HDFC Life Click 2 Protect Plus is a very popular and one of the most selling online term plan in India. Few years back I have also purchased the same, but at that time it was only HDFC Life Click 2 Protect plan. After tha there has been many more types or features added to make the plan more attractive as HDFC Life Click 2 Protect Plus.
But personally I always like the concept of pure term insurance plan without any conditions apply or looking for any additional benefit from a term insurance plan. I will share a separate article on why pure term plans always best compared to term plans with any additional benefit. In this article we will talk about HDFC Life Click 2 Protect Plus features, review, premium calculation and all important factors.
HDFC Life Click 2 Protect Plus Key Highlights
Here are few key features of HDFC Life Click 2 Protect Plus plan I took from their online portal. You can read more detail just by downloading HDFC Life Click 2 Protect Plus plan brochure from this link.
- Life insurance cover of Rs. 1 crore @ just Rs 535 per month
- Choose from 4 different plan options as per your needs
- Increase your life cover @ Key milestones in life
- Lumpsum + Monthly claim settlement
- Tax benefits under section 80C
- Monthly income for 10 years on accidental disability
- Lumpsum Payout on diagnosis of specified Critical Illnesses
Things To Understand in case of HDFC Life Click 2 Protect Plus plan
Although this is a pure term plan, but there are various options one can have while buying HDFC Life Click 2 Protect Plus term insurance plan online. Let’s understand what are them and how to choose the best one.
Life Option: This is the basic term plan which we all understand in simple language. Means your family will get a sum assured life cover in case of your death and that’s it.
Extra Life Option: Under this option an additional accidental rider will be added. The benefit for the same is extra sum assured in case the death happen due to any accident. This will be perfectly suited for people & their families who are working in such risky daily jobs like travelling daily from place to place, working in plants with machinery etc. This plan will also cover accidental disability, make sure you get confirmed before buying this policy.
Income option: Now this is something attractive to customers. You will get a portion of sum assured value in case of unfortunate death and the rest amount will be paid as monthly income over 15 years. If you think this will work for you psychologically as your family get some kind of pension or monthly income then compare the return with Life Option first and then only go ahead.
Income Plus option: This will pay the Sum Assured to the nominee upon the death of the life assured as well as a monthly income to the family for a period of 10 years. A monthly income equal to 0.5% of Sum Assured becomes payable for a period of 10 years. The monthly income can be level or increasing at 10% p.a. on each policy anniversary
Which option Should I buy in case of HDFC Life Click 2 Protect Plus Online Term Plan?
Let me use the HDFC Life Click 2 Protect Plus premium calculator and find out the premium of all 4 types of this term plan for a sum assured value of Rs 1 crore and let’s see how things work here.
- Sum Assured: 1 crore
- Policy term: 30 Years
- Payment Term: One Time
- Tobacco User: No
Here is the premium amount and other return related amounts for the various options. I have shared my views in blue color besides every detail, hope that will be helpful.
Life Option: Here you have to pay the single premium of Rs 2,50,333. Looks pretty simple and to the point.
Extra Life: Here you have to pay the single premium of Rs 3,43,022. You will get a double Sum Assured of rs 2 crores in case of an accidental death. You have to pay an extra premium for the same life cover. Only suits if you think your death can be possible due to accident mainly due to the nature of your work only. For rest of them I don’t think this extra premium could help. You may also look for separate accidental insurance cover and compare the total premium with this plan.
Income Option: You have to pay the single premium of Rs 2,10,265. Your family will get a lumpsum of Rs 10 lakhs + Rs 90 lakhs divided in to an equal monthly income of Rs 50,000 for a period of 15 years as a payout. Now its making the scene complicated and divert you from the benefit of term plans. Look here the one time lumpsum amount is only 10 lakh and rest of the 90 lakh will be paid in 15 years and that is also without adding any interest. Just see here 90 lakh / 15 years = 50,000 your monthly income. If you could get 1 crore today than its value is huge, but with this installment concept you will get very less value of money on long term. But you may not have to pay any income tax on this option where if you could have invested this money in other financial product, your income would attract income tax as per the current income tax slab in India.
Income Plus: You have to pay the single premium of Rs 3,37,947. Your family will get a lump sum of Rs 1 crore + A income of Rs 50,000 every month for the next 10 years as a payout. Here your family will get 1 crore which is fine and in addition 50,000/ month for next 10 years that means total 60 lakhs. Now this seems like an awesome option to consider. Although the premium amount looks high, but in case of death your family will get 1 crore and in addition Rs 50,000 (for this example only) every month for next 10 years. Although there is a question of considering inflation and what will be the value of this 50,000 after many years. but still I feel this is the best option to choose for.
HDFC Click 2 Protect Plus Life Stage Protection
This is another awesome feature which makes HDFC Click 2 Protect plus plan unique compared to other online term plans in India. Life stage protection is a feature which will provide you more flexibility to cover various important life stages like marriage, birth of 1st child, birth of 2nd child etc without buying a new life insurance. Instead you can pay little more premium and then increase/reduce your life cover with the HDFC Click 2 Protect Plus Life Stage Protection and enjoy the benefits accordingly. There is a beautiful example explained in the HDFC Click 2 Protect Plus brochure.
So, if you are looking for a good term plan online, I think you should check out this HDFC Click 2 Protect Plus plan once and try to understand how this plan is working. And also compare with other popular term plans in India and find out what are the best term plans available in India.
Do share your experience or any query related to this policy or anything related to term insurance plan by writing a simple comment below. I would love to address them to my best knowledge.