HDFC Life Group Credit Protect Plus Insurance Plan

What is HDFC Life Group Credit Protect Plus Insurance Plan?

The HDFC Life Group Credit Protect Plus Insurance Plan is a specialized insurance solution designed for members of financial institutions. This plan offers essential protection by ensuring that, in the event of death, disability, or critical illness of an insured member, their family is relieved from the burden of repaying outstanding loans.

The plan can be taken on a single life or joint life basis, providing comprehensive protection for individuals or partners.

Features of HDFC Life Group Credit Protect Plus Insurance Plan

Following are some of the key features of HDFC Life Group Credit Protect Plus Plan:

• Comprehensive Coverage: Financial protection against death, disability, and critical illnesses.

• Flexible Plan Options: Choose between decreasing or level cover options.

• Customizable Loan Cover Term: Select a term up to 30 years.

• Single Premium Payment: Pay once for the entire policy duration.

• Coverage for Single or Joint Life: Options available for individual or joint borrowers.

• Moratorium Period: Offers level cover during a moratorium period of 1 to 7 years.

• Flexible Coverage Term: Members can choose a coverage period shorter than their loan tenure.

• Top-Up Loan Coverage: Separate repayment schedules available for top-up loans.

• Critical Illness Benefits: Sum assured payable upon diagnosis of covered critical illnesses.

• Simple Administration: Easy to manage with no lengthy underwriting processes.

Eligibility Criteria to Buy HDFC Life Group Credit Protect Plus Insurance Plan

Benefits of HDFC Life Group Credit Protect Plus Insurance Plan

1. Death Benefit

   • Group-Based Coverage: The master policyholder arranges the insurance, and customers join the scheme as members.

   • Types of Sum Assured:

     • Level: The sum assured remains unchanged throughout the membership term.

     • Decreasing: The sum assured reduces based on the repayment schedule agreed at inception, factoring in interest rates, moratorium periods, etc.

   • Repayment Schedule: Defines benefits and ensures payment as per the agreed terms, regardless of the actual loan balance at the time of the member's death.

   • Coverage Basis: Can be single or joint life, covering death, disability, or critical/terminal illness of either insured.

2. Death Benefit in Lender-Borrower Schemes

   • Covers outstanding loan amounts assigned to the lender (Master Policyholder) at inception.

   • Any remaining benefit is paid to the nominee or beneficiary.

Additional Benefits under HDFC Life Group Credit Protect Plus Insurance Plan

• Accelerated Terminal Illness Benefit: Pays the sum assured (level or decreasing) if diagnosed with a terminal illness. The risk cover ceases upon payment.

• Additional Accidental Death Benefit: Pays an additional death benefit (level or decreasing) in case of accidental death, alongside the basic death benefit.

• Critical Illness (CI) Options: Benefits are paid upon diagnosis of specified illnesses. Risk cover ceases after payment.

  • CI Option 1: Coverage up to 5 years or the main benefit term, whichever is shorter.

  • CI Option 2: Coverage up to 10 years or the main benefit term.

  • CI Option 3: Coverage up to 15 years or the main benefit term.

  • CI Option 4: Coverage up to 20 years or the main benefit term.

• Health and Wellness Benefits: Additional benefits to promote wellness are provided with this plan.

• Moratorium Period: Coverage is provided during loan moratoriums (1–7 years). 

  • Sum assured equals the initial amount during the moratorium, transitioning to reducing cover after the period.

  • Available only under the decreasing cover option.

• Surrender Benefit: The main policy cannot be surrendered. Members can surrender their coverage if the loan is fully prepaid or the risk no longer exists. 

• Maturity Benefit: No maturity benefits are payable under this policy.

Critical Illnesses Covered under the HDFC Life Group Credit Protect Plus Insurance Plan

The following 19 critical illnesses are included in this plan:

• Apallic Syndrome

• Loss of Limbs

• Benign Brain Tumour

• Cancer of Specified Severity

• Coma Of Specified Severity

• Open Chest CABG

• End Stage Liver Failure

• End Stage Lung Failure

• Myocardial Infarction

• Open Heart Replacement Or Repair Of Heart Valves

• Kidney Failure Requiring Regular Dialysis

• Loss of Limbs

• Blindness

• Loss of Independent Existence

• Third Degree Burns

• Major Head Trauma

• Major Organ Transplant (as a recipient)

• Permanent Paralysis Of Limbs

• Stroke Resulting In Permanent Symptoms

• Surgery of Aorta

How HDFC Life Group Credit Protect Plus Insurance Plan Work?

You can learn the working of the HDFC Life Group Credit Protect Plus Insurance Plan from the following steps:

• Enrollment: Members join the plan through a financial institution, usually as part of a group with at least 50 members.

• Coverage Selection: Members choose between Level Cover (fixed sum assured) or Decreasing Cover (reducing sum assured over time).

• Premium & Policy Duration: A single premium is paid for the entire policy term, with coverage duration of up to 30 years, matching loan terms.

• Moratorium Period: A 1-7 year moratorium period can be chosen, offering level cover during this time for flexibility.

• Claims & Benefits: In case of death, disability, or critical illness, the nominee or member can claim, and the outstanding loan is paid directly to the institution.

Suicide Exclusion Criteria

Under the HDFC Life Group Credit Protect Plus Insurance Plan, if the policyholder dies by suicide within 12 months of the policy start date or revival, the nominee will receive either 80% of the total premiums paid or the surrender value, whichever is higher, as long as the policy is active.