HDFC Group Term Insurance

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.

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.

Eligibility Criteria for HDFC Group Term 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:

• The member is a permanent company employee and thus eligible for group insurance cover.
• There are two types of coverage for the members:
• Uniform Plan: Where the sum assured is identical for all the group members.
• Graded Plan: Where the sum assured is determined by the member’s age and occupation profile.
• There is a single master policy for all the members.
• The policyholder is also the policy administrator responsible for its maintenance and compliance with insurer requirements.
• The administrator is empowered with special privileges to create and update the membership register.
• The administrator is also responsible for adding new members and deleting the superannuating members to and from the membership roster.  

That apart, the other eligibility parameters are detailed below.

Salient Features of HDFC Group Term Insurance

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:

• One master policy covers a group of company employee’s life for the eligible.
• The plan covers both the single-member or with the spouse jointly with the same sum assured.
• The plan’s policy term is uniform for one year and renewable every policy anniversary, subject to the permissible grace period.  
• Total flexibility in premium payment with the option to make a single payment at inception or in convenient installments.
• The member’s coverage is either constant or variable, based on salary scale or grades without any upper limit cap.
• Members may be added or deleted depending on the circumstances, anytime within the policy term.
• Members are not required to undergo any medical examination to the defined Free Cover Limit, which is the sum assured linked to group size.
• HDFC Life provides customized service with a dedicated Relationship Manager as a single-point contact for the speedy disposal of claims and related services.

Core Benefits of HDFC Group Term Insurance Plans

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.

Death Benefit

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.

Maturity Benefit

The HDFC Group Term Insurance does not offer any Maturity Benefit.

Surrender 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.

Optional Benefit

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 Accidental Death Benefit.
• HDFC Permanent Disability Benefit.
• HDFC Permanent Total and Partial Disability Benefit.
• HDFC Critical Illness Plus.

The Process to buy HDFC Group Term Insurance Policies

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.

Documents Required to File a Claim for HDFC Group Term Insurance

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.

Accidental Death

• Applicable Claim Form.
• Death Certificate from the appropriate authority.
• Copy of Medical Reports if Hospitalized.
• Treating Doctor’s Certificate.
• All police-related documents, including FIR, Panchnama, and Final Investigation Report.
• Beneficiary’s KYC documents.
• Nominee’s bank account details.  

Accidental Disability

• Claim Form.
• Hospital Discharge Summary.
• All Medical Reports.
• Treating Doctor’s Certificate mentioning the type and nature of the disability.

Critical Illness

• Claim Form.
• Diagnostic Report confirming any of the listed critical illnesses.
• Doctor’s Certificate confirming critical illness.

Additional Features of HDFC Group Term Insurance

Here is a rundown of additional features offered by HDFC Group Term Insurance plans:

For the Employer

• Life insurance risk coverage for all the employee members under a single master policy.
• High coverage at a low premium makes the policy cost-effective.
• The policy acts as a vital retention tool and thwarts employee attrition.
• The employee’s family finances are secure in the absence of the member due to an unforeseen event.
• The employer’s HDFC Group Term Insurance premium paid attracts tax exemption under Section 37 (1) of the Income tax Act, 1961.

For the Employee

• The coverage provides financial security to the loved one in the event of an accident, critical illness, or untimely demise.
• The employer’s HDFC Group Term Insurance premium paid is not treated as a prerequisite, hence is not taxable.
• The death benefit received is tax-exempt under Section 10 (10D) of the Income Tax Act, 1961.

Terms and Conditions

HDFC Group Term Insurance, like other insurance plans, have certain terms and conditions, they are as follows:

Free Look

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.

Non-Disclosure

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.

Taxes

The taxes applicable in the HDFC Group Term Insurance policy are primarily of two types:

• Indirect Taxes: The policy attracts several applicable taxes, including GST. The policyholder has to comply with GOI’s extant tax laws from time to time.
• Direct Taxes: All policy receipts are covered by the extant Income Tax Laws prevailing in the country. The policyholder has to comply with the applicable taxes in any, including tax exemption claims.

Key Exclusions

The following are the main exclusions of HDFC Group Term Insurance plans:

Suicide Clause

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.

Critical Illness

• Waiting Period: The initial waiting period of 90 days from the risk commencement date apply for any claim acceptance. The period is waived only in case of accidents.
• Pre-existing Disease: For any pre-existing critical illness, a uniform 48 months is the waiting period to accept claims.

General Exclusions

A claim is not accepted in the HDFC Group Term Insurance policy under the following circumstances:

• Any medical condition caused due to self-inflicted injury or attempted suicide.
• Medical conditions originating from acts of war, hostilities, invasion, or any such military event like war-games
• Treatment of diseases like HIV and AIDS
• Participation in hazardous and extreme sports, adventure, or hobby that can result in bodily harm.
• Accidental death or disability is the outcome of alcoholism, solvent abuse, or drug addiction.
• Any potentially dangerous occupation like Mining or the Aviation Industry other than as a passenger
• Medical intervention for a remedy to any congenital disability or ailment

*For a detailed list of exclusions, please refer to the policy document or the product brochure.

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