HDFC Life Insurance

 What is life Terms Insurance


Term Insurance is a life insurance policy that offers coverage for a fixed number of years - the “term” of the policy. If the insured individual dies when the policy is active, a death benefit is paid to the nominees of the insured individual.

HDFC Life Insurance

A basic variant of term insurance has no cash value which means, if the insured person survives the term of the policy, the policy does not return any value, with the exceptions of plans like Return on Premium, etc.

You can purchase a term insurance policy that can provide a certain corpus to your dependents in event of your demise, they would be able to sustain the same lifestyle or pay off existing liabilities without compromising on their dreams thanks to the sum assured which they would receive from life insurance.

A broad term plan, on the other hand, includes cash value investment options and hence provides a higher sum assured to the family. If you are not interested in investing in these plans or if you are looking for a low-cost life insurance policy, You can buy a term insurance plan from HDFC.

To avail of its benefits, one must have an active bank account and have passed 18 years of age. 

Life Insurance is insurance that provides for the financial security of an individual's death (rather than simply providing for the replacement of personal property should it be lost). Life insurance is paid to a beneficiary in most countries where it is legally regulated.

The first form of life insurance was probably lost or event-life, to pay the funeral costs if on a ship or something similar, or to provide for the living expenses of an individual who had become ill. Evidence of this type of insurance dates back to 437 BC in Greece, where a slave owner began to pay his workers as compensation. It is believed that wages were kept at a higher level because they could be paid if the worker died while they were still employed as slaves.

In Britain and Europe, life insurance became more widespread after the development of the 2nd State Law in London (England).

In India, life insurance has been in existence since 1947. The concept of life insurance was new to India and hence the number of policies purchased was small initially. However, the reasons for an individual to buy the product were limited due to certain reasons and hence it did not gain popularity till a further push was given by general insurance companies in the 1990s.

The history of life insurance in India started with the setting up of Life Insurance Corporation (LIC) on 24 December 1945 by an act of parliament "Life Insurance of India Act" which later came to be known as LIC Act,1948.

In India, HDFC group is the most well-known life insurance company. It was started in 1977 by Harshadbhai Patel, a diamond merchant.

HDFC provides various term plans and so does LIC. HDFC also provides a health insurance plan, a pension plan, and an investment option that gives guaranteed returns on investment. LIC also provides similar plans but in LIC one loses the whole sum assured in case of death during the policy tenure, unlike HDFC where the sum assured is transferred to the nominee and the nominee gets an income for life. Lately, LIC has launched a pension plan and a death benefit policy.

When compared to life insurance plans in Western countries, the benefits provided by these plans are not as great. This is primarily because of the low penetration of the population which can afford these life insurance policies. Another reason is that these plans are not regulated in India like they are in some other countries like the United States, where all the laws and regulations applicable to life insurance were first adopted by state legislatures.

Life Insurance Corporation (LIC) was established on 24 December 1945 as an autonomous body under the Government of India as per Life Insurance Act 1948. It started the business of receiving and paying all sums assured under various policies issued or reissued by it and to collect the premia there for.

All India Financial Services Company (AIFS) was incorporated in 1993 as a fully-owned unit of LIC. AIFS took over the life insurance business from LIC in 2005 when LIC divested 50% of its stake in AIFS.

LIC has a huge presence in India and other countries across the world with more than 8000 branches globally with around 5 crores policyholders. It provides insurance services like life insurance, health insurance, accident insurance, savings & investment-related products, and pension schemes to individuals, corporates, and Govt. Institutions.

HDFC Life Insurance

What are the plan options available for this product

There are 3 plan options available with this product namely

Life Protect Option: This option provides basic protection for your family by providing a lump sum payment (life cover) in the event of death during the policy term. Throughout the policy period, the life insurance coverage stays unchanged.

Life and Critical Illness Rebalance Option: A smart cover that seeks to achieve a balancing between Death and Critical Illness benefits as you progress through life. At each Policy Anniversary, the Critical Illness Coverage grows, but the Life Coverage decreases. In addition, if any of the covered Critical Illnesses is detected, all future premiums are canceled, and the life cover is maintained.

The Life Assured is covered for the full Policy Term and also receives a lump sum payout at maturity, as well as regular income starting at age 60, under the Income Plus Option.

What are the premium paying frequencies available for this plan

This product comes in single, annual, half-yearly, quarterly, and monthly frequency options.

Is there any maturity benefit for this plan

Yes, if you choose the Income Plus Option, you will receive a 100% refund of the Total Premium(s)1 paid as Lumpsum if you live to maturity. This option has it as a built-in feature.

Other plan choices (Life & CI Rebalance, Life Protect) require you to pay an additional premium in addition to the base plan option premium to receive a return of 100% of the total premiums paid as Lumpsum if you live to maturity (Available under Return of Premium add on option).

This Maturity benefit will be available for the following purposes:

For Single, Regular, and 5 Pay policies, all terms are between 10 and 40 years.

All policies with durations ranging from 15 to 40 years and pay rates of 8, 10, and 12 pay are available.

Is there any death benefit available under Life Protect Option

Yes, if you die within the policy period, your "Death Benefit" will be paid to your Nominee as a lump sum. It's the greater of:

Sum Assured in the Event of Death

Total Premium(s) Paid1: 105%

The highest of the following is the Sum Assured on Death for Single Pay (SP):

Single-Premium: 125 percent

Maturity Sum Assured

Assured Minimum Sum

Other than Single Pay (Limited Pay and Regular Pay), the Sum Assured on Death is the greater of:

The Annualized Premium multiplied by ten

Maturity Sum Assured

Assured Minimum Sum

- Limited pay denotes that the Premium Paying Term is shorter than the policy term.

- Regular Pay signifies that the premium payment period is the same as the policy period.

1Total Premiums Paid refers to the sum of all premiums paid, excluding any additional premiums, Rider premiums, and taxes. Total Premiums Paid comprises the premium paid for the base plan option as well as the additional premium paid for the ROP option if the ROP option was chosen.

What is critical illness and how many types of critical illnesses are covered under this product

Critical Illness is defined as an illness whose signs or symptoms first appear more than 90 days after the Issue Date, Commencement Date, or the date of any reinstatement of this Contract, whichever is later and includes either the first diagnosis of any of the illnesses listed below or the first performance of any of the covered surgeries listed below:

The following are the Critical Illnesses that are 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

Refer to the product booklet for more information on each severe illness.

Is there any benefit to the diagnosis of critical illness?

Waiver of premium on critical illness diagnosis is an in-built provision of the Life & CI Rebalance plan. In addition, under this plan option, a lump sum payment is made for the treatment of severe disease.

This benefit is provided as a Waiver of Premium on CI under the Life Protect option (WOP CI add-on option). If you choose this add-on, if you are diagnosed with one of the covered critical illnesses, you will be exempt from paying any future premiums under the plan. Only when the PPT is at least 5 years and the Life Protect Option with Fixed Term is selected will this option be available. If you choose this add-on option, you will have to pay an extra charge.

HDFC Life Insurance

What is the definition of an accident in “Accidental Death Benefit”?

An accident is a sudden, unplanned, and involuntary event brought about by external, visible, and forceful forces. Accidental Death is defined as death caused by or as a result of a bodily injury sustained as a result of an accident, regardless of other causes of death. Any bodily injury must occur within 180 days of the accidental death.

"Accidental death" shall be defined as the following:

This is brought on by bodily  harm sustained in an accident, and

which happens alone, directly, and independently of any other causes as a result of the aforementioned bodily harm, and

which occurs within 180 days of the event but before the policy's expiration date and

is not caused by any of the circumstances specified in the accidental Death Benefit exclusions

Is there any additional benefit for accidental death?

Yes, the Accidental Death Benefit (ADB) add-on option is offered as an additional benefit. If you choose this add-on, the Nominee will receive an additional sum equivalent to 100 percent of the Basic Sum Assured if you die due to an accident during the policy period. Only if the Life Protect Option is selected will this option be available. If you choose this add-on option, you will have to pay an extra charge.

Will my Sum Assured Change under Life and CI Rebalance Option?

At each Policy Anniversary, the Critical Illness Coverage grows, but the Life Coverage decreases.

The Life Policy SA is set at 80% of the Basic Sum Assured at the start of the cover, while the CI SA is fixed at 20% of the Basic Sum Assured. Starting with the first policy anniversary, the CI SA will increase every year and the Life Cover SA will fall by the same amount for an in-force policy. The following formula will be used to compute this amount:

Policy Term X 30 percent X Basic Sum Assured

Throughout the policy period, the Basic Sum Assured (Life Cover SA + CI SA) will stay the same.

When a Critical Illness Claim is filed, the Life Cover SA is reset to the current level, and the same SA is maintained until the policy term ends.

Why HDFC Life Click 2 Protect Life Insurance Plan?

Looking for a more convenient approach to protect yourself and your loved ones? You've decided that term insurance is the best choice, and you're looking for a plan that's both convenient and reasonable. The HDFC Life Click 2 Protect Life Insurance plan offers comprehensive financial protection for your family, as well as the option to obtain coverage for the rest of your life*, receive a refund of all premiums paid if you live to maturity with the Return of Premium option**and many other benefits.

*Only available as part of the Life Protect and Income Plus options.

**Available as an inbuilt feature with the Income Plus Option and as an add-on with the Life Protect Option (Fixed Term variation) and Life & CI Rebalance Option for an additional premium.

Can I change my premium paying term from regular pay to limited pay after the policy has been issued?

You can also convert any outstanding regular Premium(s) into any limited premium period offered under the plan options without incurring any fees or charges.

Can I change my premium frequency after the policy has been issued?

During the premium payment term, you can change the premium payment frequency without incurring any charges or fees.

Are there any specific exclusions in this plan?

To know detailed information related to exclusions, read Product Brochure.

Does this plan offer tax benefits?

Individuals or HUFs who pay premiums under this plan are entitled to tax advantages under Section 80C of the Income Tax Act, 1961, subject to the conditions and limitations set forth therein. The benefits received from this policy are tax-free under Section 10 (10D) of the Income Tax Act of 1961, subject to the criteria provided therein.

Please keep in mind that the benefits listed above are based on current tax laws. If the tax regulations change, your tax benefits may change as well. You are advised to seek the advice of a tax adviser.

Can I change the plan option once chosen?

No, the Plan option once chosen at inception cannot be changed throughout the policy term.