On the basis of your article of term life insurance, I went to HDFC Website and selected HDFC Click2Protect and got Illustration for 1.2 crore sum assured for a 39-year-old for 21 years term for HDFC Life click 2 protect.The benefit illustration mentions the below
Illustrative Benefits on Death
10 times Annualised Premium
105% of Total Premiums Paid
My annual premium is around Rs 18400.In this scenario what will be sum assured if someone dies say after first year what will be the Sum assured the nominee gets will it be 1.2 crore or less?
Let us assume the insured dies within a year. So the insured paid Rs.18,400 as premium. In that case, the HIGHEST of the below will be payable.
b) 105% of Rs.18,400=Rs.1,93,200
c) Rs.1.2 Crore Sum Assured.
So which is HIGHEST among above three? Obviously, it is last option, RIGHT?
Hope I cleared your doubt.