HDFC Income Replacement Insurance Plan

What Is HDFC Income Replacement Insurance Plan?

The HDFC Income Replacement Insurance Plan is a life insurance plan designed to provide families with a lump-sum payout in the unfortunate event of the policyholder's demise during the policy term. Offering flexibility in payout options, including lump sum or monthly income, and with additional riders for critical illness and accidental death benefits, HDFC's plan provides a comprehensive solution for income replacement, ensuring financial security and peace of mind for policyholders and their families.

Let’s understand with the help of an example:

Niraj, a non-smoking man of 33 years of age with an annual salaried income of Rs. 12 Lakhs, bought a term life insurance plan to secure his loved ones financially. As the bread earner of his family, he aimed to ensure purchasing one of the best term plans for his family. By comparing from among 15+ term plans on Policybazaar, he finally selected the HDFC Click 2 Protect Super Plan as it aligned best with his situation and needs. Niraj opted for a 1 Crore life cover for a policy term of 30 years, and he will be paying Rs. 1181/month for the same policy term. Therefore, in the unfortunate event of his death, Niraj's income will be substituted by the life cover, which his nominees will receive as the death benefit. 

What Are The Benefits Of HDFC Income Replacement Insurance Plan?

Here are the benefits of HDFC Income Replacement Insurance Plan:

1. Death Benefit:

   • In the unfortunate event of the policyholder's demise during the policy term, HDFC Income Replacement options provide a lump-sum payout to the nominee/beneficiary.

   • This lump sum is the "death benefit" and serves as a financial cushion to replace the policyholder's lost income.

2. Income Replacement:

   • The death benefit is designed to act as a substitute for the policyholder's income, ensuring that the family's financial needs are met even in the absence of the primary breadwinner.

   • It can cover daily expenses, outstanding debts, future financial goals, and other monetary obligations.

3. Customizable Coverage:

   • HDFC Income Replacement options often offer flexibility in choosing the sum assured, allowing individuals to align coverage with their income levels and financial responsibilities.

   • This customization ensures that the payout adequately replaces the policyholder's income.

4. Option for Monthly Income:

   • Some term insurance plans, including those offered by HDFC, may allow the beneficiary to receive the death benefit as a monthly income instead of a lump sum.

   • This can be particularly beneficial for managing regular expenses and ensuring a steady income stream.

5. Financial Security for Dependents:

   • HDFC Income Replacement Insurance plan aims to provide a comprehensive financial safety net for the policyholder's dependents, helping them maintain their standard of living and meet ongoing financial commitments.

6. Additional Riders:

   • HDFC Income Replacement Insurance plans often come with optional riders or add-ons that can enhance the coverage. These may include critical illness riders, accidental death benefit riders, or waiver of premium riders, adding an extra layer of protection.

7. Tax Benefits:

   • Tax deductions are available under applicable sections of the Income Tax Act 1961, including Section 80C and Section 10(10D).

How To Buy HDFC Income Replacement Insurance Plan From Policybazaar?

Here are the steps to buy HDFC Income Replacement Insurance Plan from Policybazaar:

• Step 1: Visit Policybazaar’s official website and click on ‘Term Insurance’ 

• Step 2: Fill in the basic details such as date of birth, name, contact details

• Step 3: Click on ‘View Plans’

• Step 4: Provide details about your smoking or tobacco habits, yearly income, occupation and education

• Step 5: Choose the HDFC term plan from among the options and proceed to pay

• Step 6: Select your preferred payment method and pay to complete the purchase

*Note: It is advised to first know what is term insurance and compare among multiple term insurance options and then proceed to buy the ideal plan.

Wrapping It Up!

For those responsible for family support or protecting their assets, HDFC Income Replacement Insurance is very important. There are many HDFC income replacement options to choose from that will secure your loved ones’ financial future after you are no longer there with them. Ensure family security by efficiently comparing term plans from 15+ insurers on Policybazaar. This strategic approach allows you to choose an ideal term plan aligned with your needs, providing comprehensive financial protection for your loved ones or business.