HDFC Life’s Click2Protect Plus is an Online Term Insurance Product. The main feature of this plan is to provide financial protection for you and your family. It has unique features which are not available in most of the online term insurance plans. Let us understand its features and benefits.
Eligibility conditions of Click 2 Protect Plus are:
- Minimum entry Age – 18 years
- Maximum entry Age – 65 years
- Minimum Sum Assured – Rs 25 Lakhs
- Maximum Sum Assured – No limit
- Maximum maturity Age – 75 years
- Minimum policy term – 10 years
- Maximum policy term – 40 years (subject to Maximum maturity age)
- Premium payment options – Regular pay (monthly, quarterly, half-yearly and yearly), Limited pay (Premium payment Term = Policy Term – 5 years) and Single pay.
Features of HDFC Life’s Click2Protect Plus :
This term policy provides you with four cover options:
1) Life Option (Death Benefit under this plan)
In the unfortunate event of death of the life assured during the policy term, the nominee will receive the death benefit as below. (Death benefit is called as ‘Life Option’ under this plan).
- For Single Premium pay policy : Death benefit is higher of 125% of Single premium (OR) Sum Assured.
- Other than Single Premium Policies : Death benefit is higher of 10 times of the premium (OR) 105% of all the premiums paid as on death (OR) Sum Assured
Let us now understand the very unique features of Click2Protect Plus plan.
2) Extra Life Option
If the policyholder chooses this option then the Death Benefit as specified above shall be payable in the form of a lump sum and an additional benefit equal to the Sum Assured shall be payable in case of accidental death.
3) Income Option
If the policyholder chooses this option then the Death Benefit as specified above is paid to the nominee in the following manner:
- 10% of the Death Benefit paid as a lump sum upon death
- Remaining 90% of the Death Benefit shall be paid as monthly income over next 15 years (0.5% of Death Benefit every month for 15 years)
4) Income Plus Option
If the policyholder chooses this option then the Death Benefit as specified above is paid to the nominee in the following manner:
- 100% of the Death Benefit specified above shall be paid as a lump sum upon death
- In addition, a monthly income equal to 0.5% of the Sum Assured shall be payable for a period of 10 years.The monthly income can be level or increasing at 10% p.a. as chosen by the policyholder.
Different Scenarios with examples:
Let us understand these options with examples.
Case 1 – Mr Rahul (30 years of age) buys this plan with a Sum Assured of Rs 1 crore. He has opted for Life option only. Unfortunately he dies in an accident. What is the death benefit ?
In this case, his nominee will get Rs 1 crore as the death benefit.
Case 2 – Mr Rahul (30 years of age) buys this plan with a Sum Assured of Rs 1 crore. He has opted for Life option and Extra Life Option. Unfortunately he dies in an accident. What is the death benefit ?
In this case, his nominee will get death benefit of Rs 2 crore. If death happens due to any other reason then his nominee would get Rs 1 crore only.
Case 3 – Mr Raj (28 years of age) buys this plan with a Sum Assured of Rs 1 crore. He has opted for Income option of the plan. Unfortunately he dies due to heart attack . What is the death benefit in this case?
In this case, his nominee will immediately get Rs 10 Lakh as lump sum payment. And the remaining Rs 90 Lakh is paid as monthly income for the next 15 years. The equal monthly payment is Rs 50,000.
Case 4 – Mr Raj (28 years of age) buys this plan with a Sum Assured of Rs 1 crore. He has opted for Income Plus option of the plan. He has also opted for ‘equal monthly income’ option under Income Plus. Unfortunately he dies due to heart attack . What is the death benefit in this case?
In this case, his nominee will immediately get Rs 1 crore lump sum payment. In addition to this, the equal monthly payment of Rs 50,000 pm is also paid for next 10 years.
Case 5 – Mr Ram (28 years of age) buys this plan with a Sum Assured of Rs 1 crore. He has opted for Income Plus option of the plan. He has also opted for ‘increasing monthly income’ option under Income Plus. Unfortunately he dies due to illness . What is the death benefit in this case?
In this case, his nominee will immediately get Rs 1 crore as lump sum. Also, the monthly payment of Rs 50,000 pm is paid in the first year. The monthly income increases at the rate of 10% pa for the next 10 years.
‘Life Stage Protection’ Feature:
This plan has another unique feature.
The proposer can choose the Life stage Protection option under Life option upon payment of an additional premium. The sum assured amount will be increased on the occurrence of key events in your life. The premiums will be recalculated based on your increased sum assured and outstanding policy term.No additional Medical tests are required.
This feature will be available only for a six month period from the date of the event and provided the insured person is less than 45 years of age at the time of opting for this feature.This feature is available only for regular premium paying policies and not for limited premium paying or single premium policies.
There is also an option to ‘Reduce the Additional Sum Assured” which the policyholder had opted under life stage protection. With age as your income is on a rise and as your children become independent, you may realize that you don’t need additional Insurance cover anymore. This plans offers the flexibility to reduce the additional insurance cover after attaining the age of 45 years. Your Sum Assured will be reset to the original Sum Assured at inception. Your premium will be recalculated based on revised sum assured for the remainder of the premium paying term.
Illustration of HDFC Life’s Click2Protect Plus
Mr Praful (26 years old) buys HDFC Life Click 2 Protect Plus with Sum Assured of Rs.1 Cr. The policy term is 35 years.He gets married in his 28th year. He opts for the Life Stage Protection Option. He becomes a father after 2 years of marriage and opts to increase his cover. In his 55th year, he decides to reduce the additional sum assured.
Indicative Premium quotations with different combinations
(Click on the image to enlarge it)
Important points to ponder upon
- The applicable premiums under Life Option are very competitively priced.
- Even though the premium amounts under Income Option are low, the company keeps 90% of the death benefit with itself. It does not pay any interest on this amount. Only equated monthly income is paid every month.
- It is more advantageous if this 90% amount is invested in a Bank Deposit than to keep it with the company. Assuming interest rate @ 9% and 7% as the average inflation rate. But, Nominee should be competent enough to manage the funds.
- As with the case of many online term insurance plans, in this plan also Critical Illness (or) Total Permanent Disability riders are not available. Only Accident Death benefit rider is available. If someone is looking for a comprehensive Term insurance with all these riders then it is better to buy offline products. SBI Life’s – Smart shield is one the best plans.
- “Income Option plus” is surely worth considering. Especially the increasing monthly income option.
- Life Stage Protection feature is available under Life Option only. Life option with this feature is a good combination. But only thing is that the premium amount will not remain constant.
Overall HDFC Life’s Click2Protect Plus is a good product. You may consider buying the plan with Life option (or) Income plus options.
Latest Update :
- You can now customize Click2Protect Plus plan by opting additional rider ‘HDFC Life Income Benefit on Accidental Disability Rider‘ that offers monthly Income of 1% of rider Sum Assured in the event of Total Permanent Disability due to accident for a fixed period of 10 years.
- You can also add Critical Illness rider by opting for ‘HDFC Life Critical Illness Plus Rider‘ that provides Rider Sum Assured in case diagnosed with any of the 19 Critical Illnesses.
You may like reading below articles:
- Best Online Term insurance plans.
- ICICI Prudential’s new online Term Insurance Plan – iProtect Smart Plan : Features, Benefits & Review.
- If life is unpredictable, insurance can’t be optional!
- HDFC Life Click 2 Protect 3D Plus | New Term insurance Plan | Details & Review
Join our channels
Hello Sreekanth,
Thanks for this nice article.
I am an NRI planning to take a term insurance.After my study I found that service charges are exempted for NRIs with HDFC life.How would you compare click 2 protect plus(Basic option without rider) and 3D Life .I can see that the premium for 3D life is less and an additional premium waiver facility for critical illness is also there.What do you suggest?
Dear Manoj,
Personally, I believe that basic cover can be taken and stand alone policies for Personal Accident cover & Critical illness cover (if required) can be taken.
Kindly read :
Best Term insurance plans.
Best Personal Accident insurance plans.
Hi,
Thanks for the article.
The question is on premium paid methods, HDFC Life offers three options, as you stated.
I found single pay premium worth considering. This is because, i seriously doubt about paying premium rest of my life with unseen events.
I want to go for Life Option for 1 crore for 26 years with Single premium, the online calculator gave, Rs 1,81,500 to be paid for single premium.
Also, you noted that SBI Life’s – Smart shield gives all riders (that is offline), does it gives single premium option there.
Is single premium worth considering.
Thanks
Dear karthik,
Premium mode is mostly a personal choice.
Kindly note that if you opt for single premium, you can claim tax deduction u/s 80c, up to Rs 1.5 Lakh only in the FY in which you buy the insurance policy.
In regular pay mode, you may discontinue the premium payment anytime (if need be).
Kindly read:
Best Online term insurance plans.
Best Personal Accident insurance plan.
Hello Sreekanth, I’m planning to buy HDFC click 2 protect, I’m looking for a policy in which accident death and natural death / illness death are covered. My wife is home maker. Could you please suggest me in this. Shall I go for click2 protect or SBI term insurance.
Dear Chandresh,
If this plan meets your requirements, you may go ahead.
Kindly read:
Importance of Personal accident insurance plan.
Best Term insurance plans.
ICICI Iprotect smart – review.
Aegon Term plan – review.
DEAR SREEKANTH,
IN THIS HDFC CLIK TO PROTECT PLUS INCOME OPTION, ONLY 10% OF THE SUM ASSURED IS PAYABLE TO NOMINEE, WITH REST 90% PAYABLE AS EQUAL MONTHLY INSTALLMENTS. MY DOUBT IS IS THE MONEY GIVEN AS MONTHLY INSTALLMENT IS TAXABLE TO THE NOMINEE, SINCE IT IS PART OF DEATH BENEFIT IT SHOULD BE EXEMPT FROM TAX RIGHT? KINDLY CLEAR THIS DOUBT
REGARDS
RAJ PAI
Dear Raj,
Very good question!
I believe that it is tax-free income.
The monthly or annual income received from the insurance company will be tax-free.
hello Reddyji,
I am NRI ,after reading your best online term plan now decided to buy HDFC CLick2 ProtectPlus 1 cr.for 25 term and my age is 36 now .my basic premium is 19,000 yearly.(income plus)
In this plan there are 3 more new option which you have not included in your this page may be because of they are recently added by hdfc .
please tell me your opinion on it:-
• disability due to accident if you add annual Rs.2,000 ,get 60,000 per month.
• specified critical illness if add annual 5 ,000 get 10lakhs lumsum amount
• cancer cover. Cover 10 lakh if additional annual Rs 900.
and i am going to buy Health insurance and personal accident policy too .but i am confuse which one should buy above riders or separate policy ?
Dear amruta,
Stand-alone policies make sense to me, especially Personal Accident plan.
In case if your family has any history of critical illnesses then you may consider separate CI plan.
Let me go through the riders in detail and include them in the above article, thank you for letting me know about these new Riders 🙂
Hi Sreekanth,
I want to buy Term Plan with cover of 1 cr and want to get cover for any incidents like accident of rs. 25 lacs. Which is best option you would like to suggest between
1. ICICI iprotect
2. HDFC Term plan + accidential Benefits
Dear Vyankatesh,
A basic life cover from any of the above two companies and a stand-alone Personal Accident insurance plan can be considered.
Hi Vyankatesh,
Which one did you go for?
Hi Sreekanth,
I am planning to take pure online term insurance from HDFC LIFE CLICK 2 Protect plus (Life Option) .I am 34 yrs old Non-smoker NRI .I would be getting the Quote between 2 to 2.5 Crore for 24 yrs duration from HDFC Representative office in Dubai who is assisting me to get the insurance done and my medical test would happen in India (I will be traveling in Nov 16 to India ).
1 ) Could you please suggest which all points should I clearly ask them or get clarity from them so that I don’t fall in trap of any hidden conditions for this particular pure term insurance ?
2) After medical test in India is done would they hike the premium and would they maintain the same if medical report is more or less normal.
Regards,
Swapnil
Dear swapnil,
From your side, do disclose all the required information in the Proposal form honestly and accurately.
As you are going to opt for Life option which is a simple life cover plan, I don’t think there are any hidden factors.
But do check with them if there are any specific terms & conditions for NRIs as such to cover unfortunate event.
Thanks a lot for your inputs
Hi Sreekanth,
When I met the Sales person in HDFC Life Representative office in Dubai,he told me below things.
A ) Concerned Sales person would upload the term insurance documents online from his HDFC LIFE Representative Dubai office on behalf of me after taking all the documents from me.and he told me rates would be same like online done by me …My Question :- 1 )If the sales person does all the online, will this Policy of mine would be consider as online as per HDFC policy ?
B) As per the sales person since I am processing the claim from here and I a NRI, Taxes will not be applicable for the policy which would be considerable saving.
Note :- For medical I will be going to India.
Regards,
Swapnil
Dear swapnil,
You can get to know if the policy is online or offline by comparing the Premiums offered by them 🙂
Make sure all the details provided in online application form (proposal form) are accurate and complete.
ok Sreekanth 🙂 But what about waiving off of taxes applicable on yearly premium for NRI.
Dear swapnil ..Taxes? I could not get this point?
Are you referring to tax benefits on the premium paid?
If you are filing income tax return in India, you can claim the premiums as tax deduction u/s 80c.
Hi Mr. Reddy
I am an NRI and have been out of India from the last 5 years.
I would like to buy HDFC CLICK2PROTECT PLUS Term Plan, but i could not find any information related to it applicability if (God forbid) something happens to the policy holder while residing out of India. Will the dependent of the policy holder get any claim or the policy is VOID outside India.
Kindly help me out and also let me know any Indian term plans which covers the policy holder outside India as well.
Thanks
Sachin Gupta
Dear Sachin,
I believe the said policy (most of the term plans) covers the mentioned risk.
Suggest you to kindly check with HDFC customer care directly.
Thank you
In case of term plan, say HDFC click 2 invest.
1 In case of death due to natural disasters like earthquake, flood.
2 in case of riots.
3 in case of body not found (may be due to hunt by any wild animal or some any other reason)
How will company settle the claim in above various condition
Dear Anand,
HDFC Click 2 Invest is not a term plan.It is an ULIP (unit linked insurance plan).
Sorry.
I mean to say any term plan.
e.g. HDFC term plan
Sorry.
I mean to say HDFC click2protect plus term plan
Reply
Dear Anand,
1 & 2 – Most of the companies do not cover risk arising out of earthquakes or terrorist attacks. You may have to check with the concerned life insurance company directly before buying a term plan.
3 – Depends on the outcome of the investigation report.
Sorry.
I mean to say HDFC click2protect plus term plan
Dear Sree kanthi
Thanks for your valuable guidance .Please I have a doubt in mode of payment : Single one time premium or yearly premium for up to 35 yrs. Which mode is best ??
(ii) I’m 26 yrs. old (NRI working in Nigeria) , Before I used to smoke often (like weekly 3 or 4 cigarettes ,but now I quit smoking completely .
What should I mention in the Insurance form – Smoker /Non smoker.
(iii) In term insurance, suppose I have applied for 1 cr policy ,whether the death is considered as natural(like :heart attack) /accident any thing happened ,the claim will be valid.
Thank you,
By Deepan.
Dear Deepan,
1 – Answered your query in another post.
2 – Yes but claim will be honored after thorough investigation.
Hi srikant
I am planning to purchase hdfc basic term insurance plan for me. but I have one concerned in death benefit which they offering on this three point. on the condition death benefit on regular premium.
Highest off
1.10 times the annualized the premium
2.105% of all the premium paid on as on date of death.
3. sum assured
every one know in any cases sum assured is maximum.n why they are mentioning other two point. I have asked to hdfc customer care but they are saying it is due IRDA guideline
Please suggest on that.
Dear spathak,
It is a standard guideline to comply with IRDA rules.
what is your about investing hdfc click to invest plan ? please suggest
Dear rajkiran,
May I know your investment objective(s)?
Are you looking for risk cover or wealth accumulation or both?
wealth accumulation
sir,
what is your advice risk cover or wealth accumulation at the age of 40. perhaps i am having term insurance provided by my company
Dear rajkiran,
If you have dependents and/or have financial liabilities/obligations, consider buying a term plan.
For your long-term goal like ‘retirement planning’, wealth accumulation matters.
Suggest you to buy a Term insurance plan which is independent of your employment status.
Read: Best Term insurance plans.
thank you reply. iam having term insurance provided my company ie h.p for 32 lakhs. idont have finance obligatios . still prefer for term insurance plan
please adivice me sir
Dear rajkiran,
Ok. Kindly go through the link provided in my previous comment (it is about the top online term plans).
Hi,I am 43 yrs having Diabetics. I am planing for HDFC Click 2 protect plus,I want to know about under what circumstance the claim is rejected.I have mentioned all my details regarding diabetic in the proposal form.
Kindly give your views.
Dear Anand..Are you planning to apply or the proposal has already been rejected?
I have already applied for it.Some one told me that they are not making payment for cancer claim.So I want to known that if they issue policy then under what circumstance they reject claim.
Dear Anand,
In majority of the cases the main reason for claim rejection is, if someone provides wrong & inaccurate information.
But kindly make a note of the below update;
“As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.”
Thanks for your advise.
Hi Sreekanth Reddy Garu, I am 33 Years old and my spouse is 32 years old, I am a smoker. I want to take e-term policy with coverage of 1 crore with accident benifit rider.
1.Suggest me is it better to take 1 crore policy from one company or can i split like 50 lacks from two companies?
Thanks
Lucky
Dear Lucky,
Taking multiple policies from different companies may not be really beneficial.
But taking multiple policies with a different time-frame (tenure) may be from the same company can be beneficial.
Kindly disclose all the required information int he proposal form honestly.