“You need insurance, but I don’t need it.”
This is the perspective that most of us take when discussing the subject of insurance. We feel that disasters and unforeseen circumstances are happening, but we think we can remain oblivious to them. As the past two years have shown us, being complacent or being in denial can no longer help us when misfortune strikes unexpectedly.
Insurance can protect both your future and that of your family. It can no longer be treated as a choice, but as a necessity.
Currently, insurance penetration in India is low, and this is a discouraging sign. The 2021-2022 economic study revealed that life insurance penetration increased from 2.82% in 2019 to 3.2% in 2020. According to the definition, insurance penetration is measured as the percentage of the total life insurance premium paid in a year compared to the gross domestic product. (GDP). Although insurance penetration has increased, it is still very low. What the survey found was that people took out insurance, due to the fear and uncertainty that accompanied Covid-19.
Why is India largely uninsured?
According to official industry data by the Insurance Regulatory and Development Authority of India (IRDAI), 75% of all Indians are not covered by any form of life insurance. This means that they can be left hanging, in case financial instability hits them, in the event of unexpected events like the death of the breadwinner in the family.
The situation is even worse in the case of the unorganized sector. According to statistics revealed by the International Labor Organization, 82% of India’s workforce is employed in the informal sector, which also means that such a large population lives in constant fear of financial setbacks.
Three standard measures are considered to understand insurance coverage: annual premium growth, insurance density and insurance penetration.
While current data reveals that insurance penetration in India is on par with emerging economies of the world, there is no specific information available on the number of unique individuals covered, the variation between income classes and other critical parameters. Moreover, we still do not know if the insurance coverage is sufficient to cover financial shocks.
It is not only the vulnerable sections of society who are uninformed; even educated people don’t have a good idea why insurance is necessary. The need of the hour is greater awareness about the need for insurance and how it helps our lives. Once you’ve done your research and narrowed down the policy you want, you can easily purchase insurance online or through an agent.
As it goes, this article will shed light on a form of insurance — namely term insurance — that provides financial protection to the policyholder in the event of the death of the insured.
All about term plans
One of the easiest ways to insure yourself is to invest in term insurance. By paying a certain premium each month, policyholders can benefit from financial protection and ensure the future of their family, even in the event of death. The premium you pay depends on a range of factors such as age, gender, duration, sum insured, etc.
Temporary plans also offer various tax benefits on premiums paid, under Section 80C of the Income Tax Act. In addition, the death benefit received under the plan is also deemed to be non-taxable under section 10 (10D).
But here’s another challenge — with so many options available today, how do you zero in on the right term insurance plan?
Choose the right term plan
Of the many choices available, it’s important to choose a plan that meets your needs and provides your family with adequate coverage while you’re away. Moreover, a credible name also helps build trust. This is exactly where HDFC Life Click2ProtectLife comes in.
The plan offers customers the option of having coverage for their lifetime, or one can opt for a steady stream of income after retirement by offering income payouts, starting at age 60.
What is also impressive is that HDFC Life Click2ProtectLife provides policyholders with an additional sum in the event of accidental death and a waiver of premium in the event of critical illness. In addition, the plan also offers tax benefits in accordance with applicable laws.
There is another important aspect to consider. If the policyholder survives until the maturity of the plan, he can opt for the option of reimbursement of the premium.
HDFC Life Click2ProtectLife also offers additional endorsements with your insurance. The policyholder may benefit from additional income benefits other than the insured capital, in the event of total permanent incapacity following an accident. Policyholders also receive a lump sum, which is equal to the sum insured, in the event that the policyholder is diagnosed with one of the specified critical illnesses.
The plan also offers special preferential rates for women and non-smokers.
The last word
Having life insurance, as we have already established, is not a choice but a necessity. It could help you and your family stay afloat during financial hardships and act as a cushion in those times. So, don’t wait any longer and invest in the HDFC Life Click2Protect Life plan that ticks all the right boxes!
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