HDFC Life’s Click2Protect Plus – Features, Benefits & Review

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 plusis 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.

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This post was last modified on July 10, 2023 11:31 am

Sreekanth Reddy

Sreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner (CFP), engaged in blogging & property consultancy for the last 14 years through his firm ReLakhs Financial Services . He is not associated with any Financial product / service provider. The main aim of his blog is to "help investors take informed financial decisions." "Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. The information provided, therefore, should not be viewed as financial, legal, accounting, tax or investment advice."

View Comments

  • Hi Sreekanth,

    I want to take a term plan for maximum possible years. I am 32 years old and want to go for 1 Cr. Kindly guide me as per your experience which company is better in all terms ?

    Thanks!
    Manish

  • Hi sreekanth
    I am looking for your advice on buying a term insurance.
    I am 35 year old Male. non smoker ..non tobacco user.....want to go for 50L term insurance plan for 35 years.......i have shortlisted max india, aegon religare and hdfc.........And mostly will be going for aegon religare as i have heard that aegons customer service is very good and hdfc s cust service is very bad....But the only concern which is bothering me is that aegon religare has low claim settlement ratio......so do respond me as to which term plan should i go for........One thing i think is that if i give all the correct information to the policy taker ....the claim could not get rejected..
    Plzzz reply to me as to which companys policy should i go for.
    Waiting for your response.
    Thanks,
    Jignesh

    • Dear Jignesh,
      If you are comfortable with Aegon (affordability + good customer service), kindly go ahead and buy a term plan from them.
      As opined by you, just disclose all the required information accurately and honestly.

      • Hi ,
        But what would be your suggestion....should i go for aegon religare?...FOR which insurance company u would go for?......or should i take 2 policies for 25L....one with aegon and other with hdfc

        • Dear Jignesh,
          One policy is enough. Given a choice, I will buy my term plan from HDFC (if choice is Aegon/hdfc).

  • Hi Sreekanth
    I am looking for your advice on buying a term insurance.
    I am 39 year old Male. Looking for good insurance policy for 1Cr with better benefits and better premium.
    Is there any policy which doesn't required medical tests as well?
    Will wait for your response.

    Thanks & Regards
    Radhakrishna Reddy
    +91-81055 440**

  • Exactly I want to underrstnad, what is covered in Death Benefit:
    Plan Option Cover
    Life Option Death Benefit

    Suppose, If death is via any disease, will the nominee get the money.
    If via accident, will the nominee get the money.
    If death via natural calamities, like earthquake etc, will the nominee get the money.

    Please let me know, as I am looking to take final the plan.

  • Hi ,

    I want to take a term plan from HDFC click2protect -Life Option of about 50Lac, My query is,
    1. Can I claim only if the death is by Accident.
    2. Can I claim if death is by Illness or Sucide.

    • Dear Krishna,
      You can not claim, you nominee can claim.
      1 - Yes.
      2 - Yes. But kindly go through the suicide clause.

  • Hi Sreekanth,
    Thank you so much for such wonderful article. I decided to opt for Term plan against to traditional insurance plans after reading your various articles like" What not to invest" " Financial planning" .

    I purchased HDFC life's click to protect plus today . I opted for Life option + accident disability rider (by paying extra premium). This facility "Accident disability rider is a very good option and ICICI is not providing this. This is the only reason I opted for "click 2 protect plus". I think you should add this point in your article (last column)

    Shall shortly send comments on my financial planning and how your articles changed my life. I have become a big fan of yours...Kindly continue writing such articles .

    Regards
    Mahesh prasd

  • hi Sreekant, my daughter is 27, a lawyer, working in a prestigious law firm, interested in buying online term plan. Edelwiess Tokio offers her a term plan for 52 yrs term at Rs. 9225/- per annum. But i'm not sure of their service/claim settlement. what would you suggest?

    • Dear S M G,
      It's relatively a new insurance company. But, that should be ok. Kindly disclose all the required information in the proposal form honestly and accurately. Also, policy tenure can be selected till the expected retirement age .
      (If she doesn't have any dependents or any financial commitments/liabilities, term insurance may not be required as of now.)

  • Hi Sreekanth,

    I am 35 year old (married), I want to buy term plan of 50 Lakh for 30 years. I am bit confused between LIC and other private companies, the premium is even more less if I go for online plans.

    1. Could you suggest me if I can go for LIC or any other private company as the premium of LIC is too high.
    2. is there would be any difference if I will go for online plans?

    Looking forward for your upcoming feedback

  • Hi Sreekanth,

    Nice article.
    Few quick questions:

    1. Will there be any tax benefit in case of single premium option. If yes how will it be calculated.
    2. Can I nominate different people for different benefits. E.g For income plus option nominate mom for lum sum and wife for Monthly Income.

    Thanks,
    Dev

    • Dear Dev,
      1 - Up to Rs 1.5 Lakh can be claimed under section 80c (assuming that you are buying term plan)
      2 - I am not very sure on this, kindly check with the company. Do update us if you learn about this. You can divide the percentage of share among the nominees.

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