HDFC Term Insurance Review

HDFC Life offers term insurance comprehensive coverage plans, which are more than just basic term plans. The HDFC term insurance offers a flexible range of the sum assured packages along with the various payout options. With these options, the insurer dispenses the money as per the choice of the policyholder at the time of maturity of the policy to the policyholder or at the demise of the life assured to their nominee. The policyholder also has the option to avail the waiver premium benefit, where the insurer will waive off all the future premiums, if the policyholder is diagnosed with any listed critical illnesses. HDFC Life term plans cover Covid-19 claims and offer exclusive premium rates to female policyholders and non-smokers.

FEATURED PARTNER OFFER

HDFC Term Life Insurance

4.5

Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Entry Age

18

All the term plan covers Covid-19 claims

Premium Payment:

Single, Regular and limited

Minimum Entry Age

18

All the term plan covers Covid-19 claims

Premium Payment:

Single, Regular and limited

Pros & Cons

• Attractive premium rates for females and non-smokers.
• Coverage can be extended till 75 years.
• Provides flexibility to choose, single, limited or regular premium payment options.
• All the plans cover Covid-19 claims

• The premium cost increases with age.
• No coverage once the policy tenure ends unless one opts for Return on Premium (RoP) plan.
• Renewals are generally an expensive affair.

HDFC Life Click 2 Protect Life

The HDFC Life Click 2 Protect Life is one of the most comprehensive financial protection plans, which intends to offer benefits as per the life assured’s lifestyle and provides protection at any stage in life. This plan comes in three variants: Life Insurance and Critical Illness Rebalance, Life Protect and Income Plus, which covers death, disability and critical diseases. It also provides discounts on premium to women policyholders and non-tobacco users.

Key Features:

• There are three variants of the plan: Life Insurance and Critical Illness Rebalance, Life Protect and Income Plus.
• The plan ensures the auto balance of death cover and critical illness cover.
  Start receiving income payouts after the age of 60 years under the “Income Plus” option.
• The life assured can start receiving back all the premiums which have been paid on survival till the maturity of the plan under RoP option.
• Special discount on premium for women lives and non-smokers.
• The life assured can also avail additional sum assured amount on accidental death under Accidental Death Benefit (ADB) benefit.
• The option of waiving off premium on the diagnosis of any listed critical illness.

Who Is Eligible For HDFC Life Click 2 Protect Life?

Eligibility Criteria:

Details about the three variants:

Life and Critical Illness Rebalance:

In this plan, the life assured gets a balance advantage between death and critical illness benefit, as the sum assured amount is divided between life cover (80%) and critical illness cover (20%) of the basic sum assured. However, it is to be noted that with the increase in the policy tenure, the critical illness cover increased with the corresponding reduction in life cover. And, on the diagnosis of any critical illness, all the future premiums get waived off and the life cover keeps continuing.

Note: if a critical illness claim is made, then the life cover sum assured amount will be fixed on that applicable level and this same amount will continue till the end of the policy term.

Death Benefit: This benefit is payable as a lump sum amount to the assured’s nominee, if they die during the policy term.

• Sum assured on death.
• 105% of the total premium paid.
• Life cover sum assured., whichever is higher

Sum assured on death for lump sum pay is the highest of:

• 125% of single premium.
• Sum assured on maturity of the policy.

Sum assured on death for other than single pay option such as limited pay or regular pay, is the highest of:

• 10 times of the annual premium amount.
• Sum assured on maturity of the policy.

Maturity Benefit

• The sum assured amount is payable to the assured, if the policy gets matured on survival.
• The sum assured on maturity will be equivalent to the total premiums paid if RoP benefit is selected, otherwise the amount would be Nil.
• If the payment is done under maturity benefit as specified above, then the policy terminates with an immediate effect and thus no further benefits will be payable.

Life Protect Plan:

Under this plan, the assured gets coverage for death during the policy term, where the full amount of the sum assured in the form of lump sum benefit is given to the nominee of a policyholder, in case of their demise.

Death Benefit: This benefit is payable as a lump sum amount to the assured’s nominee, if they die during the policy term.

• Sum assured on death.
• 105% of the total premium paid, (whichever is higher)

Sum assured on death for lump sum pay is the highest of:

• 125% of single premium.
• Basic sum assured amount.
• Sum assured on maturity of the policy.

Sum assured on death for other than single pay option such as limited pay or regular pay, is the highest of:

• 10 times of the annual premium amount.
• Sum assured on maturity of the policy.
• Basic sum assured amount.

Maturity Benefit:

The sum assured amount is payable to the assured, if the policy gets matured on survival.
If the payment is done under maturity benefit as specified above, then the policy terminates with an immediate effect and thus no further benefits will be payable.

Income Plus Plan

Under this option, the assured has an advantage of receiving regular monthly income after attaining the age of 60 years. This option provides a life cover for the specified policy term and regular monthly income from 60 years onwards along with a lump sum payment on maturity of the policy. The assured has an option to choose maturity age as per the below table:

Death Benefit: This benefit is payable as a lump sum amount to the assured’s nominee, if they die during the policy term. It is higher of:

• Sum assured on death.
• 105% of total premium paid.

(Minus total of survival benefits which have been paid out till the date of death.)

Sum assured on death for lump sum pay is the highest of:

• 125% of single premium.
• Basic sum assured amount.
• Sum assured on maturity of the policy.

Sum assured on death for other than single pay option such as limited pay or regular pay, is the highest of:

• 10 times of the annual premium amount.
• Sum assured on maturity of the policy.
• Basic sum assured amount.

Survival Benefit: If the assured is survived during the policy term, then an income which is equivalent to 0.1% of the basic sum assured is payable to them at the end of every month, after the assured attains the age of 60 years, till either death or the end of policy term, whichever comes first.

Maturity Benefit:

• For a fixed term, the sum assured amount on maturity is payable to the assured.
• For whole life: Nil

Add-on covers of HDFC Click 2 Protect Life Plan

• RoP option, the assured has to pay an additional premium to receive 100% of the full premium amount paid as lump sum payout, upon survival till maturity.
• Waiver of premium on critical illness option, where all the future premiums are waived off, if the life assured is diagnosed with any of the listed critical illness.
• Accidental death benefit, if one chooses this option, then 100% of the basic sum assured amount is payable to the nominee, on the death of the life assured due to accidental death.
• Alteration of premium payment frequency without any charge or fee.
• Option to reduce premium payment term from regular pay to limited pay without any charge or fee.

HDFC Life Saral Jeevan Bima

HDFC Life Saral Jeevan Bima is a term plan of HDFC Life which provides complete financial protection to the family in the absence of the policyholder. This plan also provides extra protection and coverage through several riders.

Key Features:

• The life assured has the option of choosing single, limited and regular premium options.
• There are several options for riders which intend to provide extra protection.
• This plan provides death and maturity benefit as follows:

Death Benefit: HDFC Life Saral Jeevan Bima has a waiting period of 45 days from the date of commencement of risk.

a) Death during the waiting period:

1. In case of accidental death for regular or limited premium option, the death benefit amount is payable as lump sum which is the highest of:

• 10 times of the annualized premium
• 105% of all the premium paid till the date of death
• Or, absolute amount to be paid on death.

2. In case of accidental death for single premium policy, the death benefit amount is payable as lump sum which is the highest of:

• 125% of the single premium amount.
• Or, absolute amount to be paid on death.

3. In case of the death of the life assured due to any other reason than accident, this benefit becomes equivalent to 100% of all the premiums paid (excluding any kind of taxes).

b) Death after the waiting period: If the life assured dies after the expiry of the waiting period of the policy, but before the date of maturity, then the death benefit is payable to them as follows:

1. For regular or limited premium payment policy, receive a one-time payout upon death, which will be the highest of:

• 10 times of annualized premium
• 105% of all the premium paid till the date of death
• Or, absolute amount to be paid on death.

2. For single premium policy, receive a one-time payout upon death, which will be the highest of:

• 125% of the single premium amount.
• Or, absolute amount to be paid on death.

Maturity Benefit: No benefit is payable here on survival till the end of the policy term.

Who is Eligible for HDFC Life Saral Jeevan Policy?

Add-on riders:

HDFC Life Income Benefit on Accidental Disability Rider

This rider provides the additional benefits beyond the sum assured amount in case of the total permanent disability arising due to an accident. The life assured gets paid a regular income of 1% of the sum assured for a period of ten years. However, there is no maturity benefit available under this specific rider. This rider is not available to those policies which have been sold via agents. The entry age is 18 years to 65 years and maturity age is up to 75 years. The minimum sum assured is INR 1 lakh.

HDFC Life Protect Plus Rider

It is also an add-on benefit to the base policy which provides additional life protection at a nominal premium. This rider comes with three benefit options, A, B and C namely, personal accident cover, accidental death cover and cancer cover respectively. Under option A, due to an unfortunate event of death of the life assured due to an accident, 100% of the rider sum assured is paid to the assured’s nominee. The compensation would be also payable in case of the total permanent disability and partial permanent disability. However, in option B, full 100% of the rider sum assured is paid to the nominee, only in case of the accidental death.

Under option C, a lump sum payout is given if there is a diagnosis of the cancer such as malignant cancer, first stage cancer or any kind of major cancer.

The rider premium amount should not be more than 100% of the base premium for option A and C and 30% of the base premium for option B.

Quick Protect Plan by HDFC Life

Quick Protect Plan by HDFC Life provides the flexibility to choose from three sum assured options ranging from INR 75 lakh to INR 1.25 crore. It also provides a regular monthly income plan up to ten years in case of accidental total permanent disability.

Key Features:

• Offers three sum assured options: INR 75 lakh, INR 1 lakh and INR 1.25 crore.
• Provides wide coverage against 19 critical illnesses under critical illness riders.
• Provides life cover of 2 times coverage in case of accidental death.
• Provides a regular monthly income plan up to 10 years in case of accidental total permanent disability.
• No medical tests are required to buy this policy.

Here’s a look at the sum assured package option along with the rider sum assured amount:

Who is Eligible for Quick Protect by HDFC Life?

• For identity proof: PAN card, Aadhaar card/driving license/passport.
• For address proof: Aadhaar card/driving license/passport/ration card/electricity bill.
• Income proof: For salaried applicants: Last three month’s salary slip/ Form 16/last three years ITR/ last six months’ bank statement.
• For non-salaried applicants: Last three years ITR with computation of income.

HDFC Life ensures a quick and hassle-free claim settlement process in just one day through the steps given below:

• Download and fill-up the required claim form as per your case.
• Make sure to collect all the required claim supporting documents.
• Submit the claim form and all the supporting documents at the specific branch or online via website.

The term plans of HDFC life were reviewed on the basis of the following factors:

Sum Assured Options: It is one of the most important factors before choosing the sum assured to secure your family finances. As per the thumb rule, the sum assured amount should be 10 times of one’s annual income. HDFC Life term plans have various sum assured packages which can be chosen as per the needs and requirements of the policyholder.

Additional Riders: Always choose those benefits or riders which have the capacity to enhance the coverage and thus protection. HDFC Life term plans offer few useful riders such as critical illness riders or disability riders which can further support you and your family in any difficult time.

Flexible Payout Options: We considered this as a critical factor in reviewing the term plans of HDFC Life. All the plans provide the life assured to choose an option of payout whether lump sum, fixed monthly income depending on their convenience.

Benefits: While analyzing these term plans, we considered the benefits given upon the death of the life assured, maturity benefits or other benefits in case one outlives the policy term. Always, try and find those plans that offer maturity benefits as well as flexible payment and payout options.

New-Age Features: All the term plans of HDFC Life are available online and thus can be easily purchased via their website or mobile app. The company also has a live bot chat feature on their website, which can assist your any queries instantly related to any offerings.