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A detailed comparison of various term life insurances

dateKnowledge Centre Team dateFebruary 05, 2021 views165 Views
A detailed comparison of various term life insurances

Life is exactly like a video game called Super Mario. Super Mario is a soldier whose mission is to rescue a princess from an evil dragon's prison. Mario knows that he has to face many uncertainties and traps to reach the princess and save her. Life too has uncertainties and traps that are set for you or your loved ones. Rather than falling into those traps and having regrets later, it is good to be prepared for the inevitable in advance.

Canara HSBC Oriental Bank Of Commerce Life Insurance will help you insure yourself and your family members against unpredictable events. It offers its customers' term insurance to ensure family members' financial safety in the event of the insurer's death.

What is Term Life Insurance?

Taking the scenario mentioned above for a better understanding, you are still waiting for your husband to come back home. It is past 11 PM, and you pray to God that something terrible should not happen. Your phone rings suddenly, and you expect it to be your husband, but as soon as you pick up, you get the most dreadful news of your life as you skip a heartbeat. You rush to the hospital and find out that your husband lost his life in an accident.

It's been a month since that dreadful night. Past is something you can do nothing about. You are worried about your future, the future of your kids. He was the sole bread earner of your family. How will you support your family financially? That same day a person walks into your house and informs you that your husband had himself insured with a term life insurance and the family would receive the sum assured as per the policy in the form of maturity. You breathe a sigh of relief and thank him for securing the future of the family financially.

This is what the term insurance plan does. The insured who opts for it has to make premium payments on a periodical basis. In the event of death or identification of terminal disease whichever is earlier, the insurance company makes the sum insured's payment as per the policy to the insured's family members. It might not be able to relieve the aggrieved who has lost their loved one but at least makes sure that they do not have to worry about the financial loss the family members might face and thus is considered the most effective form of life insurance that provides financial protection to the insured individual and his/her family in case of sudden death.

Things to be considered before selecting a term life insurance policy:

  • Understand the benefits of policy -

    The term life insurance policy provides various types of benefits. It is advisable to study and understand these benefits before selecting a policy. A few common benefits to look out for are regular income payout option, the number of critical illnesses covered, accidental death benefit, and premium waiver in case of disability.

  • Check the ratings and feedbacks -

    Customer experience with the policy helps to understand the ease that a policy provides to the policyholders. Enquiring from the existing policyholders also helps in this cause.

  • Solvency Ratio -

    A solvency ratio is a key metric used to measure an enterprise's ability to meet its long-term debt obligations and is used often by prospective business lenders. It says that the company's cash flow is sufficient to meet its long-term requirements.

  • Claim Settlement Ratio -

    If a company is paying 90 policyholders eligible to receive the claim out of 100 policyholders, its claim settlement ratio is considered 90%. Therefore better the claim settlement ratio better are the chances that your claim might be accepted and passed.

Term Life Insurances offered by Canara HSBC Oriental Bank Of Commerce Life Insurance:

Canara HSBC Oriental Bank Of Commerce Life Insurance offers two types of term life insurance to its policyholders. The following will help you to understand both plans in detail and compare them:

Canara HSBC Oriental Bank Of Commerce Life Insurance iSelect Star Term Plan

Canara HSBC Oriental Bank of Commerce Life Insurance iSelect Star Term Plan is the shield against all life uncertainties. A highly flexible term plan can be aligned to your life stage and life insurance needs by offering different coverage options and premium payment and benefits payouts. The plan also offers an option to avail return of premium benefit wherein all your premiums will be returned once you outlive the policy tenure.

It provides the potential insurer with three plan options to choose from:

  • Life:

    Under this Plan Option, in case of death or on a diagnosis of Terminal Illness, whichever happens, earlier, the Sum Assured on Death is payable. The policy terminates upon payment of the benefit. Both the Life Assured and the Spouse can be covered for the contract term, subject to the policy's terms and conditions.

  • Life with the return of premium:

    Under this Plan Option, on the occurrence of death or on a diagnosis of Terminal Illness, whichever happens, earlier, during the Policy Term, Sum Assured on Death is payable. If you outlive the policy term, total premiums paid by you will be returned at maturity. The policy terminates upon payment of these benefits.

  • Life plus:

    Under this Plan Option, we will pay a sum Assured on Death on the occurrence of death or on a diagnosis of Terminal Illness, whichever happens, earlier. The policy terminates upon payment of the benefit.

    Further, the policy will continue post maturity until you attain 99 years of age, the Extended Cover Period. During this period, Sum Assured will be paid on the occurrence of death or on a diagnosis of Terminal Illness, whichever happens, earlier. On attaining age 99 years, the Sum Assured will be paid to you. The policy terminates upon payment of these benefits.

    An illustration showing premiums (in Rs.) under various Plan Options for different ages and Premium Payment tenures is given below. These rates are applicable for a Male Non-Smoker who has taken the Level Coverage Option for a Sum Assured of Rs. 1 crore for annual mode and a Policy Term of 30 years.

Age (in years) Limited pay 5 Years Limited Pay 10 Years Limited Pay 15 Years Regular Pay
18 20,268 11,403 8,678 5,358
20 20,270 11,405 8,680 5,395
30 32,529 18,284 13,293 7,813
40 62,568 35,848 26,178 15,656
50 1,61,544 81,895 58,659 34,918
18 19,566 15,261 10,963
20 19,569 15,264 10,965
30 30,416 23,165 16,996
40 56,453 45,094 31,268
50 1,26,439 95,195 71,066
18 1,50,889 1,19,066 98,431
20 1,50,901 1,19,069 98,434
30 2,04,958 1,61,565 1,33,280
40 2,82,003 2,22,019 1,82,755
50 3,87,458 3,04,513 2,49,444

Some of the key features of this policy are:

  • Term life insurance at the most competitive premium rates
  • Flexibility in the option to decide on the sum assured as well as the premium payment.
  • Flexibility in regards to time and period of the policy.
  • Option to augment cover through additional inbuilt coverages like Accidental Death Benefit, Child Support Benefit, Accidental Total, and Permanent Disability Benefit.
  • The flexibility of adding your spouse to the same policy.
  • Select the mode of payment of benefits as per your convenience.
  • Discount on premiums for higher sums assured for females.
  • Loyalty discount for the existing customers of the company.
  • Possibility of gaining tax benefits as per the prevailing laws.

Canara HSBC Oriental Bank Of Commerce Life Insurance POS- Easy Bima Plan

Canara HSBC Oriental Bank of Commerce Life Insurance POS - Easy Bima Plan is a pure term life insurance plan with a return of premium on the date of maturity. It is specially designed to provide affordable and hassle-free protection to take care of your loved ones' needs. As the name suggests, this policy is the perfect mix and match of investment and insurance. Anyone who wants to make investments or long term periods and protect their family from unpredictable events can opt for this insurance policy.

It provides the potential insurer with three plan options to choose from:

  • Death Benefit Payable (other than accidental death):

    During the waiting period, 90 days from the date of commencement: Return of the Total Premiums Paid. After the expiry of a waiting period of 90 days from the date of commencement: 100% of Death Benefit Sum Assured. On payment of the above Death Benefit, the policy shall terminate, and no further benefit shall be payable.

  • Death Benefit Payable (accidental death):

    Accidental Death Benefit Sum Assured in addition to the Death Benefit Sum Assured. A waiting period of 90 days from the date of risk commencement is not applicable in accidental death. On payment of the above Death Benefit, the policy shall terminate, and no further benefits shall be payable. Accidental Death Benefit Sum Assured is equal to Death Benefit Sum Assured.

  • Return of Premium on date of Maturity:

    On survival until maturity, the Total Premiums Paid return shall be payable, provided the policy is in force.

Simple to understand and easy to follow, the premium structure is very straight forward in this policy.

Minimum Premium Policy Term 10 year - 2,219

Policy Term 15 year - 1,076

Policy Term 20 year - 989
Maximum Premium Depends upon chosen sum assured

It provides an option of Annual & Monthly premium payment mode. The annual premium needs to be multiplied with a factor of 0.10 to arrive at the monthly instalment premium payable. The minimum sum assured in this policy is Rs. 50,000 and the maximum sum one can apply for is Rs. 15, 00,000.

Some of the key features of this policy are:

1. It’s a very simple process and hassles free to opt for this policy as it doesn’t even require you to undergo any medical tests

2. You get an option to opt for double life cover in case of accidental death.

3. If you survive till the expiry of policy, the entire premium is paid back to the policyholder.

4. Flexibility regarding premium payments and policy terms to suit as per your convenience is available in this policy.

5. Avail tax benefit on premium paid and benefit received under Section 80C and Section 10(10D), as per the Income Tax Act, 1961, as amended from time to time.

Death or terminal illness can happen to anyone at any time. Death is certain and inevitable and thus, not under your control. But the safety and stability of your family and loved ones are in your control and also your responsibility. As per the recent study, only 8% of Indians have a good Life Insurance policy. Nearly 75% do not even hold a life insurance policy. To spread awareness about the importance of term life insurance is one of Canara HSBC Oriental Bank Of Commerce Life Insurance’s major agendas. Stay insured, live a tension free life.

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Annual Income (In Lacs)

Our Products

TERM Insurance PLAN

TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

Avail tax benefits on premiums paid as per tax laws

ULIP PLAN

Unit Linked Insurance Plan

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Pos Easy Bima Plan

Top Benefits

Hassle free

Get double life cover in case of accidental death

Choice of flexible premium payment and policy term

Avail tax benefit on premium paid

Frequently Asked Questions (FAQs) for Term Insurance

This being a term 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 70 years of age.

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.

If your key purpose is to give your Family financial protection, go for the term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan.

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, a term plan pays a part of the sum insured to treat your disease.

Term insurance 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 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 policy remains active until the expiration date.
  • Income Rider: The rider 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 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 Term Insurance?

  1. 1. Amount of premium you have to pay based on your age, habits, education, and monthly income
  2. 2. The total number of benefits covered in the term plan. Do they include benefits that you care about the most?
  3. 3. How to save money on tax if you pay for the term plan?
  4. 4. Do they offer regular income options?
  5. 5. Can you change the coverage and premium in the future?
  6. 6. Does the claim consider valid if death occurs outside India?
  7. 7. Which kind of death is not covered by insurance?
  8. 8. Can NRIs take term insurance? If yes, what are the conditions?
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