Term Insurance Plans

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

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.

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 and there are no exclusions as such. 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"}

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.

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.

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.

1. 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.
2. 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.
3. 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.

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.

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.

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.

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)

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.

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.

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.

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.

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.

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.

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

a.    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.

b.   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

c.     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.

d.     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.

When you opt to purchase HDFC Life’s Click 2 Protect Life Term Insurance plan, you can enjoy the following benefits:

Sum assured paid to your nominee in case anything happens to you

• Return of Premium is payable on maturity if you outlive the policy term
• Waiver of future premiums in case you are diagnosed with a critical illness
• Payment of the decided sum assured on diagnosis of a critical illness
• Payment of the decided sum assured if an accident renders you permanently disabled

^{*The above benefits are for different plan options & add-on benefits. Please refer the product brochure for detailed understanding}

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.

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.

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.

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.

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.

Selecting a term plan today can be quite difficult. If you would like to know whether your term plan is a good one or not, here's a look at some important things to consider:

1. Waiver of Premium Benefit: While a term plan is mostly about life cover, it's important to understand that a disability or disease could also cause great financial strain on you and your family. A good term plan will provide a waiver of premium benefit in case of a critical illness diagnosis or an accidental permanent disability. This means that your policy will continue as planned and you will still have life cover, but are no longer required to pay any premiums for the upkeep of the term policy.
2. Payout Options: Depending on who your nominee is, you may want to opt for a staggered payout. This means that you can ask your insurance provider to give your nominee small payments at regular intervals instead of one large payment. This could help your loved ones plan and invest their money better. While picking a plan, check if there's any flexibility for you to pick how your nominees will receive the payment.
3. Rebates on Offer: Some insurance providers will offer rebates if you choose a higher sum assured or if you're a non-smoker. When you're selecting a term plan, you should check on whether you will be offered any rebates and under what conditions you are eligible to ask for them.

1. Purchasing a term insurance online is quite easy and convenient. In this digital world, you can get your HDFC Life Term Insurance online. Buying the term insurance that suits your financial requirements online is not only economical, but it accounts for less paperwork. Do not forget to compare the features of term insurance with others available online in order to get maximum life coverage that you require within the premium that you are able to pay.
   1. The documents that you would require while applying for the term insurance online are:
      • Age proof (passport, birth certificate, driver's license, voter ID card, PAN card, school/college leaving certificate).
      • Address proof (passport, electricity bill, voter ID card, ration card, utility bill, telephone bill, statement of your bank account).
      •  Photo ID Proof (like a passport, driver's license, voter ID card, PAN card, Aadhaar card)
      • A recent passport-size picture
      • Proof of income (Form 16, salary slip, employer's certificate, ITR/assessment order)
2. In case of queries while filling the form, you can call at the toll-free number 1800 266 9777 or write an email to them at [email protected]. In case of queries after paying your premium, write an email at [email protected] or call at the toll-free number 1800 266 0315. After availing your policy, you can inquire at 1860 267 9999 who provide customer service or write an email at [email protected].

Term plans, which provide life cover for a specified time period or 'term', are important as they allow individuals to safeguard their family's financial future, regardless of what happens to them. Let's say that you are a breadwinner in your family. 

If something were to happen to you and your family loses your regular income, it could affect their ability to maintain their standard of living. If you add to this the burden of debt from a home loan or a car loan, day-to-day functioning can become incredibly difficult.

This is precisely why term insurance plans are so crucial. These plans provide your family members with some financial stability at a difficult time, allowing them to pay off debts and maintain their standard of living. These plans even allow you to select how you would like the payment to be made.

You can choose for your loved ones to receive one lump sum payment, or request that the payments be made in monthly installments over the years. Whichever option you select, you can rest assured knowing that your family's finances will always be taken care of.

1. Two types of life covers are: term insurance and endowment insurance. An endowment plan reinforces the idea of a built-in savings component that comes with the life cover. Whereas, a term insurance is basically a form of pure life cover with no involvement of profits or savings components. Term plan benefits also include a larger life coverage. There are several term plans offered by the HDFC Life Term Insurance, you can purchase any of these plans to protect yourself and your family during this pandemic and claim cover for Covid 19.
2. There are also several riders attached to them that enhance the utility of the policy. The basic riders provide benefits like the health benefits and death benefits. Several other riders also include coverage during unemployment called waiver of premium cover, disability cover and many more.
3.  Some plans provide flexible options at certain points of your life as a part of the life cover. At an instance of marriage of the policyholder or the insurer, it is permitted for the life cover to be enhanced up to 50%. And when the insurer or the policyholder becomes a parent, it is permitted for the life cover to be enhanced up to 25%.

There are a number of term plans available in the market today. Let's take a look at the five basic types of term insurance plans:

1. Level Term Plans: These are the most basic type of term plan. The sum assured is fixed at the onset and the premiums remain the same through the policy tenure.
2. Return of Premium Plans: Unlike most other term plans, these policies have a basic maturity benefit. If the individual who is covered by the policy outlives the plan, the premiums they paid for the upkeep of the policy will be returned to them.
3. Increasing Term Plans: In these plans, the sum assured can be increased every year, while the premium remains the same. Given the kind of structure being offered here, the premiums may start at a slightly elevated cost for the initial sum assured.
4. Whole Life Plans: While most term policies only offer cover for a selected time period, certain policies will offer cover for your entire life.
5. Waiver of Premium Plans: Today, term policies don't just offer life cover. They also provide financial support in case of the diagnosis of a terminal illness, critical illness or even disability. In cases where you are diagnosed with a critical illness or are left permanently disabled due to an accident, your future premiums will be waived, but your policy will continue. On the other hand, on the diagnosis of a terminal illness, you will be provided with the sum assured and your policy will be terminated.

Life insurance policies, like term plans, also offer life cover. But, life insurance plans also have a maturity benefit or investment benefit. Individuals can use life insurance policies to help them save money for the future, for their retirement, or to help pay for their child's education.

On the other hand, term plans are pure life cover plans. They do not have any investment opportunities, which make them easier to understand. Term plans generally offer higher cover at more affordable rates as compared to life insurance policies.

This is primarily because term plans don't have a saving component so they do not promise any kind of benefit at maturity. While certain plans are available today that do offer a return of premiums paid, on the whole, if you outlive the tenure of your plan, you will not receive any monetary compensation or reward.

Having said that, term plans are also one of the very few plans available in the market that offer complete peace of mind. With a term plan, you can rest assures that if anything happens to you during the policy term, your family will be taken care of, at least financially.

If you feel that you do not have any further liabilities in life, you may choose to surrender your term life 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.

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).

If you outlive the term insurance policy term, the policy will expire. With a return of premium policy, your insurance provider will return all premiums as a maturity benefit. Once the policy expires, you no longer enjoy life cover. Before the expiry, you can opt to convert your term plan into a permanent policy or purchase a new term plan to continue to enjoy life cover.