The war of cheap insurance premium continues in the Online Term Insurance category and latest to enter is HDFC Life Insurance with their plan HDFC Life Click 2 Protect. The plan, like it peers aim to provide pure life insurance cover at a bargain cost. The online term plans are targeted at young savvy investors who lead healthy lifestyle. This write-up aims to review HDFC Click 2 Protect plan and will help you to take a decision based on our criteria of choosing Best Term Plan.
Features of HDFC Life Click 2 Protect
The good thing about the website is that it is very easy to use & does not ask for your mobile number or email id to calculate your premium.
HDFC Life Click 2 Protect plan features
|Entry Age||18 years to 65 years (both inclusive)|
|Maturity Age||28 years to 65 years (both inclusive)|
|Minimum Sum Assured||Rs 10 Lakh|
|Maximum Sum Assured||Rs 10 Crore|
|Policy terms||10/15/20/25/30 years|
|Premium Paying Term||Same as policy term|
|Premium Paying Frequency||Annual mode only|
Other basic features of HDFC Click 2 Protect
- Minimum premium will be Rs 2000/-.
- 30 days grace period is provided for payment of premium from the due date.
- Once policy starts no alteration in sum assured or premium is allowed.
- The policy comes with a Free Look period of 30 days. It can be returned stating the reason for the receipt of the policy. The premiums will be refunded deducting the Stamp Duty paid, pro-rata cost for the period under insurance cover and medical expenses if any.
HDFC Life Click 2 Protect is avilable in 750 cities: Normally insurers launch online term plans to cater the tier 1 cities, but HDFC Click 2 Protect is available across 750 cities there by covering the tier 2 and tier 3 cities as well. It is also available (optional) with the help of the distributors as they are marginally compensated by the company.
What HDFC Life Click 2 Protect does not provide
Like a “plain easy to understand and apply” category this plan has a few limitations:
- The maximum age under cover is 65 years only. The competition is offering plans with 70/75 years cover. With increasing life expectancy people want policy with more years of coverage. (But I am not sure why people need insurance after retirement)
- The plan has no Riders. Riders are generally sweeteners which add to the base plan and provide additional security at a nominal cost. But this plan apologies on this aspect. (No issues, it’s always good to have separate Comprehensive Accidental Insurance Policy)
- The premium mode offered in competitive products also has options of paying monthly, quarterly, semi-annually or one time premium payment. Under this plan there is just the Annual option. So if you are thinking of dividing premiums or paying them at one go, the feature is not available. (Thank god, you don’t need to make sure every month that premium has gone or not)
- HDFC Click 2 Protect is cheap but not the cheapest in category (But being cheapest is not the only criteria to buy a product). Read: Psychology of an Indian when it comest to Life Insurance
Premium of HDFC Life Click 2 Protect
Now, let’s check the premiums. For a Male life, non-tobacco leading a healthy life style the premium for a 25 years term will be as follows:
These premiums are exclusive of service tax and education cess.
In case the policy buying procedure is carried out with the help of a distributor (optional), an additional 3.5% premium will levied as loading.
Premium Comparison of online term plans
As mentioned above the plan is cheap but still Aviva iLife, DLF Premerica U-Protect rule the premium charts.
Let’s take an example – we compare the premium with that of peers. Below table illustrate the premium for a 27 year male, non-smoker, based in Mumbai taking a policy for 25 years for a Sum Assured of Rs 50 lakhs.
|Insurer||Plan Name||Max Tenure (Yrs)||Max Age (Yrs)||Premium|
|ICICI Pru Life||icare|
|HDFC Standard Life||Click2Protect|
Data is taken from different online sources – you should do your own research before finalizing any term plan.
HDFC Life Click 2 Protect Vs I Care from ICICI Pru
I-Care from ICICI Pru looks to be the closest competitor of HDFC Life Click 2 Protect – let’s compare them on Quantity (Features) & Quality (Selection Criteria): (Read: How to choose Best Term Plan)
- *ICICI is providing Accidental Death Benifit upto Rs 50 Lakh with some additional premium in i-care II.
- #No medical examination is required till the age of 50.
Should you buy HDFC Life Click 2 Protect Plan?
This is the final question. The answer is not straight but clear. Insurance is a part of overall financial planning. Any insurance buying decision should not be impulsive. It should be backed up with requirements and suitable facts which can only be derived once you have a Financial Plan in place. One should take this plan if:
- Term plan is the best gift that you can give it your family in shape of security. If you don’t have a term plan but have financial dependents go for HDFC Life Click 2 Protect.
- This plan comes from a company which has a high claim-settlement ratio, conservative, strong brand and is backed by the India’s biggest Home Loan company. If you feel these are good points, definitely go for it.
Note: If you are fans of LIC, there is good news for you. LIC online Term Plan is expected to be launched before March.
If you have questions related to HDFC Click 2 Protect or any other term plan, add it in comment section.