What is Term Insurance?
Term insurance policies provide coverage to the insured for a specified term period. If the policyholder passes away during the policy term that is while the policy is active, the beneficiary receives the death benefit. Term plans are pure insurance plans, and do not come with a savings component. Purchasing a term plan is imperative for those with financial dependents, as it financially protects their family members even after their passing.
Why iSelect+ Term Plan from Canara HSBC OBC Life Insurance?
The iSelect+ Term Plan provides customers with enhanced coverage at affordable premiums. Furthermore, through this plan, policyholders can secure the futures of their immediate family members by choosing the coverage, benefit pay-out and premiums that best fit their requirements, thereby opting for a term plan that is tailor-made for them.
The iSelect+ Term Plan is thus designed taking into consideration the existing term insurance requirements and needs of the customers. Some of its key features include:
- The iSelect+ Term Plan can be bought online, and the policyholder can either purchase it individually or along with their spouse as a joint-life plan, thus providing coverage to the insured and their spouse.
- This term insurance policy is flexible, providing the policyholder with various options for premiums, and for receiving the benefits.
- This term plan is also designed to be customer-friendly as it aligns with the customer’s requirements at different stages of their life.
- The iSelect+ Term Plan provides increased coverage and protection through its terminal illness and death cover.
- While the premiums are lower for women for greater sum assured, this plan also offers special premium rates for those who do not use tobacco.
- According to their needs and requirements, policyholders can choose from three options, with the first option being “Life”, where the sum assured is paid in the event of death, or diagnosis of terminal illness of the insured. The second option is “Life with Return of Premiums”, where all the premiums paid by the insured is returned at maturity, if the policyholder outlives the policy term. The third option is “Life Plus”, where the premiums paid are returned at maturity if the policyholder outlives the policy term. Furthermore, the policy will continue after maturity until the insured turns 99 years old, after which the sum assured is paid to the policyholder.
- This term plan also provides the option to augment cover, with additional built-in coverages such as Accidental Death Benefit and Child Support Benefit.
- The policyholder can avail tax benefits on premiums paid as per section 80C of the Act. Furthermore, under Section 10(10D), the death benefit is also tax-free.
Advantages and Benefits of Buying iSelect+ Term Plan
The iSelect+ Term Plan provides customers with a wide range of options such as whole life coverage, and the option to pay premiums either within 5-10 years, or during the policyholder’s working years. Some of its key benefits include:
- This term plan provides optional accidental death cover, and accidental partial or permanent disability cover upon paying an additional premium.
- Policyholders can choose from various options to obtain benefits, including receiving the benefits as a lump-sum amount, as monthly income, or as part lump-sum, part monthly income.
- During the policy term, the term insurance policy offers two kinds of coverages: increasing cover and level cover.
- Customers can buy the term plan online, and customize it according to their needs and requirements.
- If the insured dies during the policy term and while the policy is active, or is diagnosed with terminal illness while the policy is active, the sum assured is payable to the beneficiary, or to the policyholder. The nominee will receive the death benefit according to the option chosen by the policyholder.
- The policyholder can increase their life cover according to their protection needs and life stages by augmenting the cover at key life stages and milestones.
- The beneficiary receives an additional pay-out through the accidental death benefit, along with the sum assured of the base plan, which is given in lump-sum if the policyholder passes away as a result of an accident.
- The policyholder is given a 30-day grace period for paying their due premiums, after which the policy is terminated. For those paying premiums on a monthly basis, a 15-day period is provided.
Because of the benefits mentioned above, the iSelect+ Term Plan from Canara HSBC Oriental Bank of Commerce Life Insurance has become widely popular, and provides the policyholder with enhanced coverage and various add-on covers. Furthermore, these plans can be customized according to individual needs, and are extremely affordable, with lower premiums and special premium rates for non-tobacco users. Besides, it also lowers the policyholder’s tax liabilities.