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All You Need to Know About Insurance Types, Portability & Its Benefits

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All You Need to Know About Insurance Types, Portability & Its Benefits
September 18, 2024

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Introduction to Insurance and its Importance

Life insurance is an essential product that protects your family in the event of a tragedy. However, many people tend to go without it. The majority of Indians do not possess life insurance, which is very necessary to protect your loved ones to fight inflation and rising costs when you may not be around. A reason for not opting for insurance is possibly because a lot of people don’t realise the benefits it can offer. In the current financial climate of inflation and uncertainty, insurance plans can bridge the gap between circumstances that are beyond human control and financial security. The only way to combat inflation and secure your financial future is to plan for it with an insurance product.

Apart from this, most Indians think that insurance is too costly. What people do not realise when they put off buying insurance plans for long periods, is the fact that premiums only rise as your age does. Furthermore, the more costs rise in the economy, the more you put yourself at risk without a plan to see you through the ever-increasing reality of inflation. Hence, the earlier you get insurance, the better. In addition to providing financial protection, life insurance plans now come with options to save and even grow wealth. Finally, while you allocate your wealth to an insurance plan, you enjoy certain tax benefits too.

Types of Insurance

Buying life insurance is essential in India, and you can go in for plans that meet your individual financial requirements and goals. Selecting life insurance is a very personal decision and you should check out the different kinds of plans that companies offer. Some common kinds are mentioned below:

  • Term Life Insurance

    The most basic plan, term insurance is affordable and simple to understand. A term insurance plan offers life cover to a policyholder for a particular tenure. In the event a policyholder’s death occurs within the term of the policy, the nominee mentioned on the policy receives a death benefit pay-out, which is then handed over to beneficiaries or heirs. With such insurance, premiums are low and cover is high. HDFC Life Click 2 Protect Super is one such term plan which provides varying cover along with comprehensive protection as per your evolving needs.

  • Unit-Linked Insurance Plans (ULIPs)

    Such plans blend life insurance and investment, and help you to grow your capital while offering you life cover. Part of the premium you pay towards a ULIP goes into your insurance cover, while a portion is invested in various funds such as equity, debt or hybrid funds. Investing is flexible as per your unique appetite for risk and need for financial returns.

  • Endowment Plans

    An endowment plan covers your life and helps you save your money. A part of the premium is allocated to investment, while the rest goes toward life coverage. If the policyholder outlives the policy term, a maturity benefit is given to the life assured. Endowment plans are popular as they offer periodic benefits and bonuses. This is a great long-term saving and wealth-accumulation option.

Portability and Other Benefits

Portability is a benefit that you get with health insurance plans, and is not offered by life insurance plans. Portability means that you can port a plan from one insurance provider to another. In the case of a life insurance plan, you may wish to change your provider, but you will have to surrender your current plan. You may also have to pay a charge for surrendering your policy. However, when you choose a life insurance plan, you should do your research well beforehand and pick a plan that suits you. Plans offer many benefits in terms of tax benefits, bonuses and maturity pay-outs, and with plans that invest in market-related instruments, you may get dividends too.

Related Articles

ARN: ED/11/22/30304

Term Plan Articles Term Plan Articles

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Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

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HDFC Life Click 2 Protect Super (UIN No.: 101N145V01) is a Non-Linked, Non-Participating, Individual, Pure Risk Premium/Savings Life Insurance Plan. Life Insurance Coverage is available in this product. For more details on risk factors, associated terms and conditions and exclusions, please read sales brochure carefully before concluding a sale.

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