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4 Gifting Ideas to Ensure Your Father Has Financial Freedom

dateKnowledge Centre Team dateJune 21, 2021 views142 Views
Buy the Best Life Insurance Plan | Life Insurance Policy Online in India

Fathers do a lot more for their children than they are acknowledged for, both financially and emotionally. Your father earns and saves to cater to your education and other needs that you usually demand. Thus, he has been the primary reason for your financial security today. There can be no better time than Father's Day to bring a smile to his face. While most of us choose to give materialistic things on such special occasions, providing him financial independence during the post-retirement years to come.

Saving and smartly investing the money might be the best life lesson your father has given you. It's your responsibility to do your part and give him the best gift for Father's Day in form of a life insurance plan.

1. Health insurance

Medical illness takes away a huge chunk of your savings. It is quite possible or even obvious that the older your father grows; he's more prone to get health issues.

So, it is wise to invest your money in advance to deal with any unforeseen event without worrying about the costs. Medical insurance will be a great gift. Medical insurance policies are two-way policies that help in appropriate money investment and use the same money to pay your medical bills.

For example, the Health First Plan by Canara HSBC Oriental Bank of Commerce Life Insurance covers 26 major critical ailments at an affordable monthly premium and lump-sum pay-outs on initial diagnosis on any of these conditions.

2. Term insurance

A term insurance plan provides cover for any risk of the early death of the policyholder. In addition, it provides financial support to the family after the insured person's demise. But buying term insurance will even offer security to your father after he retires.

You can either buy the policy under your name and make your father the nominee. Then, under unfortunate circumstances, your father will receive the plan's additional benefits.

In addition, the insurance company will pay the assured amount in case of death or any terminal illness. Do check the iSelect Star Term Plan that covers all these benefits along with an option to add a spouse.

3. Retirement Plans With ULIPs

Opting for retirement plans as a Father's Day present is something permanent and valuable. Most retirement plans come with long-term investments and savings (ULIPs). It means that if you start investing in the scheme at the age of 25, you can accumulate a large corpus during your working days.

Importane of Retirement Planning

The earlier, the better. Like the term insurance plans, at the time of the policyholder's death, the entire sum is transferred to the nominee. Some ULIPs also offer partial withdrawal. So, you can surely ensure your father's financial freedom after he retires by investing in such a plan.

Know these 5 Tips to plan for retirement.

4. Pension Plans

These plans are very similar to the retirement plans and have a long-term annuity contract to generate income once someone retires. Such a plan might be the perfect Father's Day insurance plan to go for. You can directly collect and save annuity for your father's retirement years. There are several annuity options in such a plan, like a deferred annuity, immediate annuity, and annuity with or without life cover.

The Pension4Life plan is a suitable option as it provides guaranteed lifetime income to cater to your father's future needs as long as he and your mother are alive.

Add this to your Father's Day insurance schemes gift list and purchase among the wide variety of annuities offered under the plan. Gifting life insurance on Father's Day is a unique and sensible decision keeping your father's age in mind. His future financial security is vital as the non-working years might drain his economic and physical strength to gather resources and work again.

Everyone wants a relaxed post-retirement life, so consider life insurance plans offered by Canara HSBC Oriental Bank of Commerce Life Insurance. Make an informed decision and select the best plan to help your father enjoy his financial freedom.

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Frequently Asked Questions (FAQs) for Life Insurance

The premium is one of the most important factors to consider before buying a policy. Many people buy a life insurance policy with a high sum assured but are unable to process the premiums for the entire premium payment tenure. You can get a better idea of the premium outgo with the premium calculator available in the 'Tools and Calculator' section of www.canarahsbclife.com.

Life insurance plans come with several riders which increase the efficiency of the policy for the buyer. For instance, if you have a history of terminal illness in your family it would be advisable to opt for terminal illness rider with your term insurance. Riders or add-ons help in customising the standard policy benefits for the requirement of different families. The iSelect term insurance plan comes with a built-in cover for terminal illness, and option for protection against accidental death or disability. You can also opt to cover your spouse's life under the same policy by paying an additional premium.

Insurance companies calculate the premiums based on several factors such as age, gender and occupation.

Age:It is one of the biggest factors that influence life insurance premiums. Premiums tend to be low when the life insured is younger as the chances of contracting diseases is low. Young people also opt for policies with longer tenures and pay premiums for a longer duration, which makes the policy cheaper for young people.

Gender:The insurance premium for women is generally lower when it comes to life insurance plans. Women live longer and pose a lesser risk of a claim leading to lower premiums for them.

Lifestyle habits:The premiums for people who smoke or drink is always higher due to higher health risks.

Policy term:Policy terms are also taken into consideration by insurers while deciding the premium amount. Policies with longer tenure are cheaper as compared to short-duration policies.

Mode of purchase: The platform that you use to buy the policy also determines how much you will have to pay for the plan. People who buy life insurance policies online have to pay lower premiums as compared to offline policies.

Occupation:The nature of your work is an important factor that influences the premium amount. Certain occupations like shipping and mining are considered more dangerous as compared to jobs in services industries. The insurance premium rises with the risk profile.

Processing life insurance claim is a transparent and smooth process with Canara HSBC Oriental Bank of Commerce Life Insurance.

In case of the death of the life insured, the nominee will have to intimate the company by filling a Death Claim Form and sending it to the nearest branch office.

Once the form is received, the claim is registered by the insurer.

After the registration of the claim, the company will send the claims pack along with the related forms such as physicianâ s statement form and employer certificate that need to be filled.

Along with the duly filled forms a few documents such as original [policy document, death certificate, copy of bank passbook, hospital or treatment records, photo identification and address proof have to be provided.

The claim is processed on the submission of relevant documents. Once the documents are verified, the claim amount is released post all due diligence.

Household expenses rise with age. The cost of children's education increases along with other lifestyle expenses. The iSelect term plan offers an option to increase the cover according to the life stage. If opted, the insurance cover increases by 25% at every 5-year terminal till the 20th policy year.

Even though a life insurance policy is bought to protect your family in your absence. There are chances of the claim being rejected due to several factors.

False information: If the policyholder provides false information or conceals important information while buying the policy, the insurer has the right to reject the claim after his/her death.

Type of death: Deaths due to suicide in first policy year, intoxication or pre-existing disease is not covered under life insurance.

Premium payment: The payment of premiums on time is of utmost important to avail the benefits of life insurance. Life insurance policy may lapse on the failure to pay the premiums

Nominee details: An insurance company can put the claim on hold if the nominee details have not been filled or not been updated by the policyholder.

Suicide: If the life insured commits suicide within 12 months of buying the policy, the insurance companies generally pay 80% of the total premiums paid.

Buying life insurance online is not only safe but a better option. Online life insurance policies have lower premiums and the individual is not required to visit the insurer's branch or a bank. Online insurance policies also offer higher benefits. Customers should, however, buy online policies only from credible insurers and should check for SSL certificate on the website to ensure that the website is legitimate.

The cost of life insurance policies varies depending on factors like age, gender and occupation. The average cost of life insurance plans, especially term plans, is very low compared to the amount of coverage offered.

An individual is allowed to have multiple life insurance policies. People opt for more than one policy to increase the cover or avoid claim rejection. In case of multiple policies, even if the claim is rejected by one insurer, the beneficiaries may receive the benefit from a different insurer.

Life insurance policies are of different types. In the case of unit-linked or endowment policies the policyholder receives the maturity benefit at the end of the policy term. However, in the case of term insurance plans, there are no maturity benefits. The death benefit is only paid out after the death of the life insured.

When you buy life insurance, the insurance company asks for the nominee details. Only the person named as the nominee in the policy can cash out a life insurance policy in case of death of life insured.

A life insurance policy is generally taken for a specified period. After the policy duration of a term plan gets over, the policy simply terminates and ceases to exist. However, in the case of unit-linked plans or endowment, you can use the policy as a tool for retirement planning and the accumulated corpus is used by the insurer to pay you monthly amounts for your entire life.

If a policyholder purchases a term plan for 25 years and dies during the policy term. The family receives the death benefit. In the case of iSelect term plan, the policy provides four payment options to the beneficiaries. If the regular payment options are chosen the policy works as a source of regular income.

It is a popular misconception that life insurance is only for accidental deaths. A term life insurance plan like iSelect also covers terminal disease along with death. A terminal illness cover is important as health insurance pays only for the cost of treatment and hospitalization, but a terminal illness cover pays you a lump-sum amount which takes care of other expenses. On the other hand, unit-linked policies such as Invest 4G cover death and also provide decent returns for other financial goals such as buying a house of child's education.

It is ideal to buy life insurance in your early 20s because it’s is the time when people have just started with their professional life and so there are lesser responsibilities and financial liabilities to take care of. Also, if you buy life insurance at this age, you will be paying relatively lower insurance premiums since it’s a due fact that mortality rate in case of young people is low. And that is why insurance companies offer lesser premium rates to younger people as they think that they are most likely to be fit and healthier with less chances of filing a claim in future.

Once you have cancelled your life insurance policy, you will instantly lose your life insurance cover. Afterwards, your insurance company will get in touch with you and ask for valid reasons regarding the cancellation of your policy. In case you cancel your life insurance policy within the grace period, i.e. 15 to 30 days, depending on your insurer, then insurance company will reimburse the premium amount paid by you. But, no refunds will be paid to you if the policy is cancelled after the grace period.

Yes, you can take life insurance under Married Women’s Property (MWP) Act, 1984 only if you are a married man and a resident of India. Buying a life insurance plan under MWP Act would be helpful in saving your family’s financial well-being when you are not around. As per this policy, only wife and children would be eligible to receive the death benefits. You can also buy a policy if you are a widower or a divorcee. However, in that case, you can give your child’s name as your beneficiary. It is very simple to buy a life plan under MWP Act. All you need to do is to fill up an MWP addendum while purchasing an insurance policy.

Yes, there are different payment options for you to pay premiums. Here’re some of them

    1. Regular premium payment option – This premium payment option allows you to pay premiums equal to your policy term either monthly, quarterly, half yearly or annually.

    2. Single payment option – Through this premium payment option, you can pay the lump-sum amount in one single payment.

    3. Limited payment option -In this premium payment option, you can pay premiums for a specific period of time less than policy term either monthly, quarterly, half yearly or annually, but benefits of insurance can be enjoyed for a longer period of time.

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