HDFC Life Click2Protect—an online term life insurance @50% discount

HDFC Life online term life insurance has premium rates 50% of its offline version, to make it competitive in the market. The online term life insurance market is heating up with more players entering the fray and existing ones planning to take the pricing further down. Is it a race to the bottom?

HDFC Life Click2Protect will beat its own term life insurance HDFC Life Term Assurance product by 50%. Imagine, a 27-year old existing HDFC Life Term Assurance customer shelling out annual premium of Rs11,294 for Rs50 lakh sum assured for policy term of 25 years. Today, HDFC Life Click2Protect will offer the same customer a premium of only Rs5,000 for same coverage. The customer will feel dejected but then be lured to give up the existing expensive policy and buy the new cheaper one. Unlike the Term Assurance plan which offers optional riders of accidental death and accidental disability, Click2Protect does not come with any riders.

The question is whether online sale without any agent make up for such a gigantic difference in the premium? It cannot justify the enormous variation; even though that’s the standard answer you will read or hear from the insurance company. Is there an assumption of online buyer living healthy lifestyle, having access to proper healthcare and hence will live longer? Time will tell if the assumptions stand true. The mortality experience of the product will tell if the premiums collected are enough or insurance company has hole in their pocket.

Aviva i-Life is the cheapest, beating the next competitor HDFC Life Click2Protect handsomely. Even though the current online term premium rates are good deal for customers, the competition is just getting started. Aegon Religare, which started it all with its innovative iTerm product, will soon cut its premium rates by 12% to 32%. Existing customers may be offered additional cover or rider to reimburse for the reduction in premium. The much-awaited online term plan this year will be from LIC.

HDFC Life Click2Protect has maximum maturity age of 65 years which is a drawback, considering that many insurers today offer term plan with maximum maturity age of 75 years. The maximum policy term is 30 years. The minimum sum assured is Rs10 lakh and maximum sum assured is Rs10 crore. The product offers free-look period of 30 days from the date of receipt of the policy. The cancellation will entail refund of premium after deducting medical expenses (if applicable), pro-rata cost for the period under cover and stamp duty.

 

A new product ICICI Pru Life iCare tries to address the major hiccup with the online term insurance buying process. The medical tests which online term insurance products require for all (or higher age groups) has been done away with this innovative product. There were issues like premium hike after medical tests which used to catch customers by surprise. This one-of-a-kind product will have no medical tests and no surprises of premium hike. This is an online term plan in complete sense.

Recent entrants like DLF Pramerica U-Protect and Edelweiss Tokio Life Protection have premiums which are the lowest in offline term plan space. Their premium is Rs5,956 and Rs5,984 respectively for Rs50 lakh sum assured for a 27 year old non-smoker male based in Mumbai for policy term of 25 years. Both the products are offline as of now.

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Comments
Narendra K Shetty
1 decade ago
Insurance sector regulator Irda has imposed fine of Rs. 1.47 crore on HDFC Life Insurance -- the highest ever penalty on any insurer -- for violation of various regulatory provisions.


http://www.livemint.com/2012/06/28230150...
Narendra Shetty
1 decade ago
I have invested all my saving of 15 years with HDFC Life but now i lost Rs 80000 Rs at one go due misleading information provided by one of the branch employ, when it is addressed to customer service they admit their mistake but refused to compensate the money and person is still working with HDFCLIFE. They have cheated 80000 RS for me.

I lodged complaint with Costumer grievances cell nothing happens.

Imagine what will happen our saving as well dependent when we die and they show same attitude with our claim. If you require any further information you can reach me on [email protected] Narendra K Shetty
suresh kumar gupta
1 decade ago
Hon sir I am certified financial consultant of HDFC STANDARD LIFE INSURANCE CO LTD Mumabi. my code number is 00041214 My request you as under. 1, Company has terminate me on the basis of false complaint of LOCAL STAFF i.e. BALOTRA branch 2. The both person has left the company 3. Due to my termination and lake of services my innocent client has lost almost 20 lakha INR AND POLICY HAS DEACTIVATED. 4. I very humbly request to company to provide the letters/emails/on which basis the company has terminate me but company has not provide the papers. 5.i also pray to company to provide the clause of agency agreement on which basis i have voilete this clouse but company has not replied my a singal word. Pl help to resolve my issue and reach a free and fa ir investigation in the interest of INNOCENT CLIENTS
the CEO OF HDFC SLIC MR.AMITABH CHAUDHARY mail id is [email protected]
Regards
suresh kumar gupta
rawali gali
opp street of eloji
BALOTRA RAJASTHAN 344022
INDIA
94141 07928
Ramnik
1 decade ago
What do you feel about Aviva i-life ?
suresh kumar gupta
1 decade ago

-----






Dear Mam/Sir
pl try to resolve my following issue with HDFC SLIC
-----



Hon sir I am certified financial consultant of HDFC STANDARD LIFE INSURANCE CO LTD Mumabi. my code number is 00041214 My request you as under. 1, Company has terminate me on the basis of false complaint of LOCAL STAFF i.e. BALOTRA branch 2. The both person has left the company 3. Due to my termination and lake of services my innocent client has lost almost 20 lakha INR AND POLICY HAS DEACTIVATED. 4. I very humbly request to company to provide the letters/emails/on which basis the company has terminate me but company has not provide the papers. 5.i also pray to company to provide the clause of agency agreement on which basis i have voilete this clouse but company has not replied my a singal word. Pl help to resolve my issue and reach a free and fa ir investigation in the interest of INNOCENT CLIENTS
the CEO OF HDFC SLIC MR.AMITABH CHAUDHARY mail id is [email protected]
Regards
suresh kumar gupta
rawali gali
opp street of eloji
BALOTRA RAJASTHAN 344022
INDIA
94141 07928
suresh kumar gupta
1 decade ago

-----






Dear Mam/Sir
pl try to resolve my following issue with HDFC SLIC
-----



Hon sir I am certified financial consultant of HDFC STANDARD LIFE INSURANCE CO LTD Mumabi. my code number is 00041214 My request you as under. 1, Company has terminate me on the basis of false complaint of LOCAL STAFF i.e. BALOTRA branch 2. The both person has left the company 3. Due to my termination and lake of services my innocent client has lost almost 20 lakha INR AND POLICY HAS DEACTIVATED. 4. I very humbly request to company to provide the letters/emails/on which basis the company has terminate me but company has not provide the papers. 5.i also pray to company to provide the clause of agency agreement on which basis i have voilete this clouse but company has not replied my a singal word. Pl help to resolve my issue and reach a free and fa ir investigation in the interest of INNOCENT CLIENTS
the CEO OF HDFC SLIC MR.AMITABH CHAUDHARY mail id is [email protected]
Regards
suresh kumar gupta
rawali gali
opp street of eloji
BALOTRA RAJASTHAN 344022
INDIA
94141 07928
rajeev
Replied to suresh kumar gupta comment 1 decade ago
Contact IRDA at http://www.irda.in and complain about unfair dismissal.Show proof.Then you can get justice
suresh kumar gupta
Replied to rajeev comment 1 decade ago
Dear Rajeev sir
thank you for your immediate revert and i am regularly approching to IRDA TO [email protected] but company has not providing proper resolution to me and i think that IRDA has also unable to help me
i do not want to approch to legal court as this is civil matter case and almost 20 years will be passed to decession
Mohit
1 decade ago
Why HDFC is best.
Vinayak
Replied to Mohit comment 1 decade ago
Yes its cheaper, but the customer service is bad. It takes 30 days to get the policy document. Payment is collected in advance on the day you buy
SURESH KUMAR GUPTA
Replied to Vinayak comment 1 decade ago
thank you for your immediate revert and i am regularly approching to IRDA TO [email protected] but company has not providing proper resolution to me and i think that IRDA has also unable to help me
i do not want to approch to legal court as this is civil matter case and almost 20 years will be passed to decession
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