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HDFC Premium Guarantee Plan

Objective

This term insurance policy aims to provide financial stability to a family in the absence of the breadwinner. It will refund entire basic premium, paid till date,  if the insured person survives policy term.


What does it do?

This plan returns entire basic premiums if the insured life outlives the policy term. In an unfortunate event of death of insured member, this policy pays sum assured to his nominees as death benefit. One can surrender the policy after completing three policy years. The surrender value will be calculated using a pre specified formula.


Pros

Basic premium is returned if insured survives the policy term.
Premiums paid under the policy qualify for deduction under section 80C of Income Tax Act 1961.


Cons

The grace period, to pay policy premium after due date, is limited to 15 days.
The policy doesn’t offer any riders.


Suited for

This plan can be taken by those not convinced to pay for a pure term plan. However, the policy charges high premiums for the same.


Our View

Return of premium on maturity makes this policy expensive. A simple term policy that does with death benefit will cost less.

Eligibility
Entry Age (years) 
Minimum18
Maximum55
Maximum Maturity Age (years)65
Policy Term (years) 
Minimum10
Maximum30
Sum Assured (Rs) 
Minimum300000
MaximumNo Limit
Minimum Premium (Rs)2400
Premium Payment FrequencyYearly; Half-yearly and Quarterly through ECS only.
Premium Payment TermEqual to policy term
Policy CoverCover remains fixed for the tenure of the policy
Other Features 
Free Look CancellationIn case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.
Grace PeriodYou are allowed to pay premiums within 15 days from the due date. If a due premium is not received within the grace period of 15 days, your policy will lapse and the life insurance cover, including the rider cover, if any, will be terminated.
Lapsed Policy ReinstatementA lapsed policy can be revived subject to underwriting. For Revival the Policy Holder has to pay all premiums not paid from paid to date along with any premium due in the next 15 days.
Tax BenefitsSection 80C, 10 (10D) of the Income Tax Act, 1961 would apply.
ExclusionsIn case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. Further, if the Life Assured under the policy, whether medically sane or insane, commits suicide, within one year of exercising the option to increase the Sum Assured, then the amount of increased Sum Assured will not be considered in the calculation of the Death Benefit
Maturity ValueOn maturity, the risk cover ceases and the insurer will return all premiums paid over the term of the policy, excluding extra premium charged due to underwriting, revival fees if any, alteration charges if any, service tax and education cess.
Surrender ValuePolicy can be surrendered after first three years of the policy. 75% X Premiums paid (excluding the first premium, any extra premiums and revival or alteration charges) X duration elapsed up to the date of surrender in completed years/policy term.
Customer Service 
AddressHDFC Standard Life Insurance COmpany Limited, 13th Floor, Lodha Excelus, Apollo Mills Compound, N M Joshi Road, Mahalaxmi, Mumbai - 400011
Mail To[email protected]
Call On1800 227 227
SMS[email protected]
Annual Premium Option for Male
Policy Term (in years)Age (in years)
25303540455055
104128042160511206674082860107020132280
15182801896023820310604112054660NA
201520016100205402650035500NANA
2514420154801980024320NANANA
30141801532019580NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax
Annual Premium Option for Female
Policy Term (in years)Age (in years)
25303540455055
10384203884046780523607394093920114520
15168601724021480249203586046680NA
201424014760185802156030840NANA
2513680143601812020780NANANA
30131201396017660NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax