HDFC Premium Guarantee Plan

HDFC Life Premium Guarantee Plan is a variant of a pure term plan where the sum assured is paid to the nominee on death of the life insured and the premiums are returned to the life insured on maturity. Thus, if the life insured dies within the policy tenure, then death benefit is payable else maturity benefit is payable to the life insured if he survives the entire period. The premium paid by the policy holder would be returned in case the  policy holder survives the term of the policy.

Compare Term Insurance Plans
 

• Sum Assured is payable to the nominee as Death Benefit if life insured dies
• Premiums are returned to the life insured on survival till the end of the tenure

• Death Benefit – Once the life insured dies during the policy is inforce, then the nominee would receive the sum assured as Death Benefit.
• Maturity Benefit – The premiums are returned to the life insured if he is alive till the end of the policy term.
• Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 10 lakhs and Policy Term = 25 years

Riders – No riders are available in this plan

• You stop paying the premium – If the premiums are not paid within the grace period of the policy, it would lapse and all benefits would cease to exist. After completion of 3 years, the policy is in paid up state and it would be payable to the life insured on maturity or to the nominee on death of the life insured, whichever is earlier.
• You want to surrender the policy – Surrender Benefits are available after completion of 3 years. The guaranteed surrender value is 75% of all premiums paid.
• You want a loan against your policy – Loan facility is not available under this policy.