Written by : Knowledge Centre Team
2025-09-18
1105 Views
8 minutes read
Share
Life insurance plans help you meet some of the most important financial goals in life. Starting from the very basic financial need of ‘safety’ for your family, life insurance can continue to offer services until your natural demise.
Legally, life insurance is a contract between you and the insurer. Under this contract, the insurer promises to pay a large sum of money to your family for a nominal premium cost. However, life insurance plans offer a lot more than just a tool of financial protection.
You can use life insurance plans to:
- Meet important future goals for the family, like child’s higher education and marriage.
- Build wealth while passively investing in equity markets
- Build a tax-free retirement corpus for yourself and your spouse
- Create a reliable source of long-term (lifetime) income after retirement
- Leave a legacy for your children or grandchildren
With so many possibilities, you can even say that life insurance plans can help you look after almost every investment need you will encounter in your life.
Types of Life Insurance Plan
Depending on the use and purpose of the life insurance plan we can have the following types:
- Pure Protection Plans: Pure protection plans offer financial safety in case of a contingency. For example, death, illness, disability, etc. Pure protection plans cannot be used for meeting future financial goals. However, they will help the survivors sail through life without financial hiccups.
There is no investment component in these plans.
- Saving Plans: Savings plans consist of safe investment plans. These plans can help you preserve your wealth and achieve very important goals. Most of these plans will offer guaranteed returns, where you can estimate the maturity value of your investment in the beginning.
These plans are best for saving money towards very important life goals and offering protection to such goals of your family.
- Unit Linked Insurance Plans: Unit-linked life insurance plans or ULIPs are excellent investment plans which also let you invest in equity markets. If you are an aggressive investor who wants to manage your high-risk portfolio passively, ULIPs are the best option for you.
- ULIPs offer many features and options for you to ensure that your money keeps working as per the market movements even without your intervention. Promise4Growth Plus by Canara HSBC Life Insurance is one such plan that you may consider investing in.
- Pension Plans: Pension plans are the life insurance plans which help you build a reliable income stream. These plans are also safe investment plans. However, they focus on a long-term regular income, rather than only the growth of your portfolio.
- Immediate Annuity Plans: The income period starts immediately after investment
- Deferred Annuity Plans: The income period will start after a few years from investment
These plans are best if you need to have a reliable long-term source of income out of a large corpus. You will usually get two choices with pension plans
For example, if you invested Rs. 2 crores and want to receive a quarterly income, the immediate annuity plan will start paying off right after the first three months. The deferred annuity plan, on the other hand, will ask you for the deferment period first.
So, if you choose a five-year deferment period, your first pay-out will happen five years and three months later.
| Pure Protection Plans | Saving Plans | Unit-Linked Plans | Pension Plans | |
|---|---|---|---|---|
| Purpose | Provide financial protection to the insured and family | Provide a long-term and safe investment option | Provides an aggressive investment portfolio for wealth building | Provides reliable and long-term regular income |
| Maturity | Plan expires at maturity | Pays the guaranteed value or maturity value | Pays the fund value at the time of maturity | The plan expires and nothing is paid out |
| Life/Protection Cover | 100% Sum Assured | 10-15 times of your annual premium | 10-15 times of the annual premium | 10 times the annual premium |
| Benefit Pay Out Options | Lump-sum and regular income mode | Regular money backs and lump sum maturity | As per investor choice & systematic withdrawals | Paid as regular income at fixed intervals |
| Riders | Accidental Death & Disability, Critical Illness, Child support benefit | Accidental Disability, Goal/ Premium protection | Accidental Disability, Goal/ Premium protection | Terminal illness |
| Bonus | NA | Loyalty and Guaranteed bonuses | Loyalty additions and wealth boosters | Guaranteed additions |
| Joint Holding | Available | Available | Available | Available |
Whole Life Plans: Whole life plans are a simple variation of the existing plans. The only difference is that these plans can continue to cover your life until you reach 99 or 100 years of age. There are two types of whole life plans:
- Whole Life Term Plan: Lower premium and saving component and continues till the age of 99. You can choose a limited premium payment term or equal to the policy term.
- Whole Life Endowment Plan: Higher premium and saving component, achieves higher cash value and can work as a retirement financial support.
Both these plans will help you leave a legacy for your family.
Is it a Smart Investment?
Life insurance is a tool and will only be as good as the choices of the user. However, if you choose the right plan for the right goals, this tool will definitely be your smart choice. Apart from all other features related to protection and investment, the following benefit makes life insurance a smart investment:
- Investment in life insurance plans is deductible from your taxable income in any fiscal year under section 80C, within the limits of Rs. 1.5 lakhs
- Any accrued interest and partial payments received from a life insurance plan is exempt from tax
- Maturity value and death benefits are also exempt from tax
Thus, life insurance helps you beat both inflation and taxes if used properly.
A life insurance policy is a protective layer added to you and your family members. It also does not let your family suffer due to a financial crunch in the case of your untimely death.
Get Life Cover Instantly
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 Holder NamePolicy No.
Policy NumberAddress of the Policyholder as per records
AddressUnclaimed Amount
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
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
Life Insurance Policy Lapse: Impact, Risks and What You Can Do?
16 Jan '26
3003 Views
10 minute read
Know what a life insurance policy lapse means, why it happens, how it affects coverage and benefits, and the options available to restore protection.
Read More
Life Insurance
What Is Premium in Life Insurance? Meaning & How It Works
15 Jan '26
1481 Views
8 minute read
Insurance premium is an amount paid by an individual to the insurance provider for availing of the insurance policy. Know the meaning & how to calculate the life insurance premium.
Read More
Life Insurance
Subrogation in Insurance: What it Is and Why It's Important?
13 Jan '26
1259 Views
8 minute read
Learn about subrogation in life insurance and how it affects your claims. Discover more insights with us for smarter coverage and financial security.
Read More
Life Insurance
Best Investment Options with High Returns in 2026
10 Jan '26
9682 Views
16 minute read
Best Investment Options in India. Looking for investments to meet your long-term financial goals? Here are the best investment plans for the year 2026 in India.
Read More
Life Insurance
Have Multiple Life Insurance Policies? Things You Should Know
09 Jan '26
1291 Views
7 minute read
Is it legal to own multiple life insurance policies? Would it cause any problem in claim settlement? Discover your answers here.
Read More
Life Insurance
9 Things to Do If You Can’t Pay Life Insurance Premiums
08 Jan '26
2449 Views
14 minute read
If you can’t pay life insurance premiums, learn nine practical steps to keep your policy active, avoid lapse, use grace periods, and explore options like revival or premium changes.
Read More
Life Insurance
What is Survival Benefit in Life Insurance?
06 Jan '26
3233 Views
7 minute read
Learn about survival benefits in life insurance, how they work, and their key features. Understand eligibility and payouts with Canara HSBC Life Insurance.
Read More
Life Insurance
Types of Life Insurance: Which One is Best for You?
05 Jan '26
3118 Views
9 minute read
Learn about different types of life insurance policies with Canara HSBC Life Insurance. Discover the best plans in India in 2026 and know how to buy them online.
Read More
Life Insurance
Principle of Indemnity: Meaning, Concept, Example
05 Jan '26
4537 Views
11 minute read
Understand the Principle of Indemnity in insurance. Its meaning, concept, and real-life examples. Learn how it protects policyholders from financial loss.
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