Is this sufficient for you :
HDFC 1 Crore life insurance policy : Term insurance plans come as a huge financial safety net for a family in times of need, arising out of financial hiccups or may be the demise of the breadwinner. However, how big an amount should you take to secure your family? In one of our previous articles, we told you how having a second insurance policy or a critical illness policy can help. However, considering the rising cost of livelihood in the cities, buying an insurance policy with a coverage of Rs 1 crore becomes as important.
What Is HDFC 1 Crore life insurance policy?
HDFC 1 Crore life insurance policy offers a sum assured of 1 crore to the nominee in case something were to happen to the insured individual. These policies offer a high sum assured to help family members deal with the financial repercussions of loss.
So, should you invest in HDFC 1 Crore life insurance policy?
Yes, you should because it will not be a big task as an average salary earner to protect you family after your demise.
Who Should Opt for HDFC 1 Crore life insurance policy?
If you are in the age group of 30-35 years and have more earning years, or if you are the only earning member of the family as a HDFC 1 Crore life insurance policy plan will be beneficial for your family after your death.
Several insurers offer term insurance plans with a cover of Rs 1 crore. Earlier the premiums would keep fluctuating based on what the others are charging. With IRDA’s new regulations, insurance companies have reduced the premium rates. Many private players offer lower rates of around Rs15,000. When comparing various insurers, do a due check of the underwriting norms as many insurers give lower premiums with stringent rules.
Selection of 1 crore term insurance policy can be a tough ask.
You have to pay attention to:
a) the benefits,
b) inclusions and exclusions mentioned on the policy document,
c) premium rate,
d) opt what is good for you and your family’s future,
e) check on the riders and the claim settlement ratio.
HDFC Life Click 2 Protect Life is an online term insurance plan that offers comprehensive security at an affordable price. With this online term policy, ensure that your family is safeguarded financially if an unexpected eventuality occurs. HDFC Life Click 2 Protect Life Plus offers a wide range of 9 plan options to help one choose as per their need.
Benefits of Buying Term Plan
Here are some benefits of purchasing a term insurance policy
High protection at low premiums
Life insurance policies are accessible to the masses since they provide a large cover at relatively low premiums. The earlier in life you purchase term insurance, the lower the premium.
Add ons
Due to unfortunate circumstance, the policyholder may be incapacitated due to an accident or the diagnosis of a critical illness. This would impact the income earning capability of the policyholder. In such cases, the policyholder’s family may find it difficult to manage expenses. To protect oneself against such scenarios, one can consider augmenting the term insurance plan with multiple add-ons or riders. Examples of some of these add-ons include critical illness coverage, accidental disability rider etc. A critical illness cover would provide a lump sum amount which is equivalent to the death benefit if the policyholder is diagnosed with any of the covered critical illnesses. The accidental disability rider will ensure that the policyholder gets paid a regular monthly income which would be a certain percentage of the sum assured for a specified period.
Financial security
The death of the breadwinner of the family is not only distressing, but it also brings about financial liabilities. Life insurance ensures that daily expenses do not suffer as a result of the insurer’s death. The pay-out resulting from the insurance policy can be received in the form of a lump sum or in the form of instalments to enable the family to cope with their living expenses.
Why You Should Buy Term Insurance?
Term insurance is a simple product and is easy to understand. Here are reasons to buy term insurance:
Low premium and attractively large cover
The coverage offered by a term insurance policy can be substantial and the premium for such a cover would be quite affordable. Thus such a product should be at the foundation of one’s financial portfolio as it offers excellent protection.
Financial dependents are protected
The primary purpose of a term plan is to protect the financial dependents of the policy holder in the case of the latter’s unfortunate demise. The death benefit offered by a term life insurance policy can be substantial and enable financial dependents to manage livelihood related expenses as well as achieve their financial goals. Therefore a term insurance policy would offer tremendous peace of mind to the policyholder as the well-being of the financial dependents would be taken care off even in the former’s absence.
Insure your assets
In the absence of the primary income earner, financial dependents might be forced to sell assets to arrange for funds to manage daily expenses. For example: financial dependents may either have to sell the house or investment portfolio to arrange for funds. This could have a negative impact on their long term well being. Instead, the death benefit offered by a term insurance plan can provide substantial funds to manage daily expenses or for any other purpose. Thus assets that can provide tremendous value over the long term need not be liquidated.
Riders
A term insurance policy can be equipped with multiple riders. These riders are quite useful and can augment a term insurance policy by offering enhanced protection. Some of these riders include accelerated death benefit rider, accidental death benefit, critical illness rider, waiver of premium rider etc. Including these riders may bump your premium slightly but the value that you would get out of them could be tremendous.
HDFC Life Click 2 Protect Life
A plan that provides benefits to you as per your altering lifestyle and life stage needs.
UIN: 101N139V01
KEY FEATURES
Option to avail cover for Whole of Life1.
Get income payouts from age 60 onwards under Income Plus Option.
Get additional Sum Assured on Accidental Death (through ADB option).
Get back all premiums paid on survival till maturity with Return of Premium option.
Enjoy special premium rates for female lives and non-tobacco users.
Avail Waiver of Premium on diagnosis of Critical Illness(through WOP CI option).
HDFC Life Saral Jeevan Bima
Get easy, affordable life insurance cover at the click of a button.
UIN: 101N140V01
Flexibility to choose your premium payment terms.
Single, Limited and Regular premium payment options to choose from.
Get additional protection through riders.
What is Term 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.
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 which 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.
How Else Will a Term Plan Help You?
Don’t we all like it when we have to pay very little for getting a lot in return? Purchasing term insurance is just like that. A term policy offers a large cover (For Example: A cover of Rs 1 crore) for a comparatively low premium (For Example: Rs 6500 per year). One can get a 30-year term insurance policy with annual premium remaining the same for whole period. In today’s era of increasing living expenses, any individual would want to receive maximum risk cover. This is because, in event of the individual’s untimely demise, a higher cover would enable his dependents to not compromise on living standards. And of course, you can also claim tax benefits on the premium you have paid.
Who Should Buy Term Insurance?
How much term insurance do you think you need? To figure this out, you have to evaluate your age and income bracket, some of the examples below illustrate that:
How to Calculate the Amount of Insurance Cover that You Need?
Most people tend to pick a number out of thin air when deciding on the cover they need.
A simple rule of thumb is that the insurance cover must be ten to twenty times that of the insured individual’s annual income. Which means if a person’s annual income is Rs 10 lakhs, she must purchase an insurance plan that offers a cover of approximately 1.5 crore. Sometimes, one looks at the premium that one is willing to pay and chooses whatever cover can be bought with that premium. This is not the right way to decide on the amount of cover you will need. The correct way to decide on the sum insured is to look at your future expenditure with a rational mind.
The sum insured should be the value that you arrive at after summing up these factors. Remember that you must make provision for in inflation when estimating future expenses. This is because if it takes Rs. 1 lakh a month today to maintain your lifestyle, it will cost much more 10 years down the line. Alternatively, you can top-up your risk cover by 5-10% every year. This facility is available in many term plans.
Types of Term Plan
Term plans with many flexibilities and additional benefits are available aplenty. The most popular propositions/plans available in the market are described below. You can choose one based on your insurance needs.
Servicing is done online
Most online insurers have a chat facility on their website to assist those who are not very comfortable with purchasing insurance online. Insurers also communicate with customers over email and social media. E-copies of documents are sent online which are stored in the customer’s email id. This makes it simpler for customer to refer to policy details even if hard copies are misplaced.
How to buy Term Insurance Plan
Purchasing insurance online is an easy process. One should keep scanned copies of passport size photo, address proof, age proof, identity proof and income proof handy. It is important to be completely aware about the medical history of the person who is going to get insured. If the questions posed by the portal are answered incorrectly, this would have an impact while filling claims.
Term Insurance Plan Made for You
HDFC Life Click 2 Protect Life is a term insurance plan that offers plan options to accommodate various scenarios.
Here are the 3 plan options for you to pick from.
Life & CI Rebalance Option
A smart cover which aims to achieve a balance between Death and Critical Illness benefit as you go along in your life. Critical Illness cover increases at each policy anniversary with corresponding reduction in Life Cover. In addition, all future premiums are waived off on detection of any of the covered Critical Illnesses and the life cover continues.
Life Protect Option
Under this plan option, a lump sum is provided on death of the life assured.
Income Plus Option
Under this plan option, the Life Assured is covered for the entire policy term and also receives a lump sum payout on maturity along with regular income starting from age 60.
Now that you know all about term insurance, pick the most suitable option to
PROTECT YOUR FAMILY.
Now that you know all about term insurance, pick the most suitable option to
PROTECT YOUR FAMILY.
Here are the 3 plan options for you to pick from.
HDFC Life Income Benefit on Accidental Disability Rider
UIN: 101B013V03
Get additional income benefits over and above your Sum Assured in the event of total permanent disability due to an accident.
HDFC Life Critical Illness Plus Rider
UIN: 101B014V02
We pay a lump sum amount equal to Rider Sum Assured upfront if diagnosed with of any of the specified critical illnesses.
HDFC Life Protect Plus Rider
UIN: 101B016V01
Get protected with a proportion of Rider Sum Assured in case of accidental death or partial/total disability due to accident or diagnosed with Cancer