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5 Worst Life Emergencies and How to Tackle them with an Insurance?

dateKnowledge Centre Team dateMay 03, 2021 views287 Views
5 Worst Life Emergencies and How to Tackle them with an Insurance?

Emergencies are unwanted intruders in our lives. Seldom can anyone predict their arrival, the only thing you can do is stay prepared, and hope that it’ll depart soon. Preparing for any emergency is not as simple as it may sound, and you may have to prepare at multiple levels – first, to avoid and second to safeguard against it. For example, fire in the house is a risk. You can keep fire extinguishers and hoses at home to control it as soon as it starts. However, the aftermath may still leave many expensive items destroyed or lost.

No amount or quality of fire extinguishing equipment can save you from this loss. However, there is something which can help you recover from it. It’s called insurance.

There are many more common emergencies in your life, and you should stay financially prepared for them. As you may not have a lot of control over the developments. Here are five such emergencies life and health insurance plans can help you out of:

1. Health Issues Requiring Hospitalization

There are many and more frequent causes of hospitalisation. A continued illness, accidental injuries, need for operation and aftercare. Timely hospitalization in minor illnesses can save you from many major health issues and expenses.

However, given the rise of treatment costs and the cost of medical support, a health cover that can cover them for you is a better plan. Mediclaim cover can also allow you to avail of cashless treatment in an emergency.

While you can have Mediclaim insurance to cover the hospitalisation cost of any ailment, conditions like heart ailment would need a lot more. For such situations, you can have critical health insurance, which provides a large cover amount for such conditions.

ULIPs for planning your retirement

2. Accidents

You may be the soberest and disciplined driver on the road. But still, accidents do happen. Sometimes these accidents are nobody’s fault and occasionally due to somebody else’s negligence. Accidents happen without warnings, unlike even heart attacks that mostly happen when there is an underlying medical condition.

Accidents can cause temporary or permanent disability or even death. It is not possible to predict which part may be affected by an accident. Whereas the pain of an accident cannot be reduced, buying the best health insurance plan can reduce financial stress. Top health insurance plans have inbuilt features to pay money in case of death or disability due to an accident.

Accidental covers are usually available as an add-on cover with health or life insurance plans. The best way to avail of an accidental cover is to add it to your term insurance plan.

3. Diagnosis of Life-Threatening Illnesses

Life-threatening illnesses are not the same as terminal illnesses. There is a ray of hope in life-threatening illnesses. With intensive treatment and care, treatment is possible. Cancer, Diabetes, Heart Ailments, etc are some of the commonly known critical illnesses. The most important and deciding factor here is time. Early detection gives more time for treatment and recuperation. Most top-class insurers offer preventive health check-ups as part of the family health plan. Regular glucose check, watching out for symptoms, etc can go a long way in leading a good quality of life after treating such serious illnesses.

Each such illness will have different symptoms and methods for diagnosis. However, as a thumb rule, any sign of change from the normal is a red flag. Significant quick weight loss, skin discolouration, inflammation, and growth of lumps, change in bowel and urinary habits are some common symptoms to look out for. Blood glucose levels and Blood Pressure (BP) can be periodically measured at home using high-quality, affordable, portable devices. In case the readings are outside the normal range, you must immediately visit the hospital.

A good Critical Cover health insurance policy for conditions such as Cancer or Heart Treatment may offer a direct fixed cash benefit without considering the expense incurred. Look at the simple example tabulated below. This illustrates the Health First Plan of Canara HSBC Life Insurance.

Ramesh, aged 40 years, is diagnosed, with a minor Cancer condition, at the age of 55 years. Ramesh has the following Cancer Cover with him and will get a lumpsum amount of Rs.7.5Lakhs irrespective of the expense incurred.

Plan Sum Assured Policy Term
Cancer 30Lakhs 25 years

All future premiums for this policy will be waived off thereafter. If Ramesh is, unfortunately, again diagnosed with a major Cancer condition at the of 58, he will receive Rs.22.5Lakhs and the policy would terminate.

4. Disabilities Due to Illness or Accident

It is widely known that accidents can lead to disabilities. However, it is lesser known that illnesses and serious ailments can also lead to loss of limbs, eyesight, or internal organs. For example, chronic diabetes when left untreated can cause loss of vision or gangrene. Similarly, tumour growth is very common in the Uterus, Ovaries, or Breasts in the case of women. The spread of cancer to the bones, lymph nodes can result in amputation of legs or hands depending on the severity of growth. Early detection helps because some cases may be treated with localized radiation therapy.

5. Untimely Demise

Life is unpredictable. So is death. Untimely demise can happen due to terminal illness, accident, or any natural calamity. But in any case, planning is key. Although the absence of the person can never be filled with anything, financial support will help the near and dear ones. Insurance covers such as iSelect Star Term Plan of Canara HSBC Life Insurance offer a policy with multiple benefits. The Sum Assured is paid on the demise of the insured person. If the insured person lives until the maturity of the policy, the entire premium paid is returned.

3 Insurance Plans to Cover Against Emergencies

All of these five emergencies can affect your or your family’s lives to a different extent. Two things that remain common among them all is:

  • Your capacity to earn remains limited even if temporarily
  • It is costly to recover from such emergencies

Thus, comes the insurance in the picture. Also, you don’t need a lot of policies to prepare against all of them. Just three:

1. Mediclaim Insurance preferably a family floater covering all the members of your family

2. Critical Health Cover, covering all the family members

3. Term life insurance, covering all the earning members, esp. you and your spouse

With the iSelect Star term plan from Canara HSBC Life Insurance, you can expect to cover against everything with just two policies – term life insurance and mediclaim. iSelect Star term plan provides cover against terminal illnesses along with the life cover by default.

Here’s how you can play “Life ka Powerplay” with iSelect Star Term Plan.

Emergencies can strike anytime without a warning. But you can do your bit by planning well on how to cope with such challenges and emerge much stronger.

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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

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 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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