Articles

Should I Go For HDFC or Bharti AXA Term Plan?

by Anumeha Singh Insurance Specialist

Term insurances are the best budget options for individuals who are just starting their career. One of the cheapest options that is touted to be better than ULIPs, the term plan usually pays the entire premium amount to the nominee in case the insured party survives. It offers the higher coverage too.

What Is A Term Insurance Plan?

Tem insurance can be explained simply as a coverage for the beneficiary. For example, if you have purchased a term insurance plan for your spouse, then your spouse will be covered under the policy until something unfortunate should happen to you.

Advantages That Are Too Many To Count!

The beneficiary can claim death benefits. It can be in the form of monthly installments or as a lump sum amount. However, the entire policy becomes void if the purchasing party survives the entire term. In such a peculiar case, the policyholder then has the option to extend the policy or let it go completely. As you grow old, the cost of term insurance increases drastically. Therefore, you should pick a plan that suits you the best.

What Are The Benefits?

Multiple insurers in India offer a variety of term plans, which offer the lowest premiums, and tax benefits in case you are looking for any. Choose to pay annually, half yearly or even monthly, flexible term plans can most definitely be accommodated in your investment budget.

How Is It Paid?

Investors always can choose from the entire sum to be insured, the premium payment option, add on protection plan such as covering critical illnesses, et al. and the term of policy which can range from 60-99 years depending on the insurance company.

Why Should You Choose A Term Plan?

Choose from a myriad of options and decide the premium duration and amount as you sign up for a plan that suits your requirement the best. It could be either of the following:

·         Settle off those loans and liabilities. Your family does not need to worry about them anymore.

·         In case an unfortunate accident renders you disabled or if you contract a critical illness, term insurance covers that too with additional plans.

·         In case you are the sole earning member of your family and no longer around to take care of them, your beneficiary can always claim a monthly income such that there are no liabilities that are left unattended.

 

Finding A Term Plan Is Tough

 

To make it easy for you, we compare the top term plans from the house of HDFC and Bharti Axa Term Plan.

 

Term Plan

Features

USP

Bharti AXA Term Plan Life eProtect

·         Entry age can be as low as 18

·         Policy term can extend up to 75 years of age

·         There is no maximum limit of investment or sum assured

·         Premium can be paid half yearly or annually

·         In case of the death of the insured, the nominee is entitled to gain up to one lakh as a lump sum amount as part of this Bharti Axa Term Plan

·         The remaining sum is provided after the basic formalities.

·          The policy needs to be active and if active premiums are paid, the amount is paid out easily without any hassles.

Bharti Axa Term Plan Life eProtect+

·         Maximum age of investment is 60 years.

·         Policy term can be extended up to 75 years

·         Minimum sum assured starts from 50 lakhs

·         The final pay out can be availed in two ways as monthly income and lump sum

·         Death benefit can be availed for 15 years in this Bharti Axa Term Plan.

·         Lump sum can be availed up to 50% at once.

·         The remaining amount is paid out as increasing annual installments.

HDFC Life Click 2 Protect Plus

·         Entry age can range from 18-65

·         Policy term can range from 10-40 years

·         Accidental Death benefits

·         Critical Illnesses Cover

·         Customized plans can be chosen from the likes of Life Option, Extra Life Option, Income option, Income Plus Option.

·         There is an option for additional pay out in case of accidental death.

·         Other options allow pay out of half of the sum as lump sum and the rest is paid out as instalment with a 10% increase annually.

HDFC Life CSC Suraksha Plan

·         Policy period can range from 5-15 years.

·         Sum assured can range from 30,000-2 lacs

·         Age range is 18-55 years.

·         Maturity age can range from 23-60 years.

·         No maturity benefit or survival policy. A pure term plan.

·         Free lock in period of 15days within which you can scrutinize the terms and conditions.

·         Death benefit is usually 10 times the annual premium or 105% of all premiums paid, whichever is higher.

 

What Do We Recommend?

From the above comparison, we would recommend picking up the term plans depending on your preferences. If you are individual who is looking for term plan, you could try HDFC Life CSC Suraksha Plan. If you are married and are looking for a long-term deal, we recommend going for Bharti Axa Term Plan life eProtect+ for extra benefits.

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About Anumeha Singh Innovator   Insurance Specialist

29 connections, 0 recommendations, 79 honor points.
Joined APSense since, May 3rd, 2016, From Gurgaon, India.

Created on Jan 25th 2018 04:53. Viewed 741 times.

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