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All About Term Insurance Inbuilt Coverage

All About Term Insurance Inbuilt Coverage

Term Insurance Rider

Life is uncertain and losing the bread-winner of the family can leave the family in a major financial crisis. A term life insurance promises financial security in the bread-winner’s absence and helps the family cope at least with the financial loss.

Unfortunately, there are many causes which can interrupt their financial wellbeing, and that’s why most term insurance plans give you the option of built-in covers, some free and some to be opted. However, it all makes sense in times of need. Read on to find more about the kind of built-in covers available with the iSelect+ Term Plan.

But first, how does a term insurance work?

The policy buyer decides the duration of the policy, the coverage amount, and add-on coverage options suited for them. Basis the selection, a premium amount for term insurance plan is calculated, influenced by factors like the applicant’s age, health, and lifestyle. This premium remains constant throughout the policy term.

The policyholder then pays this premium at regular intervals. The policyholder can also decide how they want their nominees/ family members to receive the promised amount. Once a policy benefit starts, in case of the demise of the policyholder during the policy term, the insurance company pays the promised coverage amount to the nominees named in the policy and the policy terminates.

In case of a Term Plan with Return of Premium Option, the policyholder also receives a maturity/ survival benefit at the end of the term, if they survive through the duration of the policy. Different policies may offer different benefits on survival through the policy term.

Most policies allow renewal at the end of the term. However, the premium is recalculated basis the new term and policyholder’s age, in case of policy renewal.

Term insurance in-built Covers

The purpose of a term plan is to provide financial coverage to your loved ones in case of an unfortunate event. While, our needs and responsibilities change continuously throughout life, our financial obligations change too, requiring updated solutions every now and then.

If you are at a stage in life, where you see the situation changed from the time you bought your life insurance plan, it is worth revisiting your insurance coverage and altering it as per needs. You might want your promises and responsibilities towards your family’s secure future taken care of in time.

In-built covers or riders allow you to increase your insurance coverage according to your needs as well as those of your family. Some of the most commonly riders are Accidental Death Rider, Child Support Benefit Rider, Critical/Terminal Illness Rider and Accidental Total and Permanent Disability Rider.

Benefits of opting for additional in-built covers

The iSelect+ Term plan is a modern-day insurance plan that comes with an in-built Terminal Illness cover at no cost, wherein in case of death or on diagnosis of Terminal Illness, whichever happens earlier, a sum assured is payed to the nominees of the policyholder.

In addition, the following in-built cover options can be opted for with iSelect+ Term Plan:

  • Accidental Death Benefit (ADB) - On death due to accident, apart from the amount payable on earlier of death or on diagnosis of Terminal Illness, an additional ADB sum assured will also get paid.
  • Accidental Total & Permanent Disability (ATPD) - Premium Protection - On occurrence of Accidental Total and Permanent Disability, all the future premiums payable will be waived off for the respective life and the policy will continue with the other coverages that have been opted for by you.
  • Accidental Total & Permanent Disability (ATPD) - Premium Protection Plus - On occurrence of Accidental Total and Permanent Disability, the ATPD Sum Assured will be paid, all future premiums payable will be waived off for the respective life and the policy will continue with the other coverage that have been opted for by you.
  • Child Support Benefit (CSB) - You can opt for this benefit to safeguard your child’s future. Apart from the amount payable on death or on diagnosis of Terminal Illness, whichever happens earlier, the CSB Sum Assured will be payable. The CSB Sum Assured can be utilized to take care of all the milestones you have planned for your child.

The importance of life insurance, especially when it comes to securing the financial future of your loved ones, cannot be overstated. Which is why one of the most economical and flexible forms of life insurance, a term plan, is one of the best investment options you can avail. Moreover, the additional financial coverage offered by term insurance riders can help you rest assured and enhance your term plan as per your requirements.

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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