers to reduce their tax liability. Premium paid under term insurance plans are eligible for deductions under Section 80C of the Income Tax Act, 19616

Retirees

Retirees

People work their whole lives to enjoy a secure retired life. Having a term insurance plan in your golden years provides financial security to your spouse. If something were to happen to you, the payout from the policy will allow them to maintain their standard of living, even without a steady income.

Housewives

Housewives

It is important for a housewife to have term insurance as this provides her family with financial security in case of her untimely death. Term insurance can help cover the costs of running the household, including childcare, groceries, utility bills, and other expenses. 

Senior citizens

Senior citizens

Senior citizens can benefit from a term insurance plan as it can help provide their family with financial security in the event of their death. The policy can also help cover the costs of medical care and other expenses in their later years. 

Self-employed

Self-employed

Term insurance is a great way for self-employed individuals to provide financial security to their families in case of their death. The policy can help cover the cost of business overhead, such as rent, utilities, and other expenses. It can also help to provide financial security for their families in case of their untimely death. 

Non-resident Indian (NRI)

Non-resident Indian (NRI)

NRIs who are living abroad can benefit from term insurance plan as it can help provide their family back in India with financial security in case of their death. The policy can help cover the cost of medical care, travel expenses, and other expenses in case of their untimely death.

Relatable Examples as per your Situation


How Does a Term Plan Work ?

Term insurance plan work like limited life insurance policies. They provide life cover for a specific time. To enjoy the life cover, you must pay premiums at regular intervals. If anything happens to you, the policyholder, during the policy tenure, your nominee receives the promised sum assured as the policy payout. To enhance your family’s financial protection, you can choose to purchase riders or add-ons.

Term Insurance Benefits

Let’s look at the benefits you can enjoy once you purchase a term plan:

Enhanced Financial Security

Enhanced Financial Security

Term insurance plans offer additional financial protection with riders like accidental death. If the insured meets with a fatal accident, their nominee receives the sum assured amount and an additional payout from the rider. The idea is to offer the family additional financial support when they need it most.

Critical Illness Cover with Term Plan

Critical Illness Cover

Term insurance plans today offer more than just life cover. Insurance companies also provide payouts if the insured gets diagnosed with a covered critical illness. Most often, critical illness cover is an optional rider. The payout received can be used to deal with treatment costs or replace lost income.

Disability Support

Disability Support

Accidents can lead to dire consequences such as permanent disability. The insured may require some time to adjust to their life and figure out if they can still earn a steady income. With a disability rider on your term insurance plan, you won’t have to worry. The rider will take care of all future premiums so you can continue to financially protect your loved ones without any worries.

Tax Savings with Term Insurance Plan

Tax Savings

Term insurance plans are a popular tax-planning financial tool helping with tax saving benefits. The premiums you pay are deductible from your taxable income. You can claim deduction under Section 80C6 of the Income Tax Act, 1961 up to INR 1, 50,000 per year against premiums paid towards term insurance policies. Additionally, the payouts received by you or your nominee are exempt u/s 10(10D)7 of the Income tax Act, 1961

Flexible Payout Options with Term Plan

Flexible Payout Options

In the unfortunate event that your nominee has to file a claim, you can choose how they should receive the payout. If the idea is that your term insurance sum assured will help replace your income, you can opt for monthly payouts. In case you want your nominee to receive the entire amount together, you can choose for them to get a lump-sum payout.

Affordable Premiums for High Life Cover

Affordable Premiums for High Life Cover

Term Insurance being the purest form of life insurance policy has affordable premiums for high sum assured. For example you can avail a 1 crore term insurance at a daily premium of just Rs.23/-***.  

Maturity Benefits

Maturity Benefits

Term insurance provides a payout to the policyholder at the end of the policy term. This can be used to fund an important purchase such as a house, car, or business. Additionally, term insurance plans often offer additional benefits such as disability cover, critical illness cover, and accidental death cover. 

Long-Term Coverage

Long-Term Coverage

Term insurance plans provide coverage for a period of up to 30 years. This allows policyholders to secure a long-term financial safety net for their family should something unexpected happen. Additionally, term insurance policies are relatively affordable, making them a great option for budget-conscious Indian customers.

Features of Term Insurance

Let's look at the Features of Term Insurance Plans:

Low Entry Age

Low Entry Age

Term plans have a low entry age of just 18. So, you can buy term insurance for yourself or your loved ones on reaching adulthood.

Long-Term Protection

Long-Term Protection

Term life insurance offer whole life coverage, allowing you to provide your family with financial protection for several decades!

Adjustable Cover

Adjustable Cover

With a term insurance plan, you can opt to increase or decrease your sum assured depending on your evolving financial needs.

Flexible Premium Payment Options

Flexible Premium Payment Options

When you purchase a  term life insurance, you can choose how to pay the premiums. You can opt to pay an annual premium, half-yearly premiums, quarterly premiums or even make monthly payments.

Easy to Buy

Easy to Buy

In today’s digital India, you can purchase a term life insurance online in just a few minutes. You can compare various policy benefits and customise a plan with add-ons based on your unique needs. Once you know which policy you want, you can submit a few document scans and pay the premium.

 

Liability Protection

Liability Protection

The payout from a term insurance policy allows your loved ones to better deal with debt liabilities. By purchasing a term plan, you can help your family members pay off existing debts and loans.

Save Tax U/S 80C & 80D (Income Tax Act, 1961)

Save Tax U/S 80C & 80D (Income Tax Act, 1961)

Most term insurance plans offer tax benefits under Sections 80C and 80D of the Income Tax Act. This helps you save money on premiums and maximize your savings. 

Premiums Returned on Survival

Premiums Returned on Survival

 Term insurance plans have no maturity benefit. In case the policyholder survives the policy term, you will get your premiums returned without any interest. 

High Maturity Age

High Maturity Age

Term insurance plans come with a high maturity age, making it easier for policyholders to avail of a higher level of coverage. The maximum term of a term insurance plan is up to 75 years.

Cover Against Life-Threatening Diseases

Cover Against Life-Threatening Diseases

Some term insurance plans also provide coverage for life-threatening diseases such as cancer, stroke, heart attack, and kidney failure. This protection helps provide additional financial security for your family in case of a medical emergency.

Hear from the experts

Vishal Subharwal

Vishal Subharwal

Chief Marketing Officer & Group Head

Hear from the experts

Quote StartHDFC Life Click 2 Protect Super(UIN: 101N145V02)is an intelligent term insurance plan that provides benefits as per your altering lifestyle and life stage needs and helps you stay truly protected. It also provides you with the flexibility to choose a cover that fits your needs from 3 plan options.Quote Start End

Types of Term Plan

Term plans with many flexibilities and additional benefits are available aplenty. The most popular propositions/plans available in the market are described below. You can choose one based on your insurance needs.

Pure level term insurance plan

Pure level term insurance plan

The simplest to understand is a pure term plan that pays out a fixed sum assured to the nominee in case of the death of the insured during the term of the policy. Such term insurance plans do not pay anything on survival of the insured till the end of the policy term. The premium of a pure term plan primarily depends on factors such as age of the insured, gender, whether the insured is a smoker, term of the policy, premium payment term and the sum assured. These are plain vanilla offerings within products and typically have the lowest premiums among all product options available.

Return of premium plans

Term Insurance with Return of premium plans

Many customers cannot reconcile with the fact that pure term plans do not provide any monies back if they survive till the end of the policy term. For such customers, Return of Premium plan is quite attractive where in if the insurer survives the policy term, total premiums paid under the plan (except taxes) are paid back. The sum assured is paid out to the nominee in case of death during the term. These kinds of plans are much costlier than Pure Term Plans as they promise a benefits on survival in addition to that on death.

Increasing sum assured plan

Increasing sum assured plan

The exact opposite of a decreasing plan – in this plan the sum assured increases by a certain percentage, typically capped to a multiple of the original sum assured. The premiums are higher than a level plan as benefit amount increases with each passing year. Such term insurance plans are designed to increase cover along with increasing income levels of the customer. Many plans give an option at the time of purchase to increase sum assured each year without the need for further underwriting. Customer can pay higher premiums each year and avail the revised higher sum assured

Term insurance plans with income benefit

Term insurance plans with income benefit

Term insurance is typically taken for the purpose of income replacement. To make the product benefits match customer needs better, income benefit is offered wherein the nominee gets the desired sum assured in periodic installments. A part of the benefit is still offered as lump sum in some of these term insurance plans. A key benefit of the plan is that it is more tax efficient in the hands of the nominee than a lump sum-based plan. Typically, any lump sum assured will be invested in an interest-bearing financial instrument, and the periodic interest received could be taxable. Nominee also get an option to commute the future income payments at any point and get a lump sum instead which is equal to the present value of outstanding income benefit installments.

Term Insurance with Critical Illness

Term Insurance with Critical Illness

Term Insurance with Critical Illness is a type of insurance policy that is designed to help individuals cover medical costs and other expenses associated with a critical illness. This type of policy is designed to provide financial security in case of an unexpected illness. It provides a lump sum benefit to the insured person in case of an illness defined in the policy. This lump sum amount can be used to cover medical costs, loss of income, and other associated expenses.
Premiums for term insurance with critical illness vary depending on the age, gender, health, and other factors of the insured person and are generally lower than that of traditional life insurance policies.
Term insurance with critical illness does not cover pre-existing medical conditions. Before purchasing this type of policy, it is important to read the policy documents carefully to understand what is covered and what is not.

Term Insurance Plan with Monthly Income

Term Insurance Plan with Monthly Income

A term insurance plan with monthly income is a type of life insurance policy that provides a lump sum amount to the nominee in the event of the policyholder’s death during the policy term. The policy also provides a monthly income to the policyholder’s family for a predefined period of time.
This type of term insurance plan is especially beneficial for breadwinners in the family who wish to ensure that their family’s income does not get affected in the event of their death. The policy also ensures that the family’s financial goals, such as children’s education and marriage, are taken care of even in the event of the policyholder’s death.
The premium for this policy is generally affordable and can be paid either in a lump sum or in instalments. The policy also offers riders such as accidental death and disability cover, which can be added to the policy at an additional cost.  One should review the policy regularly to ensure that it continues to meet the family’s financial requirements.

Group Term Life Insurance Plan

Group Term Life Insurance Plan

Group Term Life Insurance Plan is a type of life insurance offered by employers to their employees. The insurance plan provides coverage for death or disability due to illness or injury and is typically offered at a discounted rate when compared to individual policies.
Employers can set up coverage for their employees in a variety of ways, such as providing coverage for all employees or only for those in certain job categories. The coverage provided by the Group Term Life Insurance Plan can be tailored to meet the needs of the employer and the individual employee. Some of the features of the plan include coverage for death, disability, critical illness, and more. Depending on the term plan, employers can choose to provide additional benefits such as additional coverage for family members, reimbursement for medical expenses, and more.
Employers can also choose the amount of the premium to be paid by the employee, and in some cases, employers can pay a portion of the premium on behalf of the employee. Additionally, employers can opt to provide additional coverage for their employees in the form of an additional rider. 

Term insurance with Waiver of Premium

Term insurance with Waiver of Premium

A waiver of premium rider is an optional insurance policy clause that waives insurance premium payments if the policyholder becomes critically ill or physically impaired. This rider is typically added to a term insurance policy, which pays out in the event of the insured's death. The waiver of premium rider helps policyholders protect their families from the financial burden of continuing to pay premiums if the insured becomes disabled and is unable to work.
The rider waives the policyholder's obligation to pay premiums for the remainder of the policy period. This ensures that the policyholder's family can continue to benefit from the policy without having to worry about paying for it. It is particularly beneficial for those who are the sole breadwinner of their family. In the event of their death or disability, the rider helps to ensure that their family can continue receiving the benefits of the policy without having to worry about the premiums.
The waiver of premium rider is also beneficial for those who are self-employed or have an irregular income. This rider helps to protect them from unexpected financial costs in the event that they are unable to work due to disability or death.

Term Insurance for housewife

Term Insurance for housewife

Term Insurance for housewives is an affordable and effective way for Indian housewives to protect their families in the event of untimely death. It provides a lump sum benefit to the dependents of the insured, should they pass away. This can help to cover financial liabilities, such as medical bills, funeral expenses, and other debts.
It is an affordable option for Indian women who are not working outside the home. It has a lower premium rate, and there is no need for medical examinations or health tests. Term insurance also offers a wider range of coverage options, including whole life and accidental death insurance.
This type of term plan policy can be tailored to meet the needs of the family, and the premiums can be adjusted as needed. For instance, if the family's financial situation changes, the terms of the policy can be adjusted so that it is still affordable.
Knowing that their family will be taken care of in the event of their death can be a great relief to any woman. It also provides the peace of mind that their loved ones will be financially secure in the event of their death.

Term Insurance for Self-employed persons and business owners

Term Insurance for Self-employed persons and business owners

For self-employed persons and business owners, term insurance is an essential form of financial protection. It is designed to provide financial security to those who depend on them, whether it is their family, employees, or business partners. Term insurance provides a lump sum benefit to the nominee if the policyholder passes away during the policy term. This lump sum payment can help keep the business running in the event of the policyholder's death.
Term insurance can be used to protect business owners against financial losses due to death or disability. The sum assured can be used to pay off debts, secure future income for family members, and keep the business running. In addition, term insurance can also provide financial stability to the dependents of the policyholder.
The insurance proceeds can help to cover the costs of winding up the business, such as creating a succession plan, paying off creditors, and paying employees. This ensures that the business remains viable and productive even in the event of the policyholder's death.

Term Insurance for NRIs

Term Insurance for NRIs

Term Insurance for NRIs is primarily designed for Non-Resident Indians (NRIs) who live and work outside India. It is a form of risk protection that provides financial security to the policyholder’s family in case of his/her untimely death. The policy pays out a lump sum amount to the nominated beneficiary in the event of the death of the policyholder during the term of the policy.
It also offers a range of features for the policyholder, such as flexible options for premium payment, coverage of multiple lives, and tax deductions for the premiums paid. It provides coverage for a set period of time and pays out a lump sum amount to the beneficiary in the event of the death of the policyholder. The policy also offers the option to convert the policy to a permanent life insurance policy to provide additional protection.
Term Insurance for NRIs is a cost-effective way to ensure the financial security of their loved ones. It provides coverage for a fixed term at a lower cost than other types of life insurance, and offers the option to add riders to the policy for additional protection, such as critical illness riders and accidental death riders.

What is a Term Insurance Rider?

A term insurance rider is an add-on that provides enhanced benefits over and above life insurance. For example, you can opt for an accidental death rider or a disability rider which offers an additional payout in case the policyholder passes away in an accident or if they become disabled. Most insurers provide a critical illness rider as well. With this add-on, you receive a lump-sum payout on the diagnosis of a covered critical illness. The most popular term insurance rider is the premium waiver rider, which waives off future premiums in case the policyholder receives a critical illness diagnosis or other eventualities outlined by the plan.

 

Term insurance plan is incomplete without these riders.

They help you deal with those additional risks life brings.

HDFC Life Income Benefit on Accidental Disability Rider

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

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

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

Extra Protection is always better | HDFC Life Riders

Discover the power of Extra Protection with HDFC Life Riders


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How to Buy Term Insurance?

Purchasing term life insurance is a quick and easy process. Let’s see how you can get the cover you need:
1

Estimate Your Sum Assured

Consider your current financial position. Do you have any financial liabilities or dependents? If something were to happen to you within the next 20 or 30 years, how much would they need to enjoy their standard of living? Understand what kind of sum assured you want and look for term insurance plans that offer what you need.

2

Enhance Your Cover

If you’d like to boost your cover, you can choose to add riders to your sum assured amount. Once you know exactly what you want, you can get online quotes and compare plans.

3

Fill Up the Application Form

Select the term insurance plan you want to purchase and fill up the online application form. You have to provide details about your age, medical history and lifestyle habits. You have to upload a few documents for verification

4

Pay the Premium and Rest Easy

Submit the application and pay the premium amount to enjoy life cover and peace of mind.

3-Step Process to Buy Term Insurance Plan

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3-Step Process to Buy Term Insurance 3-Step Process to Buy Term Insurance

Know more about Term Insurance


When Should I Buy a Term Insurance Plan?

The ideal time to buy a term plan is right away. Young individuals who enjoy good health can get higher sum assured amounts at lower premiums since they pose very little risk. As you get older, you may face health issues that could increase your premium or reduce the maximum sum assured you can get.

How Long Should the Term Insurance Policy Period Be?

When you purchase a term plan, you can opt for tenure as short as five years or get coverage for the rest of your life. Ideally, you should choose a plan that terminates just before you retire. Term insurance payouts help you meet financial liabilities, most of which you would have completed by the time you retire. If you’d like to continue to enjoy life coverage, you can convert the term plan into a full-life plan before the policy tenure ends.

How to select the Best Term Insurance Plan?

To ensure you make the right choice, you should:
1

Look at the Claim-Settlement Ratio

An insurance company’s Individual Death Claim Settlement Ratio tells you how likely they are to settle your nominee’s claim. You can check a company’s Individual Death Claim Settlement Ratio online. HDFC Life has a Individual Death Claim Settlement Ratio (CSR) of 99.39%5

2

Understand the Customer Experience

Ask people you trust about their experience with the insurance company you prefer. You can also check online reviews from customers to understand whether individuals enjoy a pleasant experience with the company or not. Remember, your term plan could continue for the rest of your life, so you need to build a lasting relationship with the company.

3

Check the Solvency Ratio

The solvency ratio refers to a company’s ability to financially fulfil the insurance obligations. The IRDAI mandates that all insurance companies should have a ratio of at least 1.5. You can check the solvency ratio of companies online

4

Consider the Benefits.

Not all term insurance plans are equal. You should look for policies that offer higher benefits than others. Try and find policies that offer maturity benefits as well as flexible payment and payout options.

5

Choose Riders

Term plans offer more than just life cover. You can opt for riders that provide coverage for critical illnesses and accidental disability as well. The payouts from these add-ons can go a long way in offering financial stability to you and your loved ones at a difficult time.

6

Find Flexible Payout Options

When you purchase a term plan, you often have specific financial goals in mind. Most term insurance plans offer lump-sum payouts to nominees. Often, these individuals get overwhelmed by the large sum and do not know how to manage it. You should consider policies that offer monthly payouts instead. Your nominee will be better equipped to deal with smaller amounts every month that can help them with immediate financial needs.

7

Research Online Availability

Before you make a decision, you must check whether your insurer is available to you online and offline. Most companies today have 24x7 chat features on their website so you can get quick answers to your queries. You should also look for companies that offer online filing of claims for quick processing.

Why Sum Assured is an Important Factor When it Comes to Term Insurance

The sum assured in term insurance plans is crucial for your family's financial security. It provides protection in unfortunate events, offering peace of mind. A substantial sum ensures a secure future by covering debts, education, and income replacement. Choosing the right sum is vital for safeguarding your loved ones. Learn more about the best term life insurance sum assured by clicking the tabs below.

 

Choosing the Best Term Insurance Plan With the Wide Range of Right Sum Assured Options

Below are the important factor of choosing the best term insurance plan for your family’s financial security
1

Term Insurance Policy Term

One of the important factors while buying a term insurance to decide on the correct term of your policy. Below are some of the commonly availed policy terms that you can explore in details – 

 

2

Term Insurance Plan as per your Age

Age is an essential factor that is taken into consideration while calculating your term insurance premium. Also, depending on age your life cover amount might change basis your financial needs. The more your age the will be your term insurance premiums. You can explore term insurance plans basis your age in details -    

 

3

Term Insurance Plan basis your salary

You income or salary is an important factor to decide the amount of sum assured you would need in case of a term insurance. Here are few term insurance plans which you can explore basis on salaries -

 

4

Term Insurance Plan for all

Term insurance needs might vary basis your residential status, family and age. You can explore the below term insurance options to identify the best term insurance plan that answers your needs – 

 

Some common queries on term insurance answered

How Does a Term Plan Secure Your Family’s Future?

How Does a Term Plan Secure Your Family’s Future?

Term insurance plans are the most affordable type of life insurance plans. They offer life coverage in exchange for minimal premium amounts that you can choose to pay monthly, quarterly or annually. Depending on your needs, you can add riders like critical illness or accidental death or disability to your policy. By doing this, you can enhance the financial payout that your family receives in case anything happens to you, the policyholder. In the unfortunate event of the demise of the policyholder, the nominee receives the sum assured, which they can use to clear outstanding debts or take care of day-to-day expenses. As the policyholder, you can decide how you want your family to receive the payout – either as a single lump-sum or with monthly installments that can help them deal with long-term EMIs or even inflation. With a term plan, you ensure that your family doesn’t have to struggle financially if they were to suddenly lose you and everything you contribute to their lives.

Which Factors Affect Term Insurance Premiums?

Your term insurance premium depends on several factors, including:

Age Factors Affecting Term Insurance Premiums

Age

In term insurance plans, premiums are generally lower for young and healthy individuals due to their lower risk status, unlike older individuals who may face higher premiums due to potential health concerns.

Gender Factors Affecting Term Insurance Premiums

Gender

Studies show that women, on average, live longer than men. So, insurance companies often provide women with favourable premium rates in term plan, since they may pay for longer.

Health and Medical History affecting Term Premium

Health and Medical History

When you purchase a term plan, you have to answer questions about your medical history and provide details about your family members. Health issues such as heart attacks or kidney failure may be passed on from parents to children. If you or your family members have a history of certain health conditions, your premium could increase.

Lifestyle Habits affecting Term Plan Premium

Lifestyle Habits

Individuals who often partake in adventure sports, drink alcohol and smoke or consume tobacco in other forms regularly are considered high risk. So, insurance companies charge them a higher premium. You must honestly disclose these details while applying for term insurance to avoid your nominee’s claim getting rejected later.

Profession affecting Term Plan Premium

Profession

Certain individuals have jobs that place them in risky situations every day. People like sailors and pilots or those who work with hazardous materials may have to pay higher premiums for their term insurance plan than their friends with less dangerous jobs.

Policy Tenure and Sum Assured in Term Plan

Policy Tenure and Sum Assured

The premiums you pay for your term insurance plan are directly influenced by both the sum assured and the policy tenure. It's important to note that a higher sum assured will result in a correspondingly higher premium.

Why Buying Term Insurance is a Must During COVID-19 Pandemic?

1

Term insurance plan are the most basic life insurance product available in the market. They provide life cover at affordable premiums. They are ideal for individuals who have certain financial obligations and do not wish to leave their family members with any kind of debt if something were to happen to them. During the COVID-19 pandemic, it became more crucial than ever to buy term insurance.

2

Many individuals succumbed to the disease after long stays in the hospital. This left their families with broken hearts and mounting hospital bills that they might not have been able to afford. The payout from a term insurance policy could help these individuals pay off outstanding medical expenses and other debts.

3

A term plan can provide your loved ones with financial stability during an incredibly difficult time.

Why Choose HDFC Life’s Top-Selling HDFC Life Click 2 Protect Super?

Multiple Customisations with Term Policy

Multiple Customisations

Pick from three plan options and riders to customise your cover and receive policy benefits based on your needs.

Accelerated Payout Option with Term Policy

Accelerated Payout Option

If the policyholder gets diagnosed with a covered terminal illness, they receive the sum assured payout earlier. They can use the money to pay for medical treatments.

Increasing Death Benefit with Term Policy

Increasing Death Benefit

Choose to increase your sum assured amount, up to 200% of the plan value, under the policy’s Life variant.

Critical Illness Benefit with Term Policy

Critical Illness Benefit

Enhance your cover with the Critical Illness Plus Rider and receive the sum assured payout upfront after covered critical illness diagnosis.

Accidental Death and Disability Benefits

Accidental Death and Disability Benefits

Receive an additional financial safety net with the HDFC Life Protect Plus rider^ after an accident leaves the insured permanently disabled or becomes fatal.

Maturity Benefits with Term Policy

Maturity Benefits

Receive a maturity benefit equivalent to all premiums paid over the policy tenure when you choose the return of premium plan option and survive the policy term.

Cover for Your Spouse with Term Policy

Cover for Your Spouse

The policy allows you to get additional coverage for your spouse, ensuring that your children remain financially secure, regardless of what happens.

Smart Cancellation Benefits with Term Policy

Smart Cancellation Benefits

If you cancel your policy, you can use the Smart Exit option to receive an amount equivalent to all base premiums paid at the time of cancellation.

Waiver of Premium Benefits with Term Policy

Waiver of Premium Benefits

Future premiums of term insurance plans get waived after the diagnosis of a covered critical illness or after total and permanent disability.

Term Insurance Buying Guide

1 How Else Will a Term Plan Help You?

Don’t we all like it when we have to pay very little for getting a lot in return? Purchasing term insurance is just like that. A term policy offers a large cover (For Example: A cover of Rs 1 crore) for a comparatively low premium (For Example: Rs 6500 per year). One can get a 30-year term insurance policy with annual premium remaining the same for whole period. In today’s era of increasing living expenses, any individual would want to receive maximum risk cover. This is because, in event of the individual’s untimely demise, a higher cover would enable his dependents to not compromise on living standards. And of course, you can also claim tax benefits on the premium you have paid.

2 How to Calculate the Amount of Insurance Cover that You Need?

Most people tend to pick a number out of thin air when deciding on the cover they need.

A simple rule of thumb is that the insurance cover must be ten to twenty times that of the insured individual’s annual income. Which means if a person’s annual income is Rs 10 lakhs, she must purchase an insurance plan that offers a cover of approximately 1.5 crore. Sometimes, one looks at the premium that one is willing to pay and chooses whatever cover can be bought with that premium. This is not the right way to decide on the amount of cover you will need. The correct way to decide on the sum insured is to look at your future expenditure with a rational mind.

This typically includes the following components

  • before

    Family expenditure to maintain the current standard of living

    after
  • before

    Loans and other debt that need to be repaid

    after
  • before

    Future expenditure that the family will 3 have to make for important events like your child’s wedding, education etc.

    after
  • before

    Any investments your family could make in the future

The sum insured should be the value that you arrive at after summing up these factors. Remember that you must make provision for in inflation when estimating future expenses. This is because if it takes Rs. 1 lakh a month today to maintain your lifestyle, it will cost much more 10 years down the line. Alternatively, you can top-up your risk cover by 5-10% every year. This facility is available in many term plans.

3 Add-Ons to Your Term Insurance Plan

Additional benefits/risk covers might be built-in some term plans making them more comprehensive. A comprehensive term plan aims to cover the financial risks associated with death, disease and disability (3D). Some of these risk covers are in-built and some are offered as riders or add-ons by charging an additional premium. Some of the most popular riders or add-on covers are:

4 Benefits of purchasing Term Insurance Plan Online

5 Term Insurance Plan Made for You

HDFC Life Click 2 Protect Super10offers multiple plan variants to accommodate your lifestyle. Here’s a look at which variant is right for you:

  •  Life
    A pure life insurance product, the life variant provides financial security to your family in case anything happens to you, the policyholder. Your beneficiary receives a lump sum payout of the sum assured as the death benefit. The payout timeline gets accelerated if you get diagnosed with a terminal illness.
     
  • Life Plus
    Along with the sum assured, your beneficiary receives an additional payout if you meet with a fatal accident. If you get diagnosed with a terminal illness during the policy tenure, the sum assured payout gets accelerated.
     
  • Life Goal
    The plan variant uses the level cover period and amortisation rate you choose, when purchasing the plan to evaluate the sum assured payout. It changes over time with each policy year.
     

Now that you understand what each plan variant offers, you can select the ideal policy to secure your family’s finances.

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Documents & Eligibility Criteria for Term Insurance Plans

The documents required to apply for a term plan include:

1 Acceptable Identity Proofs and Residence Proofs

Sr. No

Documents

Identity Proofs

Address Proofs

1

Passport

Y

Y

2

Voter’s Identity Card issued by Election Commission of India

Y

Y

3

Permanent Driving License

Y

Y

4

Aadhaar Card

Y

Y

5

Central KYC Identifier (can be accepted, if the downloaded documents are from the list of Officially Valid Documents (OVD) reflecting across Sr. No. 1 to 4 and there is no change in the address basis the document downloaded from Centralized KYC Registry (CKYCR) database as mentioned on the proposal form)

Y

Y

2 KYC for legal entities

List of Official Valid Documents for KYC purpose:

Features

Documents

Insurance Contracts with companies

  • Certificate of incorporation and Memorandum & Articles of Association
  • PAN of Company / Master Policyholder & Beneficial Owner (BO) irrespective of the premium amount
  • Resolution of the Board of Directors
  • Power of Attorney granted to its managers, officers or employees to transact business on its behalf
  • One copy of an officially valid document containing details of identity and address, one recent photograph and PAN / Form 60 in respect of managers, officers or employees holding an attorney to transact on its behalf
  • Beneficial Owner (BO) Declaration Form
  • KYC documents (Photograph, Proof of Identity & address) of  Beneficial Owner (if it is an individual) as per the Officially Valid Document list 

Insurance Contracts with partnership firms

  • Registration certificate
  • PAN of Partnership firm/ Master Policyholder & Beneficial Owner (BO) irrespective of the premium amount
  •  Partnership deed
  • Consent from partners regarding premium being paid from Firm account
  • One copy of an officially valid document containing details of identity and address, one recent photograph and PAN / Form 60 in respect of managers, officers or employees holding an attorney to transact on its behalf
  • Beneficial Owner (BO) Declaration Form
  • KYC documents (Photograph, Proof of Identity & address) of  Beneficial Owner (if it is an individual) as per the Officially Valid Document list

Insurance Contracts with trusts & foundations

  • Certificate of registration
  • PAN of Trust/ Master policyholder & Beneficial Owner (BO) irrespective of the premium amount
  • Trust Deed
  • Consent from trustees regarding premium being paid from Trust account
  • One copy of an officially valid document containing details of identity and address, one recent photograph and PAN / Form 60 in respect of managers, officers or employees holding an attorney to transact on its behalf
  • Beneficial Owner (BO) Declaration Form
  • KYC documents (Photograph, Proof of Identity & address) of  Beneficial Owner (if it is an individual) as per the Officially Valid Document list

Insurance Contracts with Hindu Undivided Family (HUF)

  • Registration Certificate of  HUF (if registered)
  • KYC documents of Karta (Photograph , Proof of Identity & Address) as per Officially Valid Document list 
  •  PAN of HUF and Karta needs to be collected irrespective of the premium amount

Any other 'Officially valid document' that shall be notified by the Central Government, in consultation with the Regulator from time to time.

3 Acceptable Income Proof

Sr. No

Source of Fund / Proof of Income Document

Resident Indian

NRI

Salaried

Self Employed / Business

Agriculturist

HRI / PEP

Special Jurisdictions

Salaried

Self Employed / Business

1

Salary slip / certificate – issued in last 3 months

Y

N

N

Y

Y

Y

N

2

ITR / Form 16 / assessment orders / Computation of Income issued in last 3 years

Y

Y

Y

Y

Y

Y

Y

3

Bank statement which establishes the Source of Fund / Bank statement (preceding 6 months) – addition of non-cash credits

Y

Y

Y

Y

Y

Y

(Indian Bank Statement)

Y

(Indian Bank Statement)

4

Audited Company accounts issued in last 3 years

N

Y

N

Y

Y

N

Y

5

Audited firm accounts issued in last 3 years and Partnership Deed

N

Y

N

Y

Y

N

Y

6

Chartered Accountant’s Certificate issued in last 3 years

N

Y

N

Y

Y

N

Y

7

Fixed deposits liquidation entries in bank statement/ mutual fund redemption entries in bank statement (to the tune of total premium paid by customer in a Financial Year)

Y

Y

Y

Y

Y

Y

Y

8

Rent receipt (issued in last 3 months) with valid agreement

Y

Y

Y

Y

Y

Y

Y

9

Mandi receipt / Form J issued in last 1 year / agriculture records

N

N

Y

N

N

N

N

10

Indian / Foreign Bank statement having non cash credits (preceding 6 months)

Also the translation of the Bank statement is required, if not in English

N

N

N

N

N

Y

Y

Terms Related To Term Insurance

The amount of financial protection that the policyholder can receive is referred to as coverage.

An individual’s insurability measures the conditions that could affect their health or life expectancy or make them susceptible to injury.

The maturity date refers to the day when the policy automatically ends and the insured receives the benefits of the term insurance plan, if any.

A nomination refers to the process during which the insured authorises another individual to receive the death benefit payout. The authorised individual is called the nominee.

The premium is the amount the insured must pay to keep their term policy active. Premium payments can happen as a lump sum or in instalments

The insured may opt to end the term plan before the maturity date. The amount they receive when they do so is known as the surrender value.

Your term insurance company will have a Individual Death Claim Settlement Ratio (CSR). It refers to the number of claims they settle against all claims received in a year. At HDFC Life, our CSR is 98.66%.

Term insurance add-ons or riders provide an additional element of financial protection over and above what your policy offers at an added cost. For example, you can pay for an accidental death rider, which provides an additional payout in case the insured meets with a fatal accident.

The sum assured is the amount you choose as your term insurance payout in case anything happens to you. It is the amount the term insurance company will provide to your nominee. The sum assured plays a part in determining the premium for the plan.

The sum assured is also known as the death benefit. It is what the nominee receives in the unfortunate event that that policyholder passes away.

The individual who enjoys life coverage under the policy is called the insured.

Term policies now offer a maturity benefit. The amount the insured receives is known as the maturity claim.

Some policies are insurance-cum-pension plans that offer a regular payout. The age at which the insured starts receiving the payouts is known as the vesting age.

FAQs on Term Insurance

We’ll tell you everything you need to know about Term Insurance.

1 What is the age limit to buy a Term Plan?

The age limit within which an individual may purchase a term plan range between 18 to 65 years.

2 Why is the term insurance premium amount for smokers higher than that of a non smoker?

Smoking could potentially lead to health risks such as cancer or heart disease. So, smokers have a higher mortality risk than their non-smoking peers. To help cover their higher mortality rates, term insurance companies charge smokers a higher premium.

3 Is COVID-19 covered by HDFC Life Term Insurance Plans?

During these harsher living conditions presented by the pandemic, HDFC Life Term Plans have got your covered for Covid-19 as well. All life insurance policies issued by HDFC Life cover COVID-19* claims. For more queries on term insurance, visit the HDFC Life website.

Covid-19 disclaimer: “The settlement of Claim would be subject to declaration of all pre-existing medical conditions at the time of policy purchase and in accordance to applicable terms and conditions of policy contract"

4 What kinds of deaths are not covered in term insurance?

Term plans will not cover any deaths caused by self-inflicted injuries or suicide. Additionally, deaths caused by intoxication or sexually transmitted diseases like HIV or AIDS are not covered. The insurance company will carry out investigations into every claim. If they uncover any kind of fraud, the death will not be covered.

5 What documents are required to buy a term plan online?

To buy term insurance, you will need to submit the following documents:

1. Any one of these Officially Valid Documents as ID and Address Proof:

Passport, Voter’s ID, Aadhaar Card, PAN Card, National Population Register containing details of name, address and Aadhaar number, or any other Central Government issued document

In case Officially Valid Documents does not contain updated address, you may submit any one of the following as Address Proof:

Property or Municipal Tax Receipt, Utility Bill of electricity, telephone, post-paid mobile connection, piped gas, water not more than two months old, Pension or family pension payment orders (PPOs) issued to retired

2. Any one document can be used as Income Proof for the Salaried:

Bank statement showing salary credit for the latest 3 months, Latest year Form 16, Latest 2 years Income Tax Returns

3. Any one document can be used as Income Proof for the Self-Employed:

Form 26 AS, CA certified Audited balance sheet and profit loss account for latest 2 years, Latest 2 years Income tax returns not filed in the same year along with Computation of income. If the computation of income is not available, you will need to provide the income tax returns for the last 3 years.

6 Can I have multiple term insurance policies?

Yes, you can have multiple term insurance policies in order to ensure that your loved ones can achieve their life goals in the case of any unfortunate event. They can also manage to pay off liabilities such as loans in your absence.

7 Does Term Insurance Plan cover death or health related issues?

Yes, the HDFC Life Term Plan covers issues related to health and death. There are riders that come with the term plan among which are the basic death benefits and health benefits that you can avail in accordance to your needs. Being the cheapest and one of the most affordable types of insurance available, term insurance plans serve to provide protection with a life cover for your family.

The critical illness rider can be opted for protection from a critical illness. In such a case, you will receive the sum assured upon diagnosis. This is in addition to the benefits that are to be received in case of death during the policy term.

In case of unforeseeable events within the policy term, the nominee that you chose while filing for the term insurance receives the death benefits. The nominee, who is also referred to as the beneficiary, receives a lump sum amount as part of death benefits.

8 Should I buy a term plan or a traditional life insurance plan?

It is a smarter move to invest in term insurance plans in comparison to traditional life insurance policies. While both cover the risk of premature death, the difference between term insurance and life insurance lies at the point of maturity.

A conventional life insurance plan with maturity benefits, like moneyback policies, endowment policies, retirement policies, etc., is typically 10 times its premium amount. From the perspective of wealth creation, such products provide 3% to 4% interest rate which is largely what you get had you kept your funds in your savings bank account. With term insurance policies your net gain is higher in comparison to a life insurance product that comes with a maturity benefit.

However, the choice needs to be on the basis of your life goals.

Other benefits that make buying a term plan a wise decision are:

Death Benefit: Even though term life insurance provides a death benefit in the event of the policyholder’s demise prior to the maturity of the term policy as opposed to life insurance offering both death and maturity benefit, the compensation offered by a term insurance policy's much higher.

Low Premiums: Term plans offer higher risk coverage on low premium but does not create wealth like life insurance policies.

Flexibility: It is a much simpler process to surrender term plans compared to conventional life insurance policies.

9 Can I change the frequency of payment for my term plan?

There might be instances when you would like the change the premium payment frequency.

“For example - If you have been paying your premium yearly, you might want to change it to monthly or if you have been paying your premium monthly, you might want to change it to yearly.”

With HDFC Life’s term insurance policy, you can change your premium payment frequency anytime.

10 Can you cash out term insurance policy?

Term insurance plans generally do not offer maturity benefits, so they do not have any cash value. Given this, it is not possible to cash out a term insurance policy. The policy will only provide a cash benefit in case something happens to the insured individual.

11 Do term insurance plans offer tax benefits?

Yes. The premium you pay for the upkeep of your term plan, up to INR 1,50,000 per year, is tax-deductible under Section 80C of the Income Tax Act, 1961. Additionally, the payout you or your nominee receive will also be tax-free under Section 10(10D)

12 What is the policy term that I should select?

Ideally, you should select a term for your whole life or one that will see you through until your retirement. You can purchase a policy when you’re in your 20s for affordable premiums in the coming years

13 Should you opt for Limited pay or regular pay term insurance plan?

Your decision should depend on your financial ability to pay premiums. If you can afford small regular payments, you can commit to a regular pay term plan. With this option, you can pay every month, quarter, six months or year. Conversely, if you can afford to payhigher premiums quicker, you can opt for a limited pay option.

14 Can I change the frequency of life cover after the term insurance policy is issued?

Yes, many insurance providers will allow you to change the frequency with which you make premium payments toward your term insurance plan. But, you will only be able to make the change when the policy is up for annual renewal.

15 Do you get your money back at the end of the policy term on survival?

This depends on the type of plan you purchase. If you have a return of premium policy, the insurance provider will return the premium amount once the policy expires. Most regular term plans do not offer any monetary benefit at the end of the policy term if the insured survives.

16 What if I become NRI after purchasing a term plan?

If you happen to shift residence out of India after purchasing a term plan, you must let your insurance provider know about the upcoming shift in writing. The company will then confirm whether they will keep your policy active or not. Typically, they will keep your policy going as long as you pay the premiums on time. However, some policy providers will not cover risks in particular countries. So, make sure you document their approval before you move.

17 Why should I buy a term insurance policy?

Term insurance policies provide your loved ones with financial security at a particularly difficult time in their lives. Additionally, depending on the term plan you choose, you can also secure your own financial future in case you’re diagnosed with a critical illness or you meet with an accident that leaves you permanently disabled.

18 How much cover should I take in a term insurance plan?

The amount of coverage that you should ideally opt for in a term plan can be determined with the help of several parameters.

  • Current Annual Income: The generally accepted thumb rule is 20 times your current annual income which more or less factors in all possibilities like life cover, high inflation, and the rising costs of living that helps to decide your overall term insurance plancoverage.
  • Current and Future Financial Commitments: Outstanding loans and debts are yet another key factor that is considered when determining your term policy coverage. If you are the primary breadwinner of the family, you must opt for a large enough coverage that will secure your family, take care of ongoing and future financial obligations in your absence.
  • Financial Goals: Factor in all liabilities that you need to meet in the future when deciding on the sum assured for your term insurance plans. The whole point is to make sure that your family is able to maintain their lifestyle and meet financial goals in the event of your sudden demise.
  • Age at the time of Policy Purchase: You can use the term insurance calculator to reach a decision. 20x of current annual income if you are in your 20s, 15x of annual income if you are in your 30s, and 10x of annual income for those in their 40s. Remember to add any outstanding debt to this calculation too.

Duration of the Coverage: It is best to purchase young and opt for a maximum tenure of coverage on your term plans.

19 What are the in-built benefits offered under the HDFC Life Click 2 Protect Super plan?

You can enjoy the following benefits with your HDFC Life Click 2 Protect Super10 policy depending on the plan variant and add-on covers you select:

  • Death benefit paid to your nominee in case anything happens to you
  • Accelerated death benefit paid in case of a terminal illness diagnosis
  • Return of premiums if you outlive the policy term
  • Waiver of premiums in case of a critical illness diagnosis or permanent disability

20 Can the nominee be changed after I have purchased the term insurance policy?

Yes. After you have purchased a term insurance policy, you are free to update the name of your nominee at any time. You may want to add a spouse after you get married or add your children as nominees as well.

21 Do I need to buy term insurance even if I am covered under my company's group policy?

It’s a good idea to purchase an individual term plan even if you’re covered under your company’s group policy. Group term plans often do not offer very high cover amounts. Individual plans, on the other hand, can be customised to suit your individual needs. You can decide your sum assured and how you’d like the payouts to be made to your nominees. Individual plans also offer continuous cover, which may not always be the case with group plans. If you happen to leave the group, you will no longer enjoy the life cover offered, which leaves you and your family with significant financial risk. With both an individual and a group policy, you can enjoy enhanced cover at all times, irrespective of whether you opt to change your job at any time.

22 What happens to the term insurance policy if the premium is not paid before the due date?

With a term insurance policy, if the insured individual fails to pay the premium before the due date, the policy will automatically lapse. This means that you will have to forfeit all the premiums paid so far and the insurance benefits. If you would like to get life cover again, you will likely have to purchase an entirely new policy.

23 What happens to a term insurance policy if the insured individual outlives the policy term?

Term insurance policies mainly offer the nominees of the individual a death benefit. If you happen to outlive your policy, the policy will end so you no longer have life cover and in most cases, you will not receive any kind of maturity benefit. If you’ve purchased a term plan that offers a maturity benefit, then you will receive it once the policy term expires. Before the term expires, you have the option of converting your term life insurance policy into a regular life insurance policy. You can check with your insurance provider on whether this is possible and ask about the process for the same.

24 How do I select the best term insurance policy for myself?

The term insurance policy that you choose will depend on your financial requirements. First, you must decide whether you want a simple term plan or if you’d like to get critical illness and disability cover as well. Next, you should look for policies that also offer maturity benefits, such as the return of the premium. Finally, you should look at the sum assured on offer. The sum assured that you opt for will depend on the number of dependents you have and the kind of lifestyle you’d like your family to enjoy in the future. Once you understand your needs and requirements, you’ll be able to select the right term insurance policy.

Key Takeaways

Term Insurance Plan offers you:

  • key points

    A low entry age of just 18

  • key points

    Premium payment and benefit payout flexibility

  • key points

    Long-term protection for life

  • key points

    Quick and secure purchases online

  • key points

    High life cover with affordable premiums

  • key points

    Enhanced coverage with accidental disability and critical illness add-ons

  • key points

    Tax savings

  • key points

    Maturity benefits

  • key points

    Three plan options

  • key points

    Opportunity to secure your family’s financial future

Term Insurance Key Takeaways
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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 plans - protection, pension, savings, investment, annuity and health.

  1. Available under Life Protect and Income Plus Options only.
  2. Available as an inbuilt feature under Income Plus Option and on payment of extra premium under Life Protect Option (Fixed Term variant) and Life & CI Rebalance Option.
  3. WoP on diagnosis of CI is available as in inbuilt feature under Life & CI Rebalance Option and on payment of extra premium under Life Protect Option (Fixed Term variant).ADB option is available on payment of extra premium under Life Protect Option.
  4. As per Income Tax, 1961. Tax benefits are subject to changes in tax laws
  5. Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2020-2021. Source - https://www.hdfclife.com/claims
  6. Subject to conditions specified u/s 80C of the Income tax Act, 1961.
  7.  Subject to conditions specified u/s 10(10D) of the Income tax Act, 1961.Therefore stated views are based on the current Income-tax law. Tax benefits are subject to change in tax laws. Also, the customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.
  8. Applicable for step-up variant at Policy Term of 30 years
  9. Subject to maximum policy term of 30 years in Classic and Comprehensive variants
  10. HDFC Life Click 2 Protect Super (UIN: 101N145V02) is a Non-Linked, Non-Participating, Individual, Pure Risk Premium/ Savings Life Insurance Plan. Life Insurance Coverage is available in this product.
  11. This can be exercised in any policy year greater than 30, but not during the last 5 policy years

##Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2022-23.

#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

^ Available under Life & Life Plus plan options

^^ The names of the people used are examples only

***Online Premium for Life Option, Male Life Assured, Non-Smoker, 20 years of age, Policy term of 40 years, Regular pay, monthly frequency, exclusive of taxes and levies as applicable. (Monthly premium of Rs. 692 and daily premium of Rs. 23.).

*Online Premium for Life Option, Male Life Assured, Non-Smoker, 20 years of age, Policy term of 40 years, Regular pay, Monthly frequency, exclusive of taxes and levies as applicable.

**7% online discount available on 1st year premium only!

ARN: ED/01/24/7461