What is Term Insurance?



Term Insurance is a life insurance policy that offers coverage for a fixed number of years - the “term” of the policy. If the insured individual dies when the policy is active, a death benefit is paid to the nominees of the insured individual.
A basic variant of term insurance plan has no cash value which means, if the insured person survives the term of the policy, the policy does not return any value, with the exceptions of plans like Term Insurance with Return of Premium etc.
You can buy term insurance policy which can provide a certain corpus to your dependents in event of your demise, they would be able to sustain the same lifestyle or pay off existing liabilities without compromising on their dreams thanks to the sum assured which they would receive from life insurance.
Why Do I Need Term Insurance?
Despite the many features and benefits of term insurance plans, people are sceptical about whether they really need term insurance or not. Here are some of the top reasons why you may benefit from a term insurance plan:
Key Takeaways
Term Insurance Plan offers you:
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A low entry age of just 18
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Premium payment and benefit payout flexibility
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Long-term protection for life
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High life cover with affordable premiums
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Enhanced coverage with accidental disability and critical illness add-ons
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Tax savings
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Maturity benefits
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Opportunity to secure your family’s financial future

- Available under Life Protect and Income Plus Options only.
- Available as an inbuilt feature under Income Plus Option and on payment of extra premium under Life Protect Option (Fixed Term variant) and Life & CI Rebalance Option.
- WoP on diagnosis of CI is available as in inbuilt feature under Life & CI Rebalance Option and on payment of extra premium under Life Protect Option (Fixed Term variant).ADB option is available on payment of extra premium under Life Protect Option.
- As per Income Tax, 1961. Tax benefits are subject to changes in tax laws
- Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2020-2021. Source - https://www.hdfclife.com/claims
- Subject to conditions specified u/s 80C of the Income tax Act, 1961.
- Subject to conditions specified u/s 10(10D) of the Income tax Act, 1961.Therefore stated views are based on the current Income-tax law. Tax benefits are subject to change in tax laws. Also, the customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.
- Applicable for step-up variant at Policy Term of 30 years
- Subject to maximum policy term of 30 years in Classic and Comprehensive variants
- HDFC Life Click 2 Protect Super (UIN: 101N145V02) is a Non-Linked, Non-Participating, Individual, Pure Risk Premium/ Savings Life Insurance Plan. Life Insurance Coverage is available in this product.
- This can be exercised in any policy year greater than 30, but not during the last 5 policy years
##Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2022-23.
#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved
^ Available under Life & Life Plus plan options
^^ The names of the people used are examples only
***Online Premium for Life Option, Male Life Assured, Non-Smoker, 25 years of age, Policy term of 30 years, Regular pay, Annual frequency, exclusive of taxes and levies as applicable. (Annualized Premium of 9214/365=25.7)
*Online Premium for Life Option, Male Life Assured, Non-Smoker, 25 years of age, Policy term of 30 years, Regular pay, Monthly frequency, exclusive of taxes and levies as applicable.
**7% online discount available on 1st year premium only!