HDFC Group Term Insurance offers financial security to the employees and their families in the unfortunate circumstances upon the employee’s demise. Very much like the individual term plan, the HDFC Group Term Insurance is a pure risk life insurance product specifically designed to safeguard the family’s finances and overcome the trauma of losing the breadwinner. Term plan coverage is high compared to the premium, more so in the case of Group Term Plans where the cost is even lower.
+Tax benefit is subject to changes in tax laws.
++All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
The primary distinguishing factor between the individual and the HDFC Group Term Insurance is that the former covers a single life. In contrast, the latter covers all the group members under a single umbrella policy. The group composition can be varied, comprising employer-employee or non-employer-employee group. The EE group must at least consist of ten members and the NEE group fifty members to be eligible for the group insurance.
The primary requirement for HDFC Group Term Insurance is that the member is a regular company employee on their payroll. The salient points to note for the eligibility criteria are:
That apart, the other eligibility parameters are detailed below.
Parameter |
Conditions |
Minimum Entry Age |
16 years and 18 years if a rider has been chosen. |
Maximum Entry Age |
79 years and 64 years if a rider has been chosen. |
Maximum Maturity Age |
80 years |
Policy Term |
Renewable every year |
Premium |
Depends on the sum assured |
Minimum Sum Assured |
Rs.5000 per member |
Maximum Sum Assured |
No limit (It is linked to the member’s age and occupation profile) |
Minimum Group Size |
10 members for EE group 50 members for NEE group |
Group plans per se offer a host of coverage, but the HDFC Group Term Insurance is an economic proposition as a significant employee benefit. The plan’s contours are designed not only for the employee but also for the spouse with a joint cover.
The plan pays the death benefit to cover the member’s unfortunate demise due to natural, accidental, or medical causes. Towards this end, there are many additional riders to augment coverage to suitable levels against an additional premium.
Like the usual term insurance, the group insurance policy term is also for one year to be renewed every policy anniversary. However, the HDFC Group Term Insurance is a comprehensive life insurance cover with the flexibility to customize individual preferences.
The HDFC Group Term Insurance offers a host of redeeming features to make the plan highly attractive. The plan’s design ensures a fair degree of innovation and customization. Some of the key features of the plans are as follows:
The HDFC Group Term Insurance is rich in benefits, especially in a range of optional riders, which helps members to a high degree of customization.
It is paid to when a member meets with untimely demise during the policy term. The Death Benefit comprises the sum assured paid in lump-sum. When there is a joint cover, the Death Benefit is payable for the death of either of the life insured.
The HDFC Group Term Insurance does not offer any Maturity Benefit.
In the event of the policy’s surrender before the term’s expiry, the premium for the unexpired period, minus the applicable deductions, is paid to the policyholder. However, individual members can continue with the policy as an individual policy till the group policy’s term expires.
The member can choose one or more of the offered riders to customize the coverage according to specific needs. Members will do well to study the rider’s features to be abreast of the applicable terms and restrictions. However, the additional cost is borne by the member.
HDFC Life facilitates the HDFC Group Term Insurance purchase through the convenient digital mode. The process is initiated in the official portal by providing a few essential inputs. They include Company’s name, group size, chosen plan, name, phone number, and city. Additionally, the check box authorizing the insurer to contact using all the communication modes is ticked.
The final option is to select one of the two – meet the Financial Advisor and buy the HDFC Group Term Insurance plan online. It is essentially one of the options, and it does not preclude buying the policy from HDFC Life’s brick and mortar office.
While buying the HDFC Group Term Insurance policy, the company policyholder must comply with the requisite documentation. The policy is organization-centric, and in any case, they have the personal data of all their employee members. However, documents are required in claim submission. The listed documents are only indicative. HDFC Life may call for any other additional document if required.
Here is a rundown of additional features offered by HDFC Group Term Insurance plans:
HDFC Group Term Insurance, like other insurance plans, have certain terms and conditions, they are as follows:
Members are allowed 15 days from the policy document receipt date to analyse the defined policy term and conditions. If not satisfied, the policy can be returned stating objections. If the policy has been bought through the distance marketing method, 30 days is permitted.
Under Section 45 of the Insurance Act, 1938, no policy can be questioned on any grounds whatsoever after three years have expired from the policy issue date or risk commencement.
The taxes applicable in the HDFC Group Term Insurance policy are primarily of two types:
The following are the main exclusions of HDFC Group Term Insurance plans:
Death Benefit is payable to the member’s nominee in the EE group if the insured commits suicide within 12 months of the risk commencement date. The payable amount is up to 80% of the paid premium till the date of demise or the surrender value as on the death date.
A claim is not accepted in the HDFC Group Term Insurance policy under the following circumstances:
*For a detailed list of exclusions, please refer to the policy document or the product brochure.
A1. The policyholder can choose to pay as a single premium or in half-yearly, quarterly, or monthly installments.
A2. The HDFC Life critical illness rider covers 19 diseases listed in the relevant annexure covering Various Cancer stages, Kidney dysfunction. Cardiac ailment, etc.
A3. The critical illness rider comes into play upon the insured’s diagnosis. The rider sum assured is paid after the stipulated 30 days survival period is over.
A4. Two options are offered under the Critical Illness rider:
A5. The member can nominate in the policy any time during the policy term conforming to the defined rules under Section 39 of the Insurance Act, 1938.
A6. The policyholder can be assigned in compliance with Section 38 of the Insurance Act, 1938.
A7. The master policyholder gets a 15 days grace period if the premium payment frequency is monthly else, the period is 30 days.
A8. Upon a payment default for the premium by the time the grace period has expired, policy lapses.
A9. The group composed of Employer-Employee relation is termed formal and Non-Employer-Employee group informal.
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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.
**Tax benefit is subject to changes in tax laws.