Term Insurance Plans

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

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"}

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.

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.

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].

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.

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%.

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 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.

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.

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