Term insurance is a life insurance product, which offers financial coverage to the policyholder for a specific ‘term’ or a time period. A term life insurance policy can offer a substantial cover
In case of death of the insured individual during the policy term, the death benefit is paid by the insurer to the nominee. However, in the event that the tenure of the policy comes to an end within the lifetime of the policyholder, then the latter does not get any money back. Read More
Usually, the policy term of term insurance can range over a long period such as ten years or twenty years or thirty years. The premium for a term insurance policy can be paid on a monthly, quarterly, half yearly or yearly basis.
One should know the importance of term insurance key features and why you should opt for it before buying a term policy
The purpose of taking term insurance is to provide life cover to the policyholder and financial security to his family. Therefore, if an individual covered by term insurance passes away, then the dependents of the individual need not compromise on their financial aspirations. The death benefit offered by a term insurance plan can be used for a variety of purposes such as managing living expenses, paying for higher education etc.
Therefore, it is imperative that a term life insurance plan should be a part of an individual’s financial portfolio. One can either buy a term plan online or offline. Read Less
Term Insurance Plan by HDFC Life provides you with the advantage of large life insurance cover for an affordable premium.
Riders covering other risks such as accident are available and can be attached to term plans and provide a much wider protection to your family.
The Married Women's Property Act, 1874 (“MWPA”) was created to secure the assets owned by a woman against her husband, his creditors, and relatives. Section 6 of the MWPA covers any insurance policy taken out by a man on his own life in favour of his wife and children.
HDFC Life Click 2 Protect Life
Change is the only constant. In a world evolving at an accelerating pace, it is only reasonable that you keep up with the times, or fear being left behind. Keeping up with the changing times, HDFC Life is proud to present Click 2 Protect Life, an intelligent term plan that provides benefits as per your altering lifestyle and life stage needs and helps you stay truly protected.
- Option to choose a cover which fits your needs from 3 plan options
- Option to avail cover for Whole of Life5
- Get income payouts from age 60 onwards under Income Plus Option
Many Families covered by
HDFC Life Click 2 Protect Life
Why You Should Buy Term Insurance?
Term insurance is a simple product and is easy to understand. Here are reasons to buy term insurance:
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
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 policy 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.
Insure your assets
In the absence of the primary income earner, financial dependents might be forced to sell assets to arrange for funds to manage daily expenses. For example: financial dependents may either have to sell the house or investment portfolio to arrange for funds. This could have a negative impact on their long term well being. Instead, the death benefit offered by a term insurance plan can provide substantial funds to manage daily expenses or for any other purpose. Thus assets that can provide tremendous value over the long term need not be liquidated.
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.
Who Should Buy Term Insurance Plan?
Term insurance can be purchase by individuals across segments.
1. Young working professionals
Most individuals prefer to purchase term insurance after getting married or later in their career. However, those who have just started working will benefit immensely from purchasing term insurance. Financial dependents of such individuals are likely to be parents or siblings. There are multiple advantages of purchasing term insurance at such an early stage in one’s career. Let us check out some of these benefits:
- The premiums are lower and thus one can avail a substantial amount as coverage
- The premium is tax-deductible
- An individual has the option of adding or removing nominees anytime. So if the policyholder marries later, the spouse and the child can be added as nominees
- Can purchase term insurance online or offline
2. Recently married couples
Recently married couples can begin their journey of creating a robust financial portfolio by purchasing term insurance policies. Both the spouses may have financial dependents and may also wish to take advantages of the benefits of purchasing term insurance policies as early as possible. Later on, when a child is born, the child can either be the sole or joint beneficiary of the term insurance policy.
3. Those who are about to retire or retired individuals
It might not seem appropriate to purchase a term insurance plan during one’s sunset years as one’s responsibilities are most likely to be fulfilled. However, one may still have financial dependents - for example - a non-working spouse or child. One may also wish to leave behind a substantial inheritance for one’s children or grandchildren. In such cases, one can plan to purchase a term insurance policy.
4. Regular taxpayers
here are almost 1.5 crore income taxpayers in the country. Taxpayers are always on the lookout for instruments which can offer attractive tax benefits. Apart from offering protection to one’s financial dependents against any financial challenges, a term insurance plan can also offer tax benefits to policyholders. Under Section 80C, policyholders can avail tax deduction on the term insurance premium paid.
5. Self-employed individuals
A substantial part of India’s workforce comprises self-employed individuals. Self-employment can have multiple phases of ups and downs. It takes considerable time to establish one’s business or independent practice. Therefore a self employed individual’s income is likely to be irregular. Hence, one of the foremost concerns that a self employed individual is about the well being of financial dependents. By purchasing a term insurance policy a self-employed professional can ensure that the aspirations of financial dependents are never compromised.
Benefits Of Term Insurance Plan
Here are some benefits of purchasing a term insurance policy
High protection at low premiums
Life insurance policies are accessible to the masses since they provide a large cover at relatively low premiums. The earlier in life you purchase term insurance, the lower the premium.
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.
The death of the breadwinner of the family is not only distressing, but it also brings about financial liabilities. Life insurance ensures that daily expenses do not suffer as a result of the insurer’s death. The pay-out resulting from the insurance policy 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.
3 Simple Steps To Buy Term Insurance Plan Online
One of the best things about online term plans is the freedom you get to take charge of your financial future. At the same time, it also brings upon you a number of additional responsibilities of staying informed about product features that must align with your needs and future life goals. Only when you match your requirements with the appropriate term plan that works for you are you able to buy the right term life insurance policy. Here are three steps that will help you make the right choice.
The first step is to competently assess the sum assured on your online term plan. Your term life insurance should be able to cover your family’s living expenses and future obligations in the event of your sudden demise. Generally, the amount of your term lifecover can be determined by taking into account all current sources of income, number of dependents, existing debts and liabilities, and the expenses incurred to sustain their current lifestyle. Remember to factor in impact of inflation on lifestyle needs.
Let’s understand how you can arrive at the term insurance amount that you would require to cover your family’s living expenses. Remember that you need to factor in key future life goals such as children’s higher education, marriage, or pension for your spouse when you are not around in the calculation.
For example: If your annual income is Rs 12 lakhs, it would be prudent to purchase a term insurance plan which offers a sum assured equivalent to 12-15 times of your annual income. In this case, you will need to opt for an online term insurance with a coverage of Rs 1.8 crore at least.
The second step is to find out if the sum assured that you have arrived at for your term life insurance is adequate to cover all current and financial obligations, such as your children’s higher education and any outstanding loans. For example, if the sum total of your financial obligations is Rs 50 lakh, you would need a term life insurance policy coverage of Rs 2.3 crores (sum of Rs 1.8 crore and Rs 50 lakh) that will offer your family complete financial security, even in the future.
If the process seems complicated, you choose to use term insurance calculators that are widely available online to get an estimate of the sum assured on your term insurance policy.
The different types of term plans are -
- 1) The one that offers regular income
- 2) One that offers return of premium
- 3) A pure term plan
Hence, comparing term insurance plans to understand individual features, benefits, inclusions, exclusions, etc. is essential.
You will notice that the premium varies depending on the applicant profile, for example age, gender and smoking habits. Additionally, other parameters that also come into play are the cover amount, cover duration, type of term plan that you opt for. A careful comparison of the quotes will help purchase the best term insurance plan for you and your family.
Simply purchasing your term plan of the basis of the above parameters would be an unwise move. A key component of buying an online term plan is also to check of the insurance providers operational history and reputation in the market. Also, check on the company’s claims settlement ratio. That indicates the number of term insurance claims that the insurance provider has settled vis-à-vis the total number of claims filed.
Consider riders to widen the risk coverage of your term policy. Keep in mind that term plans can be enhanced by attaching riders that cover other risks to your family, such as accidents and critical illness. Since the riders come at affordable premiums, it is worth attaching them to your term plans. You will have a wider coverage of risks and will be able to provide better financial protection to your family.
Purchasing online term plans is convenient and takes very little time. Plus, you do not have to go through the hassles of dealing with a middleman or an agent. Yet, you still have to make sure that you choose the right term insurance plan and do not miss out on the essential details. Since it involves securing your family’s future, you wouldn’t mind that little extra effort, would you?
How Much Term Insurance Coverage You Need?
According to popular thumb rule, a term insurance plan should be approximately ten to twenty times your income. However, since individual requirements may vary, it is important to take into consideration multiple factors before arriving at a sum.
Here are some factors that can be considered to help you arrive at the amount of insurance coverage required
1. Human Life Value
Human Life Value method determines the value of human life based on the present value of expenses that include future income, expenses, investments etc. that may arise in the future. This method considers multiple factors like your age, gender, occupation, targetted retirement age, annual income, number of dependents etc. to determine your insurance requirements. This is an ideal method of calculating insurance required since it takes into account inflation.
2. Income Replacement
This method operates under the premise that the insurance amount should be able to substitute the earnings of the breadwinner least the worst happens. The insurance company pays the nominee a fixed amount for a certain number of years. To calculate the insurance amount, the annual income is multiplied by the number of years left for retirement. For instance, if the insurer is 50 years of age and desires to retire at the age of 60. Their income is Rs. 10 lakhs per annum. The total insurance required as per this method is Rs. 10 lakh*20=Rs. 200 lakhs. On the death of the policyholder, his family will receive this amount every month as a substitute for the policyholder’s earnings until the time the assured amount is paid to the nominees.
3. Expense replacement
This method makes provision for daily expenses and goals of the policyholder’s family. According to financial planners, the insured requires to calculate the daily expenses, loans and future goals etc. to arrive at the approximate sum of money a family needs. The next step involves deducting the present value of your investments and insurance. Deduct the value of your home and other investments that your family will require to use even after your death. The amount arrived at after deducting your investments and insurance from your expenses is the ideal term insurance amount required.
As mentioned earlier, the minimum quantum of coverage you should opt for is ten to twenty times your annual income. However, make sure to review the cover based on your changing life goals. If at any time in the future, the insured amount seems insufficient, you should consider opting for a cover enhancement feature or purchase a fresh policy to help you cope with the ever-changing needs of your family.
How To Choose The Right Term Insurance Plan?
When it comes to term insurance, there is no one size fits all. Your term plan should be perfectly suited to your needs and should ensure that your family does not face financial distress in the unfortunate event of your death. The following points can help you in shortlisting the right term insurance plan for your requirements:
Purchase term life insurance plans early
You might want to consider purchasing an insurance policy earlier rather than later because the age at which you purchase the policy plays the determining role in the insurance premium. The same policy might incur a higher premium if purchased later in life. Purchasing the same insurance policy might attract higher premiums or might be rejected in case of lifestyle conditions developed later in life. Purchasing term plans early in life empowers you with the freedom of choosing from a greater number of insurance products.
You could log into the website of your loan provider and compare a variety of term plans onlineto find a product that best suits your requirements.
Make a thorough assessment of your needs
If the insured in question is the sole breadwinner of the family, the insured should assess how much money is required to ensure that the family can cope with their living expenses and maintain their standard of living even in the absence of the policyholder. To arrive at a figure, he should consider the family’s living expenses and the rate of inflation to arrive at an approximate figure. However, this procedure by itself is not enough to determine your insurance needs. How much insurance one requires varies on a case to case basis. For instance, a person who has incurred liabilities might consider opting for higher coverage to ensure that the family is not distressed while repaying the loan.
A thorough assessment of your goals, assets, and liabilities can help in shortlisting the right term insurance plan for your needs.
Claim settlement ratio
A healthy claims settlement ratio is one of the easiest ways to identify an ideal insurance provider. The Claims Settlement Ratio refers to the number of policies that are paid back to the nominees in the event of the death of the insured. It is advisable to research the settlement ratio before shortlisting on a term insurance plan online.
Why Choose HDFC Life Term Insurance Plans?
This is why you should consider opting for an HDFC life term insurance plan:
1. Impressive claim settlement ratio
Claims Settlement Ratio is the number of claims honoured as compared to the number of claims made. The higher the settlement ratio, the better. This is because a higher ratio creates a sense of assurance that your claim will be approved when you need it the most. HDFC Life offers a claim settlement ratio of 99.07%, which is among the best in the country.
2. Excellent customer service
Nothing can be more reassuring than knowing that your insurance provider is dedicated towards ensuring a smooth and hassle-free experience. You can be assured that your queries will be resolved through a medium of your choice from a variety of mediums that include phone, email or chat. You can make your payments seamlessly through a variety of online payment options.
3. Wide range of plans
Different customers have different needs. HDFC Life understands this and presently offers a single term insurance plan called Click 2 Protect Life with three options Apart from this, there are a host of riders to augment your chosen term insurance plan
How Long Should Be The Term Of Your Term Plan?
The tenure of your term plan is as important as the amount of premium you pay. The longer the period of term insurance policy, greater will be the policy’s annual premium. If you keep the period too short, there are chances that you would be without a cover in a period when your loved ones will still need financial protection. Therefore, it makes sense to consider important factors like the tenure of your term plan when you are buying a term plan in India.
The function of term life insurance is to help your family members meet their regular expenses and future needs even in your absence. Therefore, the ideal term of an online term insurance plan should end at a time when you have met all your life goals and saved enough for retirement.
It is typically difficult for you early in life to determine till when you will have accumulated enough savings to take care of all your needs for the rest of your life. This is the time when you will not need life insurance coverage. Since many of your large expenses such as your child’s higher education and marriage are likely to happen in your 40s and 50s, it makes sense to have your term life insurance coverage all the way upto your retirement at the age of 58 or 60.
Of course, there are people who aspire to, and there are some who actually do, retire much earlier, say, in their 40s. The guiding principle remains the same. You keep the life cover as long as you don’t have enough savings to take care of you and your family for the rest of your life.
Why taking the longest tenure, early in life makes sense. A smart approach is to buy the term insurance plan early on in life, opting for the longest possible coverage. This ensures you benefit from the low premium during the long tenure of the term plan. For instance, at the age of 25 you can take a term of 40 years as it would last till age 65. In this case, you would enjoy the low premium till the end of the term. Of course, as your income increases and lifestyle gets enhanced, besides you taking up loans, to cover all of them, you will need to periodically enhance your term life insurance cover.
To sum it up, it is not only important for you to have adequate life insurance coverage but also to ensure that it stays that way till the time your family needs it. It is your responsibility to ensure that your family is financially prepared to face any eventuality.
Term Insurance FAQ's
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.
Is COVID-19 covered by HDFC Life?
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"
What should I look for in a good term plan?
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:
- 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.
- 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.
- 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.
How much cover should I take in a term plan?
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.
Is it possible to buy a HDFC Life Term Insurance online?
- 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.
- 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)
- The documents that you would require while applying for the term insurance online are:
- 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].
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.
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.
Can HDFC Life Term 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.
Is a term plan important?
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.
What is the meaning of HDFC Life Term Plan?
- 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.
- 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.
- 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%.
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.
What are the different types of term plans available?
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:
- 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.
- 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.
- 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.
- Whole Life Plans: While most term policies only offer cover for a selected time period, certain policies will offer cover for your entire life.
- 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.
What is the difference between life insurance and term insurance?
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.
Can I change the frequency of payment for my term insurance policy?
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.
Can I surrender my term insurance policy?
If you feel that you do not have any further liabilities in life, you may choose to surrender your term life insurance.
- Team were polite and quick to follow up and get the work done, causing minimal hassle
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- My experience with HDFC life was very good. People are very helpful.
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September 25th, 2020
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