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Key Takeaways
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What is Life Insurance Policy?
Life insurance is a financial contract between you and an insurer where, in exchange for regular premium payments, the insurer pays a sum assured to your nominees on your death.
In simple words, life insurance ensures that if something happens to you, your family receives a sum of money to manage their expenses and maintain their financial stability.
For example, if a person purchases a life insurance policy with a sum assured of ₹50 lakh and passes away during the policy term, the insurer pays ₹50 lakh to the nominee, subject to the policy terms and conditions. This amount can help the family meet daily expenses, repay outstanding loans, fund children's education, or achieve other financial goals.
Life insurance plays an important role in financial planning by providing financial protection against life's uncertainties and helping secure the future of your loved ones.
In Indian insurance law, life insurance is governed by the Insurance Act, 1938, and regulated by the Insurance Regulatory and Development Authority of India (IRDAI) under the principle of utmost good faith which requires full disclosure from both parties.
Benefits of Buying a Life Insurance Policy
Life insurance offers more than just financial protection in the event of an unfortunate demise. It can help safeguard your family's future, support long-term financial goals, provide tax benefits, and offer peace of mind by ensuring that your loved ones remain financially secure when they need it most.
Provides Protection to Your Family: Life insurance plans, ranging from a term insurance cover to pension plans, add to the financial safety of your family with life cover. While term life insurance provides the necessary cover for the family to look after their financial needs, using other life insurance plans ensures safety for their goals. For example, you can use a child insurance plan to secure your child’s higher education goal against the chances of your sudden, early demise.
Offers Critical Illness Benefit: You can buy critical illness health insurance separately or as a rider to a life insurance policy. This is a pure protection health insurance plan which assures financial assistance if you contract one of the life-threatening diseases. This insurance provides a lump sum benefit upon diagnosis of illnesses like cancer, heart failure, and renal failure.
Builds Long-Term Wealth: Buying a life insurance policy can be an investment if you choose the right insurance plan for your life. Time is the strongest factor in wealth building; life insurance plans provide a perfect venue for maximising wealth over time. ULIPs are considered some of the best investment options for wealth accumulation due to the possibility of automated portfolio management.
Offers Loan Facility: Investment life insurance plans like endowment, money back, and whole life plans acquire cash value over time. Although these plans are usually long-term investments, you can take a loan against the cash value of these plans. This facility allows you to use a part of the corpus in the plan and continue your investment towards the planned goal. You can even take a loan from your deferred annuity life insurance investments.
Offer Plans for Different Stages of Life: You can use different life insurance plans for different life stages. For example, term and critical illness plans help you ensure financial safety, and child plans will help you see to your child’s financial goals. Similarly, ULIPs and guaranteed plans can help you save for your retirement and other long-term goals. Other life insurance policies, like pension plans and guaranteed income plans, help you with a reliable long-term pension after retirement.
Tax-Saving: Investments made with a life insurance policy make you eligible for a deduction of up to ₹1.5 lakhs in a financial year under Section 123 (previously known as Section 80C). The funds you withdraw from the policy after the lock-in period and the maturity value received from life insurance plans are also tax-free.
Payout Flexibility: Many life insurance policies offer flexible payout options to suit the financial needs of beneficiaries. Depending on the policy, the death benefit can be received as a lump sum, regular monthly income, increasing income over time, or a combination of lump sum and periodic payouts.
Secure Your Family’s Future with the Right Life Insurance Plan
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How Do Life Insurance Work?
A life insurance policy works by providing financial protection to your loved ones in exchange for regular premium payments. Once you purchase a policy and keep it active by paying premiums on time, the insurer provides the agreed coverage and pays the benefits as per the policy terms and conditions.
For example, Suresh, a 35-year-old salaried professional, purchases a term life insurance plan with a sum assured of ₹1 crore and a policy term of 30 years. He pays the required premiums regularly. If Suresh passes away during the policy term, his nominee receives ₹1 crore from the insurer, helping the family manage household expenses, children's education, outstanding loans, and other financial obligations.
The process of a life insurance policy typically involves the following steps:
Purchasing a Policy: The first step is selecting a life insurance policy. You decide the coverage amount as per your family’s financial requirements. The insurer assesses your eligibility based on factors like age, health, lifestyle, etc.
Premium Payments: Once the policy is issued, you have to pay premiums to keep your policy active. The insurer calculates your premium based on factors like your age, health condition, sum assured, and policy type. The premiums can be made either monthly, quarterly, or annually.
Coverage Amount: Your policy remains active as long as you pay the premiums on time. If you miss a payment, insurers provide a grace period (usually 15 to 30 days). If the grace period lapses, you may lose coverage and its benefits.
Claim Settlement: The claim process works in two situations:
If you pass away during the policy term: Your nominee will need to submit the required documents. Once verified, the insurer will release the sum assured to support your family financially.
If your policy matures: For savings or investment-based plans, you will receive a lump sum payout, which you can use for retirement, your child’s education, or other financial goals.
Types of Life Insurance Plans in India
Life insurance plans are designed to meet different financial goals and protection needs at various stages of life. Whether you are looking for pure life cover, wealth creation, guaranteed savings, child education planning, retirement income, or health protection, there is a life insurance plan tailored to your requirements. Some of the most common types of life insurance plans available in India are discussed below.
1. Term Life Insurance Plan:
Term life insurance is a pure life insurance plan which offers life cover at a nominal cost for a specified policy term. The affordable premiums of a term insurance plan helps secure your family's financial future against the risk of your untimely demise.
You can customise the base term insurance plan by adding accidental death, accidental disability, and critical illness benefits. Term insurance plans do not offer a maturity benefit if you survive the policy term. However, you may opt for the return of premium option, which would return all the premiums you have paid for the cover at expiry.
2. Unit Linked Insurance Plans:
Unit-Linked Insurance Plans (ULIPs) are versatile investment plans from life insurance companies. These plans offer life cover and also let you invest in funds with different risk levels. You can build your investment portfolio while availing all the tax benefits available with these types of life insurance policies.
ULIPs also provide you with options to manage your portfolio automatically. These life insurance plans are best if you want to multiply your wealth over a long investment period. This is one of the reasons you must use ULIPs in your retirement portfolio.
3. Saving Plans:
Saving plans are also known as guaranteed life insurance plans, which guarantee the maturity value based on your investment amount. These plans also act as a life insurance plan, which can help you enhance your family’s life cover umbrella every time you start investing in these plans.
The accompanying life cover is ideal as you should increase your cover when you start investing in a new financial goal. With these life insurance plans, you can be sure to achieve your financial goal irrespective of market performance. These plans are best if you want to leave a legacy for your children or grandchildren.
4. Child Insurance Plans:
Child insurance plans, or child education plans, are a type of life insurance plan from life insurers. However, these plans are dedicated to meeting the needs of a child’s higher education and marriage goals.
While you are building the corpus to meet your child’s future needs, you can also keep the investment protected from unforeseen events. This protection will allow your investment to continue in your absence and provide the intended financial support to your child upon maturity. Such plans also provide special riders that continue to offer protection to the child in case the parent passes away.
5. Retirement and Pension Plans:
Retirement or pension plans are life insurance plans dedicated to providing you with a venue to save and then receive a pension. Your retirement plan has two important phases: accumulation and distribution. You go through the accumulation phase in your working years and build a huge retirement corpus. It is a type of savings and investment plan, and the corpus generated is invested further to generate regular income.
This corpus will remain invested in a safe retirement and pension plan, which will also pay a regular sum of money to you as a pension. You can use different types of retirement and pension plans depending on your risk appetite and age.
6. Endowment Plans:
An endowment policy is a combination of life insurance and a savings plan. You can save regularly over a set length of time to build up a substantial corpus that you can enjoy when you reach retirement age. The sum assured will be paid out in a lump sum if the policyholder survives the policy period. An endowment policy can help you achieve financial goals such as paying for your children's school or marriage, buying a home, or even arranging your retirement. In case of the unfortunate demise of the life insured during the policy term, the benefit is paid to the nominee.
7. Money Back Plans:
Money-back plans are insurance plans that offer guaranteed returns on the investments. If you are looking to buy a life insurance plan that offers life cover along with regular payouts, then you may consider buying a money-back plan. These plans provide survival benefits after a few years from the start of the plan. The survival benefit will be paid out only if the policyholder is alive. However, irrespective of the survival benefits already paid, the entire sum assured is paid to the beneficiaries if the policyholder passes away when the policy is in force.
8. Whole Life Insurance Plans:
Whole life plans are a unique genre of life insurance plans. Whole life insurance plans continue till you attain 99 or 100 years of age. Depending on the plan, you can choose to pay the premiums till the age of 60 and continue the cover till the age of 99 or 100.
If you survive till this age, the plan will pay the benefit amount to you; it goes to your family upon your natural death. You can also include a return of premium in this plan. It will allow you to receive a tax-free lump-sum amount at your retirement.
9. Health Insurance Plans:
Life insurers offer defined benefit health insurance plans, where the benefit payment depends only upon the diagnosis of a covered health condition. The plan will pay a lump sum amount regardless of your actual expenditure on the treatment.
Life insurers’ health insurance plan usually covers diseases which can progress unpredictably and may not have a definite cure. For example, heart ailments, cancer, renal failure, etc.
This defined benefit health insurance plan helps you to handle your recovery costs and run the household smoothly during this time. These plans are also pure protection plans like term life insurance.
10. Group Insurance Plans:
Group insurance plans provide life insurance coverage to a group of individuals under a single master policy. These plans are commonly offered by employers, educational institutions, banks, professional associations, and other organisations to their employees or members.
Under a group life insurance plan, the policyholder is typically the organisation, while the members of the group receive insurance coverage. These plans usually offer life cover at a lower cost compared to individual policies because the risk is spread across a larger group of people.
Life Insurance - Top Selling Plans
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Family Shield: Enhanced Protection
- 3 Plan options
- Life cover till 99 years
- Steady income benefit
- Block your premium at inception
Start Young, Pay Less, Stay Secured
- Life cover till 99 years
- Coverage for spouse
- Block your premium rate
- Covers 40 critical illness
Fixed Returns, Zero Risks & Worries
- 4 Plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Why is Life Insurance Important?
Life insurance offers more than just financial protection, it can help secure your family's future, support long-term financial goals, and provide peace of mind throughout different stages of life. Here are some of the key benefits of life insurance:
Comparison of Different Types of Life Insurance Plans
With multiple life insurance plans available, choosing the right one can be challenging. The table below compares the major types of life insurance plans based on their purpose, benefits, policy term, and suitability to help you make an informed decision.
Life Insurance Plans | Type of Coverage | Feature Benefits | Policy Term | Maturity & Death Benefit | Who Should Buy? |
Term Insurance | Pure risk cover | High sum assured at a low premium | 5 years to up to 99 years of age | No maturity benefit, sum assured payable as a lump sum &/or regular monthly income | Anyone with an income and dependents should buy |
Unit Linked Insurance Plan | Life cover with long-term investment | Dual benefit with flexible investment options | 5 years to up to 99 years of age | Higher of: 105% of total premiums paid, guaranteed death benefit, and fund value payable on death. Fund value or 105% of total premiums paid upon maturity | If you want to build wealth or save for your retirement |
Child Insurance | Corpus for your child’s future | Lump-sum and periodic payouts | 5 years to 18 years | Guaranteed maturity value + accrued bonuses payable on maturity. Guaranteed death benefit + accrued bonuses payable on death | If you want to safeguard your child’s future |
Retirement Insurance | Corpus for peaceful retirement | Long-term savings for retirement | 18 years to up to 80 years of age | Guaranteed Sum Assured on death plus accrued additions (if any), high premium addition (if any). | Save for your retirement |
Savings Plan | Life cover with savings and guaranteed benefits | Guaranteed returns, disciplined savings, financial goal planning | Varies by plan | Death benefit during the policy term and maturity benefits upon policy completion, as per plan terms | Individuals seeking predictable returns and financial security |
Who Should Buy a Life Insurance Policy?
The need to buy a life insurance plan depends upon a number of factors. It majorly depends upon your goals and what stage of life you are in. The main objective of any life insurance policy is to secure the family’s future financial needs. It includes secondary benefits too like tax benefits and investment. Mentioned below is a list of people who may need to buy a life insurance plan.
- Young and Single Individuals: It is advisable to buy a life insurance plan at an early stage because premiums offered by the insurance companies are relatively lower when you are young. You also have fewer responsibilities when you are unmarried. As a person grows older, the likelihood of health-related risks increases, and insurance premiums typically rise to reflect this higher risk.
- Newly Married People: Marriage comes with additional responsibilities; thus, people who have just got married and started families need to get a life insurance plan to cover different risks in life. This is because when you get married and start a family, you have dependents to look after. Therefore, it’s advisable to buy a life insurance policy before you get married or when you are newly married, as this will cost you less in premiums.
- Working Couple with Kids: A working couple having children should necessarily buy a life insurance policy. In case of the sudden death of one of the partners, a life insurance policy will leave the other partner in a much better position to manage the family’s finances.
- Senior Citizens or Retired Individuals: Buying a life insurance policy is extremely important for senior citizens, as this will help them live a relaxed and comfortable life post-retirement. Some policies can also serve as a replacement for income to support them and their family, minimising their future financial worries. Thus, getting a life insurance plan for senior citizens is one of the best ways to take care of them and make them and their loved ones feel financially secure.
- Self-Employed Individuals and Business Owners: Unlike salaried professionals, self-employed individuals do not have corporate group insurance cover, gratuity, or provident fund benefits to fall back on. Their income can also be irregular, and they often carry business loans or personal liabilities to fund their ventures. A life insurance policy acts as a vital safety net for entrepreneurs and freelancers. It ensures that in their absence, their families are not burdened with outstanding business debts, and their hard-earned business can continue to run smoothly.
- Working Women: Working women contribute significantly to their families' financial security. Life insurance can help safeguard dependents, protect future financial goals, and provide an additional layer of financial protection.
- Individuals with Special Insurance Needs: Many insurers offer life insurance coverage to individuals with specific circumstances, subject to underwriting guidelines:
- Smokers: Life insurance is available to smokers, although premiums may be higher due to increased health risks
- Individuals with Disabilities: Depending on the nature and severity of the disability, life insurance coverage may be available with specific terms and conditions
- Individuals with Pre-Existing Medical Conditions: Coverage may be offered with additional premium loading, exclusions, or waiting periods, depending on the insurer's assessment
Typically, any individual between the ages of 18 and 65 years can purchase a life insurance policy in India. However, in some cases, it may depend on the kind of insurance policy.
Hence, keep the above-mentioned pointers in mind, as this will help you decide whether buying a life insurance policy at your current stage is required or not.
Recommended Plan
Life Insurance for Women
Women often play multiple roles as earners, caregivers, and financial contributors within a family. A life insurance policy can help provide financial security to loved ones while supporting long-term financial goals and independence.
- Protection for Children and Spouse: Life insurance can help ensure that your spouse and children continue to receive financial support in your absence. The payout can be used to meet daily expenses, education costs, and other important life goals.
- Income Replacement: For working women, life insurance can act as an income replacement tool, helping the family maintain its standard of living and meet financial commitments if an unforeseen event occurs.
- Legacy Planning: A life insurance policy can help create a financial legacy for future generations. The proceeds can be used to support children's aspirations, preserve family wealth, or provide financial assistance to loved ones.
- Financial Independence and Security: Life insurance helps women build a stronger financial foundation by providing protection against uncertainties. It can complement other financial planning strategies and offer peace of mind knowing that dependents are financially protected.
How Much Life Insurance You Need?
The amount of life insurance cover you need depends on your income, financial obligations, future goals, and the number of dependents relying on you. While a common rule of thumb is to choose a life cover that is 10-15 times your annual income, a more accurate approach is to assess your family's financial requirements comprehensively.
One of the most widely used methods for estimating the required life insurance cover is the DIME Formula, which takes into account four key financial responsibilities:
Debt: Outstanding liabilities such as personal loans, vehicle loans, and credit card dues
Income Replacement: The amount required to replace your income and support your family's lifestyle and daily expenses
Mortgage: Any outstanding home loan or property-related financial commitments
Education: Future education expenses and other long-term goals for your children
For example, if you have debts of ₹5 lakh, an annual income of ₹12 lakh, a home loan balance of ₹50 lakh, and estimated future education expenses of ₹20 lakh, you may require a life insurance cover of over ₹87 lakh. In such a scenario, opting for a cover of ₹1 crore could provide a more comfortable financial cushion for your family.
Reviewing your life insurance requirements periodically can help ensure that your coverage remains aligned with changing financial responsibilities and life goals.
Payout Options in Life Insurance
Life insurance policies offer multiple payout options to help beneficiaries manage their financial needs effectively. Depending on the policy and insurer, the death benefit can be received in different ways to provide immediate support, long-term income, or a combination of both.
Payout Option | How It Works | Best Suited For | Key Advantage |
Lump Sum Payout | The entire sum assured is paid to the nominee in a single payment. | Families that need immediate funds to repay loans, meet major expenses, or manage financial obligations. | Provides instant access to the full death benefit. |
Monthly Income Payout | The death benefit is paid as a fixed monthly income for a specified period. | Families that rely on the policyholder's regular income for daily expenses. | Acts as a salary replacement and helps manage monthly household expenses. |
Increasing Monthly Income Payout | The nominee receives a monthly income that increases at a predetermined rate over time. | Families looking for long-term financial support that keeps pace with inflation. | Helps maintain purchasing power and manage rising living costs. |
Lump Sum + Monthly Income Payout | A portion of the benefit is paid immediately, while the remaining amount is paid as regular monthly income. | Families that need both immediate financial assistance and ongoing income support. | Combines short-term liquidity with long-term financial stability. |
When Should You Buy a Life Insurance Policy ?
The right time to buy a life insurance policy is as early as possible. Purchasing life insurance at a younger age can help you secure lower premiums, obtain higher coverage, and ensure long-term financial protection for your loved ones. However, the need for life insurance becomes even more important as your financial responsibilities and dependents increase.
In your 20s | The twenties are the best time to invest in a comprehensive life insurance policy because you get several benefits, such as lower premiums, a bigger corpus, and, of course, an early habit of saving. At this age, there is also greater room for experimenting with higher-risk investments that can yield higher benefits. Some of the best life insurance options include ULIPs and Term Plans. |
In your 30s | Most people start planning or have a family of their own by the time they enter their thirties. They experience major life transitions, and the financial security of their family and the futures of their children gain more importance. A life insurance policy must now be a part of your financial planning. One can opt for several life insurance options like plain term plans, ULIPs, and child plans. |
In your 40s | The forties are the time when buying the best life insurance plan becomes inevitable because this is when most people’s income contributes to their family’s income. There are responsibilities and dependents, medical expenses, and children’s education to take care of. Simple term plans or debt-oriented funds for insurance-cum-investment products work best. Plus, a retirement plan should be considered. |
In your 50s | Isn’t it too late to get insured? Well, no. Many individuals may have outstanding debts and mortgages. Hence, securing the mortgage is vital to ensure that the family gets to retain the assets even in the absence of the life assured. Since most people have settled and have large daily expenses to meet by now, one must start saving and building funds for a peaceful retirement by buying the best life insurance plan for a stress-free life. If you are not protected yet, buy the life insurance plan even in your 50s. |
In your 60s | It is never too late to buy the best life insurance plan. Despite high premiums, getting insured in your sixties can be great for financially securing your loved ones, paying off outstanding loans or making up for lost income. It makes sense to opt for annuity plans and instruments that help in estate planning and wealth creation, to help ensure the well-being of your loved ones. |
Recommended Plan by Age
Why Invest in a Policy by Canara HSBC Life Insurance?
| With lakhs of life insurance policies sold, we have a customer base of crores of happily insured customers. We are IRDAI registered. |
| Our Life Insurance Policies are backed by two major financial institutions - Canara Bank and HSBC Bank. |
| We have 10000+ Bank branches, backed by Canara Bank and HSBC Bank in your 40s. |
| We have a competitive 99.52% Individual death claims settlement ratio in FY 2025-26. |
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ASSURANCETax Benefits of Insurance Plans
Life insurance plans provide financial security as well as exemption from tax. Here are the tax benefits offered by the Government of India.
Section 123 (previously known as Section 80C): The death benefit received by the nominee under a life insurance policy is generally tax-free under Schedule II (Table S.No. 2) (previously known as Section 10(10D)). Additionally, maturity proceeds from eligible life insurance policies may also qualify for tax exemption, subject to the conditions prescribed under the Income Tax Act.
Section 126 (previously known as 80D): Premiums paid towards eligible health-related riders, such as critical illness riders or health insurance components attached to a life insurance policy, may qualify for tax deductions under Section 126. These deductions are available subject to the limits and conditions specified under the Income Tax Act.
Schedule II (Table S.No. 2) (previously known as Section 10(10D)): The death benefit received by the nominee under a life insurance policy is generally tax-free under Section 10(10D). Additionally, maturity proceeds from eligible life insurance policies may also qualify for tax exemption, subject to the conditions prescribed under the Income Tax Act.
Documents Required to Buy a Life Insurance Policy
Life insurance companies require certain documents when you apply for a life insurance policy. These documents can be directly uploaded onto the website in case of online policy application, or can be submitted to a policy manager in case of offline purchases. Apart from these, you will be needed to fill in information such as personal details, lifestyle related details, health details, etc.
Listed below are the documents that are accepted as valid proofs of income:
Last 3-month salary slips
Last 6-month bank statement
Income tax return certificate
Employer certificate
Latest Form 16
Depending upon availability, one of the following documents can be submitted as a proof of identity:
Passport
Aadhar Card
PAN Card
Voter ID card
Driving license
Recent passport size photograph
The following includes the documents accepted as valid proofs of address:
Aadhaar Card
Ration Card
Passport
Driving license with address details
Bank account statement or passbook
Credit card statement
Passbook with latest entries for 6 months
Electricity/telephone bill
Bank account statement
Here’s a comprehensive list of documents that you will require to produce as a proof of age:
Passport
PAN Card
Birth Certificate
Driving license
Aadhar Card
Marriage Certificate
Voter ID Card
School/college certificate
How to Choose and Buy the Best Life Insurance Policy?
Choosing the right life insurance plan involves evaluating your financial goals, coverage needs, and the insurer's reliability. A well-chosen policy can help protect your family, support long-term financial objectives, and provide peace of mind. Consider the following factors before purchasing a life insurance plan:
- Understand Your Financial Goals: The type of life insurance plan you choose should align with your financial objectives. For example, a term insurance plan is suitable for pure protection needs, while ULIPs, savings plans, child plans, or retirement plans may be suitable for wealth creation and long-term financial planning.
- Determine the Right Coverage Amount: Your life insurance cover should be sufficient to support your family's future financial needs. Consider factors such as:
- Outstanding debts and liabilities
- Monthly household expenses
- Children's education and future goals
- Existing savings and investments
- Retirement needs of your spouse or dependents
As a general guideline, many financial experts recommend a life cover of 10-15 times your annual income.
- Compare Different Life Insurance Plans: Before making a decision, compare plans based on coverage, benefits, riders, premium costs, payout options, exclusions, and flexibility. This can help you identify a policy that best matches your needs and budget.
- Evaluate the Claim Settlement Ratio: The Claim Settlement Ratio (CSR) indicates the percentage of claims settled by the insurer compared to the total claims received during a financial year. A higher CSR generally reflects a strong claims-paying track record.
- Check the Solvency Ratio: The solvency ratio measures an insurer's ability to meet its financial obligations and pay claims. A healthy solvency ratio indicates strong financial stability and long-term reliability.
- Review Customer Service and Claim Support: Choose an insurer that offers responsive customer service, multiple support channels, and a simple claim settlement process. Efficient claim assistance can make a significant difference during difficult times.
- Consider Customer Reviews and Reputation: Research customer reviews, testimonials, and market reputation to understand the insurer's service quality, policyholder experience, and complaint resolution practices.
- Assess Online and Offline Accessibility: A strong digital presence, along with an accessible branch network, can make policy purchase, servicing, and claim settlement more convenient for you and your family.
- Check Available Riders and Additional Benefits: Riders such as critical illness, accidental death benefit, waiver of premium, and disability benefits can enhance your policy coverage and provide broader financial protection.
- Compare Premium Costs and Policy Value: While affordability is important, the cheapest plan may not always offer the best value. Compare premiums against the coverage, benefits, insurer reputation, and claim support offered to make an informed decision.
By carefully evaluating these factors, you can choose a life insurance plan that provides adequate protection and supports your long-term financial goals. - How to Buy Life Insurance Policy Online? Canara HSBC Life Insurance makes buying a life insurance policy easy and convenient. Here are the steps you can follow to buy a policy of your choice.
- Log on to the website: The first and foremost thing you need to do is to log on to the insurance company website and choose the life insurance plan that best suit your needs.
- Fill in all the details: The next step you need to do is to fill in all the details such as name, gender, date of birth, email, mobile number, policy term, sum assured, etc.
- Make your payments: Once you have entered all the details, you will see your premium amount. Now, you can make your payment online. A soft copy of the policy will be sent to you after company approval.
Life Insurance Riders
Adding riders to your life insurance policy enhances your financial safety umbrella and coverage. Riders are additional benefits you can add to your policy and include more events that may lead to financial distress. Here are a few prominent riders you can add to your life insurance plans:
- Critical Illness Rider: The critical illness rider provides financial assistance to you in case you are diagnosed with one of the life-threatening diseases. Critical illness refers to a disease or illness which spreads unpredictably and can be life-threatening. Many such illnesses, like cancer, heart failure, etc. are treatable, but recovery may cost a lot. Thus, add the benefit to your life insurance plan for additional coverage.
- Accidental Death Benefit Rider: Accidents cause more than ₹1.5 lakh Indians to lose their lives every year. Unfortunately, these sudden and unexpected events can send a young family spiralling down the path of financial distress. Also, accidental death has a higher final cost for the family. Thus, most life insurance plans have a provision to offer an additional sum of money to the family of accidental death victims through this rider.
- Accidental Total and Permanent Disability Benefit Rider (ATPD): Accidents may not always be fatal. Fortunately, most only get temporary disabilities, like broken bones or ligament tears, and would be back on their feet within a few weeks. But in the case where you lose a limb, it may cost you your ability to earn the same amount of money. Thus, to cope with the changes, you need financial assistance, which the ATPD rider can provide.
- Premium Waiver Rider: The premium waiver rider allows you to continue your life cover without paying extra premiums. The benefit may apply to your policy in more than one way and under more than one circumstance. For example, most life insurance policies will waive future premiums in the case of an ATPD or critical illness claim.
However, life insurance plans like iSelect Guaranteed Future Plus, ULIP plans and a few pension plans allow premium waiver in the case of the early death of the insured. Such waiver of premium ensures that the family can receive the money intended for them at the planned time.
- Child Support Benefit Rider: Child Support Benefit is a rider available under the iSelect Smart360 Term Plan. This rider allows you to provide a lump sum amount for your child’s important future goals. This amount is separate from the base sum assured of the policy and is always paid in a lump sum. This is regardless of the mode of the base sum assured payment. Under the iSelect Smart360 Term Plan, you can choose to pay the death benefit as a regular income to your family. Thus, a lump sum amount will help safeguard the child’s future goals without affecting the family’s financial needs.
Why Buy Life Insurance Online?
Adding riders to your life insurance policy enhances your financial safety umbrella and coverage. Riders are additional benefits you can add to your policy and include more events that may lead to financial distress. Here are a few prominent riders you can add to your life insurance plans:
The critical illness rider provides financial assistance to you in case you are diagnosed with one of the life-threatening diseases. Critical illness refers to a disease or illness which spreads unpredictably and can be life-threatening. Many such illnesses, like cancer, heart failure, etc. are treatable, but recovery may cost a lot. Thus, add the benefit to your life insurance plan for additional coverage.
Accidents cause more than ₹1.5 lakh Indians to lose their lives every year. Unfortunately, these sudden and unexpected events can send a young family spiralling down the path of financial distress. Also, accidental death has a higher final cost for the family. Thus, most life insurance plans have a provision to offer an additional sum of money to the family of accidental death victims through this rider.
Accidents may not always be fatal. Fortunately, most only get temporary disabilities, like broken bones or ligament tears, and would be back on their feet within a few weeks. But in the case where you lose a limb, it may cost you your ability to earn the same amount of money. Thus, to cope with the changes, you need financial assistance, which the ATPD rider can provide.
The premium waiver rider allows you to continue your life cover without paying extra premiums. The benefit may apply to your policy in more than one way and under more than one circumstance. For example, most life insurance policies will waive future premiums in the case of an ATPD or critical illness claim.
However, life insurance plans like iSelect Guaranteed Future Plus, ULIP plans and a few pension plans allow premium waiver in the case of the early death of the insured. Such waiver of premium ensures that the family can receive the money intended for them at the planned time.
Child Support Benefit is a rider available under the iSelect Smart360 Term Plan. This rider allows you to provide a lump sum amount for your child’s important future goals. This amount is separate from the base sum assured of the policy and is always paid in a lump sum. This is regardless of the mode of the base sum assured payment. Under the iSelect Smart360 Term Plan, you can choose to pay the death benefit as a regular income to your family. Thus, a lump sum amount will help safeguard the child’s future goals without affecting the family’s financial needs.
Why Buy Life Insurance Online?
Buying a life insurance policy online has become increasingly popular due to its convenience, transparency, and cost-effectiveness. It allows you to compare plans, evaluate benefits, and complete the purchase process from the comfort of your home. Here are some key advantages of buying life insurance online:
- Affordability: Online life insurance plans are often more affordable than their offline counterparts because insurers can reduce distribution and administrative costs associated with agent-led sales. These savings are typically passed on to customers in the form of lower premiums.
- Greater Transparency: When purchasing a life insurance policy online, you can review the policy features, benefits, exclusions, and terms and conditions at your own pace. You can also compare multiple plans and verify details through customer support channels before making a decision.
- Higher Sum Assured: Since online plans generally come with lower premiums, policyholders may be able to secure a higher sum assured without significantly increasing their financial burden.
- Convenience and Ease of Purchase: The online buying process is simple and user-friendly. You can complete the application, upload documents, and track your policy status digitally. Many insurers also offer online or telemedical assessments, reducing the need for physical visits.
- Paperless Process: The entire process, from application to policy issuance, can be completed digitally. You only need to upload scanned copies of the required documents, making the experience faster and more environmentally friendly.
- Easy Comparison and Research: Online platforms make it easy to compare different life insurance plans based on premiums, coverage, features, claim settlement ratios, and solvency ratios. This helps you make an informed decision based on your financial goals and protection needs.
- Enhanced Security: By uploading documents directly to the insurer's secure portal, you can reduce the risk of unauthorized access to your personal information and maintain better control over your data.
- Easy Policy Management: Online life insurance policies are easier to manage throughout their tenure. You can access policy details, update information, pay premiums, and track service requests digitally. Additionally, an Electronic Insurance Account (eIA) allows you to manage multiple insurance policies through a single platform.
How to Pay for Life Insurance Policy?
You select a premium payment mode while purchasing the policy. With level premium policies, the premium payment mode remains the same throughout the premium payment term.
You can pay the life insurance premium in the following modes:
Monthly
Quarterly
Semi-annually
Annually
You should choose the premium payment mode most convenient for you as per your income flow. For example, if you are salaried, the monthly mode of premium payment will keep the headache of regular planning and budgeting away. You can simply submit standing advice for the auto-debit of the premium.
However, paying the entire year’s premium in a single instalment may offer a small discount.
Automate Your Life Insurance Premium:
Paying life insurance premiums on time is important, whether it is for a pure protection plan like a term cover or a wealth-building plan like a ULIP. The best way to ensure timely premium payment is when you automate the debit directly from your account.
This will not only ensure that your policy always remains active, but it will also save any additional charges you may incur in late payment fees. Also, this is the best way forward for your wealth-building goal.
Pay Premium Online: You can use any of the following methods of payment to pay your Canara HSBC Life Insurance policy premium online:
Credit/Debit Card
Internet Banking
Prepaid Wallets or Cash Cards
Bharat QR Code
UPI (Unified Payment Interface)
Insta Pay
While you can transact using any credit or debit card on our online payment channel, you can also use your debit card with a PIN if you are a customer of these banks. Other than this, using these banks to pay your premium, you can also convert the premium to EMIs.
Pay On Call – IVR (Interactive Voice Response): You can also pay your premium by calling the following toll-free numbers.
For Resident Indian customers: 1800-891-0003 / 1800-103-0003
For NRI customers: 0124-4315200
Pay Through Cheque: You can also draw an account payable cheque or DD for your premium amount and send it to us at the following address:
Name on the Cheque/DD: “Canara HSBC Life Insurance Co. Ltd”
Mention the following at the back of the cheque:
Policy Number
Name
Mobile Number
For payment through DD, also send your bank statement which reflects the premium amount for the policy.
Pay at Hub Offices or Bank Branch: You can also visit any of the nearest Hub Branch or bank branches to pay your premium using Card, Bank Transfer, or Cheque/DD.
Life Insurance Claim Process
You can expect your life insurance policies to pay you or your family under any of the following circumstances:
Maturity of the plan
When you want to take a loan on the policy
In the case of a covered event, such as death, terminal illness or disability, taking place
If your life insurance policy has an investment component, the policy acquires cash value after a few years, and you can borrow money on it in case of an emergency. However, if it is a protection plan like term insurance or health cover, only death or health claims will apply to it.
The first and last events are part of the claim settlement for the policy, and the insurer is obligated to return the promised sum or fund value to you. However, both claims are very different. Thus, the process and document needs for both are a little different.
1. Filing a Death or Health Claim:
A death claim is the type of claim when a life insurance policy is expected to work. Also, this is the time that is the true proof of concept for insurance and the plan as an investment. Death claims on life insurance policies will also include the following claims:
Accidental total & permanent disability claims
Terminal illness claims
2. Five Steps to File an Insurance Claim:
Step 1: Inform the life insurer
Step 2: Make a list of the necessary documents you need to submit and collect all
Step 3: In the case of medical death or accidents, compile the additional documents as listed in the document list below
Step 4: Once the documents and form are complete, submit your claim with the insurer either through post or at a Hub Office
Step 5: The insurer will verify the documents and proceed with the claim decision
3. Documents Needed to Claim Your Life Insurance Policy:
You will need the following documents to file a death or health-related claim with Canara HSBC Life Insurance Policies:
Salary | Mandatory Documents | Accidental Death |
Original policy documents Original/attested copy of death certificate issued by the local municipal authority Death/Health claim application form (Form C) NEFT mandate form attested by bank authorities along with a cancelled cheque or bank account passbook Nominee's photo identity proof such as a copy of Passport, PAN card, Voter identity card, Aadhaar (UID) card, etc. | Physician's Statement (Form-P) Treating Hospital Certificate (Form-H) Employer (Form-E)/School College Certificate (Form-S) Hospital/Other treatment records | Copy of the First Information Report (FIR) or Panchanama/Police complaint Copy of Postmortem report (PMR)/Autopsy and Viscera report Copy of the Final Police Investigation Report (FPIR)/Charge sheet |
4. Additional Documents in Case of A Terminal Illness Claim
Terminal illness claims, including early-stage claims for cancer and heart insurance policies, will need the following additional documents:
Hospital certificate Form H.
Test/investigation report including all the clinical treatments like radiological, histological and laboratory test evidence (e.g. 2D echocardiogram, treadmill test, USG etc) as applicable.
Depending on the illness being claimed, the following medical documents may be required to confirm the diagnosis:
Heart Attack:
ECG report
Cardiac Injury Profile
Other relevant cardiac investigation reports
Coronary Artery Bypass Grafting (CABG):
Surgical notes
Angiography report
Hospital discharge summary
Cancer:
Histopathology report
Other diagnostic reports confirming malignancy
Stroke:
CT scan report
MRI report
Neurologist's opinion or assessment
Major Organ Transplant:
Diagnosis report
Surgical summary
Hospital discharge card or discharge summary
Kidney Failure:
Biopsy report
Haemodialysis records
Relevant nephrology reports
If the life assured is salaried, leave records of the last 3 years from the employer
5. Filing a Maturity Claim:
Maturity claim applies to those policies where you have an investment value as well. Maturity claims are payable only in the case where you outlive the policy tenure and the policy is still in force, i.e. all premiums have been paid on time.
The maturity claim filing process can differ for online policies from the traditional POS plans. In the case of POS plans, you may receive the policy discharge details and forms in the post at your registered address.
You can fill out the discharge form and send or submit the signed copies at the nearest branch, along with the following details:
Original policy documents
Signature of the nominee on the discharge voucher
6. What if the Policyholder Dies Before the Payment of Maturity Claim?
If the policyholder dies after maturity of the policy the claim is still treated as a maturity claim. In the case the policyholder has died before the payment of the maturity claim, the nominee may receive the claim amount.
However, if the claim application has already been filed with all the details of the account. The money may arrive in the name of the deceased policyholder. In this case, it will be the responsibility of the legal heirs of the policyholder to make use of the maturity proceeds.
What are the Important Inclusions and Exclusions of Life Insurance Plans?
To understand the insurance plans deeply, it is crucial to understand their inclusions and exclusions. The table illustrates the details:
Category | Inclusions | Exclusions |
Accidental Death | Covered if death occurs due to an accident (e.g. road accident, workplace injury) | Death caused by reckless behaviour, such as drunk driving, may be excluded. |
Death due to Illness | Covered if caused by natural or pre-existing illness (if disclosed at the time of purchase) | Death due to undisclosed pre-existing conditions may not be covered |
Disability Coverage | Some policies provide financial assistance if the insured becomes permanently disabled | Temporary disabilities or self-inflicted injuries may not be covered |
Suicide Clause | Covered after a waiting period (usually 1 year) | If suicide occurs, within the waiting period, no payout is given |
War Or Terrorism | Some policies may provide coverage under specific conditions such as damaged property | Death due to war, terrorism, or civil unrest is generally excluded |
How to Avoid Claim Rejection?
There are certain red flags at the end of the policyholder that give an insurer a solid reason to reject the claim. Here are some tips to minimise it:
Pay Premium on Time: Make sure to pay your premium on time. Don't worry if you forget to make a payment, the insurer will give you a grace period and your policy will be still active. However, if the grace period is missed, your policy lapses and you don't get the coverage benefits.
Share Authentic Medical Details: The biggest reason for the claim rejection is dishonesty. As an insured person, you have to share the truth about your past health, medical history and pre-disposition to diseases. Lying to these facts leads to trouble for the nominee when they try to claim.
Be Honest About Your Lifestyle: Your lifestyle also plays an important role in the insurance risk assessment process. People who smoke and drink frequently are more prone to certain diseases and health conditions, which increases the risk for insurers. You should be authentic while disclosing so that your nominee will not suffer later.
Share Details About Existing Insurance Claims: You can buy multiple life insurance policies in India, but your total coverage depends on your Human Life Value (HLV). If you hide existing policies, insurers can't assess risk properly, leading to claim rejection. Always disclose your policies to ensure smooth claim settlement and avoid complications in the future.
Read the Terms and Conditions Carefully: Both the nominees and the policyholder should go through the policy document very carefully. Understand the inclusions and exclusions listed in the terms. Knowing every detail of the policy can help you avoid situations that can lead to claim rejection.
When to Review YourLife Insurance Policy?
You should review your life insurance policy regularly, especially during major life events like marriage, childbirth, a new job, or significant financial changes. Reviewing ensures your coverage aligns with your needs and helps in maximising benefits for your loved ones.
- After Getting Married: Marriage often brings shared financial responsibilities and long-term goals. Reviewing your life insurance policy can help ensure your spouse is adequately protected.
- After the Birth of a Child: Welcoming a child increases your financial obligations, including education and future living expenses. You may need higher coverage to secure your child's future.
- When You Change Jobs: A new job may come with a different salary structure, benefits package, or financial commitments. Reviewing your policy helps ensure your coverage remains appropriate.
- During Major Financial Changes: Significant events such as taking a home loan, starting a business, or acquiring large liabilities can impact your insurance needs and may require additional coverage.
- When Your Income Changes Significantly: A substantial increase or decrease in income can affect your family's financial requirements and lifestyle. Reviewing your policy helps ensure your life cover continues to provide adequate protection.
Important Life Insurance Terms You Should Know
Insured Person & Policyholder: Insured person is the individual whose life the insurance plan covers. For example, if you buy the best life insurance plan for your spouse, he or she would be the insured person. The person paying the premiums becomes the policyholder.
Sum Assured: With so many insurance providers in the market today, choosing the most reliable and best life insurance company can be a daunting task. Thus, follow the above-mentioned pointers as this will help you choose the best insurer for a plan that meets your financial needs.
Policy Term: The policy term is the total length of time during which the life insurance policy is expected to be in force. That is when you have been paying all the premiums in time and have not surrendered the policy.
Premium Payment Term: Usually, you need to pay an annual premium throughout the policy term, i.e., Policy Term = Premium Payment Term (PPT). However, you can choose to pay the premium within a shorter period, i.e., policy term > premium payment term.
Riders: Riders are additional insurance covers which can enhance the cover of your policy with either an additional sum assured or by covering an additional risk. For example, if you are looking for the best life insurance plan, you can include accidental death and disability rider to your term life insurance policy.
Lock-in Period: Policies have a lock-in period within which you cannot withdraw or surrender the policy. For ULIPs the lock-in period is five years, while for other plans this is two years. Only investment plans have a lock-in period.
Cash Value or Surrender Value: Life insurance plans other than the pure protection plans like term and health insurance, acquire cash value after the lock-in period. As you invest more money into the plan, the cash value also increases. Loan on the life insurance policy is based on this cash or surrender value.
Nominee: Nominee is the person who receives the amount promised by the life insurance company in the event of the life insured's death. The nominee, also known as the beneficiary, is generally parents, wife or children of the life insured.
Life Insurance Premium: The life insurance premium is the regular amount you pay to buy a life insurance plan. The premium is generally an annual amount. However, you can change the premium payment frequency to something more convenient for your investments. For example, as a salaried investor, you may find monthly premium payments more convenient.
Death Benefit: This is the amount that is payable upon the death of the insured in the life insurance plan. Term and critical health insurance plans have a defined death benefit amount. However, other life insurance plans like endowment, moneyback or ULIP plans may have a guaranteed death benefit which may include accrued bonuses.
Maturity Benefit: Maturity benefit is the amount payable at the maturity of the life insurance policy. Maturity benefit is payable only in endowment, ULIP, moneyback and whole life insurance plans. This benefit is payable only in two cases;
You (the policyholder) survive the policy term
You have opted for a premium protection option under the plan
Grace Period: You should pay the life insurance premiums on or a little before the due date. This will ensure that your premium is invested at the right time and enjoys maximum growth, and your life cover also continues. However, if you miss the due date Grace Period is there to save you. The grace period is the time available to you for paying the premium without affecting the policy. You usually have a 15 days grace period for monthly premium payment modes and 30 days for other modes.
Lapsed Policy: If you continuously default on your premiums the policy goes into a vegetative state and is said to have lapsed. Lapsed policies acquire paid-up value as per the premium you have paid. Endowment and moneyback life insurance policies usually acquire a cash value after two years of continuous existence. So, if you stop paying the premiums before completing two years, your premiums are forfeited.
Revival Period: This is the time given for a policy to be revived after the lapse. In this period, you can revive your old policy by paying all the remaining premiums. At times, you may also have to go through a medical check-up.
Beneficiary: A beneficiary is the individual legally entitled to receive the benefits from a life insurance policy. In many cases, the nominee and beneficiary may be the same person.
Free Look Period: The Free Look Period allows policyholders to review the policy after purchase and cancel it within the specified period if they are not satisfied with its terms and conditions.
Exclusion: Exclusions are specific situations, events, or conditions that are not covered under the life insurance policy. Policyholders should carefully review these exclusions before purchasing a plan.
Endowment Plan: An endowment plan is a life insurance product that combines life cover with savings. It provides a maturity benefit if the policyholder survives the policy term and a death benefit in case of an unfortunate demise during the policy term.
Vesting Age: Vesting age is the age at which benefits under a retirement or pension plan become payable to the policyholder, usually in the form of regular pension or annuity income.
Do’s and Don'ts of Life Insurance Plans
Life insurance is a crucial part of financial planning. Here are certain do’s and don’ts that you should take care of:
Factors
| Do’s | Don’ts |
Need Assessments | Assess your financial responsibilities, debts, and future goals before choosing a plan | Don’t buy a policy without evaluating if it covers your family’s long-term financial security |
Health Disclosure | Provide accurate health and lifestyle details to avoid claim rejection | Don’t hide pre-existing health conditions or habits like smoking, as it may lead to claim denial |
Policy Comparison | Compare different policies, benefits, and premium costs to make an informed decision | Don’t select a plan solely based on low premiums without checking the coverage adequacy |
Policy Terms & Exclusions | Compare different policies, benefits, and premium costs to make an informed decision | Don’t ignore policy exclusions, as certain circumstances may not be covered |
Premium Payments | Pay premiums on time to keep the policy active and enjoy uninterrupted benefits | Don’t miss premium payments, as policy lapses can lead to loss of coverage |
Frequently Asked Questions for Life Insurance Plans
Life insurance is a financial safety net. You pay a regular premium and, if you pass away during the policy period, your family receives a pre-agreed lump sum (sum assured) to cover their expenses, repay loans, and maintain their standard of living.
The meaning of life insurance is a contract between an individual (policyholder) and an insurance company where the insurer agrees to pay a death benefit to the policyholder's nominees in exchange for regular premiums. The purpose is to provide financial security to the policyholder's dependents.
For example, Suresh, aged 35, earns ₹10 lakh per year and has a wife and two children. He purchases a ₹1 crore term life insurance plan for a premium of ₹900 per month. If Suresh passes away during the 30-year policy term, his family receives ₹1 crore as the death benefit. This amount can help repay the home loan, fund the children’s education, and support their daily living expenses.
The main types of life insurance plans available in India include:
Term Insurance Plans: Pure protection plans that offer high life cover at affordable premiums
ULIPs (Unit Linked Insurance Plans): Plans that combine life insurance with market-linked investment opportunities
Savings Plans: Insurance plans that offer life cover along with guaranteed savings benefits
Endowment Plans: Plans that provide both insurance protection and maturity benefits, often with bonuses
Whole Life Insurance Plans: Policies that provide life cover up to 99 years of age or throughout the insured's lifetime
Yes. Life insurance in India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI) under the Insurance Act, 1938. All life insurance companies must be registered with IRDAI and comply with its regulations. Life insurance policies are legally binding contracts and operate on the principle of utmost good faith, requiring both the insurer and policyholder to disclose all material information honestly.
The documents required to purchase a life insurance policy generally include:
Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID, or Driving Licence
Address Proof: Aadhaar Card, Passport, Utility Bills, or Bank Statement
Age Proof: Birth Certificate, Passport, Aadhaar Card, or Class 10 Certificate
Income Proof (if applicable): Salary slips, Form 16, Income Tax Returns, or Bank Statements
Recent Photograph: Passport-sized photograph
Medical Reports: May be required depending on the applicant’s age, health condition, and selected sum assured
The exact document requirements may vary across insurers and policy types
Life insurance offers several financial and protection benefits, including:
Financial Protection for Loved Ones: Provides a death benefit to help your family meet their financial needs in your absence.
Income Replacement: Helps replace the policyholder's income, ensuring dependents can maintain their lifestyle and manage daily expenses.
Debt Coverage: Assists in repaying outstanding liabilities such as home loans, education loans, or personal debts.
Wealth Creation Opportunities: Certain life insurance plans combine protection with savings or investment benefits to help build long-term wealth.
Tax Benefits: Premiums paid and policy benefits may qualify for tax advantages under applicable tax laws.
Consider your financial obligations:
The quantum of death benefit varies from person to person depending on the lifestyle and income. The generic formula for calculating life insurance cover is to subtract financial obligations like expenses and debt from resources such as liquid assets and income. The life insurance cover should be equal to the difference. Another rule states that people should have a life cover equal to 10-12 times of the annual income. You can also calculate the life insurance amount through the life cover calculator.
Consider regular expenses:
Your life insurance cover should include all recurring regular expenses including loan EMIs and other household expenses. You should also consider the rise in expenses with time before choosing the best life insurance plan.
Consider your working years:
You should consider the number of active working years before choosing the life insurance sum assured. For example, if your current age is 30 and you plan to retire at the age of 50 then you will have 20 future active earning years to take into consideration.
Consider financial goals:
There can be different goals in your life such as wedding, children’s education that may require large funding. Your sum assured should cover funding required for these goals so that your family’s future is secure.
Life insurance plans come with several riders which increase the efficiency of the policy for the buyer. For instance, if you have a history of terminal illness in your family it would be advisable to opt for a terminal illness rider with your term insurance plan. Riders or add-ons help in customising the standard policy benefits for the requirement of different families. Term insurance plans generally come with a built-in cover for terminal illness, and option for protection against accidental death or disability. You can also opt to cover your spouse's life under the same policy by paying an additional premium.
If the life insured commits suicide within 12 months of buying the life insurance policy, the insurance companies generally pay 80% of the total premiums paid. Life insurance plans are subject to specific term and conditions relating to different kinds of deaths. Here is an insight into the different kinds of deaths that your life insurance policy may not cover –
Due to driving a vehicle while intoxicated (under the influence of alcohol)
Due to any pre-existing health condition
Due to meeting an accident while driving a vehicle under the influence of drugs
Due to participation in any adventure sport
Due to participation in any racing event
Due to pregnancy and childbirth
Due to participation in any illegal activity
The needs of every family are different. A uniform policy may not be suitable for everyone. Take into consideration the benefits offered with a policy while buying it. Life insurance plans come with optional critical illness cover, accidental death cover and disability cover.
Life insurance plans are one of the most tax-efficient long-term investments, which fall into the Exempt Exempt Exempt (EEE) category. EEE means:
Investment is tax-deductible
Accrued interest is not taxable
Maturity value and any payments are also tax-free
It is ideal to buy a life insurance plan in your early 20s because it is the time when people have just started with their professional life and so there are lesser responsibilities and financial liabilities to take care of. Also, if you buy the best life insurance plan at this age, you will be paying relatively lower insurance premiums since it’s a due fact that mortality rate in case of young people is low. And that is why life insurance companies offer lesser premium rates to younger people as they think that they are most likely to be fit and healthier with less chances of filing a claim in future.
The cost of life insurance policies varies depending on factors like age, gender and occupation. The average cost of life insurance plans, especially term plans, is very low compared to the amount of coverage offered.
Smoking can expose you to additional health risks. Thus, you can avail a life insurance plan as a smoker but with a higher rate of premium. You should disclose your smoking habit at the time of buying the policy to avoid the risk of claim rejection later. Also, you should not avoid or postpone the purchase given the health risks of the habit.
Processing life insurance claims is a transparent and smooth process with Canara HSBC Life Insurance.
In case of the death of the life insured, the nominee will have to intimate the company by filling a Death Claim Form and sending it to the nearest branch office.
Once the form is received, the claim is registered by the insurer.
After the registration of the claim, the company will send the claims pack along with the related forms such as physician’s statement form and employer certificate that need to be filled.
Along with the duly filled forms a few documents such as original [policy document, death certificate, copy of bank passbook, hospital or treatment records, photo identification and address proof have to be provided.
The claim is processed on the submission of relevant documents. Once the documents are verified, the claim amount is released post all due diligence.
Yes, you can take life insurance under the Married Women’s Property (MWP) Act, 1984 only if you are a married man and a resident of India. Buying a life insurance plan under MWP Act would be helpful in saving your family’s financial well-being when you are not around. As per this policy, only wife and children would be eligible to receive the death benefits. You can also buy a policy if you are a widower or a divorcee. However, in that case, you can give your child’s name as your beneficiary. It is very simple to buy a life plan under the MWP Act. All you need to do is to fill up an MWP addendum while purchasing an insurance policy.
Yes, people with disabilities are eligible to apply for insurance policies. An life insurance policy for disabled needs the following details:
Customers should declare their disabilities duly in detail
They may be requested to submit a report from a doctor
Information related to any of your tests or recent visits to the doctor
Yes, individuals with a pre-existing health condition can buy a life insurance plan. It is important that they inform the insurance company about the illness at the time of purchase of the policy, to avoid the risk of claim rejection at a later stage.
Life insurance companies calculate the premiums based on several factors such as age, gender and occupation.
Age: It is one of the biggest factors that influence life insurance premiums. Premiums tend to be low when the life insured is younger as the chance of contracting diseases is low. Young people also opt for the best life insurance policies with longer tenures and pay premiums for a longer duration, which makes the policy cheaper for young people.
Gender: The insurance premium for women is generally lower when it comes to life insurance plans. Women live longer and pose a lesser risk of a claim leading to lower premiums for them.
Lifestyle habits: The premiums for people who smoke or drink is always higher due to higher health risks.
Policy term: Policy terms are also taken into consideration by insurers while deciding the premium amount. Life insurance policies with longer tenure are cheaper as compared to short-duration policies.
Mode of purchase: The platform that you use to buy the best life insurance policy also determines how much you will have to pay for the plan. People who buy life insurance policies online have to pay lower premiums as compared to offline policies.
Occupation: The nature of your work is an important factor that influences the premium amount. Certain occupations like shipping and mining are considered more dangerous as compared to jobs in services industries. The insurance premium rises with the risk profile.
The premium is one of the most important factors to consider before buying a life insurance policy. Many people buy a life insurance policy with a high sum assured but are unable to process the premiums for the entire premium payment tenure. You can get a better idea of the premium outgo with the premium calculator.
The standard life insurance policy requires you pay the premiums on an annual basis but Canara HSBC Life Insurance provides you ample flexibility in the premium payment schedule.
Yes, there are different payment options for you to pay premiums. Here’re some of them:
- Regular premium payment option: This premium payment option allows you to pay premiums equal to your policy term either monthly, quarterly, half yearly or annually.
- Single payment option: Through this premium payment option, you can pay the lump-sum amount in one single payment.
- Limited payment option: In this premium payment option, you can pay premiums for a specific period of time less than policy term either monthly, quarterly, half yearly or annually, but benefits of insurance can be enjoyed for a longer period of time.
Even though it is compulsory to pay the premiums of a life insurance plan on time, sometimes due to unavoidable circumstances, people miss their premiums. You should read the terms and conditions thoroughly or ask your agent what will happen in case you missed premium payments. Generally, insurers provide a grace period of up to 30 days (15 days in case of monthly mode) for the payment of the missed premium, but it is always better to have advance knowledge of the situation.
Buying the best life insurance plan online is not only safe but a better option. Online life insurance policies have lower premiums and the individual is not required to visit the insurer's branch or a bank. The best life insurance policies online insurance offer higher benefits. Customers should, however, buy online life insurance policies only from credible insurers and should check for SSL certificates on the website to ensure that the website is legitimate.
An individual is allowed to have multiple life insurance policies. People opt for more than one life insurance policy to increase the cover or avoid claim rejection. In case of multiple life insurance policies, even if the claim is rejected by one insurer, the beneficiaries may receive the benefit from a different insurer.
When you buy a life insurance policy, the insurance company asks for the nominee details. Only the person named as the nominee in the life insurance plan can cash out in case of death of life insured.
A life insurance policy is generally taken for a specified period. After the policy duration of a term plan gets over, the policy simply terminates and ceases to exist. However, in case of unit-linked plans or endowment plans, you can use the policy as a tool for retirement planning and the accumulated corpus is used by the insurer to pay you monthly amounts for your entire life.
It is a popular misconception that life insurance plans are only for accidental deaths. A term life insurance plan also covers terminal disease along with death. A terminal illness cover is important as health insurance pays only for the cost of treatment and hospitalization, but a terminal illness cover pays you a lump-sum amount which takes care of other expenses. On the other hand, unit-linked policies such as Invest 4G cover death and also provide decent returns for other financial goals such as buying a house of child's education.
Once you have cancelled your life insurance policy, you will instantly lose your life insurance cover. Afterwards, your insurance company will get in touch with you and ask for valid reasons regarding the cancellation of your policy. In case you cancel your life insurance policy within the grace period, i.e. 15 to 30 days, depending on your insurer, then the insurance company will reimburse the premium amount paid by you. But, no refunds will be paid to you if the policy is cancelled after the grace period.
Senior citizens will need life insurance coverage if they still have a financially dependent family member, or if they want to leave a legacy for the next generation. Life insurance also makes financial life easier for the dependent spouse after the death of the pensioner.
A terminal illness usually means that death is almost certain as the disease has already progressed to its final stages. So, if you are diagnosed with a terminal illness, insurers will not entertain the prospect of insuring your life.
Life insurance covers only the event of your ultimate demise, while critical illness insurance covers you for dangerous illnesses. Life cover usually benefits your dependents and family members, while critical illness cover helps you in getting the best treatment and recovering from illnesses. Add critical illness cover to your life insurance policy for comprehensive benefits.
If the nominee of your life insurance policy passes before you, you should change the nomination in the insurance as soon as possible. The new nominee can file the death claim after your demise. However, if you could not change the nomination before your demise, your legal heirs can still file the claim on the policy with proper documents.
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