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Do you believe in these term insurance related myths?
We hope not.

Do you believe in these term insurance related myths?
We hope not.

Unlike the ancient Greek myths that provide resourceful information that positively shapes modern beliefs, insurance-related myths are nothing but conjecture.

Consider this: Saurabh is a 34-year-old man who works as a corporate lawyer in a reputed multi-national. He lives with his wife Divya, 2-year-old son Shaurya and 3-year-old daughter Trishala. Saurabh is planning to buy a beach house in the next two years and dreams of sending both Trishala and Shaurya overseas to pursue higher education. He is the sole breadwinner in the family. While Saurabh does invest a part of his income, he doesn't feel the need to get himself insured. Why you ask? Saurabh believes he's healthy and too young to waste his money on a term insurance policy, since he is optimistic about life plus he feels term insurance does not give any returns. Just like Saurabh, if you may too tend to believe in these general notions related to insurance. Why general and why myths, read below to find out the reality.

I'M YOUNG, I DON'T NEED INSURANCE

Reality: Ever wondered why insurance ads only feature middle-aged and old people? It's probably because 'insurance is for old people' is the most common insurance-related myth that exists. As youngsters, you might assume that you don't need insurance as long as you are youthful and don't have any responsibilities. But the truth is, buying life insurance at a young age can help you leverage lower premiums, as premiums tend to increase with age. Asides, since most likely you won't be having dependants at early age, it would be easier for you to spare a nominal amount for the premium every month or year.

TERM INSURANCE IS TOO EXPENSIVE

Reality: If you can assure your family's stability with a monthly or annual premium, isn't it worth considering? It's important to understand that term insurance is not an extravagance. Also, did you know that you could buy a term plan that offers a cover of Rs 1 crore at merely Rs 365 per month? That's less than what you might spend on a fancy dinner or a movie outing with family! Yes, term plans offer extremely affordable premiums that make them a great option for youngsters.


If you're looking for one such inexpensive term plan, try iSelect. It is a pure protection plan that offers life insurance and terminal illness cover along with optional additional cover against accidental death/disability. With iSelect, you can select the desired benefit payout option whether it's lump sum, lump sum plus monthly payout, or monthly income. You also get the option to increase your life cover as your responsibilities increase.

INSURANCE IS FOR MARRIED PEOPLE

Reality: Ever thought of the legacy you would leave behind if something were to happen to you? If you're single and feel you don't need insurance, think about the unpaid expenses you would leave behind if something happens to you. You wouldn't want to burden your family with them, do you? Moreover, wouldn't you want your parents and siblings to be financially stable in any eventuality? Life insurance can give you peace of mind that your loved ones are going to be fine even without you, so single people need insurance just as much as their married counterparts.

I'M HEALTHY, WHY DO I NEED INSURANCE?

Reality: We can't ignore the uncertainties of life. Even if you are young and healthy, you're not going to remain that way forever. And the sole purpose of life insurance is to be prepared for any unforeseen event so you can provide your family with support after you're gone.

TERM PLANS OFFER ONLY LUMPSUM PAYOUT

Reality: Contrary to this popular belief, a term plan provides multiple payout options for you to choose from. Based on your family's financial needs, you can choose between lumpsum, lumpsum plus monthly income, monthly income over a fixed term or monthly income till the end of the policy term payout options.

THE COVER ONCE OPTED FOR IS FIXED

Reality: As you move ahead in life, your responsibilities are bound to increase and so should your life cover. With a term plan, you get the option to increase your life cover after a particular number of years to meet your growing financial needs.

These are some of the many common myths around term insurance plan. If you need any more guidance to understand the subject, we would be happy to help. You can reach out to us here.

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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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