The life assured is covered for the entire policy term and starts receiving a monthly income starting from the age of 60, continuing until death or policy maturity, whichever comes first.
Despite the increasing CI cover at every policy anniversary, the premium for the customer remains unchanged throughout the policy term.
HDFC Life has launched its latest flagship term product Click 2 Protect Life, which is a non-linked, non-participating, individual term plan to cater to the changing needs of individuals in the different stages of life.
The ongoing pandemic has brought about a change in an individual’s approach towards life insurance as a product category, and industry experts say term insurance has become an important component of every financial plan.
Here is what click 2 protect life term plan offers;
1. Life and Critical Illness Auto-balance: A cover which provides protection against critical illness (CI) and death by auto-balancing life and CI cover with increasing age. Under this option, the life cover decreases while CI cover increases proportionally, on each policy anniversary. Additionally, on the diagnosis of any of the listed 36 CI conditions, not only the increased CI sum assured is paid to the policyholder but also all future premiums are waived off and the life cover continues.
At the start of the policy, the basic sum assured is split between life cover and critical illness cover in 80:20 ratio. Note that, throughout the policy period, the total basic sum assured remains the same.
Also, despite the increasing CI cover at every policy anniversary, the premium for the customer remains unchanged throughout the policy term.
2. Life Protect Option: This option provides financial protection to the family of the policyholder by providing coverage against death during the policy term. A lump sum is provided to the nominee on death of the life assured. This cover can be taken either for a fixed term or for the whole of life.
3. Income Plus Option: This option provides regular monthly income from age 60 onwards while also providing cover for death during the policy term to ensure financial well being of the dependants. The life assured is covered for the entire policy term and starts receiving a monthly income starting from the age of 60, continuing until death or policy maturity, whichever comes first. The death benefit payable to the nominee will be after deduction of the monthly income that was paid until death. Note that, in this plan, one can also opt for whole life cover.
Srinivasan Parthasarathy – Chief Actuary and Appointed Actuary said, “The pandemic has made every individual aware of the need for financial protection. There are 3 options available in this plan, for instance, the Income Plus option acts as a means of regular income for individuals once they turn 60. One can choose the option that is best suited for their requirements. The pandemic has made every individual aware of the need for financial protection. With time and changing lifestyle the need for financial protection is not the same as it was a few years ago.”
Add-on features like Return of Premiums, Waiver of Premiums on CI, Accidental Death Benefit and premium payment frequency alteration are available for some options as per pre-disclosed conditions.