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5 Reasons Why You Must Invest in a Term Life Insurance Policy

5 Reasons Why You Must Invest in a Term Life Insurance Policy

People across society are slowly realizing the necessity of having a life insurance cover. With life increasing its pace and uncertainties rising by the day, every family needs a life cover that allows them to deal with the loss of a loved one, at least financially. To meet this increasing demand of life insurance, providers are coming up with plans that cater to varying needs of different individuals. This is the reason why sometimes it might appear difficult to choose the right plan in such a complex marketplace. In order to keep things simple, a term life insurance plan is the most apt product for the masses.

A Term Life Insurance Plan A Term Life Insurance Plan is the simplest of all life insurance policies that provides death benefits if the insured passes away during the term of the plan. If you want to live peacefully without worrying about the future and financial stability of your family (in your absence), a term life plan is what you must buy.

Here are the top 5 benefits offered by term life plans.

Financial Stability

This is the basic reason why people opt for any kind of insurance and rightfully so. The death of the bread winner of the family or any other earning member can turn the life of the remaining family members upside down. In such a situation, managing household expenses and taking care of the basic needs of the family becomes an extremely difficult task. Term life insurance provides complete sum assured at the time of death and can make life of the remaining family members easier, albeit financially.

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Securing the Future

Every earning member of the family has some responsibilities and obligations towards his/her spouse, children and parents. Death can effectively stop you from meeting those obligations. With term life insurance plans, you can plan your future accordingly. In the event of your death, the payment from the insurance company will ensure that your children will a get good education and have funds for their marriage. Similarly, with the right term insurance plan, your spouse and parents can also have a comfortable life without facing any financial hardships.

Debts

Almost every individual has some or the other loan. It can be an auto loan, home loan, personal loan or education loan. The proceeds from the insurance pay off your loans along with interest and ensure that the burden of these borrowings does not fall upon your family.

Massive Coverage, Low Premiums

Due to the absence of maturity benefits and other complexities, the term insurance plans offer high coverage at premiums which are affordable to the majority. Cost of If you buy life insurance plans online, the premium rate are even lower due to the absence of agents and middlemen.

Riders

Most term life insurance plans offer some additional benefits, known as riders, along with death cover to the insured. You can choose riders like accidental coverage, critical illness coverage, return of premium etc. at a little extra premium cost. These riders ensure that you get the maximum benefits of life cover without burning a hole in your pocket.

The best way to find a suitable term life plan is to go online, enter your relevant details and see the options offered by various insurance companies. You can check out the term life insurance plans offered by Canara HSBC Oriental Bank of Commerce Life Insurance here.

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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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