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Importance of Term Insurance at Every Stage of Your Life!

Importance of Term Insurance at Every Stage of Your Life!

Life is full of uncertainties. A serious accident or critical illness could affect the financial stability of your family. But, if one starts investing in a life insurance, then safeguarding the financial future of your family becomes much easier.

A life insurance plan acts as a savior that protects your family against unfortunate events. Term plan is the purest form of life insurance. It not just ensures your family's financial security, but also gives an option to protect them from critical illnesses such as cancer, heart diseases, etc.

In life, we pass through several stages and each stage calls for different goals and plans. These goals include your first job, your marriage, your child, your retirement, etc. Thus, it is prudent to plan for your goals beforehand as it will help you to achieve them. Similarly, financial liabilities of a person are not the same, as they vary at different stages of life. Thus, you must choose your cover accordingly.

To help you understand better, we have made a list of examples that will help you determine why term insurance is important at every stage of life:.

  • When you are young - When you start job at a young age, you have limited liabilities and responsibilities. Therefore, at this stage, buying a term insurance plan is the perfect choice for you. It would help you get larger cover at a lower premium. The best part about term insurance is that the premium paid towards the policy does not increases with age and is locked for the entire duration of the policy. Also, when you are young, you are less prone to critical ailments such as heart problems, cancer and your premiums are relatively lesser as for an insurance company you are less likely to develop any chronic ailments.
  • When you get married - Newlyweds usually prefer buying an insurance to provide income protection for their surviving partner. For newlyweds, buying a term insurance is a perfect bet for you. As soon as you start your married life, you need to buy an adequate cover for your family to protect your spouse and family against the increasing liabilities, because such financial liabilities can fall on your partner if something happens to you. Keeping such situations in mind, it is good to invest in a term insurance plan. Starting a new life with your partner and making investments such as buying a car, new house would require a huge amount of money. Thus, with the rise in liabilities, it is important for you to ensure that you have adequate coverage that protects your family financially, if something happens to you.
  • When you become a parent - The joy of becoming a parent cannot be described in words. It's the most beautiful feeling in the world. From excellent education to impressive lifestyle, it's every parent's dream to ensure that their child continue to live the best life, even when they are not around. Thus, many young parents nowadays have started investing in several financial instruments to make sure that their child's future is safe and secure. The claim amount can be used to fulfill your child's education needs and will cover them for a longer period. Basis this, it is ideal to buy a term insurance when you have financial dependents. Although, while buying a term plan, do not just go by the amount of premium. You must also look for the other things such as insurance company's reputation, claim settlement ratio, market share, etc.

On the whole, these are some of the stages of life when you need to re-think of your insurance needs.If you love your family and you don't want them to suffer, then it is advisable for you to buy a term insurance plan as it's important for a person to insure their family with adequate financial protection.

So, whether you are single, married or retired parent, always ensure that your family is financially stable in case of any unfortunate event so that they can live a secure and stress-free life. At Canara HSBC OBC Life Insurance, we bring you unique products as well as solutions that best suits your requirements.

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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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