PROTECT YOUR LOVED ONES WITH LIFE INSURANCE COVER IN A FEW SIMPLE STEPS
Plan Options
HDFC Life Click 2 Protect Life provides you with 3 plan options
Life Protect Option Under this plan option, a lump sum is provided on death of the life assured. Below example helps in understanding the working of this plan option:
Life & CI Rebalance Option A smart cover which aims to achieve a balance between Death and Critical Illness benefit as you go along in your life. Critical Illness cover increases at each policy anniversary with corresponding reduction in Life Cover. In addition, all future premiums are waived off on detection of any of the covered Critical Illnesses and the life cover continues. Below example helps in understanding the working of this plan option:
Income Plus Option Under this plan option, the Life Assured is covered for the entire policy term and also receives a lump sum payout on maturity along with regular income starting from age 60. Below example helps in understanding the working of this plan option:
Choose protection cover that best fits your needs
| Protection Type Benefits | Life cover | Life cover + Critical Illness Cover | Life cover + Regular Income after age of 60 |
| Available Plan Option | Life Protect | Life & CI Rebalance | Income Plus |
| Who Should buy this? | Looking for basic protection of family | Looking for benefit of "Life Cover" and "Critical Illness Cover | Looking for benefit of "Life Cover" and "Regular Income after age of 60" |
Life Cover (Lumpsum)  Your nominee gets lumpsum amount incase of your unfortunate demise | |||
| Critical Illness Cover (Lumpsum)1 You will get certain percentage of total cover amount as lumpsum amount for treatment of 36 critical illness | |||
| Critical Illness Cover (Waiver of Premium) Incase of diagnosis of 36 critical illness, you don’t have to pay any future premiums | (Available at Extra Cost) | (In-built Feature) | |
| Monthy Income2 Incase of your survival after age of 60, you will get 0.1% of total cover amount as regular monthly income till the policy matures | |||
| Accidental Death (Additional Cover)3 Get 2 times the total cover amount incase of death due to accident | (Available at Extra Cost) | ||
| Return of Premium4 Incase of your survival till the end of policy, you can opt to get back lumpsum amount. | (Available at Extra Cost) | (Available at Extra Cost) | (In-built feature - For Fixed term) |
| Whole Life5 You can opt for term cover that is available for whole of your life |
| Life Protect | Life & CI Rebalance | Income Plus |
| Protection Type | ||
| Life Cover | Life Cover + Critical Illness Cover | Life Cover + Regular Income after age of 60 |
| Who should buy this? | ||
| Looking for basic protection of family | Looking for benefit of "Life Cover" and "Critical Illness Cover" | Looking for benefit of "Life Cover" and "Regular Income after age of 60" |
| Life Cover (Lumpsum)Your nominee gets lumpsum amount incase of your unfortunate demise | ||
| Critical Illness Cover (Lumpsum)1 You will get certain percentage of total cover amount as lumpsum amount for treatment of 36 critical illness | ||
| Critical Illness Cover (Waiver of premium) Incase of diagnosis of 36 critical illness, you don’t have to pay any future premiums | ||
| (Available at Extra Cost) | (In-built Feature) | |
| Monthly Income 2 Incase of your survival after age of 60, you will get 0.1% of total cover amount as regular monthly income till the policy matures | ||
| Accidental Death (Additional Cover)3 Get 2 times the total cover amount incase of death due to accident | ||
| (Available at Extra Cost) | ||
| Return of Premium4 Incase of your survival till the end of policy, you can opt to get back lumpsum amount | ||
| (Available at Extra Cost) | (Available at Extra Cost) | (In-built feature - For Fixed term) |
| Whole Life5 You can opt for term cover that is available for whole of your life | ||
Benefits
Benefits Available Under HDFC Life Click 2 Protect Life
Life Protect Option - Sum Assured on Death8
- 105% of Total Premiums Paid9
- 125% of Single Premium
- Sum Assured on Maturity10
- Basic Sum Assured12
- 10 times of the Annualized Premium11
- Sum Assured on Maturity10
- Basic Sum Assured12
Under this plan option, you are covered for death during the policy term. In case of your unfortunate demise during the policy term, your nominee gets a lump sum benefit.
Death Benefit:
“Death Benefit” is payable as a lump sum to your Nominee if you, the Life Assured die during the policy term. It is the higher of:
Sum Assured on Death for Single Pay (SP) is the highest of:
Sum Assured on Death for other than Single Pay (Limited Pay and Regular Pay) is the highest of:
Maturity Benefit:
On survival until Maturity, Sum Assured on Maturity will be payable.
Sum Assured on Maturity will be equal to the Total Premiums Paid if ROP benefit is selected, Nil otherwise.
Upon the payment of death or maturity benefit as above, the policy terminates and no further benefits are payable.
Life & CI Rebalance Option - Sum Assured on Death8
- 105% of Total Premiums Paid9
- Life Cover SA
- 125% of Single Premium
- Sum Assured on Maturity10
- 10 times of the Annualized Premium11
- Sum Assured on Maturity10
Under this plan option, Basic Sum Assured chosen by you will be split between Life Cover SA and Critical Illness SA (CI SA).
At the beginning of the cover, Life Cover SA is set at 80% of Basic Sum Assured and CI SA is set at 20% of Basic Sum Assured. For an in-force policy, at every policy anniversary, starting from the first policy anniversary, CI SA will increase every year and Life Cover SA will decrease by the same amount. This amount will be calculated as follows:
30% X Basic Sum Assured ÷ Policy Term.
Basic Sum Assured (Life Cover SA + CI SA) will remain the same throughout the policy term.
Once a Critical Illness claim is made, the Life Cover SA will be fixed at the then applicable level and the same SA will continue until the end of policy term.
Death Benefit:
“Death Benefit” is payable as a lump sum to your Nominee if you, the Life Assured die during the policy term. It is the highest of:
Sum Assured on Death for Single Pay (SP) is the higher of:
Sum Assured on Death for other than Single Pay (Limited Pay and Regular Pay) is the higher of:
Benefit on diagnosis of Critical Illness:
On diagnosis of any of the covered critical illnesses, the applicable Critical Illness (CI) SA at the time of diagnosis of the disease, will be payable to you.
In addition, all future premiums payable under the plan will be waived off and the life cover continues.
Maturity Benefit:
On survival until Maturity, Sum Assured on Maturity will be payable.
Sum Assured on Maturity will be equal to the Total Premiums Paid if ROP benefit is selected, Nil otherwise.
Upon the payment of death or maturity benefit as above, the policy terminates and no further benefits are payable.
Income Plus Option - Sum Assured on Death8
- 105% of Total Premiums Paid9
- 125% of Single Premium
- Sum Assured on Maturity10
- Basic Sum Assured12
- 10 times of the Annualized Premium11
- Sum Assured on Maturity10
- Basic Sum Assured12
This option provides you with a life cover for the chosen policy term and regular monthly income from age 60 onwards along with a lump sum payout on maturity. Monthly income of 0.1% of the Basic Sum Assured shall be paid in arrears, starting from the policy anniversary following your 60th birthday and continues until your death or policy maturity, whichever occurs earlier.
Death Benefit:
“Death Benefit” is payable as a lump sum to your Nominee if you, the Life Assured die during the policy term. It is the higher of:
less total Survival Benefits paid out till the date of death
Sum Assured on Death for Single Pay (SP) is the highest of:
Sum Assured on Death for other than Single Pay (Limited Pay and Regular Pay) is the highest of:
Survival Benefit:
On your survival during the policy term provided all due premiums have been paid, an income equal to 0.1% of Basic Sum Assured will be payable to you at the end of every month, following policy anniversary after your attaining age 60 years, until death or end of the policy term, whichever occurs first.
Maturity Benefit:
For Fixed Term:
On Survival until Maturity, Sum Assured on Maturity will be payable.
Sum Assured on Maturity will be equal to Max (110% of Total Premiums Paid less total Survival Benefits paid out, 0)
For Whole Life: NIL
Upon the payment of death or maturity benefit as above, the policy terminates and no further benefits are payable.
Add-on benefits available under the Product:
Return of Premium (ROP) option
If you choose this plan option, you will have to pay an additional premium over and above the premium payable for the base plan option chosen and you will receive a return of 100% of the Total Premiums Paid as a lump sum, upon survival until maturity.
This option will be available only with Life & CI Rebalance and Life Protect (Fixed Term) options.
Waiver of Premium on CI (WOP CI) Option
If you choose this add-on option, all future premiums payable under the plan will be waived, if you, the life assured are diagnosed with any of the covered critical illnesses.
This option will be available only where PPT is at least 5 years and Life Protect Option with Fixed Term is selected.
An additional premium (over and above the premium payable for the base plan) will be payable if this add-on option is chosen.
Accidental Death Benefit (ADB) Option
If you choose this add-on option, an additional amount equal to 100% of Basic Sum Assured will be payable to the Nominee on your (Life Assured’s) death due to accident during the policy term. This option will be available only where Life Protect Option has been selected.
An additional premium (over and above the premium payable for the base plan) will be payable if this add-on option is chosen.
Alteration of premium payment frequency
You have an option to alter the premium payment frequency during the premium payment term.
Option to reduce Premium Payment Term from Regular Pay to Limited Pay
You also have an option to convert the outstanding regular premiums into any limited premium period available under the plan options.
Eligibility
Plan Option | Life & CI Rebalance | Life Protect | Income Plus | |||
Fixed Term | Whole Life | Fixed Term | Whole Life | |||
| Min Age at Entry | 18 years | 18 years | 45 years | 30 years | 45 years | |
| Max Age at Entry | 65 years | 65 years | 65 years | 50 years | 10 Pay: 50 years Single Pay, 5 Pay: 55 years | |
| Min Age at Maturity | 28 years | 18 years | Whole of Life | 70 years | Whole of Life | |
| Max Age at Maturity | 75 years | 85 years | Whole of Life | 85 years | Whole of Life | |
| Min Policy Term | 10 years | Single Pay: 1 month Regular Pay#: 5 years Limited Pay*: 6 years | Whole of Life | 70 years – Age at Entry | Whole of Life | |
| Max Policy Term | 30 years | 85 years – Age at Entry | Whole of Life | 40 years | Whole of Life | |
| Premium Payment Term | Single Pay, Regular Pay#, Limited Pay* (5 to any PPT less than PT) | Limited Pay* (5, 10, 15 pay) | Single Pay, Limited Pay* (5, 10 pay) | |||
| Min. Basic Sum Assured | INR 20,00,000 | INR 50,000 | ||||
| Max. Basic Sum Assured | No limit, subject to Board Approved Underwriting Policy (BAUP) | |||||
#Regular pay means when premium paying term is equal to policy term
*Limited pay means when premium paying term is less than policy term.
All ages are expressed as on last birthday. For all ages, risk commences from the date of inception of the contract.
For more details on risk factors, terms and conditions, please read the Product Brochure carefully and/or consult Financial Consultant before taking a decision
All ages are expressed as on last birthday. For all ages, risk commences from the date of inception of the contract.
For more details on risk factors, terms and conditions, please read the Product Brochure carefully and/or consult Financial Consultant before taking a decision
Widen your risk cover by attaching riders
When you buy a term plan, you provide a basic protection cover to your family against any threat to your life; and the insurance company pays the sum assured to your nominee in the event of your death. But besides life, there are many other risks that loom over your family and threaten their future. This includes risks to your income and health. While it’s impossible to cover each of these risks, the good news is that you can cover some of the major ones through riders that can be attached with a term plan. By buying them, you widen the financial security net for your family.
Life cover provides the basic sum assured to your nominee in the event of your untimely demise. But what if you are rendered incapacitated as a result of an accident or illness, and your earning capability is grossly hampered. Not only will your family have to undergo great hardship for your treatment, they will also have to manage the regular expenses. At such a circumstance life cover doesn’t help. Put simply, if you were to be incapacitated but alive, your family would need financial support in terms of replacement of your income, something which a life insurance policy would not offer.
Many insurance companies offer various riders, which are tailor-made to cover specific kinds of risks. Once the eventuality covered by the rider occurs, the benefits are paid. The most important and common riders available with a term plan are: critical illness benefit, accidental death benefit, accidental disability benefit and waiver of premium. For instance, if you meet with an accident, the treatment and rehabilitation would involve huge costs, which can suck up all the savings of your family. The family member might even be forced to borrow.
In case even after all the treatment they are not able to save you, the life cover may well fall short to cover your family’s regular expenses. In case of permanent disability, it might be very difficult for you to be gainfully employed and support your family financially. Again, your family will have to bear hardships. But with riders, such as accidental death benefit and disability benefit, your family gets an additional sum, say in the case of death due to accident, and a steady stream of income for a long period, respectively.
Unlike a regular health insurance plan which only reimburses or supports the treatment cost of the insured person, a rider—once triggered—gives a committed payout for the given conditions. This is helpful in the event of a disability or critical illness, where you not only need a lot of money for treatment, but also for taking care of the family expenses. Therefore, a benefit that pays you a large sum under few conditions through riders will immensely help your family cope up in adverse conditions and ensure that the progress to their dreams is not irreparably damaged.
We are aware that among various types of life insurance plans, term plans provide the highest life insurance coverage at the most affordable premiums. Riders further add to the advantage since they cover other risks at nominal costs. In effect, what this does is it ensures that a wide range of risks get covered with you not having to dig deep in your pockets.
Calamity typically doesn’t strike with a warning. A wide risk coverage consisting of a life cover from a term plan and riders makes sure that you can reclaim your life after a disaster and the momentum in your journey to your dreams.
We offer riders for such events
HDFC Life Critical illness plus rider
HDFC Life Critical Illness Plus Rider offers a lump sum benefit equal to the sum insured, if the life assured survives for a period of 30 days following the diagnosis of any of the specified 19 critical illnesses.
Download Brochure
Download Brochure
HDFC Life Income Benefit on Accidential Disability Rider
HDFC Life Income Benefit on Accidental Disability Rider - In the event of total permanent disability due to an accident, you will be paid a regular monthly income equal to 1% of Sum Assured for a fixed period of 10 years.
Download Brochure
Download Brochure
HDFC Life Protect Plus Rider
HDFC Life Protect Plus rider offers benefit as a proportion of the Rider Sum Assured shall be payable in case on accidental death or partial/total disability due to accident or if you are diagnosed with cancer as per the option chosen under this rider. No maturity benefit is payable under this rider.
Download Brochure
Download Brochure
Having problems in understanding the jargons, let us help you out.
Frequently Asked Questions
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What are the plan options available for this product?
There are 3 plan options available with this product namely:
- Life Protect Option: This option gives basic protection for your family and provides lump sum amount (Life cover) in case of death during policy term. The Life cover remains constant throughout the policy term.
- Life & CI Rebalance Option: A smart cover which aims to achieve a balance between Death and Critical Illness benefit as you go along in your life. Critical Illness cover increases at each policy anniversary with corresponding reduction in Life Cover. In addition, all future premiums are waived off on detection of any of the covered Critical Illnesses and the life cover continues.
- Income Plus Option: Under this plan option, the Life Assured is covered for the entire policy term and also receives a lump sum payout on maturity along with regular income starting from age 60.
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What are the premium paying frequencies available for this plan?
Single, annual, half-yearly, quarterly and monthly frequencies are available under this product.
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Is there any maturity benefit for this plan?
Yes, Under Income Plus Option, you will receive a return of 100% of the Total Premiums1 paid as Lumpsum, upon survival till maturity. It is in-built feature in this option.
For other plan options (Life & CI Rebalance, Life Protect), you have to pay an additional premium over and above the premium payable for the base plan option chosen in order to receive a return of 100% of the Total Premiums paid as Lumpsum, upon survival till maturity (Available under Return of Premium add on option).
This maturity benefit will be available for:
- All policy terms between 10 and 40 years for Single, Regular and 5 Pay.
- All policy terms between 15 and 40 years for 8, 10 and 12 Pay.
1Total Premiums Paid are the total of all the premiums received, excluding any extra premium, any rider premium and taxes. In case ROP option has been selected, Total Premiums Paid includes premium paid for base plan option and the additional premium paid for ROP option.
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Is there any death benefit available under Life Protect Option?
Yes, “Death Benefit” is payable as a lump sum to your Nominee if you die during the policy term. It is the higher of:
- Sum Assured on Death
- 105% of Total Premiums Paid1
Sum Assured on Death for Single Pay (SP) is the highest of:
- 125% of Single Premium
- Sum Assured on Maturity
- Basic Sum Assured
Sum Assured on Death for other than Single Pay (Limited Pay and Regular Pay) is the highest of:
- 10 times of the Annualized Premium
- Sum Assured on Maturity
- Basic Sum Assured
- Limited pay means premium paying term is less than policy term
- Regular Pay means premium paying term is equal to policy term
1Total Premiums Paid are the total of all the premiums received, excluding any extra premium, any rider premium and taxes. In case ROP option has been selected, Total Premiums Paid includes premium paid for base plan option and the additional premium paid for ROP option.
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Is there any death benefit available under Life & CI Rebalance Option?
Yes, “Death Benefit” is payable as a lump sum to your Nominee if you die during the policy term. It is the highest of:
- Sum Assured on Death
- 105% of Total Premiums Paid1
- Life Cover Sum assured
Sum Assured on Death for Single Pay (SP) is the higher of:
- 125% of Single Premium
- Sum Assured on Maturity
Sum Assured on Death for other than Single Pay (Limited Pay and Regular Pay) is the higher of:
- 10 times of the Annualized Premium
- Sum Assured on Maturity
- Limited pay means premium paying term is less than policy term
- Regular Pay means premium paying term is equal to policy term
1Total Premiums Paid are the total of all the premiums received, excluding any extra premium, any rider premium and taxes. In case ROP option has been selected, Total Premiums Paid includes premium paid for base plan option and the additional premium paid for ROP option.
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Is there any death benefit available under Income Plus Option?
Yes, “Death Benefit” is payable as a lump sum to your Nominee if you die during the policy term. It is the higher of:
- Sum Assured on Death
- 105% of Total Premiums Paid1
less total Survival Benefits paid out till the date of death
Sum Assured on Death for Single Pay (SP) is the highest of:
- 125% of Single Premium
- Sum Assured on Maturity
- Basic Sum Assured
Sum Assured on Death for other than Single Pay (Limited Pay and Regular Pay) is the highest of:
- 10 times of the Annualized Premium
- Sum Assured on Maturity
- Basic Sum Assured
- Limited pay means premium paying term is less than policy term
- Regular Pay means premium paying term is equal to policy term
1 Total Premiums Paid are the total of all the premiums received, excluding any extra premium, any rider premium and taxes. In case ROP option has been selected, Total Premiums Paid includes premium paid for base plan option and the additional premium paid for ROP option.
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What is critical illness and how many types of critical illnesses are covered under this product?
Critical Illness means illness, the signs or symptoms of which first commence more than 90 days following the Issue Date or Commencement Date or the date of any reinstatement of this Contract, whichever is the latest and shall include either the first diagnosis of any of the following illnesses or first performance of any of the covered surgeries stated below:
List of Critical Illnesses covered | ||
1.Cancer of Specified Severity | 2. Myocardial infarction – First heart attack of specific severity | 3. Open Heart Replacement or Repair of Heart Valves |
4.Kidney Failure Requiring Regular Dialysis | 5. Major Organ/ Bone Marrow Transplant | 6. Coronary Artery Bypass Graft (Open, Keyhole or minimally invasive or Robotic Cardiac CABG) |
7.Multiple Sclerosis with persisting symptoms | 8. Stroke resulting in permanent symptoms | 9. Coma of specific severity |
10.Permanent Paralysis of Limbs | 11. Motor Neuron Disease with Permanent Symptoms | 12. Benign Brain Tumor |
13.Blindness | 14. Deafness | 15. End stage lung failure |
16. End stage liver failure | 17. Loss of Speech | 18. Loss of Limbs |
19.Major Head Trauma | 20. Primary (idiopathic) pulmonary hypertension | 21. Third Degree Burns |
22.Alzheimer’s Disease | 23. Aplastic Anaemia | 24. Medullary Cystic Kidney Disease |
25.Parkinson’s Disease | 26. Systemic Lupus Erythematosus (SLE) with Lupus Nephritis | 27. Apallic Syndrome |
28.Major Surgery of Aorta | 29. Brain Surgery | 30. Fulminant Viral Hepatitis |
31.Cardiomyopathy | 32. Muscular dystrophy | 33. Poliomyelitis |
34.Pneumonectomy | 35. Severe Rheumatoid Arthritis | 36. Progressive Scledorma |
To know more about each critical illness, refer product brochure
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Is there any benefit on diagnosis of critical illness?
- Under Life & CI Rebalance option, waiver of premium on diagnosis of critical illness is an in-built feature. Also, lump sum amount is given for treatment of critical illness under this plan option.
Under Life Protect option, this benefit is available as Waiver of Premium on CI (WOP CI add on option). If you choose this add-on option, all future premiums payable under the plan will be waived, if you are diagnosed with any of the covered critical illnesses. This option will be available only where PPT is at least 5 years and Life Protect Option with Fixed Term is selected. An additional premium will be payable if this add-on option is chosen.
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What is definition of accident in “Accidental Death Benefit”?
Accident is a sudden, unforeseen and involuntary event caused by external, visible and violent means. Accidental Death means death by or due to a bodily injury caused by an Accident, independent of all other causes of death. Accidental Death must be caused within 180 days of any bodily injury.
“Accidental death” shall mean death:
- which is caused by bodily injury resulting from an accident and
- which occurs due to the said bodily injury solely, directly and independently of any other causes and
- which occurs within 180 days of the occurrence of such accident but before the expiry of the cover and
- is not a result from any of the causes listed in the exclusions for accidental death benefit
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Is there any additional benefit for accidental death?
Yes, additional benefit is available in the form of Accidental Death Benefit (ADB) add on option. If you choose this add-on option, an additional amount equal to 100% of Basic Sum Assured will be payable to the Nominee on your death due to accident during the policy term. This option will be available only where Life Protect Option has been selected. An additional premium will be payable if this add-on option is chosen.
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Will my Sum Assured Change under Life and CI Rebalance Option?
Critical Illness cover increases at each policy anniversary with corresponding reduction in Life Cover.
At the beginning of the cover, Life Cover SA is set at 80% of Basic Sum Assured and CI SA is set at 20% of Basic Sum Assured. For an in-force policy, at every policy anniversary, starting from the first policy anniversary, CI SA will increase every year and Life Cover SA will decrease by the same amount. This amount will be calculated as follows:
30% X Basic Sum Assured ÷ Policy Term.
Basic Sum Assured (Life Cover SA + CI SA) will remain the same throughout the policy term.
Once a Critical Illness claim is made, the Life Cover SA will be fixed at the then applicable level and the same SA will continue until the end of policy term.
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Why HDFC Life Click 2 Protect Life Insurance Plan?
Looking for an easier way to insure yourself and secure your loved one’s happiness? You know that the solution is a term insurance plan and you seek a plan that is convenient to buy and is affordable. HDFC Life Click 2 Protect Life Insurance plan provides comprehensive financial protection to your family, Auto balances Death and Critical Illness benefits with increasing age^ , provides an option to avail cover for Whole of Life* , get back all premiums paid on survival till maturity with Return of Premium option** and many other features as well.
^Available under Life & CI Rebalance Option only
*Available under Life Protect and Income Plus Options only
**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.
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Can I change my premium paying term from regular pay to limited pay after the policy has been issued?
You also have an option to convert the outstanding regular premiums into any limited premium period available under the plan options without any charge/ fee.
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Can I change my premium frequency after the policy has been issued?
You have an option to alter the premium payment frequency during the premium payment term without any charge/ fee.
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Are there any specific exclusions in this plan?
To know detailed information related to exclusions, read Product Brochure
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Does this plan offer tax benefits ?
Premiums paid by an individual or HUF under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961, subject to the conditions/ limits specified therein. Under Section 10 (10D) of the Income Tax Act, 1961, the benefits received from this policy are exempt from tax, subject to the conditions specified therein.
Please note that the above mentioned benefits are as per the current tax rules. Your tax benefits may change if the tax rules are changed. You are requested to consult your tax advisor.
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Can I change the plan option once chosen?
No, Plan option once chosen at inception cannot be changed throughout the policy term.
Downloads
Product Brochure Download
Rider brochure download
Things to Know
4 simple steps to reduce the premiums for term plan
A great way of looking at a term life insurance plan is to consider it as an expense on the financial safety of your family, and thereby, make it a part of the household budget. That way, you could actually consider ways to reduce its cost without compromising on the quality of the safety net it provides to your family. Here is how you can lower the premium of your term plan even as you enjoy the best life insurance coverage.
Buy early in lifeLife insurance companies decide the premium rate for a term plan on the basis of their risk perception of the person whose life they will insure. For instance, the mortality rate for a 20-year-old would be considered lower than someone aged 30. So, greater the age of the person to be insured, greater the risk for the insurance company of a death during the term and a claim, and thus, higher premiums. Therefore, if you take a policy early in your life, you get to pay a lower premium. Also, once you have bought a policy, the premium rate usually does not change over the policy term. So, if you buy a policy early in your life, you enjoy the benefit of the lower premium till the end of the policy term. There are also some flexible term plans, which offer enhancement of cover at various life stages, such as wedding and parenthood. These are very suitable if you take them early on in life, as you would enjoy lower premiums, while also have the option to increase the sum assured whenever the situation demands.
Stay healthy and benefit from lower premiumsThe more healthy and physically fit a person is; the lesser is his likelihood of his dying early, and hence, a lower probability of the insurance companies charging extra premium. Elsewhere, if a person has a history of diseases or is unfit, then the insurance company could charge extra premium. Unhealthy habits like smoking and alcohol consumption also lead to extra premium charges.
Buy onlineWhen you buy a policy online, it saves the marketing and distribution cost for the insurance company. Besides, there are other cost savings as well. Since all the personal information of the customer and other data is entered by the customer digitally and is downloaded directly by the underwriting team, it saves a lot of policy administration and operational efforts. Digital transfer of data also ensures more correct data being entered in the system in the first attempt itself, thereby reducing the cost of errors due to handwritten data interpretation and manual system entry from a paper application form. Whatever cost the insurance company saves on these overheads (courtesy an online purchase by the customer), it passes the same to the customer by way of lower premiums on online term plans
Opt for an annual mode of paymentTo provide flexibility in payment, insurance companies offer many options, such as annual, quarterly and monthly premium payment options, too. But, do note that an annual mode of payment will be less expensive than either of these three. So, if annual payment is not too big a constraint, go for it. Term plans provide high life insurance coverage at very affordable premiums. You can drive home the advantage of low premiums further with the four steps we have suggested. The money saved can then be smartly invested for growth along with other investments, to help your family fulfill all its dreams.
How to find out life insurance cover your family truly needs
One of the many dangers of having no or less-than-adequate life insurance is that, in your absence, your family members and dependants could struggle to meet current expenses and future needs. Therefore, it is necessary to find out the right life insurance amount so that your family continues to lead a normal life even when you are not there.
Why you need to find out your “Human Life Value”?
Your family is dependent on your earnings to take care of its daily expenses and to accomplish its future goals, such as buying a house, children’s higher education, wedding and spouse’s welfare after retirement. If you take the present or today’s value of all the future earnings throughout your work life which you would contribute to your family, it would give you an amount that could take care of the family in your absence. This is your Human Life Value. This is the basic life insurance your family needs to maintain its current lifestyle and fulfil all life goals in your absence. There are many websites with calculators that could help you arrive at this value. A quick way to get a ballpark estimate of the amount is to take your annual expense amount and multiply it with number of years left of your work life. For instance, if your annual expense is Rs 5 lakh and the number of years of work life remaining is 20 years, you would need Rs 1 crore as base insurance cover amount.
Consider number of dependants
The more dependants you have, say, spouse, children, parents, siblings and in-laws, higher the life insurance you would need to make provision for their sustenance. For your spouse, you would have to make a provision till the end of your work life as well as for the duration of retired life. As a rule of thumb, this provision can be 10 times your annual expense. For those who are completely dependent and partially-dependent on your income, can make this provision at 5 times and 2.5 times your annual expenses, respectively.
Figure out the amount needed for future life goals
There are many life goals, such as children’s higher education and wedding, for which you need to invest regularly. Though the basic cover amount would help your family meet regular expenses of all the dependants, including your children till the time they get independent, expenses like higher education and wedding is typically borne by parents. You will also need to make provisions for these future expenses in your life insurance cover, to secure the future of your family members such as your children.
Factor in all your obligations
When you start acquiring various assets, you also take up loans, such as home, auto and personal loans. In your absence, it would be difficult for your family to clear these obligations and might even have dip into your existing savings. If you add the outstanding loan amounts to your desired insurance cover amount, it would become sufficient to protect your family from all financial obligations.
Periodically review life insurance coverage
While the approach we have just described helps you arrive at the right life insurance amount you need, this requirement keeps changing over time. This means you need to periodically review the adequacy of the life insurance coverage. Based on growth of your income, lifestyle changes, assets accumulated, besides life milestones like parenthood, your insurance coverage requirement can increase or decrease. When you have less assets i.e. investments that can create income in the future, you need more life insurance. Similarly, as the number of dependants or your income increases, you need a larger insurance cover. Flexible term life insurance plans are available, which provide high life covers at affordable premiums and allow you to increase your life cover after milestones like birth of a child, and decrease it after accumulation of ample assets or fulfilment of major responsibilities like child’s higher education.
To conclude, arriving at the life insurance amount requires you to take into account a host of financial factors related to your present and future. What’s more, it calls for periodic reviews on the adequacy of the amount. That’s a small ask for providing financial protection to your family.
- This feature is in-built in Life & CI Rebalance option, where certain cover amount is given incase of diagnosis of covered Critical Illness along with waiver of future premiums. Whereas, in Life Protect Option, only waiver of premium benefit (Waiver of Premium on CI (WOP CI) Option) is available when PPT is at least 5 years and Life Protect Option with Fixed Term is selected. and you have to pay an additional premium over and above the premium payable for the base plan option chosen.
- Monthly income is only available under Income Plus option. It starts from the policy anniversary following your 60th birthday and continues until death or policy maturity, whichever occurs earlier
- Additional accidental death cover is only available under Life Protect option as Accidental Death Benefit (ADB) Option. This add on option can be opted by paying an additional premium over and above the premium payable for the base plan option chosen
- 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.
- Available under Life Protect and Income Plus Options only
- Available under Life & CI Rebalance Option only
- 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).
- Sum Assured on Death is the absolute amount of benefit which is guaranteed to become payable on death of the life assured in accordance with the terms and conditions of the policy or an absolute amount of benefit which is available to meet the health cover.
- Total Premiums Paid are the total of all the premiums received, excluding any extra premium, any rider premium and taxes. In case ROP option has been selected, Total Premiums Paid includes premium paid for base plan option and the additional premium paid for ROP option
- Sum Assured on Maturity is the amount which is guaranteed to become payable on maturity of the policy, in accordance with the terms and conditions of the policy.
- Annualized Premium is the premium amount payable in a year chosen by the policyholder, excluding taxes, rider premiums, underwriting extra premiums and loadings for modal premiums, if any.
- Basic Sum Assured is the amount of sum assured chosen by the policyholder.
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Our vision is to provide innovative and customer-centric insurance plans that can help our customers secure their family's future as well as help them with other benefits such as tax savings. Keeping this in mind we offer a large range of life insurance plans such as term insurance plan, women's plan, health insurance plans, pension plans for retirement planning, child education plans, ULIPs, saving and investment plans. Most of these life insurance policies are available online, so buy one today and Sar Utha Ke Jiyo!.
As per regulatory changes, it is mandatory to submit PAN/Form 60 (if PAN is not available) for your policy with immediate effect. Please update via My Account/service@hdfclife.com/18602679999/HDFC Life branch. Ignore if already submitted.
HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.
Registered Office:
HDFC Life Insurance Company Limited,
Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Tel No: (022)67516666.
The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited and is used by HDFC Life under a licence/agreement
For more details on risk factors, associated terms and conditions and exclusions, please read the sales brochure carefully before concluding a sale. ARN: EC/06/2017/9792