What should you know about the features and benefits of the HDFC Click 2 Protect Plus Term Plan?

Rupesh Agarwal, a 28-year-old HR professional, was looking to buy a term insurance plan that not only protects him during his life but also covers the financial needs of his parents and younger brother after his demise. While his parents rely on him for their medical costs, his younger brother’s fees are also being handled by him through his single income only. So, he decided to buy an HDFC click 2 protect term insurance policy for a sum assured of 1 crore.

Keeping in mind his family’s needs, Rupesh chooses to go for the income plus option. Therefore, if he passes away during the policy term, his family will receive the death benefit in a lump sum and a monthly income for ten years with an annual increase of 10%. He believes the lump sum amount shall be used for settling his debts and outstanding dues, while the monthly income will go towards the management of the household expenses of his family until his younger brother gets settled in life.

Rupesh’s friends were impressed with his financial planning on hearing this strategy and are following the same to secure their families. Rupesh’s safety mindset, coupled with the benefits of the HDFC life click 2 protect plan, created a well-rounded package for himself and his family for years to come.

Term insurance is the number one choice for securing your family members’ and dependents’ financial commitments and dependents at an affordable cost in the event of your demise. Financial advisors suggest these plans to young professionals as it provides them protection and ensures the premiums are very low.

The HDFC Life click 2 protect plus is a pure protection plan that offers comprehensive financial protection to yourself and your family against the uncertainties of life.

Let us take you through this plan’s essential features and benefits before you decide on buying it.

HDFC Life Click 2 Protect Plus Features and Benefits

• Plan Option
• Life Option
• Extra Life Option
• Income Option
• Income Plus Option
• Life Stage Protection
• Lower Premium for Non-Smokers
• Income Tax Benefits

1. Plan Option

The ability to customize the plan as per your need is one of the biggest benefits of this policy. Choose from a variety of 4 different plan options, each fulfilling a specific purpose.

Life Option

A lump sum benefit is paid to the nominee on the policyholder’s death or diagnosis of a terminal illness. In case of total or permanent disability of the insured person, the future premiums are waived off while the policy’s coverage still continues.

Extra Life Option

If the policyholder dies due to a natural cause or accident or is diagnosed with any terminal illness, a lump sum amount is paid as the death benefit. An additional accidental benefit amount is payable upon the death of the insured due to an accident. In case of accidental total permanent disability, all the future premiums are waived, and the policy continues till the end of the term.

Income Option

In the event of death or diagnosis of terminal illness of the policyholder, a part of the death benefit is paid as a lump sum, with the remaining is paid in the form of monthly income over a period of 15 years. This is particularly useful for those with dependents like children or aging parents, whose monthly expenses need to be taken care of.

Income Plus Option

Under this option, the entire sum assured is paid on the policyholder’s death to the nominee. In addition to it, a monthly income equal to 0.5% of the sum assured is payable for a period of 10 years. The policyholder can also choose to increase the monthly income at 10% p.a or maintain it at a level during this term. It has to be remembered that the plan option once chosen cannot be changed during the policy’s tenure.

Life Stage Protection

HDFC Life Click 2 protect plus term plan provides a feature for policyholders to increase their insurance cover or the basic sum assured without the necessity to undergo a medical test, during certain significant events of their life, such as:

• 1st Marriage: 50% increase in sum assured subject to a maximum of Rs.50 lakh
• Birth of 1st child: 25% increase in sum assured subject to a maximum of Rs.25 lakh
• Birth of 2nd child: 25% increase in sum assured subject to a maximum of Rs.25 lakh

This helps you avoid buying any new insurance policies just to cover for the new change of life. For the corresponding increase in sum assured, an additional premium will only be charged as per the premium table, which the policyholder must pay as his new premium in the future.

Lower Premium for Non-Smokers

Are you a non-smoker? Then you are eligible for attractive rates on the premium on the HDFC LIFE click 2 protect plus plan. Since the health risks associated with smoking are higher, the premiums for an individual who smokes are generally higher. So if you are a non-smoker/ non-tobacco user, savings on the premium is guaranteed.

Income Tax Benefits

The HDFC click 2 protect plan also provides income tax benefits on premiums paid and benefits payouts. While one can claim deductions for the premiums paid under Section 80C of the Income Tax Act, 1961, the benefit payout is entirely tax-exempt under Section 10(10D).

Having read through the HDFC click 2 protect plus plan benefits, know whether you are eligible to avail of this plan or not by referring to the eligibility conditions specified for this policy. Not only this, but it is also necessary to keep your family requirements in mind and choose the appropriate option, as buying a policy with insufficient coverage shall put you in trouble for opting for less insurance.