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Being counted among the famous insurance providers in India, HDFC Life Insurance has been providing insurance solutions since 2000. Since its inception, HDFC Life has established a strong presence with 412 branches and additional distribution touch-points through strategic partnerships with several institutions. The insurance product range in its portfolio comprises of 38 individual insurance products in addition to 8 riders offering a wide range of choice to its customers. HDFC Term Insurance Plan is an important component of its product bouquet offering customized benefits with different flavors matching the preferences of today’s generation. Let us delve into the various elements in the HDFC Term Insurance Plans.
Term insurance plans are pure protection life insurance instruments with a higher risk coverage endowing the policyholder with peace of mind by ensuring that ample financial security is provided to the dependent family. It enables them to maintain the existing life style as well as fulfill their dreams and aspirations even when there is an unfortunate death of the breadwinner. Some of the features of HDFC Term Insurance Plans that make them indispensable are:
The host of benefits accrued by purchasing HDFC Term Plan are listed below. They’re only indicative and not exhaustive.
It is the basis of the term plan where a life cover of Rs.1 Crore is extremely feasible as compared to an Endowment Plan, because of the difference in premium for similar sum assured.
Every HDFC Term Insurance Plan offers a scope to incorporate from among a range of 8 riders covering specific areas of additional life coverage. It thus gives the advantage of enhanced cover in specific given situations of illness, accident and disability.
One redeeming point of HDFC Term Insurance is the option to suitable upward revision of the sum assured matching life stage events such as marriage or parenthood in very generous proportions of the Base Sum Assured affording a quantum jump in the life cover.
HDFC Term Insurance Plans are a treasure trove of innovations intending to woo the present generation. Attractive discounts for online purchase, flexible payout options and purchase facility under MWP Act is an attractive feature. Healthy lifestyle, non-smokers, as also women customers are rewarded with lower premium.
The host of benefits accrued by purchasing HDFC Term Plan are listed below. They’re only indicative and not exhaustive.
There are two major HDFC Term Insurance Plans with a range of options making the customer spoilt for choice.
| Name of the HDFC Term Plan | Key Features |
| HDFC Life Click2 Protect 3D Plus Plan |
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| HDFC Life CSC Suraksha Plan |
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HDFC Term Insurance Plans are designed to provide protection to the financial future of the family with a range of options matching every preference that a policyholder may be looking for. Thus, it aims to provide comprehensive protection through conventional Term Plan attributes as well as incorporates new age features to match emerging trends which are attractive to the discerning present generation. A term plan being an important component of financial plan, provides for the maximum number of combinations possible to fulfill its primary aim. Accordingly, HDFC Term Insurance portfolio offers an eclectic choice to the customers.
The attributes of the Term Plan are ingrained in the name of the product itself where Click2 signifies online purchase of the customized term plan. The other component 3D signifies risk coverage assigned to Death, Disease and Disability providing a comprehensive protection to the life assured, which in turn aims to secure the financial future of the dependent family obviating financial disaster. It is in order to check for the advantages that come with the purchase of this all encompassing term plan.
Death Benefit: It is defined as a combination of sum assured plus additional benefits accrued through riders as the final payout
Sum Assured on Death: It is arrived at by a combination of several factors working in tandem with the chosen option.
For Single Payment of Premium Policy: Highest of
For Single Payment of Premium Policy: Highest of
Some of the other advantages spread across select options under
For Single Payment of Premium Policy: Highest of
This online term plan is designed to pay the benefit to the nominee in lump sum. The term plan provides for:
This term plan incorporates the feature of Accidental Death over and above the usual life cover. Nominee stands to gain an additional sum for death caused in an accident.
As the name suggests, all the “D” events – Death, Disease and Disability are covered under this term plan.
The feature of extended cover is intrinsic to this term plan. The policyholder pays premium only up to 75 years of age but continues to enjoy life coverage for whole life.
This term plan again extends cover to all the 3 “D”s – Death, Disease and disability extended over whole life. However, premium is paid only up to the age of 65 years.
This feature is an introduction in new age term plans deviating from the conventional plans of this nature with addition of a survival clause.
The nominee is not only paid the lump sum death benefit equivalent to the sum assured, but also a monthly income over a defined period of time.
| Name of Plan | Entry (years) Max - Min | Maturity (years) Max - Min |
| Life Option | Min 18 to Max 65 | Min 23 to Max 85 |
| Extra Life Option | Min 18 to Max 65 | Min 23 to Max 85 |
| 3D Life Option | Min 18 to Max 65 | Min 23 to Max 85 |
| Life Long Protection Option | Min 25 to Max 65 | Whole Life |
| 3D Life Long Protection Option | Min 18 to Max 65 | Whole Life |
| Return of Premium Option | Min 18 to Max 65 | Min 23 to Max 85 |
| Income Option | Min 18 to Max 65 | Min 23 to Max 85 |
| Extra Life Income Option | Min 18 to Max 65 | Min 23 to Max 85 |
| Income Replacement Option | Min 18 to Max 65 | Min 23 to Max 85 |
HDFC Life Click 2 Protect Plus, a unique term insurance plan offered at an affordable premium. The plan helps the policyholder to protect his/her loved ones against an unforeseen event. The policy comes with income and income plus option where a steady flow of monthly income is ensured at a certain percentage of the total sum assured.
| Age Related | |
| Maximum Maturity Age | 18 year |
| Maximum Maturity Age | 65 year |
| Maximum Maturity Age | 86 year |
It is a component of the e-governance initiative of the Government of India though the concept of Common Services Center (CSC). It is designed to cater to clusters of 6 to 7 villages comprising of 1400 households the entire cover extending to 6.5 lakh villages across the country, mainly catering to the Rural Sector. This term plan is sold through the CSC channel intending to extend insurance cover to rural India.
| Age Related | |
| Minimum Entry Age | 18 year |
| Maximum Entry Age | 55 year |
| Maximum Maturity Age | 60 year |
| Minimum Maturity Age | 23 years |
Yearly, Half-yearly, Quarterly and Monthly
While so far the thrust has been to ascertain what all are included in the HDFC Term Plans, there is no reason to ignore what is outside the purview of coverage. This vital aspect is generally referred to as exclusions, which need a thorough scan of the fine print of the policy document to comprehend. Depending on the scope of coverage, certain types of death limit is applied on the final sum assured payout. The most important of them are listed below as indicative.
This is defined by the guidelines issued by the IRDAI, the insurance regulator in India. Accordingly, term plan exclusions related to suicidal death are separated into various categories.
No claim is admissible for policies purchased prior to 1st January 2014 if the event occurs within 12 months of inception. Otherwise the nominee is entitled to the usual compensation.
However, for policies purchased after 1st January 2014, claim is entertained with full or 100% compensation to the nominee for linked term plans if the act of suicide is committed within 12 months of inception of the policy. For non-linked policies the compensation is limited to 80%.
For homicidal death, if any of the nominees are listed as suspect, the claim is liable to rejection, until proven innocent in a court of law.
irrespective of accidental death cover, in certain circumstances if accidental death is caused by under influence of alcohol or drug abuse, the claim is liable to be rejected as all term plan benefits stand automatically null and void.
The question of claim arises only when there is a death during the policy tenure and the nominee wants to claim the benefits. HDFC Life has endeavored to provide a seamless claim process to its clientele to overcome the loss of the policyholder, which is otherwise draining. To ease the claim process substantially with ample sensitivity, HDFC Life offers the following.
The claim process is initiated with claim intimation. It can be done either at the portal or visit the nearest branch, which is also imperative for critical illness claim. The entire process of claim registration can be accomplished in three well-defined steps.
All life insurance products in India enjoy several tax saving benefits under various sections of the Income Tax Act, 1961. Accordingly, all premiums paid for HDFC Term Plans within a financial year are exempt under Section 80C up to a maximum of Rs.1.5 lakhs. The premium component for critical illness cover is exempted under Section 80D. The death benefit received by the nominee is exempt under Section 10(10D). All these exemptions are subject to conditions defined in the act.
There are primarily two ways of buying a term insurance plan – Online and Offline. The simplest way to get a suitable term plan is online purchases offering a host of advantages. The portals of HDFC Life, as well as aggregators, are adequately equipped with an HDFC Term Plan Calculator that is designed to help decide on the ideal plan factoring in all the relevant parameters of the individual profile. The HDFC Term Insurance Premium Calculator is the other tool for assistance in working out the financials. Using these tools, one has to rationalize on the quantum of cover matching individual profile. The futuristic factors to be considered for an ideal solution are:
The sum total of all these factors determines the ideal term insurance cover in harmony with individual needs.
The standard procedure to prevent the lapse of a policy is to pay the premium on the due date or within the applicable grace period based on the premium payment frequency agreed upon. Once the premium is outstanding, it has to go in for revival by clearing the dues, applicable interest, and revival charge levied to convert the policy in force.
The documents required are in two categories – Purchase and Claim:
| Proposal form |
| KYC documents for Identification, Date of Birth, and Address. |
| Income proof |
| Photograph |
| Natural Death / Natural Disasters |
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| Critical illness |
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| Unnatural Death / Accident / Homicide / Suicide |
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