HDFC Life Insurance brought in a new term policy called Click2Protect 3D Plus. This policy has Nine different options. Here are the details of benefits with different options along with the primary policy.
Primary policy: Primarily, this is a term policy. There is integral premium waiver option. The total insurance amount is paid in case of death or a fatal illness is diagnosed. In case of total disability from an accident, the company will pay the remaining premiums. The premium waiver and term plan is integral part of the primary policy. Any option chosen will be in addition to these.
Second option: If this option is chosen, remaining premiums will be waived if a serious illness is diagnosed. This is applicable to 34 critical illnesses. If the second option is chosen in addition to the primary policy, the company waives the remaining premiums if disability occurs from accident or diagnosed with serious illness.
This option facilitates additional amount in case of accidental death. If this is chosen additional to the primary policy, additional amount to the insurance amount is paid in case of accidental death. This option gives income at regular intervals. There is a option to take the total amount at once or at fixed intervals. Policy holder can decide how long he wants to get paid by the insurance company. The payments are paid monthly for a maximum of 20 years. Yearly payments at a fixed rate. This option gives yearly payments along with accidental death benefit.
There is a difference in this plan when compared to plan that give income at fixed intervals. In the latter plans, payments are made per the policy holder’s desire. But here, they are paid till the goal. For example, if the policy holder dies while approaching retirement, the payment time gets decreased. But if it happens long before retirement, the payment period increases. With this policy, sum equal to 12 times of monthly payment is paid at once to the beneficiary. Later, the beneficiary is paid monthly until the policy expires or Four years, whichever is higher. There is a provision to increase the payment rates by up to 10% every year. This option pays the premium back.
In primary policy, the policy amount is paid to the beneficiary in case of death of policy holder. In case the policy holder lives out of the policy period, this plan is useful. The premium is paid backed but this option will have high premium rates. This is a plan that gives protection through the life. For example, you have to pay the premium up to 65 years of age but if the policy holder dies before that or after that, policy amount is paid to the beneficiary. This option acts as supplement to the eighth one. Upcoming premiums get waived in case of serious illness and compensation is paid in case of severe illness, accident that causes total permanent disability. It has to be remember that thought his plan has many options, it has high premium. For example, if a 35-year-old took One crore primary policy for 25 years, the premium will be 11589. The market premium for such is 12000. If the third option where the policy amount is doubled in case of accidental death, the premium becomes 17,240. In case whole life option that covers the whole life, the premium will be 1.02 lakhs for the next 30 years (subtracting 35 from 65).