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3 Things to Consider While Buying the Best Term Insurance Plans for Working Women

dateKnowledge Centre Team dateAugust 23, 2021 views234 Views
Term Insurance Plan | Best Term Life Insurance Plan

The women's percentage in India is 49% of the total population. The role of women in running the family is equal to that of a man. It is because of this reason, the financial security of women is equally important irrespective of the fact women are working or are a home-maker. Below are some of the reasons why women must have term insurance cover:

a) The term plan comes with high coverage for a small premium amount. With a term insurance cover, you have peace of mind. If something happens to you, you know your family's future is secure.
b) Your family maintains a certain living standard at present in which you contribute equally. You need to have a term plan to ensure your family continues to live the same living standard in case of an unfortunate event.
c) As per historical data, women are more prone to diseases. It means they need a term plan with cover for terminal illnesses even more compared to men.
d) Home-makers may not bring in monetary benefit to the family (directly), but they are also an important pillar of the family. They take care of so many things in the house that it is almost impossible to list them down. If something happens to them, term insurance provides a financial backup to the family for getting financial help around the house from outside.

Three Things to Keep in Mind While Buying the Best Term Life Plan Online for Working Women

1. Claim Settlement Ratio

You should check the claim settlement ratio of the company from which you plan to buy the term plan. Canara HSBC Oriental Bank of Commerce Life Insurance has a claim settlement ratio of 97.1 per cent.

2. Speed of Claim Settlement

You also need to evaluate the insurance company based on the speed of claim settlement. As per regulatory bodies, if the claim is valid, it should be settled within 30 days. However, the best life insurance companies, including Canara HSBC Oriental Bank of Commerce Life Insurance, offer one-day claim settlements for eligible policies.

Canara HSBC Oriental Bank of Commerce Life Insurance provides a one-day claim settlement option under the InstaPromise initiative for the eligible policies. The primary eligibility criteria for policies under InstaPromise are:

a) All related documents for the claim have been submitted with the claim form
b) The total payable sum assured is Rs 1 crore or less
c) The policy has been active for a minimum of three continuous years and all premiums have been paid
d) The claim does not require investigation on the part of the insurer

3. Claim Paying Ability of The Insurer

You also need to check the claim paying ability of the insurance company. There are independent rating agencies for this, and you can check the rating from these agencies to be sure you are making the right decision.

Canara HSBC Oriental Bank of Commerce Life Insurance enjoys a Care AAA rating, indicating a strong claim paying ability.

Five Features of Term Insurance Plan for Women

1. Terminal Illness Cover

In the last few decades, health conditions like breast and cervical cancer which are specific to women have become very common. As per stats, 14% of cancers in Indian women are breast cancer**. Canara HSBC Oriental Bank of Commerce Life Insurance iSelect Smart360 Term Plan provides you with cover against critical illness. Once you are diagnosed with a terminal illness, the sum assured is paid to you.

2. Option to Increase the Cover

With the increase in your family size, your responsibility and liabilities increase. For example, you take care of the educational expenses of your child. The cost of education is going to increase with time. If you die, you would want your child to continue the best schooling. For this, the iSelect Smart360 Term Plan gives you the option to increase your cover periodically.

Term Insurance Cover you Need | Buy the Best Term Plan Online

While buying the term plan, you can select the 'Increase' coverage option. Under this, your cover will increase 5% every year (simple interest), with a maximum increase of 100% on the original sum assured. For example, at the time of purchase, the sum assured was Rs 50 lakh. It will increase 5% every year and in the 20th year, your sum assured will be Rs 1 crore. It will remain the same post that. It is an easy way to keep up with inflation.

3. Lifetime Cover Option

A regular term insurance plan gives you coverage only till the policy tenure, usually 10, 20, or 30 years. When you select the Life Plus option under the iSelect Smart360 Term Plan, you get lifetime coverage - cover till 99 years of age. The coverage age is far above the average age of death for women. It means even after your natural death, your nominee receives a sum assured, and you leave a legacy for your loved ones through the sum assured.

4. Joint Life Cover

iSelect Smart360 Term Plan gives you the option to add your spouse to the same plan. If you buy two-term plans, you need to pay the double premium amount. A joint life cover offers you a discount on the rates for the spouse. You both will be covered for your separate sum assured throughout the policy term. In case of your death, the sum assured is given to the spouse. The policy continues with the reduced premium.

5. Regular Income Pay-out Feature

You get to decide how you want to receive the death benefits - as a lump sum, monthly income, or as a combination of both. A regular income is a great way to ensure your family does not go through a financial crunch in your absence. You can either opt for constant monthly income or a level-up option. With level up, the payout will increase by 5 or 10% per annum.

If you are a working woman, a regular payout will help take care of the expense you manage monthly. If you are a homemaker, the regular payout can take care of household help your family will need from outside.

Women must realize the importance of getting themselves insured and should not wait for the right time or someone to guide them through the process.

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Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Smart360 Term Plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Smart360 Term Plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Smart360 Term Plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
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