A person who does not stay with the times will always run the risk of getting left behind. Therefore, as priorities alter and lifestyles change, it is vital for people to think in the longterm when it comes to protecting their family members. This 1 Crore Term Insurance HDFC is one such plan that can secure the future for the family against any uncertainties that may arise in the future. There are three different plan types within this insurance. They are namely Life Protect, Life & CI Rebalance, and Income Plus Option.
Eligibility Criteria for 1 Crore Term Insurance HDFC
- To be eligible for the 1 Crore Term Insurance HDFC, the minimum age should be 18 years at the time of entry for the option, which gives Life & CI Rebalance.
- If a person enrols for the fixed term in the Life Protect option, they must also be at least 18 years of age.
- On the other hand, if they enrol for the Whole Life plan, they must at least be 45 years old.
- Within the Income Plus option, there are two brackets as well.
- For Fixed Term, the minimum age requirement is 30 years, while for the Whole Life option, it is the same as in the life protect option at 45 years.
- The maximum age of entry has to be 65 years for the Life & CI Rebalance option.
- It is also the same for the Life Protect option at 65 years, whether one opts for the fixed term or whole life within it.
- However, for the Income Plus option, the maximum age drops to 50 years for the fixed term option.
- For the whole life option, the maximum age remains 50 years for 10 Pay. For Single Payor 5 Pay, the maximum age within the Income Plus option can go up to 55 years.
- In addition to the eligibility age requirements at the time of entry, as detailed above, there is an eligibility age requirement at the time of maturity too.
- For Life & CI rebalance, it is 28 years minimum age and 75 years maximum age.
- In Life Protect, for the fixed term option, the minimum age at maturity should be 18 years, and the maximum age is 85 years.
- For the Whole Life option, one is eligible for their entire life.
- For the Income Plus plan, the minimum age at maturity is 70 years, and the maximum age is 85 years.
- For Whole Life, it is the entire life.
Salient Features of HDFC 1 Crore Term Insurance Plan
The 1 Crore Term Insurance HDFC has multiple features. To make an informed decision, it is essential to know about them to meet the requirements that a policyholder wants to be met. Here are some of the features that this term insurance plan has:
- The financial cover this plan provides to the entire family is not piecemeal but comprehensive.
- There are three plan options. So, there is sufficient flexibility to choose from.
- The plan also allows the holder to die and critical illness benefits automatically. This happens as age increases.
- Under the Income Plus Option, income payouts ensue from the age of 60.
- The flexibility of these plans allows one to choose cover for the whole of life.
- With the Return on Premium option, one can receive back all paid premiums on survival till maturity.
- There is an option for waiver of premium on the diagnosis of Critical Illness.
- There is an additional option that gives an addition to the Sum Assured on accidental death.
You can calculate your HDFC term insurance premium using our term plan calculator.
Benefits and Advantages of the Plan
The 1 Crore Term Insurance HDFC gives advantages in line with the various options under it. Some of them are given below:
Life Protect Option
- In this plan, the policy term covers up to death. If the policyholder dies during the term, the nominee becomes eligible for a lump sum benefit.
- The death benefit, in this case, is Sum assured on death or 105% of the total premiums paid, whichever is higher.
- On the death in a Single Pay option, the Sum assured is the higher of 125% of all premiums paid, and the Sum assured. The Sum assured can be at maturity or the Basic Sum Assured.
- In Limited Pay and Regular Pay options, the Sum assured on death benefit is the highest among the three sums. They are the Sum assured either on maturity or basic and ten times the annualized premium.
- The maturity benefit, in this case, is paid on survival on maturity. This is the total of all premiums paid.
Life & CI Rebalance Option
- The Sum assured gets split here between life cover and critical illness. Initially, 80% allocation of the Sum assured is for life cover, and the balance is for critical illness. The critical illness amount increases annually, and the life cover decreases by an equal amount so that the total Sum assured remains the same. Once the critical illness claim gets paid out, then the remaining Sum assured stays without further deductions for the life cover.
- The death benefit is payable as a lump sum. It is the highest of the Sum assured on death, the life cover sum assured or 105% of the total paid premiums.
- For single pay plans, the higher is payable of the Sum assured on death is 125% of the total premiums paid or the Sum assured on maturity.
- In limited pay and regular pay, the higher of 10 times the annualized premium or the Sum assured on maturity is the death benefit.
- If a person is diagnosed with a critical illness, they will receive the critical illness cover. There is a waiver on premiums on this is paid out, and the remaining Sum assured is for life.
- The maturity benefit is paid on survival until maturity. That will be the total of all premiums paid.
Income Plus Option
- The policyholder here gets life cover and, furthermore, gets a regular monthly income after the age of 60.
- The death benefit, in this case, is the Sum assured on death of 105% of the total premiums paid, with the total survival benefits paid out till then subtracted.
- The Sum assured for death in the case of a single pay is the higher of 125% of the single premium or the basic Sum assured or the Sum assured on maturity.
- Sum assured on regular pay, and limited pay is 10 times the annualized premium or the Sum assured on maturity, or basic Sum assured, again whichever is higher.
- On survival during the policy term, it pays 0.1% of the Basic Sum assured at the end of every month after the age of 60 years till the policy term ends or death, whichever is earlier.
- For the fixed-term option, the Sum assured on maturity is payable on survival until maturity. This is not applicable for the whole life option.
The Process to Purchase the Plan
The process to purchase 1 Crore Term Insurance HDFC is easiest when done online. The process is quick, simple, and streamlined. Some of the basic steps are given below:
Step 1:Log on to the company website.
Step 2:The first thing to enter is the Sum assured.
Step 3:After that, choose the policy term for 1 Crore Term Insurance HDFC.
Step 4:The next step is to choose the term for paying premiums.
Step 5:Based on the details entered above, you will find the premium amount displayed.
Step 6:The applicant needs to select their bank at this stage to make the payment.
Step 7:On successful payment, the applicant will receive an acknowledgment.
Step 8:Once the policy has been approved, the applicant will become a policyholder 1 Crore Term Insurance HDFC and receive a soft copy of the policy. A hard copy will follow after that.
At the time of application, certain documents may be requested, and it is always best to keep them handy. The main requirements pertain to proofs of identity, address, and age. The most common identity proofs are PAN Card and AADHAR. For address proofs, the best documents are generally driving licenses and utility bills like gas and electricity. For age proof, a passport copy suffices. In addition to these, proof of income may sometimes be required, and hence, income tax returns are essential for that. If the application requires photographs, one should always keep passport size photographs with them.
Terms and Conditions
The 1 Crore Term Insurance HDFC has some basic terms and conditions. A brief explanation of these is given below:
- Risk factors – It is the responsibility of the policy buyer to study the risk factors.
- Tax Benefits – While tax benefits may be available under this plan on the premiums paid, they can always change based on amendments to the Income Tax Act.
- Free-Look Policy – To ensure that an applicant has fully understood what they are getting into, the company provides a 15 days grace period in which a policyholder can study the plan and return it if unsatisfied, stating the reasons for doing so.
- Loans – Policy loans are not available under this product.
- Nomination – The nomination process is governed by the Insurance Act of 1938, Section 39, and any amendments that may take place in the future. Nomination can be made at any time before the policy matures.
- Assignment – The assignment is governed by Section 38 of the Insurance Act of 1938.
- Prohibition of Rebates – Section 41 of the Insurance Act of 1938 governs provisions of rebates.
- Non-Disclosure – Section 45 for the Insurance Act of 1938 governs the provisions of non-disclosure.
The 1 Crore Term Insurance HDFC has suicide exclusion. In it, if a person commits suicide within twelve months of the date of commencement of the policy or its renewal, the nominee of the policyholder receives at least four-fifth of the premiums paid till death. It could also be four-fifth of the surrender value as available on the date of death. The nominee receives the higher of these two values as long as the policy is in force.
Underwriting is charged extra for those with sub-standard lives and smokers as per the prevalent Underwriting policy of the company.
Ans: A1. Yes, there are multiple options that may be added to the product for additional benefits.
A2. Some of the add-on benefits are Return of Premium Option, Waiver of Premium on Critical Illness Option, Accidental Death Benefit Option, Alteration of Premium Payment Frequency Option, and Option to Convert Premiums to Regular Pay or Limited Pay.
A3. Under this option, the policyholder will pay additional premiums in addition to the already payable premium. They will receive this back in total as a 100% lump sum on survival until maturity.
A4. Under this added option, all future premiums will be waived in case the policyholder is diagnosed with a critical illness.
A5. An additional amount equal to 100% of the Basic Sum assured is payable on accidental death.
A6. All premium payment terms are alterable without any extra fees or charges.
A7. All remaining regular premiums may be converted to regular pay or limited pay.
A8. The grace period for payment of premiums is 30 days in all cases except for monthly payment, where it is 15 days.
A9. Yes, this policy is revivable upon paying all outstanding premiums and a nominal interest rate.