The HDFC Life Group Credit Protect Insurance Plan is a plan which has been designed keeping the requirements of corporates in mind, offering customised insurance solutions to financial institutions. This plan secures the interests of both the financial organisation and its customers, ensuring that repayment doesn’t become a burden in the event of demise of borrower.
Eligibility Criteria for HDFC Life Group Credit Protect Insurance Plan
|Minimum entry age||18 years|
|Maximum entry age||
|Minimum premium||Rs 50|
|Minimum group size||50 members|
|Maximum age at maturity||59 years|
Key Features of HDFC Life Group Credit Protect Insurance Plan
Some of the key features of this plan are mentioned below.
|Plan type||Non-linked group life insurance|
|Premium paying terms||Single premium scheme|
Minimum – 2 years
Maximum – 20 years
|Maturity benefits||No maturity benefits payable|
|Premium payment frequency||Single premium|
|Guaranteed additions||No Bonus available|
|Medical history||Members should submit medical history before they are enrolled in this scheme|
|Free look period||Policyholders can choose to return the policy within 15 days of date of purchase|
|Alterations||Policyholders can choose to add riders at the time of registration|
|Nominations||Policyholder can nominate a person of his/her choice|
|Sum assured||Sum assured will be paid on death or diagnosis of critical illness|
|Policy coverage||Death benefit (additional benefits can be added via riders)|
Benefits/Advantages of HDFC Life Group Credit Protect Insurance Plan
Some of the major benefits offered by HDFC Life Group Credit Protect Insurance Plan are mentioned below.
- Customer benefits – The nominee will receive a death benefit in the event of demise of a borrower, thereby providing peace of mind to everyone involved.
- Organisation benefits – The insurance policy will protect the interests of a lending institutions, ensuring that non-performing assets are reduced.
- Surrender – A member can choose to surrender the policy in return for a surrender value.
- Tax benefits – Policyholders are entitled to tax benefits under Section 80C and 80D of the Income Tax Act. This covers both the premiums paid and the amount received as death benefit.
- Simple implementation – Implementing this scheme is simple and easy, with training provided to staff members of financial institutions to ensure seamless integration.
- Policy continuance – In the event of a borrower repaying the loan before due date, the policy will continue to be in force, offering additional protection to the borrower and his/her family.
How HDFC Life Group Credit Protect Insurance Plan Works
The working of this plan is simple and easy to understand, with the example below explaining how it works. Mr. Gupta, aged 40 years borrows a sum of money from a particular financial organisation. This financial organisation has been using HDFC Life Group Credit Protect Insurance Plan to protect both its financial interests and earn goodwill from its customers. It registers Mr. Gupta under this plan for a period of 5 years, which is also the tenor of his loan.
Now in the event of Mr. Gupta’s demise or him being diagnosed with a critical illness, a basic sum assured will be paid either to his nominee or himself, respectively. This sum will ensure that the loan can be repaid by his family members without an additional financial burden, thereby securing the interests of both Mr. Gupta and the lending organisation.
This is a single premium plan, which means that a member is expected to pay the premium at the time of joining.
One can choose from two riders, the Accelerated Critical Illness rider and the Accidental Death Benefit rider. The Accelerated Critical Illness rider (ACI) provides the sum assured if a member is diagnosed with a critical illness whereas the Accidental Death Benefit (ADR) rider provides the sum assured if the member dies due to an accident.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017