HDFC Life Insurance has launched a Click 2 Protect Life term insurance policy. The unlinked, non-participating individual term insurance policy will meet the changing needs of the different stages of an individual’s life. This is a temporary font with three options. We explain these options to you.
According to HDFC Life’s press release issued on January 28, “All three options available in this plan have unique offerings. Especially the Income Plus option which acts as a means of regular income for individuals once they reach the age of 60. One can choose the option that best suits his needs.
1. Automatic Life and Critical Illness Balancing: This option will provide critical illness (CI) and death protection by automatically balancing life and CI coverage with age. In this option, life coverage decreases while critical illness coverage increases proportionally, on each policy anniversary. Additionally, upon diagnosis of any of the 36 CI conditions listed, not only is the increased CI sum paid, but also all future premiums are waived and life coverage continues.
At the start of the policy, the basic sum insured is divided between life cover and critical illness cover in a ratio of 80:20. The total base sum insured remains the same throughout the policy, the statement from HDFC Life said.
Additionally, while CI coverage increases on each policy anniversary, the premium for the client will remain the same for the life of the policy.
2. Life Protection Option: This option will provide financial protection to the family of the insured person by providing coverage against death for the term of the policy. A lump sum is paid to the candidate on the death of the insured. This coverage can be purchased either for a fixed term or for life.
3. Income Plus Option: This option will provide a regular monthly income from age 60 while providing death coverage for the duration of the contract to ensure the financial well-being of dependents. The insured life is covered for the duration of the policy and begins to receive monthly income from age 60 until death or policy maturity, whichever comes first. The death benefit payable to the nominee will be after deduction of the monthly income that has been paid until death. In this plan, one can also opt for whole life coverage, according to the HDFC Life press release.
This option is a unique proposition in the life insurance industry as it bundles a regular pension with life cover, says the HDFC life press release.
All options include both fixed coverage and whole life coverage.
According to the HDFC life press release, additional features such as premium refund, waiver of premiums on health insurance, accidental death benefit and change of premium payment frequency are available for certain options according to the pre-disclosed conditions.
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