The HDFC term plan is the greatest insurance policy out there because it offers a lot of benefits for a low price. The online service is excellent, and renewals and upgrades may be completed quickly. Because of this, the executives respond quite well, and claiming is really simple.
Is HDFC life better than LIC?
Many private players are also experimenting with digital platforms, such as online policy sales via tablets. In reality, the entire sales platform has been moved to the internet. One area where LIC should seek to cut costs is in this area. Surprisingly, at 15.63 percent, LIC’s administration expenses to gross direct premium ratio is comparable to the private sector.
The private sector, which is notorious for paying high salaries, is likewise about 15%-16%. However, these high managerial costs did not show up in terms of product or channel innovation. LIC’s profit after tax to total income ratio was.004 percent. HDFC has a 4.22 percent market share, whereas ICICI Prudential has a 7.1 percent market share.
Shareholders’ funds, which reflect capital invested by shareholders, are likewise growing slowly. Shareholders’ funds have grown by 4.49 percent at LIC, 45.36 percent at HDFC Life, and 10.08 percent at ICICI Prudential Life. The yield on LIC advances is 8.08 percent. With yields on advances of 8.72 percent and 8.5 percent, respectively, HDFC and ICICI Prudential Life outperform LIC.
Does term plan cover natural death?
Under typical circumstances, term insurance covers all types of deaths, including those that are caused by an accident, illness, or natural causes. While all of these are natural causes of death, they can leave dependents and families in a financial bind.
Term insurance can aid in these situations by giving the funds a family requires to achieve their life goals and objectives. However, it does not cover all possible causes of death within these headings.
What is a 5 year term life insurance policy?
The most cost-effective life insurance plan for a short-term investment is a 5-year term life insurance policy. The death benefit on the 5-year term insurance policy is ideal for paying immediate financial obligations.
Are term plans good?
The sooner you begin, the safer you will be and the more financially secure you will be for your loved ones in the future. A term insurance policy will assist the family in meeting day-to-day expenses as well as achieving long-term financial goals.
Yes, regardless of the year, it is worthwhile to purchase a term insurance coverage. A term insurance policy is far more advantageous than other types of life insurance policies. If you don’t want to deal with too many headaches, you may easily get an online term plan from the comfort of your own home at a discounted rate.
Is LIC term plan good?
LIC term plans can protect your family from losing income in the event of a loss of employment. People prefer these schemes, despite the fact that they do not provide any maturity. The LIC term plan allows policyholders to purchase a large amount of coverage for a modest premium.
How do I choose a good term plan?
Your decision on a term plan should not be swayed by others, but rather based on a self-analysis of your own requirements.
Take, for example, the case of Mr Sudhir. He is 30 years old, works as a software engineer for a multinational corporation, and earns Rs.60,000 a month. Wife and 6-month-old child are among the dependents. He invests the majority of his money, driven by the desire to earn more and attracted by his peers’ preference for investment plans. Rent, loans, and child bills eat up the rest of his earnings. We are not suggesting that he should not invest his money; in fact, preparing an investment regime is always required for maintaining a sufficient living standard; however, he must keep in mind that investments alone will not provide for his family in the event of his premature and terrible death. His family would be in serious financial problems if he died suddenly with no term life insurance and no income. As a result, he should not be swayed by his peers’ opinions and should invest in a term insurance policy as well.
The question is how much term insurance you require. Let us assume that the cover amount should be 10 times the annual income in order to calculate the cover amount. Mr. Sudhir is 30 years old and earns more than Rs.7 lakh per year, hence the chosen sum promised must be about Rs.70 lakh (Taking inflation into consideration and the fact that there would be loss of income an approximate assumption seems of 10 times seems appropriate).
Obviously, the assumption can’t be implemented blindly because the sum assured is dependent on other things like when you married (early or late), when you have children (early or late), and so on.
In such cases, you should make a listing of all assets and liabilities, as well as future goals and objectives, and then decide on a sum for which you would like to be insured.
Whether you acquire a term insurance plan online or offline will have a significant impact on your purchase. Purchasing insurance plans online through several comparison portals is convenient and cost-effective. You may evaluate different products based on price and other features; there are no middlemen, and the policies are reasonably priced. Furthermore, the decision is made in an unbiased manner; the products are not hard-sold as they are when insurance agents are engaged.
Can I surrender my HDFC Life policy?
No, is the quick response. Surrendering your term insurance coverage is never a wise choice. Consider the events that have occurred since March 2020. Overnight, the coronavirus pandemic flipped our world upside down. Although numerous countries have implemented lockdowns for more than a year, the virus continues to cause havoc in our lives. The second wave of the epidemic struck in 2021, forcing us to reexamine all of our decisions, particularly those related to life insurance. We were obliged to consider mortality as a result of the pandemic. We realized how rapidly things can change. We might leave our loved ones without financial support in an instant. With all of this in mind, having a strong life insurance policy in place is more important than ever.
Why Term Insurance?
There are a variety of life insurance plans on the market. Term insurance, on the other hand, is the most cost-effective option. Term policies offer high sum guaranteed sums at affordable rates. There are no maturity advantages or investing options with these programs. As a result, insurance companies can offer them at a lesser cost. For as little as INR 1,000 per month, young and healthy people can acquire sum insured values of 2 or 3 crores!
Why Shouldn’t I Surrender My Term Insurance Plan?
You must make every effort to pay your premiums on time once you have purchased a term insurance policy. If you don’t make a payment on time, your insurance will be cancelled or surrendered. You will not incur any immediate financial consequences, but you will lose the life insurance coverage provided by your policy. You could leave your family without financial support in the future if you don’t have this critical insurance.
If you decide to cancel your term insurance policy, getting a new one at a later date will almost certainly be more expensive. Keep in mind that your age and health will have an impact on your premiums. In addition, most term plans now include a maturity benefit, such as a premium refund. The maturity benefit will be forfeited if you relinquish your insurance.
Surrendering your policy may appear to be a smart option in the short term, but it could be detrimental to your long-term financial situation. Some people are anxious that they will outlive their term insurance policy. But don’t be concerned. Before the maturity date, you can always convert your term insurance policy to a regular life policy. You will continue to have life insurance protection without having to pay for a new policy by doing so.
Benefits of Term Insurance
Term plans have been scorned for years since they do not provide benefits such as maturity or investment. These insurance policies, on the other hand, come with a slew of advantages, including:
Peace of Mind
You can have peace of mind with any insurance policy. It’s a safety net that you and your family can fall back on when things go tough. More than simply life insurance is included in the best term insurance package. Most insurance now include benefits for critical illness and incapacity. With such a plan in place, you can rest assured that no matter what life throws at you, you and your family will always have a financial safety net to fall back on.
Value for Your Money
The majority of other life insurance programs combine investing and savings. As a result, these plans frequently have higher premiums. A term insurance policy, on the other hand, just covers the cost of your life. Term plans provide the best value for your money, making them a wise investment.
Tax Planning
Because term plans are classified as life insurance, the premiums you pay can be deducted from your taxable income. Under Section 80C of the Income Tax Act, 1961, you can claim a deduction of up to INR 1,50,000 for premiums paid each year. If you choose a return of premium policy, the money you get at the end of the term is tax-free. Furthermore, if you pass away during the policy’s term, the amount your nominee gets will not be taxed.
Additional Benefits
In the recent past, term policies have developed. You can now choose a term insurance plan that provides more than just life insurance. You have the option of selecting riders that will increase your insurance payout. You can choose a plan that includes disability and critical illness coverage based on your needs.
Complete Flexibility
Term insurance have grown in popularity as a result of its flexible payment options. Premiums can be paid annually, half-yearly, quarterly, or monthly, depending on your financial situation. You can also pick whether your nominee receives a single lump-sum payment or a series of payments over time.
As you can see, a term insurance coverage is required for everyone. These plans give you and your family financial security when you need it most. As a result, never consider canceling your term insurance policy.
What is HDFC Life Plan?
A savings account providing an immediate income option for day-to-day costs and various financial goals, as well as life insurance. Get guaranteed life insurance up to the age of 100. Choose between alternatives for immediate or deferred income. Benefits are raised for insurance with an annual premium of 1 lakh or more.
Q.1What happens if the premiums of HDFC Life ProGrowth Plus Policy are not paid?
If the premium for the HDFC Life ProGrowth Plus plan has not been paid even after the grace period has expired, you have the following options:
- You have two years from the date of discontinuation to renew your policy, or you can cancel it.
- You can cancel the policy without receiving any risk coverage or benefits.
- You can also make your policy a paid-up policy. However, this option is only available if your policy lapses or is terminated after the 5-year policy term has expired.
If you do not choose one of the above alternatives and do not inform the insurer, the following will occur:
- If the policy is terminated before it has been in force for five years, the Fund Value, minus the relevant costs, will be added to the (DPF) Discontinued Policy Fund. The proceeds from the Discontinued Policy Fund will be paid after the lock-in period has ended.
- If the insurance is terminated after 5 years from the start date, the entire Fund Value will be paid to you.
You can also renew a terminated policy within two years of the policy’s discontinuation date, provided all premiums have been paid in full and the underwriting policy has not been violated.
Q.2What is the Surrender Benefit under the HDFC Life ProGrowth Plus Policy?
If you surrender the HDFC Life ProGrowth Plus Plan before the conclusion of the fifth policy year, your whole Fund Value, minus the relevant costs, will be added to the (DPF) Discontinued Policy Fund, and the proceeds will be paid when the policy’s lock-in term has ended.
If you surrender the policy after the 5-year term has expired, you will be paid the total Fund Value. The policy will come to an end after this benefit is paid to the policyholder, and no future benefits will be paid. The formal policy brochure should be consulted for more information on surrender.
Q.3What is Settlement Option in the HDFC Life ProGrowth Plus Policy?
The complete Fund Value of the HDFC Life ProGrowth Plus Policy is due in regular instalments over a period of up to five years under the Settlement Option. The amount of such installments paid on the set dates is subject to investment risk, which means that the NAV may rise or fall depending on the performance of the fund options you select. Your money will be invested in the funds of your choice, and investment risk will apply to it during the policy’s life. Risk cover will be terminated and Fund Management Charges will be deducted indefinitely throughout the Settlement period. However, there will be no further expenses. During the settlement period, no withdrawals or switches will be permitted. During this time, however, the policyholder may be allowed to make a total withdrawal without incurring any fees. The balance units will be redeemed at the unit price that will be in effect at the end of the five-year period, and the total fund value will be paid to you.
Q.4What are the fund options available under the HDFC Life ProGrowth Plus Policy?
The HDFC Life ProGrowth Plus Policy has four fund alternatives, each with a different risk and return profile. The possibilities are as follows: