Written by : Knowledge Centre Team
2026-02-16
985 Views
7 minutes read
Share
A life insurance policy stabilizes your financial plan in case of an unforeseen event. It adds an extra measure of security for the future of your loved ones. Return from life insurance can be used to pay debts, expenses, loans, etc. Life Insurance provides protection even when you are not there.
What is a Life Insurance Policy?
A life insurance policy is a contract between an individual and an insurance company that provides financial protection to the policyholder. The insured person has to pay the insurance company a monthly premium (fees) for a particular number of years as specified in their life insurance policy.
Based on this arrangement, if under unexpected and unfortunate circumstances the policyholder passes away, or if the policy matures, the life insurance provider would pay a lump sum amount to the person or his/her family. This amount is called the death benefit. It is completely tax-free; the person or the concerned nominee can choose what they want to do with it.
Types of Life Insurance Policy
If you are looking for a life insurance policy, you must already be familiar with term insurance and whole life insurance. You should know there are several more options than just these two. Based on your needs and financial situation, you can choose from any of the following options.
- Term Life Insurance- Term life insurance policy offers temporary coverage. The term life insurance is considered the most affordable life insurance policy. The term insurance lasts several years before it is expired. If the policyholder dies within the specified period, a death benefit is paid to the nominee or the family.
Term life insurance policy offers more pocket-friendly premium costs than any other life insurance policy. You can broaden the coverage, and convert it into a permanent life insurance policy before it expires without undergoing medical underwriting. - Whole Life Insurance- The whole life insurance policy, on the other hand, offers full coverage till 100 years of age, it does not expire. A whole life insurance policy has a death benefit and a cash value. It is what you can consider a tax-deferred savings account, an investment included in a policy. They contain a cash value that accumulates interest at a predetermined fixed rate.
Every month a certain amount from your premium goes into the cash value of the policy with a guaranteed rate of return. This cash value can be withdrawn or loaned. This component of whole life insurance also makes it more complex than term life insurance due to the taxes, interest, surrender fees, and other stipulations. - Endowment Life Insurance Policy- Endowment life insurance policy offers the benefits of both insurance and savings. It ensures that the death benefit is payable even if the policyholder is still alive by the maturity date of the policy. And if the policyholder passes away during the terms of the insurance policy, the nominee receives the sum assured with the addition of bonus or participating profits.
- Money-back Insurance Policy - Money back policy provides a periodic return along with the benefit of life insurance cover. It gives you money during the term of insurance. A percentage of the sum assured is given back to the policyholder at regular intervals during the policy term. The remaining portion is payable at the end of the term of the policy. In case the policyholder dies before the end of the term, the nominee is paid the assured total regardless of the premium payments received by the policyholder.
- Unit Linked Investment Plans- ULIP ( Unit Linked Investment Plans ) offer flexibility in investment in addition to life insurance. It is one of the most flexible life insurance policies available in the market. A percentage of premium is used to provide insurance, while the rest is invested in the capital markets. The policyholder is free to choose from a variety of funds investing in equities, debts, market funds, etc.
- Child Insurance Policy- A child insurance policy is another way to secure your child’s future. It is a savings cum investment plan, designed to meet your child’s financial needs. It allows you to build a fund for your child’s future education and dreams. Most of these policies provide annual installments and could be withdrawn once your child has reached adulthood. In case of your passing during the policy term, an immediate pay-out is payable.
- Retirement Plan - These retirement plans allow you a financially safe and happy retirement. Helping you to live independently, without any financial worries. It is designed in a way so as to generate a regular income for the policyholder after their retirement which is referred to as pension or annuity. In case the policyholder passes away during the policy term, the nominee will receive an immediate payout.
Who Needs a Life Insurance Plan in India?
A life insurance policy is a way to ensure your wellbeing and provide a safety blanket for your loved ones in case of an unfortunate event or emergency. Who should get a life insurance policy and when they should get it depends on multiple factors.
- Parents with minor children: In case of the unfortunate death of a parent, the loss of income or care could create a financial crisis. Life insurance can ensure that kids will have the financial resources they might need. This insurance will also help fund your child’s education in the future.
- Parents with special needs adult children: For children who require lifelong special care and will never be able to support themselves, life insurance will ensure their safety and financial needs in case their parents pass away. A life insurance policy will act as a special needs trust for them.
- Young and single adults: Young and single adults do not need life insurance for the most part, but getting early life insurance will make sure that the premium stays low for when you need life insurance in the future. This is because the premium cost increases with increasing age due to the increased probability of diseases and deaths.
- New Families: Newly married couples, starting new families together should get a life insurance policy to ensure that the people depending on them have financial aid to lean on in case of unfortunate passing. Children and spouses will have the payout to help them build a future.
- People with a home loan: Homeowners know buying a home is not an easy task. Purchasing a home on a home loan means monthly EMIs. This expense puts a drain in your pocket. In case you pass away, your family might not be able to support themselves and give EMIs at the same time. To avoid such a crisis and sure their financial wellbeing it is important you get a life insurance policy.
- Business owners: A business owner or business partner has many people depending on him/her. In case something happens to you, these people will be put in a delicate position. Therefore it is important that you have separate life insurance to cater to your business obligations.
- Life insurance for parents: The only people who have consistently supported you both emotionally and psychically throughout are your parents. With aging, their financial wellbeing falls in your hand. It is a good idea to have life insurance for your parents. This will provide them with financial stability.
Benefits of Life Insurance
A life insurance policy comes with many benefits and advantages:
- Life risk cover to protect your loved ones.
- Financial Security and death benefit in case of sudden death and passing.
- Investment and value return to build wealth and finance for future expenses.
- Tax deduction and benefits for a salaried person.
- Savings for future emergencies and unforeseen circumstances.
- Availability of policy loan in case of an emergency.
- Secure and guaranteed income after retirement for a happy and secure life.
- Secure your business and fulfill your business obligations.
- Life stage planning to achieve and manage your financial goals and future expenses.
Who is Eligible For Life Insurance?
Life insurance is evaluated on a case-by-case basis. Life insurance is not just for healthy and wealthy people. Several companies are offering multiple types of policies specific to several needs. You can get affordable insurance even if your previous applications have been denied.
Although generally, the younger and healthier you are, it is easier for you to qualify for life insurance. Increasing age and health conditions lead to difficulties regarding the qualification of life insurance. Certain lifestyles consisting of regular alcohol consumption and tobacco or risky hobbies like adventure sports and sky diving also make your application harder to qualify.
Canara HSBC Life Insurance offers several life insurance policies to choose from. Here we help you plan and build a better and secure future for you and your loved ones. Compare different life insurance policies and choose what benefits you and caters to your needs the most. Canara HSBC life Insurance is IRDA registered. With lakhs of policies sold and a customer base of crores, we are known for our credibility. We have a network of more than 20,000 branches and 40 branch offices.
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.
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
1101 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
1361 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