REASON No. 1: Better Investment Choice Bank and Post Office deposits cannot beat inflation
because the rate of interest they offer is very low. What other options do you have? Stock markets? You may not
have
the knowledge or expertise to invest directly in shares or to trade in the stock market. This is why you might
wish
to trust HDFC Life to grow your wealth.
REASON No. 2: The Wise and Godly Protect Their Dependents Death is a certainty. The time is
uncertain. Wisdom demands that we ensure the financial security of our dependants. We do this by transfering our
risk to an insurance company that is capable of handling that risk. You can rest assured that your loved ones
will
be financially secure even when you won’t be around to provide for them.
REASON No. 3 HDFC Life is reliable HDFC Life has a proven track record. It is one of the
most
reliable life insurers in India. In 2023, the total asset under HDFC Life’s management was Rs. 2.4 trillion.
HDFC
Life boasts of a 99.39% Claim Settlement Ratio.
Your Godly Responsibility To Your Family
1. THE SURE SIGN OF GODLINESS Providing for the needs of widows and orphans is one of the
highest and best forms of godliness.
Religion that God our Father accepts as pure and faultless is this: to look after orphans and widows in their
distress and to keep oneself from being polluted by the world. (James 1:27 NIV)
Before you provide for someone else’s widow or orphans, provide for your own dependents. That’s the
right
thing to do. Do not burden the church with the responsibility of looking after your wife and children in your
absence.
2. THE JOSEPH STRATEGY Joseph could be credited for inventing the insurance industry. God
taught
him that, in a world of changing fortunes, long-term survival of an individual or a country can often be
achieved by
saving during the good years. Under Joseph’s guidance, Egypt saved grain for seven years. That was like paying a
“premium.” After those years the “payouts” started!
A Quick Overview
Insurance products may be classified in different ways. Here is a simplified way to classify numerous products
available.
Term Plans: High Life Coverage at a low
premium.
The earlier you start, the lower your premium.
Savings Plans: An opportunity to save and
build
a corpus to meet your future needs
Annuity (Pension) Plans: Make a lump-sum
payment or a series of payments to the company. In return, they provide guaranteed periodic
payments.
UNIT Linked Insurance Plans: Make a lump-sum
payment or a series of payments to be invested in the stock market for higher returns at a higher risk. Risk
will
be borne by the investor who is also the insured.
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Glossary
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Accidental Death
Accidental Death Cover is normally available as a Rider or Inbuilt Option. Accident is a sudden, unforeseen
and
involuntary event caused by external, visible and violent means. Accidental Death means death by or due to a
bodily injury caused by an Accident, independent of all other causes of death. Accidental Death must be
caused
within 180 days of any bodily injury.
Accidental Disability Rider
An optional but necessary addon. Get additional income benefits over and above your Sum Assured in the event
of
total permanent disability due to an Accident. In the event of Total Permanent Disability due to
accident, you will be paid a regular monthly income equal to 1% of Sum Assured for a fixed period of 10
years. Disability as a result of injury or accident and is thereby rendered totally incapable of being
engaged
in any work or any occupation or employment for any compensation, remuneration or profit and he/she is
unlikely to
ever be able to do so. Alternatively, the life assured suffers an injury/accident due to which
there
is total and irrecoverable loss of: a. The use of two limbs; or b. The sight of both eyes;
or c. The use
of one limb and the sight of one eye; or d. Loss by severance of two or more limbs at or above wrists or
ankles; or e. The total and irrecoverable loss of sight of one eye and loss by severance of one limb at
or
above wrist or ankle.
Claim settlement ratio (CSR)
An insurance company’s claim settlement ratio (CSR) refers to the number of claims successfully resolved
versus
the number of requests received in a given year. For example, if XYZ company receives 100 claim requests in
a year
and successfully settles 90 of them, its CSR is 90%. CSR acts as an indicator of their credibility.
Critical Illness
A list of illnesses are defined as critical illness. See product brochure
online. Signs or Symtoms must have first commenced 90 days following date of an insurance policy.
Critical Illness Riders
HDFC Life Critical Illness Plus Rider provides a lump sum benefit on diagnosis of any one of the
listed
critical illnesses. The Life and CI Rebalance Option waives all future premiums after the detection
of a
critical illness.
Exclusions
The insurance contract specifies certain situations in which the insurance company will not honor their
promise.
For example, suicide is a common exclusion. If the insured person commits suicide, the company will not pay
the
sum assured or death benefits. Losses due to activities such as automibile racing, diving, underground
activities,
etc., are also excluded from coverage.
Free Look Period
The free look period is the period given to a policyholder to assess and review the policy
document.
He/she can terminate the policy during the free look period if they are not satisfied with its inclusion and
exclusion terms which were explained at the time of purchase.
Grace Period
If you fail to pay your premium by date, your contract with the insurance company will come to an end. To
prevent
such a situation, you are given a grace period of 30 days from the due date every year.
Insurance
Insurance is a contract you make with an insurance company. For a certain amount you pay (that is, the
premium),
the insurance company undertakes to compensate you (the insured) for a loss. Also, see definition of
Risk
Transfer.
Life Assured
The person whose life is insured.
PPT
Policy Paying Term: The time period for paying annual premiums
PT
Policy Term: The total life of the life insurance contract
Premium
Premium is the cost of insurance. It is the amount you pay the insurance company periodically
(annually)
to keep yourself insured (and as seed for your investment).
Rider
Life insurance riders are contingent additional benefits over a primary policy, which come into play in case
of a
specific eventuality. They offer financial cover over and above basic sum assured in a life insurance
policy. Even
with the occurrence of the event, the life cover remains intact. This means that even if you have drawn on a
particular rider, you remain eligible for the death benefit on the life insurance plan.
Risk Transfer
A good way to deal with risk is to transfer our risks to someone who is willing and capable of handling or
dealing
with them. This process of transferring of risk from one person to another is called insurance.
Insurance, therefore, is a risk transfer mechanism.
SA
Basic Sum Assured is the amount of sum assured chosen by the policyholder
Sum Assured on Death
is the absolute amount of benefit which is guaranteed to become payable on death of the life assured in
accordance
with the terms and conditions of the policy or an absolute amount of benefit which is available to meet the
health
cover.
Sum Assured on Maturity
is the amount which is guaranteed to become payable on maturity of the policy, in accordance with the terms
and
conditions of the policy.
