Академический Документы
Профессиональный Документы
Культура Документы
Here, a
comparison of the term life offered by SBI Life and HDFC Life is discussed.
Following are the two policies discussed1. SBI e-shield- A Pure Term Insurance Plan UIN: 111 N0 89 V01
2. HDFC Life Click 2 Protect Plus UIN: 101 N1 01 V01
Lets discuss the basic features which are common to both the policies.
Both the plans are available online. They are Online Pure Term, Non-Linked, NonParticipating insurance plan, where one gets insured by just a click. Lets see what
do these terms mean.
Pure Term PlanTerm insurance is a type of life insurance which provides coverage for a
certain period of time or years. If the insured dies over the policy tenure a
death benefit (or sum assured) is paid out.
Non-Linked
It means that the policy only provides risk cover. Here, the investment
earning is not shared with the insured. It is a pure insurance plan and not
investment + insurance plan.
Non-Participating
Life insurance policy whose policyholders do not receive dividends, because
they are not participants in the interest, dividends, and capital gains earned
by the insurer on premiums paid.
Main motto of both the plans is to protect the interests of the loved ones of the
policy holder at affordable price against the uncertainty of the policy holders death.
This plan provides a benefit amount in the unfortunate event of death of the Life
Assured anytime during the policy term. This amount would help the family to pay
any outstanding debts or fund the day to day expenses, thus easing the financial
worries.
Both the plans offer various options. Lets compare both the plan
KEY
FEATURES
Plan Options
SBI E-Shield
Life Option
The Sum Assured remains same
throughout the policy term
Minimum
Entry Age
Maximum
Entry Age-
18 Years
Income option
Part of the Death benefit as a
Lump sum with the remaining
payable in form of
Monthly income over a period of
15 years
Income Plus option
100% of Sum Assured is paid on
death and 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. as chosen by the
policyholder
18 Years
65 Years
Sum Assured
Minimum: 20,00,000
Maximum: No Limit (Subject to
underwriting)
Sum assured would be in
multiples of 1,00,000 only
Minimum: 25,00,000
Maximum: No Limit (Subject to
underwriting)
Premium
Payment
Mode
Annual
Maximum
Maturity Age
75 Years
Regular
PayInsured
pay
throughout the policy term
(Yearly, Half Yearly, Quarterly,
Monthly)
Limited Pay- Insured pay his
premium for chosen policy term
less 5 years (Yearly, Half Yearly,
Quarterly, Monthly)
Policy Term
Maximum
Policy Term
30 Years
40 Years
Premium
Payment
Term
Premium
Amount
Minimum- 3,500
Maximum: No Limit
Minimum- 3,000
Maximum: No Limit
Grace Period
30 Days
Suicide
Clause
Non Smoker
Benefit
Revival Term
Free
Look
Period
Tax Benefit
Available
Available
Within 2 Years
30 Days
Within 2 Years
30 Days
Available
Available
2. Maturity Benefit
No benefit is payable on survival till end of policy term.
3. Accidental Death Benefit
Death should occur within 120 days of the date of accident, solely and directly due
to injuries as stated below and independent of all other causes. The Sum Assured
for accidental death will be equal to the basic death Sum Assured. However, the
maximum accidental Sum Assured that you can avail under all your policies under
this product is 50,00,000.
4. Increasing Cover
Consider Sum Assured is 50,00,000 for 20 year policy term. Till the end of 5 th Policy
Term, Sum Assured will be 50,00,000. The Effective Sum Assured applicable from
the 6th Policy Year, till the end of 10th Policy Year will be 55,00,000.Fom 11th Policy
Year till 15th Policy Year it will be 60,00,000.
HDFC Click to Protect
1. Death Benefit
In the unfortunate event of death of life assured during the policy term, the
nominee will receive the benefit. For Single Premium Policy, nominee will receive
the maximum of 125% of Single Premium or Sum Assured whichever is highest.
For other than single premium policy, nominee will receive either 10 times the
annualized premium or 105% of all the premiums paid as on date of death or Sum
Assured whichever is highest. The annualized premium shall exclude the
underwriting extra premiums and loadings for modal premiums, if any.
Under Life Option, the Death Benefit specified above shall be payable in the form of
a lump sum upon death.
Under Extra Life Option, the Death Benefit specified above shall be payable in the
form of a lump sum and an additional benefit equal to the Sum Assured shall be
payable in case of accidental death.
Under Income Option, the Death Benefit specified above is paid in the following
manner:
10% of the Death Benefit paid as a lump sum upon death
Remaining 90% of the Death Benefit shall be paid as monthly income over next 15
years
(0.5% of Death Benefit every month for 15 years)
Under Income Plus Option:
100% of the Death Benefit specified above shall be paid as a lump sum upon death
In addition, a monthly income equal to 0.5% of the Sum Assured shall be payable
for a period of 10 years. The monthly income can be level or increasing at 10% p.a.
as chosen by the policyholder.
2. Maturity Benefit
No benefit is payable on survival till end of policy term.
3. Life Stage Protection
During various stages of life, insured can avail for increase or decrease risk cover.
During various life stages like marriage or child birth, this kind of option can be
chosen.
EVENTS
Marriage
Birth of 1st Child
Birth of 2nd Child
Similarly, as the age of insured increases and his earnings also increases, his
children are no more dependent on him. At this stage, he can reduce his additional
insurance cover.
4. Accidental Death Benefit
If the death occurs within 180 days of the suicide, the nominee receives accidental
death benefit.
HDFC Click 2 Protect has relatively lower premium for the same age and
same policy term of the insured as compared to SBI e-shield. It even offers flexibility
of payment (though extra premium is charged if policy premium is paid in other
than yearly way). But it is still affordable as the premium itself is very low for the
term plan for the amount of risk covered. Maximum maturity age is also higher. So,
more number of people can avail for this policy.
The Life Stage Protection feature is appealing. During different stages of the
life, policy holder can increase or decrease his risk cover. As compared to the
increasing plan option which increases the policy holders sum assured by 10%
every five years. Though this may be effective to beat inflation.
Death benefit in case of SBI e-shield is always received as lump sum amount
of the effective sum assured. But in case of HDFC Click 2 Protect, policy holder can
choose from the options available like a part of sum assured is availed on the
occasion of death and annuity is received by the nominee on the monthly basis for
10 to 15 years.
From the various online policy websites, it can be inferred that HDFCs Click 2
Protect is preferred over SBIs e-shield. Looking at the features available, I would
avail HDFC Click 2 Protect over SBI e-shield.
References:
http://www.hdfclife.com/
http://www.sbilife.co.in/