How to Choose the Best Term Plan in India for You?

Written by : Knowledge Centre Team

2025-12-14

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Buying a life insurance policy is one of the best things you could do for your financial future. Being a hard-working, dedicated, and dependable person is hard enough; your family’s safety should be the last thing that you need to lose sleep over while you are out there trying your best. Financial stability is one of the key factors to ensure a healthy, functional family life. The point is, if your family is financially dependent on you, then you should get yourself a term insurance policy so that your family woes after your untimely death isn’t burdened by financial insecurity. But with so many plans available online, how do you choose the right one? Let’s break it down.

Key Takeaways

The earlier you buy a term insurance plan, the lower your premiums.
You can enhance your base plan with optional riders such as Accidental Death Benefit, Child Support Benefit, and Total & Permanent Disability Cover.
With joint life cover, you can secure both yourself and your partner under one policy, simplifying the policy management and reducing the overall cost.
Premiums paid under the term insurance plan are eligible for tax deductions under Section 80C, and death/maturity benefits under Section 10(10D) are tax-free.

What is a Term Insurance Plan?

A term insurance plan is the basic and simple form of life insurance. The term insurance policy provides extensive coverage to your family from life volatility. It is a policy that provides coverage for a specific period or a term. The life insured pays a certain amount at a specific interval to the insurance company.

If the policyholder were to pass away unexpectedly during the coverage period, then the nominated beneficiaries would receive the assured sum from the insurance company. A term insurance plan is as plain as it gets and basic, as it does not involve any profit. And if the life insured outlives the insurance plan, then no amount is paid by the insurer.

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How to Choose a Term Insurance Policy?

Choosing a term plan should not be rushed; it’s about aligning your current financial situation and future obligations. Here's what to keep in mind:

The Sooner the Better: There is an age limit to purchase term insurance plans. But the sooner you buy it, the better it is. Try not to be late, because as time passes, your premium amount will increase depending on your age, and if you develop any illness or disease, it will become tougher to obtain the policy of your choice later. Once you are clear that you require a particular amount of life cover, plough ahead and complete the action within a couple of months.

Learn why should you buy a term plan early.
Evaluate Your Needs: You should completely comprehend the monetary necessities and requirements of your family and yourself before you select a term insurance policy. The policy you pick should have a sufficient life cover, adequate and big enough to deal with your family’s financial needs in your absence. Start by investigating all kinds of revenue, existing monetary arrears, and your family’s lifestyle costs. Additionally, you ought to consider your partner’s and your kids’ objectives in life.
Accident Cover, an Added Bonus: If you are eager to go somewhat extra, get the Accidental Death Benefit. Accident cover can add an enormous advantage with ease and can secure you against a range of eventualities, for example, road accidents, by offering comprehensive benefits to your family in addition to a lump-sum settlement.
Unique Aspects: While insurance agencies have rushed to advance, all in all, they have been generally imaginative concerning what is term plan. Organisations have been fast and proactive in cutting premium rates in any event, offering additional limits to specific classifications like non-smokers, for example. It is easy for a healthy, sound individual, as characterised by the insurance company, to purchase a term plan over the web without going through a clinical examination.

Learn everything about term insurance plans for smokers in India.
Suitable Payout: Before you purchase term protection on the web, you need to check whether the policy has an ordinary payout option. It will guarantee a predictable progression of pay to your family when you are not around anymore. Regular income payout helps make ends in the absence of your income.

The premium amount of your plan depends on the payout option you opt for. You can choose a lump sum payout or a normal month-to-month payout (if available in your policy). You should pick the payout alternative according to your prerequisites and your family’s needs, as the premiums likewise fluctuate depending on the payout choice you pick.

How the iSelect Smart360 Term Plan by Canara HSBC Life Insurance can Help you?

iSelect Smart360 Term Plan by Canara HSBC Life Insurance is essentially your umbrella that protects your family during the occasional downpour that life rains down. The plan is a simple, customisable policy that can be moulded to meet your family’s needs. It is exceptionally malleable, meeting your necessities at various life stages by offering alternatives for coverage, yet also for premium payment and benefits payouts.

Why Choose iSelect Smart360 Term Plan?

As per Section 80C, the term protection plan lets you lay claim to roughly ₹1.5 lakh each financial year for the premium you paid for yourself, your family, your life partner, and your kids. iSelect Smart360 Term Plan by Canara HSBC Life Insurance lets you claim such advantages every year by paying the term policy’s base premium. Taking a gander at the tax reductions legally, under Section 10(10D), any sum received at maturity of a life insurance policy is absolved from tax.
With age, your responsibilities and obligations increase. You will need various policies to take care of the many illnesses or mishaps that may come to be as the days pass by. iSelect Smart360 Term Plan by Canara HSBC Life Insurance provides complete adaptability on your coverage. The term guarantees a 25% increment in coverage every five years to meet your needs as you age. It is necessary to note that if you were to choose flexible ageing options, you would benefit from the 100% increase in coverage from the original plan purchased.
To make things better, the iSelect Smart360 Term Plan by Canara HSBC Life Insurance covers your spouse as part of the term plan, offering you the benefit of both being protected from the uncertainties.
Benefits can be received in different ways. It can be availed as a lump sum, a monthly income or a part lump sum, part monthly income, depending on your requirements.
Premium payment can be made in one go for the entire term or can be made periodically over 5/10/15/20/25 years. Premium payment can be made only during your earning years as well.
Provision to change the cover with extra advantages like accidental death benefit, child support benefit, and accidental total and permanent disability benefit.
Loyalty discount for the existing customers of the company.
Term insurance plans offer various riders, and you can pick as many riders as you require. However, the cumulative rider premium should not surpass the premium of the base policy. In some instances, the rider premium is not authorised to exceed 30% of the base policy's premium. In comparison, the total rider premium is entitled to be up to 100% of the premium of the base plan in other cases.

Choose Smart, Stay Secure

Buying a term plan is not just about fulfilling a financial checkbox; it’s about giving your loved ones peace of mind. With increasing lifestyle expenses, loans, and long-term family goals, a robust and flexible term plan becomes your financial safety net.

The iSelect Smart360 Term Plan by Canara HSBC Life Insurance brings together affordability, adaptability, and strong protection features to help you secure your family’s future confidently.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.