Term Plan Customization Options - What Can You Change?

Written by : Knowledge Centre Team

2026-02-10

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It is almost impossible to anticipate the financial emergencies that might arise in our lives. That is why one of the most essential financial advice that can benefit all individuals and families alike is to avail a reliable, trusted term insurance plan. But what exactly is term insurance?

A term insurance plan is essentially a type of life insurance that offers life coverage at a fixed rate for a specified number of years, or ‘term’. In the event of the demise of the insured during this period, his nominees are liable to receive a death benefit. However, term insurance also comes with the option of various add-on features known as ‘riders’ that offer additional coverage based on specific circumstances.

One of the greatest benefits of term insurance plans is that, unlike traditional life insurance policies, it offer a great deal of flexibility to the policyholder. Despite this, only 21% of urban Indians are reported to avail of term insurance [1]. A major reason behind this is the lack of awareness about the many ways in which term insurance plans can be customised to suit individual needs.

Key Takeaways

Term insurance offers high life cover at affordable premiums to protect your family financially.
Riders enhance the coverage of your base plan to meet specific needs and risks.
Common riders include Accidental Death, Accidental Disability, Waiver of Premium, Critical Illness, and Income Benefit Riders.
Choose riders based on your age, health, occupation, family history, and liabilities.
Renewing your term plan ensures continued protection as your financial responsibilities evolve.
Canara HSBC Life Insurance’s iSelect Smart360 Term Plan offers flexible rider options for holistic protection.
Buying the right term insurance today secures peace of mind for your loved ones in the future.

What is Term Insurance?

A term insurance plan is a type of life insurance policy that provides coverage for a specific period or ‘term’ at a fixed premium rate. If the insured person passes away within this term, the nominee receives a death benefit, which is the sum assured as per the policy agreement. However, if the insured survives the policy term, no maturity benefit is provided unless it is a return of premium plan.

What makes term insurance different from traditional life insurance is its simplicity and affordability. It offers a high coverage amount for a relatively low premium, ensuring your family’s financial needs are met even in your absence.

Protect Your Family with Affordable Term Insurance

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Why is Term Insurance Essential?

Despite its benefits, studies show that only 21% of urban Indians avail of term insurance. This lack of penetration is often due to limited awareness about term plans’ flexibility and affordability. Here’s why a term plan should be a part of every individual’s financial portfolio:

Financial security for your dependents in your absence
Affordable premiums with a high sum assured
Peace of mind knowing your family is protected
Customisable coverage through riders to suit your lifestyle and risks

Customising Your Term Insurance with Riders

One of the greatest advantages of term insurance plans is that they are highly customisable. Riders are add-on benefits that enhance your policy’s coverage to protect against specific life events. Let us explore the various riders you can include in your term insurance:

Accidental Death Benefit Rider: This is one of the most common and valuable riders in term insurance. If the insured dies due to an accident, this rider provides an additional payout over and above the base death benefit.

Example: If you have a term insurance plan with a sum assured of Rs. 20 lakhs and an Accidental Death Benefit Rider of Rs. 5 lakhs, your nominees will receive a total of Rs. 25 lakhs in the event of accidental death. This ensures your family has extra financial support to deal with the sudden loss.
Accidental Disability Rider: Most people assume insurance only covers death. However, a disability caused by an accident can be equally financially damaging. The Accidental Disability Rider protects you against such situations by paying a fixed benefit if the insured suffers from permanent or partial disability due to an accident.

Depending on the insurance provider, this rider may cover:
1. Permanent Total Disability – complete loss of work capability
2. Permanent Partial Disability – partial loss such as amputation
3. Temporary Disability – where the insured is unable to work temporarily

In certain plans, this rider is combined with the Accidental Death Benefit Rider for comprehensive accident coverage.

Waiver of Premium Rider: Imagine you are unable to pay your premiums due to a disability or loss of income. Without premium payments, your policy may lapse, leaving you unprotected. This is where the Waiver of Premium Rider plays a crucial role.

Under this rider: If the insured suffers from a critical illness or disability and is unable to pay premiums, the future premiums are waived.

Your policy remains active and your family stays covered, even if you are unable to continue payments due to unforeseen circumstances.
Critical Illness Rider: With increasing lifestyle-related diseases, the chances of being diagnosed with a critical illness such as cancer, stroke, or cardiovascular diseases are rising. A Critical Illness Rider provides a lump sum payout if you are diagnosed with any of the illnesses covered under the rider.

This amount can be used for:
1. Treatment costs
2. Hospitalisation expenses
3. Home care and lifestyle adjustments
4. Managing household finances during recovery

Having this rider ensures that your savings are not exhausted during a medical emergency, and you continue to meet your financial goals without stress.

Income Benefit Rider: The main objective of term insurance is to replace the income lost due to the death of the insured. The Income Benefit Rider ensures your family does not struggle financially by providing:

A fixed annual income for a specific number of years in addition to the death benefit lump sum.

This ensures your dependents can manage their daily expenses and maintain their lifestyle without sudden disruptions.

The iSelect Smart360 Term Plan by Canara HSBC Life Insurance offers a variety of add-on riders that provide greater coverage and benefits. You also get the option to choose from a variety of tenures, including coverage up to age 80, as well as payment options.

How to Choose the Right Term Insurance Riders?

Choosing the right riders for your term insurance depends on your:

Age and health condition
Lifestyle risks (travelling frequently, hazardous occupations)
Family history of critical illnesses
Existing financial liabilities, such as loans or EMIs
Dependants and their future needs

For instance, if you are the sole breadwinner, an Income Benefit Rider along with an Accidental Death Benefit Rider can provide complete protection to your family. If you have a family history of critical illnesses, opting for a Critical Illness Rider ensures financial preparedness.

Benefits of Term Insurance Renewal

Term insurance plans come with a fixed tenure, after which the policy expires. However, most insurers provide an option to renew your term insurance plan. Here are the key benefits of term insurance renewal:

Continued life cover: Extending your policy period ensures your family is protected longer, especially if your financial responsibilities have not reduced.
Ease of renewal: Many insurers allow easy renewals without complex procedures, provided premiums are paid on time.
Health reassessment benefits: If you renew your policy before expiry, you may not need fresh medical underwriting depending on insurer guidelines.
Peace of mind: Knowing your family remains secured even after your initial policy tenure ends provides mental peace.
However, it is important to note that premiums may increase with age during renewal. Hence, choosing a longer policy tenure at the time of purchase is advisable if your budget allows.

Final Thoughts

In today’s unpredictable world, having a term insurance plan is not just a choice but a necessity for anyone who wishes to secure their family’s financial future. By customising your term insurance with riders such as Accidental Death Benefit, Accidental Disability, Critical Illness, Waiver of Premium, and Income Benefit, you can build a comprehensive safety net that protects against life’s uncertainties.

Choosing the right insurer is equally important to ensure trust, reliability, and seamless service when your family needs it the most. Canara HSBC Life Insurance offers you thoughtfully designed term insurance plans like the iSelect Smart360 Term Plan, with flexible options and valuable add-on riders to strengthen your financial planning. Start today and give your loved ones the gift of financial security, stability, and peace of mind for years to come.

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.