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How To Boost Your Term Plan Policy?

How To Boost Your Term Plan Policy?

Term Plan Policy

As a working professional, a term insurance policy is one of the first things that you should invest in. Contrary to popular belief, a term policy is not just a basic policy without additional benefits. There are different ways in which you can customize your policy and extract more benefits out of it. Before getting into these details, let us define what a term plan is.

What is a term insurance plan?

A term plan, as the name suggests, is an insurance plan for a specific term which could be anything from 5 years to 10 years, 20 years, etc. It is a pure life cover without maturity benefits. This means that if you outlive the policy term, there is no payout on completion of the term. However, in the event of your death within the policy term, your family receives the full sum assured regardless of the number of pending premiums. The further premiums are then waived off. One of the important features of a term plan is that it offers a large sum assured

iSelect term plan

If you are a newly employed working professional, you must consider a term insurance policy as one of the first investments to make. An excellent choice would be Canara HSBC Oriental Bank of Commerce life insuracne’s iSelect Term Plan. It is purely a protection plan which provides terminal illness cover and life insurance, along with options like spouse cover, accidental death cover, and accidental disability cover. What’s more, this online term plan is only a few clicks away!

How to boost your term plan

On its face, a term plan might seem like a very specific without a lot of extra benefits, especially when compared to investment tools. However, there are a variety of ways to boost your existing term insurance cover. Term insurance riders are just one of them. Here are the different ways in which you can add more value to your plan.

  • Increase cover A term plan generally provides a large cover at a nominal premium. However, understand that the term is generally a long time, often spanning a decade or more. What might seem like a sufficient amount for your family’s well-being now, might not actually be a lot when you factor in rising costs. Inflation is an unavoidable reality.
  • How inflation will affect your familyThis is going to have tangible effects on not just daily expenses, but also on the larger costs like higher education of your children, marriage, etc. For example, an IIT degree that costs around Rs.9.2 lakhs today is expected to cost a staggering 18.1 lakhs 10 years from now. An MBA from a top IIM institute costs around Rs.22 lakhs at present. 10 years later, the same degree is expected to cost Rs.43.28 lakhs
    The above example must be enough for you to consider the largest sum assured possible for your term plan. Of course, you might or might not have the resources for that while taking your policy. This is why you should go for a policy that allows you to increase your sum assured in the middle of the term. This way, when you earn more, you can gradually invest more.
  • How to double your sum assured The Canara HSBC Oriental Bank of Commerce life insurance’s iSelect Star Term Plan offers an excellent option of increasing your cover by 25% every 5 years. This way, you can increase cover by upto 100% during the policy term.

Term insurance riders

  • Accidental Death Benefit Rider When you opt for this rider, your family will receive an additional benefit amount along with the base sum assured. This will be really helpful to your family for covering medical costs. Different plans offer different benefits with this rider. Your policy term might also reduce when you opt for this rider, so check with your insurer.
  • Accidental Disability Rider If you meet with an accident and your life is saved but you end up with a temporary or permanent disability, you will receive the sum assured as per the payout option chosen by you in the beginning. The policy might terminate upon receipt of payout. Considering the huge costs of treatment, this is a very beneficial option.

Spouse cover

You might have taken your term insurance before getting married. Even if you take it after your marriage, you might later feel the need to take another policy in the name of your spouse. With a plan that offers an in-built spouse cover option, you can save yourself the effort. In the event of your spouse’s death, their sum assured is paid while your policy continues as it was.

With these lucrative options, a term insurance covers a lot more than basic life cover and also saves you some of the expenses and efforts of buying more policies. Hence, opt for a policy like Canara HSBC Oriental Bank of Commerce iSelect Term Plan which offers all of the above-mentioned benefits in one plan. Just a few clicks and you can secure the biggest online deal- your family’s well-being!

Speak to an insurance specialist now!

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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