A life insurance policy is generally considered to be one of the most important requirements for a comfortable, hassle-free life. Not only does a life insurance policy guarantee that one’s dependents will be well looked after even if they are no longer around, but it can also contribute to building a substantial corpus to fulfill their future financial goals.
One of its primary benefits is the plethora of different types of life insurance plan and policies on offer to prospective policyholders. One can choose their preferred plan based on their unique individual requirements.
Key Takeaways
|
Read on to learn more about the different types of life insurance policies that are available for policyholders in the market.
Different types of life insurance policies ensure that prospective policyholders have a host of choices to choose from, based on their own individual requirements.
The iSelect Smart360 Term Plan, available on Canara HSBC Life Insurance, offers comprehensive protection at low rates and even allows policyholders to choose the frequency of premium payments. The policy can be further augmented through in-built riders such as Accidental Death Benefit and Permanent Disability Benefit, which keeps policyholders protected in a holistic manner.
An OTP has been sent to your mobile number
Sorry! No records Found
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
Life insurance policies not only provide financial security to your loved ones but also offer significant tax benefits. Depending on the types of life insurance you choose, you can claim deductions and exemptions under the Income Tax Act, 1961.
Under Section 80C, premiums paid for a life insurance policy are eligible for tax deductions up to ₹1.5 lakh per financial year. This applies to various types of life insurance policies, including term plans, whole life insurance, endowment plans, and ULIPs. However, to avail of this benefit, the premium should not exceed 10% of the sum assured.
The maturity proceeds, death benefits, and survival benefits received from a life insurance policy are tax-exempt under Section 10(10D), provided the premium does not exceed the prescribed limits. This ensures that your family receives the entire sum assured without any tax deductions.
Unit Linked Insurance Plans (ULIPs) offer dual benefits of investment and insurance. The premiums paid for ULIPs are eligible for deductions under Section 80C, while the maturity benefits are tax-free under Section 10(10D). Additionally, the long-term capital gains (LTCG) tax on ULIPs is exempted if the annual premium is below ₹2.5 lakh.
Many types of life insurance policies allow policyholders to add riders like critical illness, accidental death, or disability benefits. The premiums paid for these riders are eligible for tax deductions under Section 80D if they provide health-related coverage.
Unlike term insurance, whole life policies do not expire and often include a cash value component that grows over time.
Source: Investopedia
With multiple types of life insurance available, selecting the right one can seem overwhelming. Here’s how you can make an informed decision:
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.
Choosing the right life insurance policy depends on your financial goals, risk appetite, and the needs of your dependents. Whether you seek pure protection, savings, or investment-linked growth, there is a suitable life insurance policy for you. Understanding these types of life insurance policies will help you make a well-informed decision that aligns with your long-term financial security.
The premium is one of the most important factors to consider before buying a life insurance 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 plan. 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.
Life 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 chance of contracting diseases is low. Young people also opt for the best life insurance 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. Life insurance policies with longer tenure are cheaper as compared to short-duration policies.
Mode of purchase: The platform that you use to buy the best life insurance 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 physician’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.
Buying the best life insurance plan 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. The best life insurance policies online insurance offer higher benefits. Customers should, however, buy online life insurance policies only from credible insurers and should check for SSL certificate on the website to ensure that the website is legitimate.
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.
Suicide: If the life insured commits suicide within 12 months of buying the life insurance policy, the insurance companies generally pay 80% of the total premiums paid.
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 life insurance policy to increase the cover or avoid claim rejection. In case of multiple life insurance 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 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 a life insurance policy, the insurance company asks for the nominee details. Only the person named as the nominee in the life insurance plan can cash out 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 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 beneficiary receives the death benefit. In case of iSelect term plan, the policy provides four payment options to the beneficiaries. If the regular payment option is chosen, the policy works as a source of regular income.
It is a popular misconception that life insurance plans are only for accidental deaths. A term life insurance plan like iSelect Star Term Plan 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 a life insurance plan in your early 20s because it 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 the best life insurance plan 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 life 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.
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.
