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5 Features of Best Term Plan You Should Check Before Buying Online

5 Features of Best Term Plan You Should Check Before Buying Online

Best Term Plan Online

One of the simplest insurance products available in the market today, term insurance gets the trust of consumers when it comes to securing the financial future of their loved ones. However, as a consumer, it is important to understand that purchasing term insurance is not only about paying the premium and expecting the family to be safe in the future. It helps to understand the product well and investigate a few aspects before buy term insurance online.

Here are 5 features you need to check before you purchase online.

1. Regular income payout

Before you buy term insurance online, you need to check whether the plan has a regular income payout option. It will ensure a consistent flow of income to your loved ones when you are no longer around. Regular income payout helps meet the monthly expenditure and fills the gap that is created due to absence of your salary.

Term plans by Canara HSBC OBC Life Insurance offers an option to choose from lump-sum payout, monthly income payout, and even a combination of both. This means your beneficiary can receive a regular monthly payout or a maximum period of 40 years. The amount will be paid in equal monthly installments to your loved ones.

Lump-sum and monthly income payout:

It is essential to check the income payout options before you buy term insurance online. Canara HSBC OBC Life Insurance offers three payout options for you to choose from-lump sum, monthly income payout, lump sum and monthly income payout and lump sum and growing income payout. This option will allow you to factor inflation. In this option, the insurance company will pay a lump sum amount at the time of the death of the policyholder and the balance will be paid in monthly installments. You can choose the proportion between lump sum and monthly income between 25%-75%, 50%-50%, 75%-25%. The monthly income can be increased by 5% or 10% per annum. One can opt for a monthly income for 120 months or until the end of the policy or a maximum of 40 years.

2. Non-working spouse cover

You invest in the best term plan for the financial security of your loved ones and it is important to have coverage for your spouse too. When you buy a term insurance plan online, look for a feature that allows you to add your spouse in your plan; then, you will not have to buy a separate cover for your spouse. The best term plan will give you an option to add a spouse in the policy with a discount on the rates for the spouse.

3. Premium waiver

In case of an accident or disability, your ability to generate income could be restricted and paying premiums could become difficult. If you have added an accidental total and permanent disability rider on the i-Select Star term plan, on the occurrence of a disability, all the future premiums payable will be waived off for the life and the policy will continue. The sum assured will be paid and the coverage will continue to apply.

Features of a term plan

4. Increasing/ decreasing life cover

Canara HSBC OBC Life Insurance’s term plan allows you to increase or decrease the life cover at different stages in life. If you buy the cover early and assume that the responsibilities will grow in the future, then it is an ideal choice for you. It will give you the flexibility to increase or reduce the cover as per your requirements. You can also factor inflation at the time of increasing the cover.

For example, you purchased a cover at the age of 28 when you had no responsibilities and enjoyed the best of your health. However, at 35, you have a family to look after and you might want to increase the cover to factor their requirements. In increasing life cover, it will increase 5% each year up to a total of 100% of the sum assured. In decreasing option, you can start to reduce 5% annually after the age of 60 until the sum assured is 50% of the original sum assured.

5. Claim Guarantee Conditions

Considered as one of the best insurance plans, the best term plan will provide a life cover and will ensure that your family is financially secure when you are not around. These five features make a term plan an ideal fit for your needs. You can align your long term goals with the plan and make the right investment decision. It is an affordable and simple plan that will give you peace of mind that your family will be looked after in your absence.

Apart from looking out for these features in your plan, you should consider the claim settlement ratio of the company you are buying from. The claim settlement ratio helps ensure your policy amount is dispersed with ease when your family needs it the most.

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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 Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star 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 Star is a 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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