How to Choose the Best Term Insurance Plan for Uncertain Times?

Written by : Knowledge Centre Team

2026-01-17

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Term life insurance has been catching up to the public imagination. The COVID-19 pandemic in 2020 heightened awareness about life uncertainties, pushing many people to opt for term plans.

So much so that the insurance regulator in India, IRDA, has proposed a standard term insurance plan to be provided by all insurers.

While term insurance covers the loss of life of the family’s breadwinner, it is only one of many hardships a family may face. Fortunately, you have the option of buying term insurance, which will do a lot more than just cover death. However, before you go on to explore the ocean of life insurance for that perfect term insurance plan, you should know what you are looking for. Here are six simple steps you can follow to find or build a term insurance plan suited to your needs.

Key Takeaways

Term insurance can cover more than just death if you choose additional riders like disability and critical illness covers.
Identifying your specific life risks is the first step toward selecting a personalised and effective term plan.
Structured payout options like monthly income help reduce financial stress for your family post-claim.
Opt for growing income benefits to help your family counter inflation and maintain their lifestyle.
Flexible premium payment options allow you to continue your policy even during income instability.

Define Your Tough Times

Term insurance coverage is a part of your contingency planning. So, if you want your term plan to cover maximum corners during the tough times for your family, you need to paint the bigger picture first.

You should try answering the following three questions, in the same order, for your contingency planning:

What incidents may cause hardships to you or your family?
(For example, sudden illness, accidental hospitalisation, job loss, disability, natural calamities, death, etc.)
Which of these incidents are not in your control?
(For example, you may have some control over your professional growth and employment, but not over a possible road accident.)
Which of these uncontrolled events would lead to financial hardships?

(For example, job loss, a slowdown in business, could be temporary, and your expenses do not exceed the normal living cost. However, with an illness, you have to incur additional costs like hospital and treatment bills.)

Insurance can cover or at least reduce the cost of most events, which will cause an additional financial burden on your family.

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Look for Additional Covers

Apart from death, you have many other risks where you and your family may need financial support. Thus, you will need to look for additional covers along with the term insurance plan. The most important of these are the following:

Sudden Illness
Accidental hospitalisation
Temporary and permanent disability
Death of homemaker spouse

Death is the primary cause of existence for term life insurance, but you can add benefits to cover other events as well. Here are the benefits you can add to your basic term insurance cover:

Cover for life-threatening diseases such as cancer, cardiac arrest, renal failure, etc.
You can seek to waive off all future premiums for the life cover in case of contracting total and permanent physical disability.
Accidental death can cause an additional financial burden on your dependents with legal procedures and hospital bills. You can add this benefit to increase the sum assured for the family in case of accidental death.
You can add your spouse to your term life cover and extend the umbrella on her life as well.

Few term plans, including iSelect Smart360 Term Plan offer all these four benefits under the same plan.

Reduce the Investment Burden on Your Family

Every family needs a combination of two things to live and do well financially in the long run i.e., regular income and lump sum corpus. Regular income helps in running the household and maintaining the lifestyle. The lump-sum corpus is needed to see off the financial goals.

While a term insurance plan may help your family financially in case of a mishap, it may leave your survivors dizzy with the financial burden. Imagine suddenly receiving a huge sum of money in your bank account with an assurance that there will be no future receipts.

Managing a huge sum of money to survive and meet multiple financial goals, in the long run, could be a task even for expert fund managers. Expecting your dependents to suddenly become better than most wealth management experts would be unrealistic, and could lead to mistakes that affect their long-term financial stability.

That’s why, when choosing your term insurance plan, opt for one that offers flexible payout options, such as monthly income or a combination of income and lump sum. This reduces the burden on your family and ensures that they can sustain their lifestyle without making hasty or uninformed financial decisions. Plans like iSelect Smart 360 Term Plan by Canara HSBC Life Insurance allow you to add such options, giving your family the financial stability and breathing room they’ll need.

Choose an Ideal Premium Payment Option

Flexibility in premium payments can be crucial if you have variable income or expect financial ups and downs. You can choose any of the given options:

Limited Pay Option: It allows you to pay premiums over a shorter duration while enjoying long-term coverage.
Single Premium Option: Under this, you are required to pay the entire premium upfront and remain worry-free about future payments.

Also Read:- Single Vs Regular Premium: Which ULIP Should you Buy?

Calculate Term Insurance Premium

A term insurance calculator is a useful online tool that helps you determine how much coverage you need based on your income, lifestyle, and family’s needs.

My Income

My current Cover

Additional Details

Our Recommendation

My Income

My current Cover

Additional Details

Our Recommendation

I am {age} years old,

My Monthly income is {amount}

Additionally, I hold existing Insurance Cover of Rs {insurenceamount}

and loan amounting to Rs{amount}

My name is {name}

my mobile number is {contact}

50 Lakh

12.5 Lakh

75 Lakh

Zero

1 Crore

Where do you stand

Additional Life Cover

Hi {name}

To secure your family’s financial future and protect their dreams, you’ll need an additional cover of

rs 10,000

Note: This is a very brief calculation of HLV

Secure Now

Recalculate

Desclaimer-

The above calculation and illustration of figures are indicative only and not on actual basis.

Check the Claim Settlement Process

Claim settlement is the ultimate indicator of the usefulness of term insurance. You do not want your family members to face hardships in claiming the one benefit necessary for their survival.

The claim settlement process of a life insurer involves multiple factors which can help you judge its efficiency. It includes:

Availability of online support channels
Fast claim settlement options
Claim settlement support process
Claim settlement ratio

The best life insurers will have a claim settlement ratio of higher than 95%. However, that’s not all. The claim settlement ratio only gives a partial picture. To know the claim settlement experience with the insurer, you need to look for instant claim settlement policies.

Canara HSBC Life Insurance is well-regarded for its claim settlement of 99.31%.

Understand the Impact of Paying Premiums Early

Some term plans allow you to pre-pay premiums within a few years. This can be beneficial because:

You're not locked into future payments
It reduces the risk of policy lapse during financial crunches
It may provide peace of mind if you're approaching retirement

However, always check if these options affect other features like riders or payout structures.

Conclusion

Selecting the right term insurance plan is more than picking a coverage amount. It’s about:

Anticipating the actual risks your family could face
Adding riders that expand your protection
Choosing payout options that reduce emotional and financial stress
Opting for a trusted insurer with fast claims processing, like Canara HSBC Life Insurance

Remember, the best term plan is one that continues to support your family long after you’re gone; not just with money, but with clarity, consistency, and care.

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.