HDFC Life unveils new term insurance with unique pension option. Know how it works

HDFC Life, one of the leading life insurers in the country has launched a new term plan — Click 2 Protect Life. The non-linked, non-participating, individual term plan will cater to the changing needs in the different life stages of an individual, the insurer said.

In the wake of coronavirus pandemic, the term insurance policies has gained prominence. Take a look at what HDFC Life’s Click 2 Protect Life offers

Life and critical illness auto-balance: The new policy will offer protection against critical illness and death by balancing life and critical cover with the age. In this cover, the life cover decreases while critical illness cover increases proportionally, on each policy anniversary. On the diagnosis of any of the listed 36 critical illness conditions, the increased critical illness sum assured is paid while 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. The total basic sum assured remains the same throughout the policy. Even if critical illness cover increases at every policy anniversary, the premium for the customer remains unchanged throughout the policy term.

Life protect option: This option provides financial protection to the family of the life assured 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.

Income plus option: To ensure financial well being of the dependants, this option provides regular monthly income from age 60 onwards while also providing cover for death during the policy term. 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 insurer said. The death benefit payable to the nominee will be after deduction of the monthly income that was paid until death. In this plan one can also opt for whole life cover.

This option is a unique proposition in the life insurance industry as it bundles regular pension with life cover, the insurer said. All options include both fixed and whole life covers. The 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.

Commenting on the product, Srinivasan Parthasarathy – Chief Actuary & Appointed Actuary said, “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. Based on customer inputs and our research findings we have designed a product that meets the changing life stage needs of an individual.

"There are three options available in this plan, each with a unique offering. Especially the Income Plus option which 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. We believe customers will see value in the product and use it to secure themselves and their families," he explaine.

Source: Live Mint