HDFC Click 2 Protect Life Term Insurance review

When seeking a term insurance plan, you always seek a credible term insurer with an outstanding claim track record. This ensures that your sum assured is disbursed seamlessly to your nominee in the event of your unfortunate absence. The 2nd crucial point is choosing a term insurance plan that offers ample value-worthy riders, thus customising a vanilla term insurance plan at affordable charges.

HDFC Click 2 Protect Life Plan adheres to both these requirements and has become one of the most popular policies in the industry. As a standalone policy, the plan is comprehensive and offers a host of riders and add-ons across its 3 plan variants. Additionally, HDFC Life, as an insurer, is reputed for its extensive line of financial products, excellent CSR, industry-best low complaint volume, and appreciable operational efficiency. In this case, the only hurdle is that the plans from the HDFC stable are a tad bit expensive compared to policies offered by other insurers.

So, is the HDFC Click 2 Protect Life Plan worth purchasing? Let’s find out!

Quick Verdict on HDFC Click 2 Protect Life Plan

The HDFC Click 2 Protect Life Plan is an out-an-out great pick. From the insurer to the plan’s features, there is nothing more you can want in a term insurance plan. Moreover, you get multiple plan variants, about 7 different riders and add-ons that help customise your vanilla plan into a tailored policy best suited for your family’s future financial requirements. However, the only caveat is that the policy is pricier than its competitors.

All in all, a good pick!

HDFC Click 2 Protect Life Plan: Brief Overview

HDFC Life was founded in 2000 and is a joint venture between Housing Development Finance Corporation Ltd (HDFC) and Abrdn, a global investment company. Considering how the company is backed by one of the leading private banks in the country with close to 500 branches, HDFC Life is now one of the top 3 life insurance companies in India.

Staying true to its glorified history, the insurer holds an average (of 3 years)

• Claim Settlement Ratio of 98.69% (the industry average is  97.74%)
• Amount Settlement ratio of 87.3% (the industry average is  90.9%)
• Complaint volume of 2.7 (the industry average is  72.8)

The insurer’s excellent brand value, extraordinary operational efficiency and offering of a host of customisation features make this insurer a popular choice among policyholders.

Also, the HDFC Click 2 Protect Life is an excellent plan for policyholders who won’t mind paying a tad bit more premium compared to industry standards. The policy comes in 3 variants - Life & Critical Illness (CI) Rebalance, Life Protect, and Income Plus, based on the combination of death benefits, survival benefits, maturity benefits, and critical illness benefits that these plan options extend.

Additionally, the policy ensures the maximum capability of customisation over 3 riders and 3 add-ons - Return of Premium, Waiver of premium on diagnosis of critical illnesses, Accidental Death Benefit, Critical Illness Plus Rider, Income Benefit on Accidental Disability Rider, and HDFC Life Protect Plus Rider.

Here’s a look into some of the most highlighted features of this plan -

Features of HDFC Click 2 Protect Life Plan

Should You Buy HDFC Click 2 Protect Life Plan?

1. HDFC Life as an insurer: HDFC Life Insurance Co. Ltd. boasts an industry-leading business value of ₹24,315 crores over the past three years. Despite being slightly pricey, their comprehensive policies from a highly credible insurer are widely popular. Term insurance policies, designed as financial replacements, feature substantial cover amounts. Choosing HDFC Life ensures low complaint volume, proficient operations, and a high Amount Settlement Ratio for claim settlement.
2. Plan Options: HDFC Click 2 Protect Life Plan has multiple riders and add-ons. Based on the permutation and combination of these riders, there are 3 plan options for you to choose from -

• Life & Critical Illness (CI) Rebalance: It combines death benefit and critical illness payout. Both of these together form the total sum assured. Initially, the share of the death benefit is higher (80%), and the critical illness cover is set at 20% of the base sum assured. However, as the policy term progresses, the share of the CI increases, and the death benefit share decreases simultaneously, at the same rate, since the higher your age, the more the chances of contracting a critical ailment. This way, the total sum assured remains the same.

Here’s how this % share is calculated -

30% x Basic Sum Assured / Policy Term

• Life Protect: This plan variant offers only a death benefit (as a lump sum) in the event of the policyholder’s death. This is the most basic variant with no additional perks.
• Income Plus: The insurer offers death and survival benefits in the Income Plus variant. So, if you pass away during the policy term, your nominee receives the sum assured as a lump sum.

However, say you survive till you turn 60 and have cleared out all your premiums; the insurer will pay off 0.1% of your base sum assured every month. This payment continues till the policy tenure is over or at the vent of your death, whichever occurs first. This payment made is, however, deducted from the total sum assured. So, in the event of your death, your nominee should expect a reduced sum assured.

3. Riders available: HDFC Click 2 Protect Life Plan has a set of riders that enables policyholders to customise their policy per their medical and financial requirements. Here is a look at the riders available with the policy -

• HDFC Life Income Benefit on Accidental Disability Rider: In case you are left permanently disabled after an accident, the insurer will offer you 1% of the rider’s sum assured for the next 10 years. This amount is meant to help you financially cope with the income loss situation caused due to your permanent disability.
• HDFC Life Critical Illness Plus Rider: Your insurer will offer you a lump sum if you are diagnosed with any of the 19 listed critical ailments and survive for 30 days following the diagnosis. The amount is capped at ₹1 crore.
• HDFC Life Protect Plus Rider: Under this option, you have 3 choices, and you have to opt for one during the purchase of the rider -

- Receive a lump sum upon being diagnosed with cancer (up to ₹50 lakhs).

- Receive a monthly/lump sum for a permanent disability caused by an accident.

- Your nominee will receive a monthly/lump sum if you pass away due to an accident.

4. Available add-ons: Apart from the riders mentioned above, HDFC Click 2 Protect Life Plan also offers you a few more add-ons:

a. Return of Premium (ROP) option: Under this add-on, you will receive the complete premiums paid towards your plan as a lump sum if you survive the policy term. However, this add-on has specific terms and conditions:

• The rider is available only if you have opted for the Life & CI Rebalance variant or the Life Protect term insurance plan.
• The insurer offers the add-on for all policies with terms between 10 and 40 years for Single, Regular and 5 Pay options.
• The rider is also offered for those policies with terms between 15 and 40 years for 8, 10 and 12 Pay options.

b. Waiver of Premium on CI (WOP CI) Option: If you are diagnosed with any of the listed 36 critical ailments, your insurer will waive off all the premium for the foreseeable future that is required towards your HDFC Click 2 Protect Life Plan. However, there are a couple of clauses associated with this rider -

• The rider is only available when the premium payment term is at least 5 years, and you have opted for the Life Protect Option with Fixed Term.
• Please beware that you must pay an additional amount over and above your base premium to opt for this add-on.

c. Accidental Death Benefit (ADB) Option: If the policyholder passes away due to an accident, if they have opted for this add-on, the nominee will receive an additional sum over and above the base sum assured. This amount is capped up to a maximum of the base sum assured. But, please remember -

• The add-on is only available if you have chosen the Life Protect option.
• Additional charges are applicable to avail of this add-on.

d. Alteration of premium payment frequency: With HDFC Click 2 Protect Life policy, you can change your premium payment frequency without any charges or fees.

e. Option to change the Premium Payment Term from Regular Pay to Limited Pay: All term insurers require you to choose the Premium Term (regular, standard, or one-time) during the policy purchase. However, with the HDFC Click 2 Protect Life plan, you can convert your outstanding regular premiums into any limited premium period available under this policy.

What’s Unique About the HDFC Click 2 Protect Life Plan?

HDFC Click 2 Protect Life Plan is one of the most comprehensive term insurance policies available. It offers a substantial scope of customisation via its extensive list of riders and add-ons. While the prices may be a tad bit higher, the plan is worth it considering the insurers’s credibility and the plan’s diverse range of perks.

Conclusion

When choosing a vanilla/staple term insurance policy, your insurers and the plan features (specifically the riders) must be aligned with your financial goals. Under such circumstances, the HDFC Click 2 Protect Life Plan meets both the requirements and offers you multiple riders. And since the term insurance coverage amount is almost always significantly higher, it’s best to pay a bit extra and opt for plans like this, considering it guarantees hassle-free claim settlement!