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5 Reasons You Should Change Your Term Insurance Policy in 2020

5 Reasons You Should Change Your Term Insurance Policy in 2020

Everyone will agree that life is messy, challenging, and uncertain. We don’t know what happens to us or our family the very next moment. We often plan about our future goals, our retirement, our child’s marriage and education, but in all this, we forget to plan few things that really needs our attention. That’s why it is advised to buy an adequate term insurance plan.

Speaking of term insurance plan, it’s the best way to provide financial coverage to you and your family. And if you are the only bread earner of your family, then it is extremely important to have a term insurance policy as you have the responsibility to secure your family’s future in case something happens to you. Term insurance is an important investment that one must start as early as possible in life. In fact, it is the most affordable way to protect the future of you and your family.

If you already having a term insurance plan, then you can also think about changing it in order to get a more desirable term insurance plan. Though changing your term insurance policy is totally a matter of personal choice and preferences. But, in every 3 or 4 years, you can look for a term insurance plan that offers finer facilities and can make a switch.

To help you understand better, here’re the following reasons that shows why do you need to change your term insurance plan in 2020, read on to know –

  • To get a cheaper term insurance policy – This is one of the most important reasons to change your term insurance policy. There are several budget-friendly options available in the market, thus you can look for a least expensive option with maximum benefits. Also, it is ideal for those who are looking for an affordable policy so that they do not end up paying higher premiums. Term insurance is a part of our financial portfolio, thus it’s better to choose one as per your long-term goals and current lifestyle. Listed below are certain things that you must consider while changing your term insurance plan –
    • Tax benefits as compared to the current policy
    • Availability to take loan
    • Cost involved while changing the policy
    • Premium rates
  • To find a better policy – Switching your policy will help you find an effective one that offers higher coverage at lower premiums. You can opt for a policy with myriad of features and rider options. Also, you can compare your policy with the old one and look for additional features to get a robust insurance plan for your family.
  • Due to the change in life goals – This is yet another significant reason that shows why you must change your term insurance policy. Life goals and needs keep on changing at different stages of life. Thus, this will help you figure out the type of policy you are looking for. You can change your term insurance basis the circumstances of life.
  • Insufficient riders – There can be times when your comprehensive term insurance may not cover all the risks for which you seek protection, thus in such, insurance companies offer the option of riders. But, if you think your current insurance company is not providing sufficient riders, then you can switch your Insurance Company.
  • Poor customer service – If you think your current insurance company is not offering adequate customer service, then also you can change your insurer and opt for the one that offers 24*7 assistance and is always available during the times of need. You should better look for an insurance company that is ready to help you anywhere, anytime.

Mentioned above are some of the reasons that one can think of and decide to change their Term Insurance Plan. If you think you are getting good coverage at affordable rates through switch, then you should go for it. Buying a term insurance policy is an important decision of life, thus you must keep all your expectation and make an informed choice. Besides, if you are planning to buy term insurance policy online, then prefer opting for Canara HSBC OBC Life insurance’s iSelect Term Plan. We offer comprehensive term insurance policy that provides protection along with accidental death and terminal illness benefits.

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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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