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HDFC Life Click2Protect Plus Plan is an online term insurance plan which provides a comprehensive coverage at very low rates of premiums. Under the plan, the policyholder gets a lump sum death benefit in case of premature death during the plan term. As premiums are low, the plan allows individuals to ensure a high amount of coverage at affordable rates.
Step 1 – the policyholder chooses the Sum Assured, the tenure, the premium paying term and frequency and whether he wants to opt for the Life Stage Protection benefit in the policy.
Step 2 – based on the above factors and age of the policyholder, the premium is determined.
Step 3 – the policyholder then pays the premiums for the chosen premium paying term.
Step 4 - if required, the policyholder can add the additional Accidental Death Benefit Rider to the plan.
|Events||Increase in Sum Assured|
|Marriage||50% of the original Sum Assured up to a maximum of Rs.50 lakhs|
|Birth of first child||25% of the original Sum Assured up to a maximum of Rs.25 lakhs|
|Birth of second child||25% of the original Sum Assured up to a maximum of Rs.25 lakhs|
The premium would be increased depending on the increased Sum Assured.
Step 5 – later on the policyholder can also reduce the Sum Assured provided he is at least 45 years old. If decreased, the Sum Assured reverts back to the original amount of the Sum Assured and the premiums also reduce.
Step 6 – If the life insured dies during the tenure of the policy, a lump sum death benefit is paid. This death benefit is higher of 125% of the single premium paid or the Sum Assured if it is a single premium policy. If, however, limited or regular premiums are paid under the plan, the death benefit would be the highest of 10 times the annual premium, 105% of the total premiums paid or the Sum Assured.
Step 7 – if, however, the policy matures, no benefit is paid to the policyholder.
Anant, a non-smoking male aged 35 years buys the policy for a Sum Assured of Rs.40 lakhs. The term of the policy is chosen to be 40 years and Anant chooses to pay premiums for the entire duration of the plan. The premium he pays for the plan comes to Rs.12, 332 (exclusive of taxes).
Option 1 – he opts for Life Stage Protection benefit.
Anant would have to pay an additional premium but, he would be able to increase his Sum Assured by Rs.20 lakhs (50%) when he marries, by Rs.10 lakhs when his first child is born and by another Rs.10 lakhs when his second child is born
Option 2 – Anant dies in the 25th year of the policy
A lump sum death benefit would be paid to Anant’s nominee. The benefit would be highest of:
10 times the annual premium – which would be (12, 332*10) = Rs.123, 320
105% of all premiums paid – which would be (12, 332*25) * 105% = Rs.323, 715
Sum Assured of Rs.40 lakhs
Thus, Anant’s nominee would receive Rs.40 lakhs and the plan would be terminated.
Option 3 – Anant survives till 5 years of age
When the policy term ends and Anant is alive, no benefit is paid as it is a term plan.
|Age at entry (in completed years)||18 years||65 years|
|Age at maturity (in completed years)||28 years||75 years|
|Term of the plan||10 years||40 years|
|Premium paying options||Single pay, limited pay or regular pay|
|Premium Paying term||Single Pay – once
Limited pay – term – 5 years
Regular pay – equal to the plan tenure
|Sum Assured||Rs.25 lakhs||No limit|
If the insured commits suicide within 12 months of commencement of the plan or its revival, 80% of the premiums paid are returned.
Below are the sample rates of premiums paid by a non-tobacco user male at different ages for different levels of Sum Assured and term. The premium payment is taken to be for the entire policy duration.