If you’re an employer looking to fulfil your employee benefit obligations, or a group of people with a common interest other than simply acquiring an insurance policy – HDFC Life has a range of group insurance policies for you to consider.
HDFC Life Insurance Co. is one of the biggest life insurance providers in India and is a joint venture between the Housing Development Finance Corporation (HDFC) of India and Standard Life PLC, a leading financial service provider in the UK.
HDFC Life has a wide reach with over 400 branches in India servicing over 900 cities and towns, and also has a liaison office in Dubai. The company’s product portfolio currently consists of 24 retail and 8 group products with 9 optional rider benefits to cater to the savings, investment, protection and retirement needs of its customers.
HDFC Life’s Group Insurance Plans
HDFC Life offers group insurance schemes to meet the varied needs of people with similar needs in an economical and standardised manner. The most popular group schemes are those opted for by employers to cover their employees.
HDFC Life Group Variable Employee Benefit Plan
The company or trustee (the entity that has an insurable interest in the lives of its members) will be the policyholder and those insured will be the scheme members.
- Guaranteed minimum return of 1% p.a. for the term of the policy.
- Income Tax benefits for policyholder and scheme members.
- Additional interest (declared at the start of every financial quarter by HDFC Life)
- Individual member level accounts can be created in the case of superannuation scheme.
- Easy way to manage superannuation, leave encashment, gratuity and other employee benefits.
- Additional Funding is possible on contributions made during the first policy year. Policyholders can choose from:
- Option A – 3% of contributions as additional funding.
- Option B – 2% of contributions as additional funding.
- Option C – 1% of contributions as additional funding.
HDFC Life New Group Unit Linked Plan
The Liquidity Management feature in this plan allows investments of smaller amounts in the market, in addition to providing group cover to meet obligations on gratuity, leave encashment and other employee benefit schemes.
- Can chose one or a combination of funds from a range of debt and equity oriented funds which have different and proportional risk and reward rates.
- Control over investment with Switchers.
- In-built insurance coverage of Rs. 1,000.
- Income tax benefits for employer and employee alike.
- Liquidation facility for smaller amounts to meet benefit payments.
- Additional sum of Rs.1,000 to be paid to policyholder in addition to amounts paid from unit-linked funds.
Example: Company A will be able to maximise its returns on investment in addition to meeting obligations to its employees in terms of gratuity, leave encashment and employee benefit schemes. The choice of varied investments and choice of debt/equity through either combining or using singly one of the six available funds.
HDFC Life Group Term Insurance Plan
This plan facilitates the fulfilment of employee benefit obligations from disbursement of employee benefits to cover for housing or vehicle loans and cover for future gratuity liabilities.
- One master policy covering all members of a group.
- Annually renewable term insurance.
- Sum assured payable to nominee upon death of covered member.
- Extension of coverage with riders to cover accidents, critical illness, disability, etc.
- Addition and deletion of members at any time of the year.
- Cover for housing or vehicle loans provided by employers.
Example: Company A has a large group of employees, all of whom are not necessarily long-term members. To avoid constantly revising membership, Company A can cover all their employees under this one big insurance plan, adding and removing group members as required through an easy, streamlined process. This serves as an excellent retrenchment tool, in addition to providing tax benefits on premiums paid. The scheme also provides accident, illness, and disability benefits in addition to death cover for the dependants of the member. The plan covers death due to any cause – accidental or natural.
HDFC Life Group Credit Protect Insurance Plan
This plan is a solution for financial institutions to ease the loan-repayment burden of a borrower’s family in case of untimely death or crippling illness.
- Group policy providing comprehensive protection against many types of loans.
- Insurance benefit lightens the load on a borrower’s family, plus additional payment to dependants in case of death due to accidental causes.
- Optional riders include “Accelerated Critical Illness” which pays the lump sum assured to the customer in case he is diagnosed with a specified critical illness; “Accidental Death Benefit” which pays the sum assured upon death due to accidents.
- Simple to administer as it has no lengthy underwriting procedure.
Example: Mr. Babu had taken a loan from a bank which has this plan attached to it. Upon his untimely death, his family had to bear the burden of repaying the loan. Under this plan, which was in force at the time of Mr. Babu’s death, a pay out was made which was used by his dependant family members to pay off the loan. This helped put them in a situation of relative financial comfort.
HDFC Life Group Credit Protect Plus Insurance Plan
This is a tailor-made plan for customers of financial institutions. If a borrower dies, is disabled, or falls critically ill, this plan helps dependant family members repay the outstanding loan to the financial institution.
- Group coverage plan with six options for cover.
- The “Life Option” provides basic death cover.
- The “Extra Life Option” provides death cover plus additional accidental death benefit.
- The “Terminal Life Option” provides death and accelerated terminal illness benefits.
- The “Critical Life Option 1” provides death benefit plus accelerated critical illness benefit (term equal to main benefit term or 5 years, whichever is lower).
- The “Critical Life Option 2” provides death benefit plus accelerated critical illness benefit (term equal to main benefit term or 10 years, whichever is lower).
- The “Life Disability Option” provides death cover plus accelerated total permanent disability cover.
HDFC Life Pradhan Mantri Jeevan Jyoti Bima Yojana Plan
Under the scheme launched by the Government of India, this plan aims to provide group insurance benefit to the family in case of the unfortunate demise of the member. Through this plan, the Bank acts as the Master Policyholder and the Savings Bank account holders will be the members that will avail the benefits offered through the policy.
- Account holders between 18-50 years are included in this scheme
- A Rs. 2 lakhs group insurance provided to the family at an annual premium of only Rs. 330
- An affordable annually renewable plan that provides a lump sum benefit
Why chose HDFC Life for your group life insurance needs?
With a large number of policies covering various situations with specific riders and a sublime, streamlined application and pay-out process, HDFC Life is among the best providers to choose from.
The company has a history of 96.5% claim settlement, making it a trustworthy option in a sea of risky investment options.
Tips on picking the right plan from HDFC Life’s Group Plans
One of the main reasons HDFC Life offers a variety of group insurance plans is because of the varied needs of companies that require them to provide benefits to their employees.
All plans have detailed explanations of intricacies and benefits, so picking the right plan can only happen once you have rightly defined your specific needs. Take into consideration future gratuity payments, insurable interest, leave encashment needs, and other employee benefits as required. HDFC also has a dedicated team of customer support executives that can be contacted to clear up any grey areas you may find.
Other HDFC Life Insurance Plans
GST of 18% is applicable on life insurance effective from the 1st of July, 2017