HDFC Life Term Insurance

HDFC Life Click 2 Protect Plus Plan Features and Benefits:-

1. This is an online term plan, which can be purchased within the comfort of your home.
2. The Click 2 Protect Plus Plan provides you with life cover at a very nominal and affordable cost.
3. You can get the financial protection you want to provide for your family.
4. You have the option to customize your plans. Choose from the below mentioned cover options:
   1. Life Option - provides your nominee a lump sum amount on death of the policyholder.
   2. Extra Life Option - if death is caused by an accident, the option will provide an additional payout.
   3. Income Option - the nominee will receive a part of the sum assured as a lump sum, and the remaining amount will be divided into monthly instalments to provide the nominee with an income, these instalments will be paid for a 15 year period.
   4. Income Plus Option - this option will provide a part of the sum assured as a lump sum to the nominee, and the remaining in instalments, as income for a 10 year period. The income will increase at a rate of 10% per annum on the policy anniversary each year
5. For every milestone in your life, you have the option to increase your insurance coverage.
6. The policy will offer coverage up to the age of 75.
7. Non-smokers enjoy attractive premium rates.
8. The policy also offers tax benefits under section 80C of the Income Tax Act 1961.
9. You can choose the premium payment mode you would like, wherein you can pay your premiums in either a single, limited or regular payment mode.
10. You have to option to choose the policy term as well, you can choose the policy term you require within the range of 10 - 40 years.
11. The plan is a , hence there is no survival benefit.
12. Riders can be added to the policy in order to customize the plan, these riders are - Accidental Death Benefit Rider and Life Stage Protection Rider.
13. Surrender value - The surrender value is payable only if you choose the premium payment mode as a single pay option. Wherein, the surrender value will be calculated as per the below formula:
    1. Surrender value = 70% x premium (single) x (unexpired coverage term/original cover term), and the policy can be surrendered at any time.
14. A period of 30 days will be provided as a free-look period, and if you don’t agree with any terms and conditions of the policy it can be cancelled.

Eligibility conditions of this plan:

How does this plan work?

Let’s take an example for Ranesh, who is a 36 year old healthy non-smoker. He has chosen the policy for a sum assured of Rs. 25 lakhs, and a policy term of 20 years. He will make annual premium payment of an amount of Rs.4,994 per annum. After paying the 5 years premium Ranesh passes away. His nominee will get the benefits based on the chosen death benefit option.

If he chose the Life Option - the policy will provide his nominee a lump sum amount on death, this amount will be the higher of, either 10 times the annualized premium, or 105% of all premiums till death, or the sum assured.

If the option chosen is Extra Life Option - in addition to the above mentioned life option, and if death is caused by an accident, an additional payout will also be provided to his nominee.

If Ranesh chose the Income Option - the nominee will receive 10% of sum assured as a lump sum payment. While the remaining 90% will be divided into monthly income, for you and your family, over a 15 year period.

If the Income Plus Option was chosen - the death benefit will be paid in 100% to the nominee. In addition to this death benefit, the nominee will receive monthly instalments for a 10 year period, which will be 0.5% of the sum assured. This monthly income will increase at a rate of 10% per annum, each year on the policy anniversary.

Key feature and benefits of the HDFC CSC Suraksha Plan -

• Freedom to choose the policy period from anywhere between 5 to 15 years.
• The premium payment term will be the same as the policy term.
• Sum assured can be a minimum amount of Rs.30,000 and a maximum sum assured of Rs.2 lakhs.
• Death Benefit - The death benefit will be either 10 times the annual premium, or 105% of all premiums paid until the time of death or the sum assured, whichever is higher.
• The policy offers a free-look period of 15 days, within which time you can cancel the policy, if you don’t agree with the terms and conditions.
• The premiums can be paid as per preferences of the policyholder, either in monthly, quarterly, half-yearly or yearly mode.
• There is no maturity or survival benefit for this policy, since it’s a pure term plan.
• Tax benefits will be provided under section 80C on the Income Tax Act 1961.

How does this plan work?

Preetham Hasta, a 30 year old farmer in rural Tamil Nadu, want to secure his family’s future in case anything happens to him in the future. He opts to take up the CSC Suraksha plan, and opts for a policy with a term of 5 years. The sum assured he’s chosen is an amount of Rs. 1 lakh. He makes yearly payments of Rs. 500 as premium payments. In an unfortunate event, Preetham dies in an accident after he has paid 3 annual premiums. While taking the policy he named his wife, Nidhi Hasta, the nominee for this policy. At the time of Preetham’s death, Nidhi will be paid a 105% of the total premiums he paid until his demise, or the sum assured or 10 times the annualized premium, whichever is higher.

Eligibility conditions for this policy:

GST of 18% is applicable on life insurance effective from the 1st of July, 2017