Phone NumberTo Buy: 1800-258-5899 (9 am to 6 pm)

|

Emailcustomerservice@canarahsbclife.in

|

Locate BranchLocate Branch

5 Reasons to Buy the Best Life Insurance Plan

dateKnowledge Centre Team dateJune 24, 2021 views192 Views
Reasons to Buy a Life Insurance Plan | Best Life Insurance Plan in India

Life insurance plans act as financial support for your loved ones in your absence. By including it in your financial goals, you build a corpus and provide a life cover to your family. Life insurance policies save tax and act as a long-term investment.

Imagine this; you spend your life providing for a family. Your family is dependent on you for everything. Have you ever wondered what would happen to them once you are no longer there?

Life is unpredictable, and the pandemic has been a lesson. People are looking to buy life insurance covers for their families, as human value has increased. However, those with existing life insurance policies have the edge over others.

Five Reasons to Invest in Life Insurance Policy

The foremost reason that people need to invest in a life insurance policy is the pandemic. Covid-19 has changed the perspective of many, as people have realized how unpredictable life can get. In such unprecedented circumstances, most people are getting life insurance cover for their families.

Here are 5 reasons why life insurance is important in 2021:

1. Smart financial planning and life insurance

Life insurance policies are an integral part of smart financial planning. It allows you to achieve your long-term and short-term financial goals. A life insurance policy cushions you in case of emergencies, particularly post-retirement.

Read how life insurance is the key to happiness post-retirement.

2. Financial assistance for dependents

Financial assistance is the most important reason that one gets a life insurance policy. It is a safety net for dependents and helps them repay any debts taken in the policyholder's name. Moreover, a life insurance policy covers any educational expense of your children as they receive maturity benefits.

It would act as a replacement for the loss of income, especially if your family were solely dependent on you for income. Certain add-on riders also cover terminal illness, accidents, disabilities, and surgery.

3. Diversify your investments with life insurance

Life insurance policies are low-risk investment options. You can diversify your investment portfolio by investing in life insurance. This ensures that you have a stable investment that balances your risk options.

Portfolio Diversification

4. Build retirement corpus with life insurance

A life insurance policy can be cheaper at a younger age. For instance, Rahul, aged twenty-five will be charged a lesser premium than Sheela at thirty-three. This is because Rahul will be expected to pay premiums for a longer period. By enjoying low premiums, you can keep your investments intact.

5. Life insurance has tax benefits

A life insurance policy helps you save on tax because of the attached benefits. It is a tax-saving investment option for policyholders and investors. The premiums are deducted from taxable incomes as per the provisions of section 80C.

The total amount of the premium should be equal to or less than 1.5 lakhs for this provision to take place. Moreover, the maturity bonus or the death benefits under a life insurance policy are tax-free under section 10.

Types of Life Insurance Policies

There are three types of life insurance plans available in India, and each has its unique feature. These are tailored to suit the unique needs of people and have different premiums.

1. Term life insurance

Term insurance is the most popular form of life insurance in India. Term life insurance has low premiums, which makes it a popular choice with middle-class families. However, term life insurance has a specific tenure, such as 10 years, 20 years, and 30 years.

2. Universal life insurance

Universal life insurance also has a low premium policy and comes with investment savings. The premiums of Universal Life Insurance Plans are usually flexible, though there might be a single lump-sum premium or scheduled fixed premiums.

3. Whole life insurance

A whole life insurance policy has guarantees and comes with additional death benefits. You get cash value and the maturity amount if you outlive your tenure.

Understand the difference between Universal Life Insurance and Whole Life Insurance.

Best Life Insurance Plans Offered by Canara HSBC Oriental Bank of Commerce Life Insurance

Canara HSBC Oriental Bank of Commerce Life Insurance has a wide variety of life insurance plans that you can choose from as per your financial goals and requirements. Choose the best life insurance plan to provide a safe and secured financial future to your loved ones.

1. 4G ULIP

Invest 4G is a ULIP or Unit Linked Individual Life Insurance Savings Plan. This is a customizable plan which can be molded as per your financial goals. The plan comes with the flexibility of paying a single lump-sum premium or for a fixed tenure. The deducted mortality charges are added to your fund value after maturity.

2. Guaranteed Savings Plan

Guaranteed Savings Plan provides a life cover for your entire term while you pay premiums for a limited tenure. It is a guaranteed benefit, which you can receive after maturity if you have paid all premiums.

It has a relatively higher premium, but the value you receive is more. It also comes with added tax benefits under section 80c.

3. iSelect Star Term Plan

This versatile plan can cover your spouse and has a limited premium payment option. Moreover, you get an increasing sum at an affordable price. Canara HSBC Oriental Bank of Commerce Life Insurance also gives you multiple payment options.

Existing policyholders have the edge over others as their plan already includes death due to Covid-19 as a clause. It can also be upgraded to include Covid-19 as a clause. However, new policyholders need not fret as getting a life insurance policy is now easier. One can easily apply for a suitable life insurance plan online.

Related Articles

Browse by Categories

Get a Call Back

Do you want us to call back Please fill the form below

Annual Income (In Lacs)

Our Products

TERM Insurance PLAN

TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

Avail tax benefits on premiums paid as per tax laws

ULIP PLAN

Unit Linked Insurance Plan

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Pos Easy Bima Plan

Top Benefits

Hassle free

Get double life cover in case of accidental death

Choice of flexible premium payment and policy term

Avail tax benefit on premium paid

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.

Call BackCall Back Pay PremiumPay Premium
Chat
Back to top