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What Is The Eligibility To Have Life Insurance?

dateKnowledge Centre Team dateDecember 08, 2020 views165 Views
What Is The Eligibility To Have Life Insurance?

Do you want a better and secure future for your loved ones? Do you want them to live a financially safe life even when you aren't around anymore? If yes, then you should have life insurance. We know it can be a daunting task and might seem a little overwhelming, but at Canara HSBC Oriental Bank of Commerce, we provide protection plans that are easy to understand and build a strong financial foundation for families.

What is life insurance?

Life is a beautiful yet uncertain gift. Life insurance is a contract between a policyholder and an insurer. A life insurance policy ensures that when the insured policyholder dies or a certain time has elapsed, the insurer will pay a fixed amount of money to the designated beneficiaries in return for premiums paid by the policyholder over their lifetime. Some companies extend enhanced plans for critical illness with extra insurance premiums.

The very first question that pops into our head when thinking of life insurance is, am I eligible? What are the requirements? Well, don't worry, we've got you and your life covered!

What is the eligibility to have life insurance?

The need for life insurance to be purchased relies on a variety of factors. It depends primarily on your priorities and what phase of life you are in. The primary goal of any life insurance is to protect the future financial needs of the family.

Minimum Age - 18 years

Maximum Age - 65 years

Maturity Age - 75 years ( in most cases )

Premiums and principal amounts vary from policy to policy.

Documents Required - Income Proof, ID Proof, Address Proof, and Age Proof.

Insurance Plans Coverage Best Feature Plan Recommendations
Term Insurance Pure risk cover High amount assured at a low premium iSelect Star Term Plan
Unit Linked Insurance Plan Life cover with long-term investment The dual benefit with flexible investment options Invest 4G Plan
Child Insurance Corpus for your child’s future Lump-sum and periodic payouts Smart Junior Plan
Retirement Insurance Corpus for a peaceful retirement Long-term savings for retirement Invest 4G Plan
Health Insurance Cover for a medical emergency Lump-sum payout in case of a claim for a covered illness Health First Plan

Benefits of Life Insurance

  • Tax Benefits: Life policy premium payments are eligible for rebate under Section 80C of ITA 1961.
  • Loan Collateral: Depending on the surrender value and type of life insurance, policyholders can take loans from NBFCs against these policies.
  • Death Cover: A relief that your family will be financially secure even after you are gone.
  • Stress-free Life: Life insurance provides high-risk coverage.

FAQs

1. Can a smoker buy a life insurance policy?

Yes, smokers can buy an insurance policy. Although the premiums charged might be higher than regular life insurance policy premiums.

2. Can a disabled person buy life insurance?

Yes, disabled people can buy life insurance. However, they are required to submit additional documents such as full disclosure of disability, doctor reports, tests, etc.

3. Can a person with a pre-existing illness buy a life insurance policy?

Yes, pre-existing illness life insurance is available. They attract an enhanced premium for extra coverage. People are required to make full disclosures at the time of buying to avoid problems during claims.

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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

ULIP PLAN

Unit Linked Insurance Plan

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

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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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