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Why Term Plans Are Your Calculated Bet Against Life's Uncertainties?

Why Term Plans Are Your Calculated Bet Against Life's Uncertainties?

why term plans are your calculated bet against lifes uncertainties

Life insurance forms an integral part of everyone’s financial portfolio. Life insurance acts as a safety net for one’s family, thereby ensuring that their financial needs are well taken care of, even in the absence of the policyholder. An ideal life insurance policy guarantees that your family will continue to live the lifestyle they are used to, and will not face any financial hardships, even if you are no longer around.

One of the many benefits of life insurance is that it comes in various types and forms. One should review their financial requirements and opt for a life insurance policy that best aligns with their requirements. Different types of life insurance policies guarantee different benefits to policyholders.

Of these, term insurance is widely considered to be the most cost-effective. By paying nominal premium rates, one can avail of a high sum assured with a term insurance policy. Term insurance also comes with a slew of other perks and benefits.

Here are some of them:


The greatest advantage offered by term insurance over other life insurance options is that it is inexpensive to purchase. Term insurance policies are available across a wide spectrum of affordable price points, and it is up to you to purchase the one that not only best aligns with your objectives but is also the most affordable.

2.Flexible and Adaptable:

Each family has a unique set of needs and financial goals. A one-size-fits-all plan wouldn’t be able to cater to each of these needs and goals. Thus, term insurance plans give you the freedom to mold the plan according to your requirements. You can choose from a number of premium payment options, as per your financial condition. You can choose the type of coverage you desire (level, increasing coverage or decreasing coverage), as per your future financial needs. You can even customize your payout, as per what suits your beneficiaries. You can opt for a lump sum payout, a monthly income one or a combination of both. Thus, term plans can be tailored to your needs.

3. Comprehensive Coverage:

With a term insurance plan, you can easily add riders and avail of additional coverage options that you require protection against. Instead of purchasing a whole new insurance plan, opting for a rider can be much more cost-effective. For instance, a critical illness rider offers enhanced protection against a range of critical illnesses, such as cancer, heart disease and more. On the other hand, an accidental and permanent disability cover offers protection and coverage to your family if you are permanently disabled after an accident. Many such riders are available to policyholders, who can use them to create a comprehensive term plan for themselves. The iSelect Star Plan from Canara HSBC Oriental Bank of Commerce gives you access to a range of riders, including Accidental Death Benefit, Child Support Benefit, Accidental Total and Permanent Disability Benefit covers.

4. Availability of a Savings Component:

Most hold the belief that term insurance doesn’t provide one with a savings component. However, this belief is largely unfounded. New-age term insurance plans have now debuted the ‘Return of Premium’ feature, which offers the policyholder maturity benefits. If the policyholder outlives the term, the premiums paid towards the policy are returned. Thus, the policyholder gets maximum benefits from their term insurance policy, by opting for the return of premium benefit.

5. Tax Benefits:

Term insurance is usually a popular choice with policyholders owing to the tax benefits it offers. The premiums paid for a term insurance plan are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. For premiums paid towards insurance tax deductions up to Rs. 1.5 lakh can be claimed in one financial year. Tax exemptions may also be claimed under Section 10(10D) of the same Act, for any payouts received from a term insurance policy.

Conclusion: These are just a few reasons why term insurance is a surefire calculated bet against the uncertainties of life. To secure your family against life’s uncertainties, you can opt for the iSelect Star Term Plan from Canara HSBC Oriental Bank of Commerce, and avail of a range of benefits including discounted premium prices on coverage for your spouse, as well as flexibility in terms of premium payment and payouts.

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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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