Written by : Knowledge Centre Team
2025-11-28
884 Views
8 minutes read
Share
nsurance premium refers to a specific amount to be paid periodically by the insured individual to maintain their insurance coverage, as calculated by the insurance company. For deciding the premium amount, an insurance company examines the type of life insurance coverage being opted, the policyholder lifestyle and health conditions, and the likelihood of a claim being made, among other factors.
For the purpose of accurate analysis of a person’s life and premium calculation, insurance companies employ actuaries. They are responsible for analyzing the risks associated with an event or claim, and then greater the risk, higher will be the insurance premium.
The sooner you buy a term insurance, the better it Is
The usual age bracket for buying a term insurance is minimum 18 years and a maximum age of 65 years. It is a well known fact that buying insurance earlier yields several benefits, including lower premiums and better coverage. This is because, with time and increasing age the risk of falling prey to illnesses increase, so does the premium amount.
Nevertheless, higher premiums do not necessarily mean you should not buy a term plan at all. When you buy a term plan, there may be times when your premiums are revised after your medical examination is done. The insurance company may ask you to pay an extra premium, according to your health conditions or the risks involved, but you should understand that this is a decision made after expert analysis of your profile and health conditions. Therefore, paying higher premium only means that you are closer to securing your family’s financial future.
Take this increase in premiums in a positive manner because it will help you prepare better for the risks to your health, due to conditions that may include smoking, alcohol or a high-risk lifestyle. A little extra premium can therefore go a long way in securing your loved ones, and relieving you from the stress.
Paying insurance premiums
There are several options offered in terms of premium payment against your policy. Policyholders can usually pay the insurance premium in installments on a monthly, quarterly, half-yearly or annually. This premium payment frequency is called the Premium Payment Mode.
Then there is a Premium Payment Term, which determines the duration for which the premium needs to be paid, or number of installments. For the iSelect Smart360 Term Plan, besides payment throughout the duration of the policy, you can choose a single bullet payment for entire policy duration or opt to pay for a limited duration of 5/10/15/20/25 years.
In addition, the plan also lets you choose a Limited Premium Payment Term Option, wherein you pay only during your working years, that is, till you turn 60 years old, while the insurance cover continues to run even after that.
What happens when you fail to pay the premiums? When the policyholder fails to pay a premium by its due date, it causes the life insurance policy to go into a grace period. Grace period is the extra time given to your after a missed premium payment, before the policy finally goes into a lapse. If no premium is payed even during the grace period, the life insurance policy will lapse, causing the policy benefits to discontinue.
Therefore, a term life insurance premiums must always be made by the due date or the policy may lapse.
What happens to the paid premiums if you don’t make a claim?
In case of a term insurance, you cannot ask for a return of your insurance premiums if you don’t make a claim during the policy term. That is the part which makes it even more important to understand your premium. However, if you ever require making the claim, all your premiums will be worthwhile. However, in term insurance with Return of Premium option, the company returns the total premiums paid by you at maturity, in case you outlive the policy term.
Protect Your Family with Affordable Term Insurance
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy No.
Address of the Policyholder as per records
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
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.
Recent Blogs
Does Term Life Insurance Cover Disability? Know the Facts
07 Aug '26
943 Views
10 minute read
Wondering if term life insurance covers disability? Get a complete breakdown of disability coverage, riders & options available under term plans today.
Read More
Term Insurance
7 Things to Expect From Your Term Insurance Plan - Key Features
07 Aug '26
4904 Views
7 minute read
Discover 7 things to expect from your term insurance plan. Learn key features, coverage details, benefits and what matters most before you buy
Read More
Term Insurance
Term Insurance for Diabetics in India: Eligibility & Benefits
07 Aug '26
909 Views
6 minute read
Yes, diabetics can get term insurance! Explore the best term plans for diabetes with Canara HSBC Life Insurance. Read more to learn about eligibility and benefits.
Read More
Term Insurance
Types of Death Covered and Not Covered in a Term Insurance
07 Aug '26
1699 Views
8 minute read
Before buying term insurance, know what types of death are covered & excluded. A complete breakdown of inclusions & exclusions under term plans in India.
Read More
Term Insurance
Decreasing Term Insurance Plan - Meaning & How It Works
07 Aug '26
1202 Views
7 minute read
Not many know about decreasing term insurance plans. A clear breakdown of what it is, how it works, key benefits & who it is best suited for in India.
Read More
Term Insurance
Impact of Travel to High-Risk Countries on Term Insurance Premium
07 Aug '26
719 Views
6 minute read
Wondering how international travel affects your term insurance cost? Understand how visiting high-risk or conflict-affected regions influences premiums and policy approval.
Read More
Term Insurance
How Mental Health History Affects Term Insurance Eligibility in India?
07 Aug '26
418 Views
6 minute read
Understand how a history of mental health issues impacts eligibility for term insurance in India. Learn disclosure rules, insurer evaluation, and tips to improve approval chances.
Read More
Term Insurance
Term Plan for India's Non-Working Spouse
07 Aug '26
2762 Views
11 minute read
Discover the significance of a term plan for an Indian spouse who is not employed. Protect loved ones, provide for future needs, and guarantee the family's financial stability.
Read More
Term Insurance
How to Calculate Your Term Plan Premium Easily ?
07 Aug '26
2813 Views
6 minute read
Use a term insurance premium calculator to estimate your term plan cost. Learn how premiums are calculated and factors that affect what you pay.
Read More
Term Insurance
Term Insurance - Top Selling Plans
Canara HSBC Life Insurance offers online term insurance plans to secure your family financially in your absence.
Family Shield: Enhanced Protection
iSelect Smart360 Term Plan
- 3 Plan options
- Life cover till 99 years
- Steady income benefit
- Block your premium at inception
Start Young, Pay Less, Stay Secured
Young Term Plan
- Life cover till 99 years
- Coverage for spouse
- Block your premium rate
- Covers 40 critical illness
Family Shield: Enhanced Protection
Saral Jeevan Bima
- Affordable prices
- Multiple premium payment option
- Get Tax benefits
- Hassle-free purchase process
Popular Searches on Term Insurance
- Types of Term Insurance
- Buy Term Insurance Online
- Term Insurance Plan
- 1 Crore Term Insurance
- 2 Crore Term Insurance
- 5 Crore Term Insurance
- Term Insurance for women
- Term Insurance Calculator
- Term Insurance for Housewives
- Term Insurance Tax Benefit
- Term Plan with Return of Premium
- 50 Lac Term Insurance
- Zero Cost Term Insurance
- Temporary Total Disability
- Buy Term Insurance Online
- What is Term Insurance?
- Term Insurance for NRIs
- 10 cr Term Insurance
- Term Insurance for Senior Citizens
- Spouse Term Insurance Plans
- Term Insurance for NRI
- Accidental Death Benefit