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What are the best term insurance plans for planning retirement

dateKnowledge Centre Team dateMarch 02, 2021 views113 Views
What are the best term insurance plans for planning retirement

Ever wondered about your life after retirement?

Most people imagine a quiet and serene life spent with their loved ones taking care of them, living off the pensions that their organization may or may not offer them. While it is good to have the reassurance that your children or other close family members will bear the burden of looking after you when you stop having a stable income, isn’t it a lot better to have a little income of your own even then, so that you can still contribute to the household?

During peak years of work, Indians put in the time and effort to save up for their kids’ marriage, upgrading their house, buying cars, and providing their children with a world-class, expensive education. In their hurry to make things easier for their kids, people often forget to think about themselves a few years in the future.

It is true that many organizations in the organized sector have begun to offer retirement and pension plans that can cover the costs of your basic needs after retirement. But on the very likely chance that a health emergency pops up, or one of your children are in urgent need of money, it is ideal that you have a sum of money put away safely or that you get a fixed amount every month without fail. Even if you are a government employee whose pensions are pretty much guaranteed, it is a great idea to invest in a retirement insurance policy.

Canara HSBC Oriental Bank of Commerce Life Insurance offers the best term plan that satisfies the universal standards of retirement plans and goes the extra mile to make sure that you are never in need of anything after your retirement. Their settlement option allows you to receive the entire maturity amount in monthly installments or at any frequency chosen by you if you do not want to receive the full amount in one go.

Benefits of Canara HSBC Oriental Bank of Commerce Life Insurance Term Plans

  • Smaller premiums

    The policyholder can get an impressive life coverage from a term insurance plan even if they pay a smaller and more affordable premium amount. This is ideal for families who are not from a strong economic background. The premium will be even lower if you start very early.

  • Life coverage

    Most term plans these days offer a full life coverage up to 99 years of age. This ensures that the policyholder will be covered for their entire life, and their family members will never have to experience financial difficulties.

  • Sum insured payout

    Term insurance plans usually provide an assured sum to the family members of the policyholder if they die an unprecedented death. Some plans also have the option to split this assured sum into monthly premiums to evenly distribute it over a longer period.

  • Tax benefits

    Most term insurance plans come with tax benefits under Section 80C and Section 80D. This means the total expenditure for one family for insurance will be considerably less when the cumulative tax cuts are subtracted from the total amount paid as premiums.

  • Coverage for terminal illness

    If the policyholder is diagnosed with terminal illnesses like AIDS or Cancer, some term insurance plans offer lump-sum payouts on the diagnosis. This money can help with the treatments, proceedings, etc., protecting the family finances.

  • Accidental death benefit

    To avoid your nominee’s claims being rejected by the insurer in case it is untimely/accidental, most term plans offer an accidental death benefit that offers protection against any misunderstandings in the future.

Canara HSBC Oriental Bank of Commerce Life Insurance Term Insurance Plans

iSelect Star Term Plan

The iSelect Star Term Plan offers a variety of choices in terms of coverage, premium payment and the payout for benefits. This individual non-linked premium life insurance term plan is an important addition to your financial portfolio. The maximum age of entry is 65 years. Once you reach the age of maturity, the assured sum will be paid out to you in monthly installments, lump-sum or as part lump sum and monthly income, based on your choice.

Benefits of Canara HSBC Oriental Bank of Commerce Life Insurance iSelect Star Term Plan

  • Highly customized and affordable

    The iSelect Star Term Plan’s high customizability allows the policyholder to customize their plan according to their financial conveniences. This alignment with your financial goals allows you to make the premiums smaller and affordable. Additionally, there is a discount on premiums for female lives or for higher assured sums.

  • Options for coverage

    You can choose to cover your life for a limited period or for 99 years, which covers your whole life. You can also choose to add your spouse in the same policy at a discounted rate, provided they are under the age of 50 (for a non-working spouse). You can also include additional inbuilt coverages that provide benefits related to Accidental Death, Child Support, Accidental Total and Permanent Disability Benefit etc. You can also increase your life cover according to your financial situation at various points of your life. This augmentation provides high levels of flexibility according to your key life milestones.

  • Options for benefits

    There is always the worry that leaving behind a lump sum amount for your family may not be the best idea, especially if the family is not very financially literate. You might be worried that they may use up the money very quickly. This is why having an option to receive the death benefits in monthly income amounts is a great relief. The iSelect Star Term Plan also has the option for the nominee to receive the death benefit as a part lump sum part monthly income.

  • Choose between Life, Life with Return of Premium and Life Plus

    The iSelect Star Term Plan offers three plan options - life, life with return of premium and life plus, and the life plan comes with the option to have either a level coverage or an increasing coverage. You can also add in-built covers including child support benefits.

  • Tax benefits

    You may be eligible for tax benefits on premiums paid/received benefits, provided it aligns with the prevailing tax laws.

POS - Easy Bima Plan

This pure term life insurance plan has a return of premium on the date of maturity, providing a safe source of financial support after retirement. There is also the option to nominate a loved one, who will be eligible for a death benefit on the policyholder’s untimely demise, provided it is not an accidental death. The maximum age of entry is 55 years and the maximum age of maturity is 65 years - unlike the iSelect Star Term Insurance Plan, there is no provision for increasing the coverage to a whole life plan (99 years).

Highly customizable

The Canara HSBC Orienta Bank of Commerce’s Easy Bima Plan offers customizability at all levels of the policy. The policyholder first gets to choose their sum assured based on their financial requirements. There is a rule that the sum assured amount has to be a multiple of Rs. 50,000. Then the policyholder can choose the premium payment term as well as the policy term.

The shorter the term, the higher the premiums will be, additionally influenced by your age at the time of taking up the policy, the sum assured, the premium payment frequency as well as your gender (because women tend to live longer, insurance companies can offer smaller premium payments to them). The minimum sum assured is Rs. 50,000 while the maximum is Rs. 1,50,000 - however there is no maximum premium limit as it depends upon the chosen sum assured. You can also choose to pay the premium in an annual or monthly mode depending on the modal factors.

Tax benefits

The policyholder is eligible to avail tax benefits on the paid premium amount applicable based on Section 80C of Income Tax Act, 1961.

There you have it – Canara HSBC Oriental Bank of Commerce Life Insurance offers the best term plan that is comprehensive, profitable, and capable of securing your future in times where uncertainty lurks around every corner. Since some of these plans double up as life insurance, you can have all your insurance needs – saving plans, retirement plans, and life insurance – all in one place. The high customizability and safety nets provided by the plans allow you to rest easy.

The best age to take up such a plan is as early as possible so call your advisor today!

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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


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 a 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?
  9. 9. Does the term insurance plan have a cash value if you decide to cancel the policy?
  10. 10. Under what circumstances can a term insurance plan be cancelled?
  11. 11. Can I pay the premiums online or make electronic payments?
  12. 12. What will happen to the term plan if the life assured starts smoking after purchasing the policy?
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