HDFC Standard Life is a major seller of life insurance products. HDFC Standard Life is a joint venture of HDFC and British public limited company Standard Life. The major stakeholder in the venture is HDFC with more than 70% stake and then Standard life with almost 25% of the stake, and there are other stockholders also involved in the venture having less than 5% of the total share. HDFC Standard Life provides various plans in the life insurance category to ensure an end to end provision of insurance services to the customers. The life insurance plans by the company involved:
- HDFC Click2Protect Plan
- HDFC Click2Protect 3D Plus Plan
- HDFC CSC Suraksha Plan
Many people do not invest in insurance products thinking that it will cost them more and disturb their financial planning. They tend to ignore the fact that a little payment on a regular basis can save them and their dependents from major financial problems in the long run. The term insurance calculators help you calculate the premium before purchasing the policy. HDFC also provides you with HDFC Term Insurance Premium Calculator that helps in calculation of premium for all the plans mentioned above. HDFC term plan calculator is an online tool that will help you gauge the premium of different policies against the chosen coverage.
How Does HDFC Term Plan Calculator Work?
It is very easy to use the term plan calculator by HDFC, and it is readily available on the e-portal of the company. The calculator looks something like an online form that is to be filled. The details are then analyzed by this calculator using simple algorithms of insurance and financial planning. The data that is required by the calculator is very basic yet highly specific. Some of the details needed are:
- Name of the individual
- Gender of the individual
- Age of the individual
- Plan type you wish to opt for
- Date of Birth
- Sum Assured
- The term of premium payment
- The term of the Policy
- Taxes
- Payable premium
- Riders you wish to opt for
- Purchase year
- Other data required for the sub-plan
Calculators can be either product specific or category specific, i.e., a calculator can be for term plans or for a specific term plan like Click2Protect Plan by HDFC. The category specific calculator focuses upon calculating an approximate amount of premium to be paid for life insurance. The category-specific calculator helps the proposer for suggesting which of the available plans form a category like term insurance are suitable for the proposer. The product-specific calculators are helpful once you have taken the decision of which policy you wish to purchase. This calculator will support in terms of suggesting the exact premium based on the base plan and selected riders.
Benefits of HDFC Term Insurance Calculator
An insurance calculator helps in taking important decisions. Some of the benefits of the calculator are:
Required Coverage
HDFC Term Insurance Calculator helps you to know the amount of coverage you can avail as per your budget. The calculator also suggests the type of coverage need on the basis of your current lifestyle. The suggestions are made by the calculator using the information provided by you and some simple algorithms of insurance and investments.
Easy to Use
HDFC Term Insurance Premium Calculator is a user-friendly tool. It simply asks for basic details about you and your lifestyle and presents the suggestions and premium amount for you.
Comparative Analysis
The tool compares the available plans by HDFC based on your requirements and the details filled in by you. This is a very useful feature when you are confused about the plan to purchase.
Simplification of Complicated Algorithms
Insurance policies and their premiums have a lot of complicated algorithms as well as conditions on which the rates are set. The calculator makes it very easy to simplify the whole calculations and the algorithms involved.
Better Knowledge of Product-Wise Coverage
The comparison of various products based on premium and coverage enables you to understand the products in detail and the exact level of coverage provided by them. This knowledge will not only be helpful when it comes to purchasing the policy but also in terms of making claims in the future.
Customized Premium
The suggested premium rates are based on the details entered by you and not the standard rates suggested. The premium varies from customer to customer based on the policy term, amount of coverage and sum assured chosen by the individual. It also differs on the basis of the age of the customers and his/her lifestyle choices. The calculator helps you with the exact amount to be paid if you purchase the policy based on your choices and your profile. Getting the exact amount can help you plan out your future finances accordingly.
Insurance Agent vs. Online Calculator
Many people still rely on the traditional method of purchasing insurance policies, i.e., consulting an insurance agent. But in the new age of digitization, all the information is available online, with the facility of making the payments online without getting in touch with any of the intermediaries at all. There are many ways in which an insurance agent can help you, but the e-portals of HDFC communicate as strongly as their agents. There are many benefits of using the website of the company for research and premium calculation and make the purchase. These benefits are listed as follows:
- Location Convenience: If you want to understand or purchase a term insurance plan, going to the branch for the details will take a lot of effort and time. However, you can save a lot of time by getting the details online in the comfort of your residence. You do not have to spare time to meet an agent and discuss the available policies.
- Elimination of Unnecessary Information: The information provided by the insurance agent might not be entirely useful, and you can end up wasting time in a non-beneficial discussion. If you research online, you will be able to filter out the information as per your requirement.
- Unbiased Information: The insurance agents can be biased about the advice and the information they provide you with. The major reason behind being their sales target. You might not actually need that much sum assured as per your requirements and lifestyle. HDFC Term Insurance premium calculator can suggest the amount of coverage you need as per the details of your lifestyle. The calculator cannot be biased because it is a technical tool and works on mathematical algorithms.
Health and safety have become a subject of risk for the common Indian man due to the rising cases of accidents and other problems like pollution, traffic, unhealthy lifestyle and critical diseases. The sale of insurance products is increasing with the increase in the rate of awareness. Term Plans are the most basic form of insurance being sold in the market, and there are variations in these plans for increased comprehensive coverage. You can opt for pure term plans or plans with maturity benefits and additional riders. Using HDFC term plan calculator can highly facilitate the choice of a proper term plan as per your requirement and knowing the financial commitments required for the same. The benefits involved in the calculator and the simplified use of this tool can enable you to purchase the policy easily.
Also Read: HDFC Life Insurance Premium Calculator
FAQs
Q1. What is the ideal coverage you should opt for in term insurance?
In term insurance, you need to make sure your family can sustain financially in your absence. A cover that is 10-15 times of your annual income is appropriate for your family to be financially stable.
Q2. Is extra life cover required for individuals who have employer life insurance?
The employer life insurance provides limited coverage to the employees, and the maximum sum assured is equal to the annual sum assured of the employee. This cover can help in the financial stability of the family for a very limited time and is not at all sufficient, purchasing a life cover will provide more comprehensive coverage to your family.
Q3. What is the ideal term till which an individual should opt for a life cover?
The ideal term of the policy depends on the age of the individual, the maturity of policy should be around the retirement age of the insured. It is advisable to purchase a life cover at an early age to avail the policy at lower premiums and increase the coverage potential. Also, the chances of insurance application being rejected are higher for older proposers when compared to the proposers that apply before their middle age.