HDFC Term Assurance Plan
Term plans are the beauty of insurance. It acts as a safeguard for entire life. Insurance and investment should be differentiated. Both are two objectives and two style of application. Investment is based on value and insurance is based on risk. Term plans are very suitable for common people. We need not pay huge amount as insurance premium. Simple premium options are the peculiarity of this plan. But people are very reluctant to take insurance policies. That attitude must abolished by themselves. Insurance should be the invaluable property of every individual.
First step in this plan is the selection of life cover. It may be different for each one. It will depend his ability to pay the premiums. There are three additional options in this plan. Critical Illness Benefit, Accident Death Benefit and Accelerated Sum Assured Benefit.
Critical Illness Benefit
If the life insured will be suffered by any critical diseases mentioned in the clause, he will be given an amount equals to the sum assured. One critical illness claim is possible in a policy term. The basic policy will be continued after the settlement.
Accident Death Benefit
The nominee will be given an amount equal to the sum assured if the life insured dies on an accident.
Accelerated Sum Assured Benefit
If the life insured is affected any critical illness mentioned, he will be given an amount equals to the sum assured. The policy will be terminated after the settlement.
Minimum age at entry is 18 years and maximum age at entry is 60 years. Minimum policy term is 5 years and maximum policy term is 30 years. In single premium option, policy term is 2 to 15 years.
Let us take an example. 25 year man pays a premium of Rs 2180* for each year. He will get sum assured of Rs 800000 for 15 years. If he pays Rs 2280*, he will get a coverage for 25 years and sum assured will be Rs 800000. In single premium option, a 25 year old man pays an amount of near Rs 21650* for a life cover of Rs 800000 for 15 years. 10% extra of the gross premium will be paid for the non SI-ECS premium payments. Sum Assured will be the Death benefit. No surrender benefit is available in this policy. Premiums paid are eligible for tax benefits under 80 C, 80 D and section 10 (10 D).