HDFC Click 2 Protect Plus Plan is a term insurance plan that offers a host of benefits. Term insurance, for those who need a quick refresher, is a kind of life insurance plan where the death benefit is provided by the insurance company to the family or nominees of the insured if death occurs during the policy term.
What is a term insurance plan?
Term insurance plans help families tide over financial dire straits that could happen when the breadwinner is no more. One good reason to buy a term insurance plan is to ensure that your family stays financially comfortable even in the event of your sudden demise.
Choosing the right term insurance plan
This is a long-term investment that will make a difference to your family budget, so it is important to keep in mind different factors when deciding which term insurance plan to choose. Some of the important factors to keep in mind include the amount of premium to be paid, the sum assured, the tenure of the policy, additional riders and benefits, etc. It is also important to do some research before you decide on a term insurance plan because it is a long-term investment that will not only help your family, but also entails a significant chunk of your budget on an annual basis. One way to get all the information you need is through websites where you can research and compare different term insurance plans.
HDFC Click 2 Protect Plus Plan
HDFC Click 2 Protect Plus Plan provides comprehensive protection at affordable premiums. It also offers a number of coverage options that can be chosen according to your specific requirements. It is ideal for families in which there is only one breadwinner. It assures that the family stays financially independent even if the breadwinner is no more. It also offers tax benefits.
What is the claim settlement ratio of HDFC Life?
HDFC Click 2 Protect Plus Plan is offered by HDFC Life. Claim settlement ratio is an important figure to know and understand because it tells you the number of claims that have been settled by the insurance company against the claims received in a year. HDFC Life stands at 97.62% according to the 2016-2017 Insurance Regulatory and Development Authority Claim Settlement Ratio.
Features of HDFC Click 2 Protect Plus Plan
These are some of the salient features of the HDFC Click 2 Protect Plus Plan:
- A variety of options to choose from such as:
- Income option: In this option, 10% of the death benefit is provided to the family as a lump sum amount and the rest 90% is paid out as a monthly income over the next 15 years.
- Income Plus option: In this option, 100% of the sum assured is paid to the family on the death of the insured. In addition, 0.5% of the sum assured is paid as a monthly income to the family over a period of 10 years. As selected by the insured, this amount which is paid on a monthly basis can increase to a higher amount at a rate of 10% interest p.a.
- Life option: Provides death benefit. This option also offers the Life Stage Protection feature where the life insurance cover is increased at certain milestones without the need for providing medicals. The sum assured can also be increased which will result in an increase in premiums in future. Additional cover can also be reduced which will result in a decrease in premiums paid.
- Extra life option: Along with death benefit, it also offers accidental death benefit.
- Flexibility of premium payments: The variety of premium payment options make it easier to budget your finances and plan ahead so as to ensure that there is always enough money to pay the premium without any defaults. Some of the premium payment options include:
- Monthly
- Quarterly
- Half-yearly
- Annually
Additionally, there are limited pay and regular pay options. These are:
Regular Pay: The premium is paid throughout the policy term.
Limited Pay: You can pay the premium just one time or you can pay the premium for the policy term but by 5 years less.
Single Pay: You pay the premium just once.
- Tax benefits are available under the Income Tax Act, 1961 under Section 10(10D) and Section 80C.
- There are attractive premium rates, especially for non-tobacco users.
- The insurance cover extends up to the age of 75 years, which is the maximum maturity age.
- There is no maximum limit on the premium although the minimum limit on the premium is
Rs.3,000. - There is no maximum limit on sum assured although the minimum limit on the sum assured is Rs.25 lakh.
- The policy term is in the range of 10 to 40 years.
- The maximum eligible age to enroll in the plan is 65 years and the minimum age is 18 years.
- There is no benefit provided if the insured survives till the end of the policy tenure.
- If the policy is other than a single premium policy, then either the sum assured or 10 times the annualised premium or 105% of the total amount of the premium, whichever is the highest amount, is paid at the time of death.
- If it is a single premium policy, the amount paid at the time of death is either the sum assured or 125% of the single premium amount, whichever is the highest.
To ensure that a family continues to be in a stable and independent financial condition even in the event of the untimely demise of the sole breadwinner, term insurance plans like HDFC Click 2 Protect Plus Plan are the ideal choice that will stand a family in good stead in future. This is important even if the sole breadwinner is in good health because life is unpredictable and keeping the family financially independent in times of economic instability will go a long way in ensuring that everyone is well taken care of.
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