Written by : Knowledge Centre Team
2026-01-08
889 Views
7 minutes read
Share
An insurance policy acts as an umbrella on a rainy day. It is a saving tool and will provide you with peace of mind and protect your family. When it comes to purchasing a life insurance policy, there are several options available, which means you need to do your homework and ensure that you not only get adequate coverage but also:
A convenient way for your family to receive the benefits
Safety from additional risks that may affect your earnings
A life cover that can do a lot more for you and your family
An insurance plan that evolves with your life and progress
You need to carefully analyse the benefits offered in the policy and ensure that those are present in the one you choose to buy.
A good life insurance plan should offer monthly payouts to help your family manage everyday expenses without financial stress.
Key Takeaways
|
What is a Life Insurance Policy?
Before choosing the right policy or evaluating its benefits, it is important to understand what an insurance policy is. At its core, an insurance policy is a legal contract between you and the insurer. You agree to pay regular premiums, and in return, the insurer provides a sum assured or benefit upon the occurrence of a specified event, such as death, illness, or retirement.
There are various types of insurance policies, such as term insurance, endowment plans, ULIPs, and pension plans. Each serves a different purpose, so understanding your financial goals and risk appetite is essential before making a choice.
Secure Your Family’s Future with the Right Life Insurance Plan
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy No.
Address of the Policyholder as per records
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
7 Must-Have Benefits in Your Life Insurance Policy
Consider the following benefits before choosing a life Insurance policy:
- Regular Income as Policy Pay-Out: Choose a plan that not only provides a lump sum amount but also offers a regular monthly income to your family. You might ask, why monthly income?.
Here’s a scenario that should help you understand the importance of the monthly income as a life insurance claim payout:
Your household expenses run on a monthly budget. As long as you are present to manage the budget, your household operates smoothly. But imagine if you are not there to allocate that household budget from your income, how will your family maintain the same financial rhythm?
You might say that the family has a large sum from the life insurance policy. Technically yes, but they not only need to run the household out of this pool, but they also need to ensure the following:
- They don’t end up exhausting all the money too quickly
- Meet all the future goals
- Don’t compromise too much on the lifestyle
- Keep tax liabilities to a minimum on the interest
These are not easy questions to answer, and even many financial and investment experts may falter at times. Plus, if you want to convert a part of the pool to ‘safe’ regular income, you need to get an annuity plan from a life insurer.
So, in a way, unless your family receives the regular income from a life insurer, they’ll need to invest a part of the pool back with the insurer. The regular payout directly as life insurance proceeds can help fill the gap and save your family unnecessary efforts.
Additionally, you can also choose an increasing monthly income instead of a fixed one, which will help the family beat inflation in the long run.
- Premium Waiver: There are situations in life which may not be as bad as ultimate death, but they are financially devastating. For example, temporary disabilities or long-term disabilities are damaging enough to your earnings. But permanent total disabilities, like loss of both legs or hands or other limbs, can change your life forever.
However, in that situation, you would want your life cover to continue and not compromise your family’s financial safety. The premium waiver is a feature that helps you continue the life cover in case of permanent total disability, without paying premiums.
The iSelect Smart360 Term Plan by Canara HSBC Life Insurance offers this feature as an add-on benefit.
- Increasing Life Cover: Unlike other needs like lifestyle and income, your life cover needs also grow, at least so far as your family and lifestyle keep growing. There are only two ways to keep your life cover adequate for your family over time:
- Buy a new life cover each time there’s a significant change in need
- Increase the life cover in your existing life insurance policy
If you have bought a term life cover previously, you know how tedious it can be to get a new policy. It is an exercise you would not like to repeat every few years. Obviously, for the second option to happen, your policy should have the feature to allow you the same. Term Insurance Plan by Canara HSBC Life Insurance offers two flexible options to help you match your life cover with your growing needs:
- Life-stage Increments: Life-stage increments allow you to increase your cover at crucial life moments like marriage and childbirth. Both events mark a significant increase in your financial responsibilities, giving you the chance to keep up your life cover without having to go through the entire application and underwriting process again.
Otherwise, you can opt to increase your life cover by 5% every year. The increments will continue until the sum assured has doubled or you reach 60 years of age. This option would be more useful if you are buying term insurance when you already have a family with children. - Insurance Against Terminal Diseases & Disabilities: We have discussed in the second point above about disabilities which can affect your income. But disabilities are just one of the risks you can insure against; life-threatening diseases, accidental death are others.
All three risks not only affect your income but also increase your expenses like:- Treatment cost for life-threatening diseases like cancer, heart or kidney failure
- Hospital expenses and medical bills during recovery after an accident
- Modifications to life, home and vehicle after a disability
The insurance covering you and your family from these costs will help you sail through such difficult times, at least without financial worries.
- Child Support Benefit: With all-inclusive plans like the iSelect Smart360 Term Plan by Canara HSBC Life Insurance, you don’t have to worry about your child’s future, too. Child support benefit is an added sum assured for the benefit of your child. The amount is separate from the life cover or any other benefit added to the plan. The policy pays this amount under death or critical illness claims.
Child support benefit amount can be directly invested towards children’s goals, and it takes away another challenge of investment. Your child’s goals will be safe with this addition in place, regardless of what happens with the other benefit payouts. - Cover for the Homemaker: The spouse who looks after the family has immense financial value. If she goes away and can no longer look after the house and children, you will need additional support to look after growing children and their needs.
Then why not have a life cover for her as well? Since the cover for a homemaker is based on a portion of household and other costs, it is significantly lower than your life cover. It is large enough to have either a separate term life cover or jointly with you. - Whole Life Cover to Leave a Legacy: The need for life cover happens to grow in the first half of your earning life, while it falls rapidly in the later stage of the second half. But unless you have opted for the return of the premium at the expiry, all the premiums go down the drain if you survive the term.
But you can do more than just receive your premiums back at the expiry of your term life cover.
The iSelect Smart360 Term Plan by Canara HSBC Life provides the option to receive the premiums back at 60 and continue the cover until the age of 99. Basically, it allows you to give a financial estate to your grandchildren and leave a legacy for them.
Final Thoughts
The right insurance policy can be aligned with your financial needs, and it will allow you to design your financial safety nets. Before buying the plan, consider the financial needs of your family and factor in inflation. It will ensure that your loved ones lead their life in comfort without any financial worries.
The iSelect Smart360 Term Plan by Canara HSBC Life Insurance offers all these features and more, empowering you to design a policy that matches your needs today and tomorrow. With options for higher coverage discounts and custom add-ons, it’s a plan built to keep your family’s future safe, no matter what life brings.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
5 Benefits of Gifting Life Insurance Cover to Your Spouse
09 July '26
1100 Views
8 minute read
Discover how gifting life insurance to your spouse supports financial security, protection and long-term family planning.
Read More
Life Insurance
How to Secure Your Future with Whole Life Insurance?
09 July '26
1025 Views
6 minute read
Discover how whole life insurance provides lifelong coverage and helps support long-term financial planning goals.
Read More
Life Insurance
Best Short-Term Investment Options with High Returns in 2026
08 July '26
1360 Views
12 minute read
Best Short-Term Investment Options in India. Find the top 10 short-term investment options with high returns for a short time.
Read More
Life Insurance
What is Deductible in a Life Insurance Plan?
08 July '26
1410 Views
8 minute read
Learn what is deductible in a life insurance plan and how it impacts your coverage. Get expert insights and guidance from Canara HSBC Life Insurance for better planning.
Read More
Life Insurance
Persistency Ratio in Insurance: Meaning and Importance
08 July '26
2868 Views
10 minute read
Know what the persistency ratio in insurance means, how it is calculated, why it matters for insurers and policyholders, and what it indicates about policy performance.
Read More
Life Insurance
What is Insurance? Meaning, Types & Benefits Explained (2026)
07 July '26
9340 Views
10 minute read
Understand insurance meaning, types, benefits & why insurance is important for financial security in India.
Read More
Life Insurance
PLI Interest Rate 2026: Updates, Key Features & Eligibility
07 July '26
1231 Views
9 minute read
Explore the latest PLI interest rates, bonus updates, and key features for 2026. Learn about policy types, eligibility, and benefits of Postal Life Insurance.
Read More
Life Insurance
Happy Father's Day 2026: Celebrate Every Father's Promise of Protection
20 June '26
33 Views
5 minute read
Celebrate Happy Father's Day 2026 by honouring every father's love, care and commitment. Discover how life insurance helps protect your family's future.
Read More
Life Insurance
What is an Insurance Coverage?
06 May '26
1404 Views
8 minute read
Learn what insurance coverage means, how it works and why choosing the right coverage is important for financial protection.
Read More
Life Insurance
Life Insurance - Top Selling Plans
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Family Shield: Enhanced Protection
iSelect Smart360 Term Plan
- 3 Plan options
- Life cover till 99 years
- Steady income benefit
- Block your premium at inception
Start Young, Pay Less, Stay Secured
Young Term Plan
- Life cover till 99 years
- Coverage for spouse
- Block your premium rate
- Covers 40 critical illness
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Popular Searches
- Term Life Insurance
- Whole Life Insurance
- Critical Illness Insurance
- Accidental Death Benefit Rider
- Compare Life Insurance Quotes
- Best Life Insurance Companies In India
- Factors Affecting Life Insurance Premiums
- Life Insurance Rider
- Life Insurance Plans
- Types of Life Insurance
- Term Life Insurance Tax Benefit
- What is Insurance?
- Life Insurance Premium
- Life Insurance For Children
- Life Insurance for Seniors
- Whole Life Insurance Plans
- Group Life Insurance Plans
- Life Insurance Claim Process
- Tax Benefits of Life Insurance