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Life Insurance Plans

Life Insurance Plans
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Life Insurance Plans

Life insurance policies help you look after your family’s needs even when you cannot be there for them anymore. Different life insurance plans can serve different financial needs for your loved ones.

You can plan major life goals like long-term financial protection, retirement saving, child’s higher education and marriage goals using life insurance plans.

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What is Life Insurance Policy?

What is Life Insurance Policy?

Life insurance policy is a defined benefit life insurance plan, which can pay you a large sum of money when a covered event occurs. It is a legal contract between you, as a policyholder or insured, and life insurance company or insurer. In the life insurance contract, the insurer accepts a specific risk on your life for a nominal sum of money.

This nominal sum of money is the premium amount you pay to secure the cover. In its raw form, the cover should only last for a year, and the premium amount for the next year can change. However, you can continue the modern life insurance cover for decades at a level annual premium.

The sum which the insurer promises to pay in the case of the unfortunate event is the sum assured or the benefit amount.

HOW DOES LIFE INSURANCE POLICY WORKS?

HOW IS LIFE INSURANCE CLAIMED?

Choose from Our Top Life Insurance Plans

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

Health First Plan

Health First Plan

Option to cover yourself against Major Critical Illness.

Increasing cover option to take care of increasing medical needs.

Lump-sum payout on diagnosis.

Return of Premium Option.

High coverage at affordable premiums

Why Invest in a Canara HSBC Oriental Bank of Commerce Life Insurance Plan?

credibilty
CREDIBILITY

With lakhs of life insurance policies sold, we have a customer base of crores of happily insured customers. We are IRDAI registered.

trust
TRUST

Our Life Insurance Policies are backed by three major financial institutions - Canara Bank, HSBC and Punjab National Bank.

network
NETWORK

We have a network of 40 branch offices and 20,000+ bank branches of it partners.

assurance
ASSURANCE

We have a competitive 97.1% Individual death claim settlement ratio in FY 2020-2021.

6 Benefits of Buying the Best Life Insurance Policy

If you buy the best life insurance policy, you can ensure that your family can continue with their lives without financial hardships if they lose you too early. Choose a life insurance cover as per your needs and financial requirements to stay protected and lead a stress-free life.

If you have a life insurance plan to provide the base-line financial safety for your family, life insurance investment plans will add to this umbrella as your needs grow. Almost all life insurance plans, except a few pension plans, offer life cover with the investment plan.

Buying a life insurance policy can be an investment, if you choose the right insurance plan for your life. Time is the strongest factor in wealth building, life insurance plans provide a perfect venue for maximizing wealth over time. ULIPs are considered some of the best investment options for wealth accumulation due to the possibility of automated portfolio management.

Pension plans offered by life insurance companies are some of the safest investment options available for you. These plans invest your money only in the safest options and offer lifetime pension. The best retirement and pension plans with life cover will provide the death benefit to your nominees or spouse so that they can continue to meet their living costs. Otherwise, you can also select pension plans without life cover.

Investments made with a life insurance policy make you eligible for a deduction of up to Rs. 1.5 lakhs in a financial year under section 80C. The funds you withdraw from the policy after the lock-in period and maturity value received from life insurance plans are also tax-free.

The investment policies from the life insurer acquire cash value which increases with each investment. In case of emergencies, you can use this cash value to borrow against the life insurance policy without breaking the investment.

What is Premium in a Life Insurance Policy?

Premiums in a life insurance policy are the payment that you make as per the payment frequency chosen by you to keep the policy active. If you do not pay the premiums of a life insurance plan that you have bought, your plan will lapse. A life insurance policy is an important financial instrument and whatever your age, it is always a good idea to get insured for the benefit of your loved ones. Also, starting young is the best way to save yourself from paying high premiums. Younger lives pay less for a life cover and critical illnesses or disability covers, compared to older lives.

Advance Payment: The policyholder should note that the premium of life insurance policies has to be paid in advance. These advance payment of premiums are done according to the premium payment tenure chosen by the policyholder.

Grace Period: The premium payment schedule should be taken very seriously when opting for a life insurance plan. The failure to pay premiums on time can lead to lapsing of the policy. But sometimes, policyholder's are unable to pay the premium on time due to unavoidable circumstances. The insurance company provides a grace period for the payment of the missed premium. Canara HSBC Oriental Life Insurance Company provides a grace period of 30 days (15 days in case of monthly mode) to pay the missed premium and continue with the life insurance policy.

Life Insurance Plans Coverage Best Feature Plan Recommendations
Term Insurance Pure risk cover High sum assured at a low premium iSelect Star Term Plan
Unit Linked Insurance Plan Life cover with long-term investment 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 peaceful retirement Long-term savings for retirement Invest 4G Plan
Health Insurance Cover for medical emergency Lump-sum payout in case of claim for covered illness Health First Plan

Types of Life Insurance Plans

1

Term Life Insurance Plan

Term life insurance is a pure life insurance plan, which offers large coverage at a nominal cost for a limited period. The low cost of financial safety ensured by a term insurance plan allows you to expand your umbrella beyond the risk of death.

You can customize the base term insurance plan by adding accidental disability and death, and critical illness benefits. These riders will help you in case of severe disabilities and health conditions which can affect your income for a long time.

Term insurance plans do not offer a maturity value if you survive the policy term. However, you may opt for the return of premium option, which would return all the premiums you have paid for the cover at expiry.

2

Guaranteed Life Insurance Plans

Guaranteed life insurance plans are investment plans which can guarantee the maturity value based on your investment amount. These plans also acts as a life insurance plan, which can help you enhance your family’s life cover umbrella every time you start investing in these plans.

The accompanying life cover is ideal as you should increase your life cover when you discover and start investing in a new financial goal. With these life insurance plans, you can be sure to achieve your financial goal irrespective of market performance.

3

Unit-Linked Insurance Plans

Unit-linked insurance plans or ULIPs are versatile investment plans from life insurance companies. These plans let you invest in funds with different risk levels and build your investment portfolio while availing all the tax benefits available with life insurance policies.

ULIPs also provide you with options to manage your portfolio automatically. These life insurance plans are best if you want to multiply your wealth over a long investment period. This is one of the reasons you must use ULIPs into your retirement portfolio.

4

Child Insurance Plans

Child insurance plans or child education plans are another investment plan from life insurers. However, these plans are dedicated to meet the needs of a child’s higher education and marriage goals.

While you are building the corpus to meet your child’s future needs, you can also keep the investment protected from unforeseen events. This protection will allow your investment to continue in your absence and provide the intended financial support to your child upon maturity.

5

Retirement or Pension Plans

Retirement or pension plans are life insurance plans dedicated to providing you with a venue to save and then receive a pension. Your retirement plan has two important phases – accumulation and distribution. You go through the accumulation phase in your working years and build a huge retirement corpus.

This corpus will remain invested in a safe retirement and pension plan, which will also pay a regular sum of money to you as a pension. You can use different types of retirement and pension plans depending on your risk appetite and age.

6

Whole Life Plans

Whole life plans are a unique genre of long-term investment plans from life insurance companies. Whole life insurance plans continue till you attain 99 or 100 years of age. Depending on plan features you can choose to pay the premiums till the age of 60 and continue the cover till the age of 99 or 100.

If you survive till this age, the plan will pay the benefit amount to you, else it goes to your family upon your natural death. You can also include a return of premium feature to this plan. This feature will allow you to receive a tax-free lump-sum amount at your retirement.

These plans are the best investment if you want to leave a legacy for your children or grandchildren.

7

Health Insurance Plans

Life insurers offer defined benefit health insurance plans, where the benefit payment depends only upon the diagnosis of a covered health condition. The plan will pay a lump sum amount regardless of your actual expenditure on the treatment.

Life insurer’s health insurance plan usually covers diseases which can progress unpredictably and may not have a definite cure. For example, heart ailments, cancer, renal failure, etc.

These defined benefit health insurance plan helps you to handle your recovery costs and run the household smoothly within this time. These plans are also, pure protection plan like the term life insurance.

Which Life Insurance plan suits your needs?

Different life insurance plans will help you cover different financial needs. Buying the best life insurance policy ensures maximum financial protection and value for money from investments. In order to choose the best life insurance for yourself, you must consider factors like your financial goal, needs of your dependents, and your premium paying capacity, among many others.

Term Insurance

Term insurance is one of the simplest forms of life insurance policy. It provides death benefit to the nominee when the life insured passes away. If the life insured survives the policy tenure no maturity benefit is paid and the policy terminates. Due to the linear nature of the benefit, term insurance premiums are not very expensive.

Whole Life Insurance

Whole life insurance is a long-duration policy that provides coverage for the entire life. These life insurance policies come with a surrender (cash) value component that increases with time. You can surrender the policy to take cash value and can also avail loan based on the life insurance policy.

Endownment Policy

It is a type of protection and savings policy. The benefit is payable to the insured if he/she is living on the maturity date. In case of unfortunate demise of life insured during the policy term, the benefit is paid to the nominee.

ULIP

Some life insurance policies such as unit-linked insurance policies provide market-linked returns on your investment. These plans are ideal for people who want to accumulate funds for family's future goals along with life insurance cover.

Retirement Plan

A life insurance plan that provides you with a regular income after retirement. It is a type of savings and investment plan and the corpus generated is invested further to generate regular income.

Buying a Life Insurance Policy Online

Canara HSBC Oriental Bank of Commerce Life Insurance makes buying a life insurance policy easy and convenient. Here are the steps you can follow to buy a policy of your choice.

  • 1 Log on to the website The first and foremost thing you need to do is to log on to the insurance company’s website and choose the life insurance plan that best suit your needs.
  • 2 Fill in all the details The next step you need to do is to fill in all the details such as name, gender, date of birth, email, mobile number, policy term, sum assured, etc.
  • 3 Make your payments Once you have entered all the details, you will see your premium amount. Now, you can make your payment online. A soft copy of the policy will be sent to you after insurance company’s approval.

Documents Required to Buy a Life Insurance Policy

Life insurance companies require certain documents when you apply for a life insurance policy. These documents can be directly uploaded onto the website in case of online policy application, or can be submitted to a policy manager in case of offline purchases. Apart from these, you will be needed to fill in information such as personal details, lifestyle related details, health details, etc.

Listed below are the documents that are accepted as valid proofs of income:

  • Last 3-month salary slips
  • Last 6-month bank statement
  • Income tax return certificate
  • Employer certificate
  • Latest Form 16

Depending upon availability, one of the following documents can be submitted as a proof of identity:

  • Passport
  • Aadhar Card
  • PAN Card
  • Voter ID card
  • Driving license
  • Recent passport size photograph

The following includes the documents accepted as valid proofs of address:

  • Aadhar Card
  • Ration Card
  • Passport
  • Driving license with address details
  • Bank account statement or passbook
  • Credit card statement
  • Passbook with latest entries for 6 months
  • Electricity/telephone bill
  • Bank account statement

Here’s a comprehensive list of documents that you will require to produce as a proof of age:

  • Passport
  • PAN Card
  • Birth Certificate
  • Driving license
  • Aadhar Card
  • Marriage Certificate
  • Voter ID Card
  • School/college certificate

Why should I Buy a Life Insurance Policy?

Life insurance policy is an important financial instrument and whatever your age, it is always a good idea to get insured for the benefit of your loved ones. Also, starting young is the best way to save yourself from paying high premiums. Younger lives pay less for a life cover and critical illnesses or disability covers, compared to older lives.

  • Looking after loved ones in your absence: A life insurance policy ensures that your loved ones are taken care of even in your absence. If you are the breadwinner of the family, then your absence can leave a deep void in the finances of the family. With a life insurance plan, your family will not have to worry about important expenses such as medical bills and tuition fees etc
  • Takes care of liabilities: Life is unpredictable and even the best of plans can unravel with an untimely death. Having a substantial death cover secures your family from the liabilities like car loan and house loan.
  • Helps in achieving long-term goals: Life insurance products with savings option keep you invested for a long-term, which helps in achieving life goals such as buying a house or funding your child's higher education.
  • Cheaper when younger: Life insurance products are cheaper when the life insured is younger as the risks associated with the individual are lower. When you are young the body is healthier and the chances of diseases are low which leads to lower premiums for life insurance policy.

How to Buy the Best Life Insurance Policy?

Different life insurance plans have been designed to serve different financial needs. Using the right plan to serve your goal will ensure you can get the most out of it. Also, apart from buying the best life insurance plan, you should look for the right life insurer.

Here’s a step-by-step process you can follow to select the best life insurance plan from the best life insurance providers:

Step 1: Understand Your Needs

The kind of life insurance plan you should buy depends on the financial goal you want it to fulfil. For example, if you are looking for long-term protection you will need a term insurance plan. However, if you want to save for your retirement you can use a ULIP or savings plan.

You should also define your need specifically in numbers and type of life insurance plan. For example:

Protection goal: You need 10 to 15 times your annual income as life cover (requires Term insurance plan)

Child’s higher education goal: Build a corpus of Rs. 40 lakhs in 20 years with pay out option in last four years (requires Child insurance plan or ULIP plan with Goal Protection Option)

Retirement goal: Save 20% of your income for retirement (requires ULIP plan, Guaranteed Savings Plan or Deferred Annuity plans)

Step 2: Select the Life Insurance Provider

You can look at multiple parameters to judge the performance of a life insurance provider. The most important ones are as follows:

Claim Settlement Ratio (CSR): This ratio shows the number of cases resolved by the insurer in a financial year out of the total received claims. A claim settlement ratio of 95% or above is considered good. Canara HSBC Oriental Bank of Commerce Life Insurance has reported a claim settlement ratio of 97.1% for the financial year 2020-21.

Online & Offline Presence: Presence is an important factor which defines how easily you or your family can approach the insurer in an emergency. To judge this factor, you can connect with the insurer online via chat, e-mail or call, while the number of branches across the country would define the offline presence.

Quick Claim Settlement Conditions: With growing technological advantages, life insurers can settle claims faster nowadays. However, only the best offer to settle within one working day. For example, Canara HSBC Oriental Bank of Commerce Life Insurance has a fast claim settlement program, InstaPromise, to settle death claims within one working day for eligible policies.

Claim Settlement Process: One of the primary purposes of life insurance is to ensure a smooth life for your loved ones. So, you would want them to have it easy when it comes to benefitting from the life cover you provided. Much of it depends on the experience they have at the time of claim settlement. The best life insurers make sure to simplify and handhold the family at the time of death claims.

Solvency Ratio: Solvency ratio defines the insurer’s ability to pay the claim demand without hiccups. A solvency ratio of 2 or above is considered good for a life insurer. Otherwise, you can also check the credit rating for the insurer, which is a more comprehensive parameter to follow.

Persistency Ratio: Persistency ratio indicates how long investors stick with the insurer. 13th month and 61st-month persistency ratios are especially useful in assessing the investor engagement of life insurers.

Cost of Life Insurance: The premium you invest in a life insurance plan also consists of many expenses of the scheme. While you try to logically aim at the least cost, you should not forget the other end of the bargain – policy benefits. You should compare different policy features and benefits along with the cost and all other factors to secure the best deal.

Who can buy a life insurance policy?

The need to buy a life insurance plan depends upon a number of factors. It majorly depends upon your goals and what stage of life you are in. The main objective of any life insurance policy is to secure the family’s future financial needs. It includes secondary benefits too like tax benefits and investment. Mentioned below, is a list of people who may need to buy a life insurance plan –

  • Young and single people – It’s advisable to buy life insurance plan at an early stage because premiums offered by the insurance companies are relatively lower when you are young. You also have lesser responsibilities when you are unmarried. Besides, the chances of getting diseases increase as the person ages and so is the amount of premium asked by the insurance companies.
  • Newly married people – Marriage comes with additional responsibilities, thus people who have just got married and started families need to get a life insurance plan to cover different risks in life. This is because when you get married and start a family, you have dependents to look after. Therefore, it’s advisable to buy a life insurance policy before you get married or when you are newly married as this will cost you less premium.
  • Working couple with kids – A working couple having children should necessarily buy a life insurance policy. In case of the sudden death of one of the partners, a life insurance policy will leave the other partner in a much better position to manage family’s finances.
  • Senior citizens or retired individual – Buying a life insurance policy is extremely important for senior citizens as this will help them live a relaxed and comfortable life post retirement. Some policies can also serve as a replacement for income to support them and their family, minimizing their future financial worries. Thus, getting a life insurance plan is one of the best ways to take care of them and make them and their loved ones feel financially secure.

Hence, keep these above-mentioned pointers in mind as this will help you decide whether buying a life insurance policy at your current stage is required or not.

Typically, any individual between the ages of 18 to 65 years can purchase a life insurance policy in India. However, in some cases, it may depend on the kind of insurance policy.

Can a smoker buy a life insurance policy?

Smoking can expose you to additional health risks. Thus, you can avail a life insurance plan as a smoker but with a higher rate of premium. You should disclose your smoking habit at the time of buying the policy to avoid the risk of claim rejection later. Also, you should not avoid or postpone the purchase given the health risks of the habit.

Can a disabled person buy life insurance?

Yes, people with disability are eligible to apply for insurance policies. An life insurance policy for disabled needs the following details:

1. Customers should declare their disabilities duly in detail

2. They may be requested to submit a report from a doctor

3. Information related to any of your tests or recent visits to the doctor

Can a Person with Pre-existing Illness Buy a Life Insurance Policy?

Yes, individuals with a pre-existing health condition can buy a life insurance plan. It is important that they inform the insurance company about the illness at the time of purchase of the policy, to avoid the risk of claim rejection at a later stage.

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

Yes, individuals with a pre-existing health condition can buy a life insurance plan. It is important that they inform the insurance company about the illness at the time of purchase of the policy, to avoid the risk of claim rejection at a later stage.

Why should I Buy a Life Insurance Policy Online?

Greater Transparency

When you buy a life insurance plan online, you have the opportunity to assess and go through each benefits and features at your own pace. You can also check the exclusions and conditions of the policy with the available policy document.

You can clarify and verify your findings with the 24x7 customer service and regulators before purchase.

Ease of Purchase

The online purchase process of life insurance policies is a simple step by step process. You can pause and save your application midway to complete it later. If you are eligible, you can even avoid a visit to a clinic for a medical check-up, which will be completed either online or on the telephone.

Paperless Process

The entire application process for life insurance policies is paperless, and you do not need to submit or send a paper document anywhere. You need only scanned copies of your documents.

Safer

With a completely online application process, you can be sure to deny unauthorized access to your documents to anyone. As you upload all the documents directly to the secured servers of the insurer.

Easy Management

Online life insurance policies are easy to manage. If you have more than one life insurance plans, you can use electronic insurance account (EIA) to manage all of them from a single portal. EIA also helps you to appoint an administrator for the life insurance policies in your absence. The administrator can only file the claims for the policies and cannot change nomination or other details.

How to Save Tax with a Life Insurance Policy?

Life insurance plans are one of the most tax-efficient long-term investments, which fall into the Exempt Exempt Exempt (EEE) category. EEE means:

  • Investment is tax-deductible
  • Accrued interest is not taxable
  • Maturity value and any payments are also tax-free

Deductions Under Section 80C

Under section 80C you can reduce your taxable income up to Rs. 1.5 lakhs by buying life insurance plans. The deduction is available so far as your annual premium payment stays below 10% of the life cover in the plan.

Tax-Free Maturity Value and Payments

Any payments received from a life insurance plan as a partial withdrawal or as a moneyback, after the lock-in period is exempt from tax. This exemption, however, depends on the following conditions:

  • Your investment in the plan has not exceeded 10% of the life cover amount of the plan in any financial year
  • For ULIP Plans: Your total annual investment in ULIP plans does not exceed Rs. 2.5 lakhs. This condition applies on the ULIPs purchased after 1st Feb 2021.

When should you Buy a Life Insurance Policy?

Life insurance policy is an important financial instrument and whatever your age, it is always a good idea to get insured for the benefit of your loved ones. Also, starting young is the best way to save yourself from paying high premiums. Younger lives pay less for a life cover and critical illnesses or disability covers, compared to older lives.

In your 20s

Twenties are the best time to invest in a comprehensive life insurance policy because you get several benefits such as, lower premiums, a bigger corpus, and of course, an early habit of saving. At this age, there is also a greater room for experiment with higher risk investments that can yield higher benefits. Some of the best life insurance options include ULIPs and Term Plans.

In your 30s

Most people start planning or have a family of their own by the time they enter their thirties. They experience major life transitions and financial security of their family and the futures of their children gain more importance. Life insurance policy must be now a part of your financial planning. One can opt for several life insurance options like plain term plan, ULIPs and child plans.

In your 40s

Forties is the time when buying the best life insurance plan becomes inevitable because this is when most people’s income contributes to their family’s income. There are responsibilities and dependents, medical expenses, and children’s education to take care of. Simple term plans or debt-oriented funds for insurance-cum-investment products work best. Plus, a retirement plan should be considered.

In Your 50s

Isn’t it too late to get insured? Well, no. Many individuals may have outstanding debts and mortgage. Hence securing the mortgage is vital to ensure that the family gets to retain the assets even in absence of the life assured. Since, most people have settled and have large daily expenses to meet by now, one must start saving and building funds for a peaceful retirement by buying the best life insurance plan for a stress-free life. If you are not protected yet, buy the life insurance plan even in your 50s.

In your 60s

It is never too late to buy the best life insurance plan. Despite high premiums, getting insured in your sixties can be great for financially securing your loved ones, paying off outstanding loans or making up for lost income. It makes sense to opt for annuity plans and instruments that help in estate planning and wealth creation, to help ensure the well-being of your loved ones.

 

What to Look for in a Life Insurance Provider when Finding the Best Insurance Plan?

A life insurance policy plays a very important role in securing the financial future of your family. And when it comes to the security of your family, you must not compromise. So, once you have decided to buy a policy, the next step is to find the best insurance policy provider. Here is a list of things that you need to consider when on the hunt to find the perfect life insurance provider:

Compare Life Insurance Plans

The first thing you need to do before choosing an insurance company is to compare. You must first compare life insurance plans offered by the insurance companies and then choose the best one as per your insurance needs.

Claim settlement process

Always look for a life insurance company with good claim settlement ratio. Also, you must understand the company’s claim settlement process so as to avoid any confusion in the future.

Credibility of insurer

It’s advisable to look for a reputed life insurance company with a good claim settlement ratio and customer-friendly approach.

Check on customer service

This is yet another factor that one must consider before selecting a life insurance company. You must take note of the insurance companies’ attitude towards the potential customers. Always make sure that the customer support team is supportive and is ready to help you whenever it is required. All these things will help you make a wise choice.

Consider reviews and complaints

It makes sense to look out for the online reviews, testimonials, or complaints to find out about the life insurance company. This will help you understand the problems faced by the customers and how insurance companies deal with it. If you find ample of complaints of the same nature against the insurance company, then you must not ignore it. As this will give you a proper idea about which company you need to consider and which you do not.

With so many insurance providers in the market today, choosing the most reliable and best life insurance company can be a daunting task. Thus, follow the above-mentioned pointers as this will help you choose the best insurer for a plan that meets your financial needs.

Jargons Related To a Life Insurance Policy

Insured Person & Policyholder

Insured person is the individual whose life the insurance plan covers. For example, if you buy the best life insurance plan for your spouse, he or she would be the insured person. The person paying the premiums becomes the policyholder.

Sum Assured

With so many insurance providers in the market today, choosing the most reliable and best life insurance company can be a daunting task. Thus, follow the above-mentioned pointers as this will help you choose the best insurer for a plan that meets your financial needs.

Policy Term

The policy term is the total length of time during which the life insurance policy is expected to be in force. That is when you have been paying all the premiums in time and have not surrendered the policy.

Premium Payment Term

Usually, you need to pay an annual premium throughout the policy term, i.e., policy term = premium payment term (PPT). However, you can choose to pay the premium within a shorter period, i.e., policy term > premium payment term.

Riders

Riders are additional insurance covers which can enhance the cover of your policy with either an additional sum assured or by covering an additional risk. For example, if you are looking for the best life insurance plan, you can include accidental death and disability rider to your term life insurance policy.

Lock-in Period

Policies have a lock-in period within which you cannot withdraw or surrender the policy. For ULIPs the lock-in period is five years, while for other plans this is two years. Only investment plans have a lock-in period.

Cash Value or Surrender Value

Life insurance plans other than the pure protection plans like term and health insurance, acquire cash value after the lock-in period. As you invest more money into the plan, the cash value also increases. Loan on the life insurance policy is based on this cash or surrender value.

Nominee

Nominee is the person who receives the amount promised by the life insurance company in the event of the life insured's death. The nominee, also known as the beneficiary, is generally parents, wife or children of the life insured.

What does Claim Settlement Ratio Mean?

Claim Settlement - What Does This Mean?

Canara HSBC Oriental Bank of Commerce Life Insurance boasts of a healthy and competitive death claim settlement ratio of 97.1% for the year 2020-21. Also, with a seamless claim settlement process, our Life Insurance policy is a promise to your loved ones that their financial needs will be taken care of in your absence.

Consider a hypothetical situation. Rohan, a management executive, loses his life in an unfortunate accident. He had prepared for the eventuality and bought the best term insurance plan with a cover of ₹50 lakh nine years before his death. His spouse, however, gets the shock of her life, when the insurance company rejects her claim. If your claim is rejected, would it not defeat the purpose of buying a term insurance plan?

To protect your family from financial and emotional strain, take into account the claim settlement ratio before investing. The claim settlement ratio is the proportion of claims accepted versus the total number of claims filed in a year. With a claim settlement ratio of 97.1%, you can rest assured that Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited will not let your loved ones down.

What is 1 Day Claim Approval?

Canara HSBC Oriental Bank of Commerce Life Insurance Company promises a quick 1 day claim approval. With the ‘InstaPromise’ service initiative, we intend to provide approval of claims of up to 1 Crore amount within 1 day of the claim. To avail, one needs to submit their claim request, along with the mandatory/ required documents, at any branch or our head office and get the claims approved within a day.

The service has a few conditions, listed below:

  • Life Insurance Policy should have completed 3 continuous years before death with all premiums paid.
  • All mandatory/ required documents should be received at the intimation stage.
  • Claim to be initiated before 3 pm between Monday to Friday (For claims received post 3pm, the 1 day period starts from the next day).
  • No verification/ investigation required.
  • Claim amount on all (per life/ person) eligible up to 1 Crore.

Why Our Customers Love Us?

Questions to Ask yourself Before Buying the Best Life Insurance Policy

How much life insurance cover do I need?

The first question to ask before buying the best life insurance policy is what amount of insurance is needed to financially take care of your family in your absence. As a thumb rule, the insurance cover should at least be 10-12 times of your annual salary. You should also consider the rise in expenses with time before choosing the best life insurance plan.

How much will I have to pay?

It is mandatory to pay premiums in time for the life insurance policy to be functional. Having a premium that is payable without comprising other commitments is important. Therefore, always calculate the premiums that you will have to pay before buying a life insurance policy. The better way of calculating your premiums is to use the premium calculator available on www.canarahsbclife.com.

What will happen if you are unable to pay the premiums of a life insurance plan on time?

Even though it is compulsory to pay the premiums of a life insurance plan on time, sometimes due to unavoidable circumstances, people miss their premiums. You should read the terms and conditions thoroughly or ask your agent what will happen in case you missed premium payments. Generally, insurers provide a grace period of up to 30 days (15 days in case of monthly mode) for the payment of the missed premium, but it is always better to have advance knowledge of the situation.

What are the benefits of buying the best life insurance plan?

The needs of every family are different. A uniform policy may not be suitable for everyone. Take into consideration the benefits offered with a policy while buying it. Life insurance plans come with optional critical illness cover, accidental death cover and disability cover.

How much life insurance do I need?

The quantum of death benefit varies from person to person depending on the lifestyle and income. As the generic formula for calculating life insurance cover is to subtract financial obligations like expenses and debt from resources such as liquid assets and income. The life insurance cover should be equal to the difference. Another rule states that people should have a life cover equal to 10-12 times of the annual income. You can also calculate the life insurance amount through the life cover calculator.

How much money can you get from a life insurance policy?

Different life insurance plans have different quantum of payments. The maximum cover largely depends on the policyholder. If you are able to pay the premiums for a large cover, the insurer will issue the life insurance policy. For instance, the Canara HSBC Oriental Bank of Commerce iSelect term plan has a minimum sum assured of Rs 25 lakhs, but the maximum sum assured depends on the life insured.

How easy is it to buy a life insurance plan?

A life insurance plan can either be bought through banks and branches of the insurer or directly online. Buying a life insurance policy online is very easy and hassle-free. You can simply visit www.canarahsbclife.com and opt for an online policy. The entire process from form submission to payment can be completed online.

How can you pay for a Life Insurance Plan?

The standard life insurance policy requires you pay the premiums on an annual basis but Canara HSBC Oriental Bank of Commerce Life Insurance provides you ample flexibility in the premium payment schedule. The premiums for the Invest 4G ULIP can be paid on an annual, half-yearly, quarterly or monthly basis, while the iSelect term plan has yearly and monthly payment options.

Frequently Asked Questions (FAQs) Related to Life Insurance Policies

The premium is one of the most important factors to consider before buying a life insurance policy. Many people buy a life insurance policy with a high sum assured but are unable to process the premiums for the entire premium payment tenure. You can get a better idea of the premium outgo with the premium calculator available in the 'Tools and Calculator' section of www.canarahsbclife.com.

Life insurance plans come with several riders which increase the efficiency of the policy for the buyer. For instance, if you have a history of terminal illness in your family it would be advisable to opt for terminal illness rider with your term insurance plan. Riders or add-ons help in customising the standard policy benefits for the requirement of different families. The iSelect term insurance plan comes with a built-in cover for terminal illness, and option for protection against accidental death or disability. You can also opt to cover your spouse's life under the same policy by paying an additional premium.

Life insurance companies calculate the premiums based on several factors such as age, gender and occupation.

Age: It is one of the biggest factors that influence life insurance premiums. Premiums tend to be low when the life insured is younger as the chance of contracting diseases is low. Young people also opt for the best life insurance policies with longer tenures and pay premiums for a longer duration, which makes the policy cheaper for young people.

Gender: The insurance premium for women is generally lower when it comes to life insurance plans. Women live longer and pose a lesser risk of a claim leading to lower premiums for them.

Lifestyle habits: The premiums for people who smoke or drink is always higher due to higher health risks.

Policy term: Policy terms are also taken into consideration by insurers while deciding the premium amount. Life insurance policies with longer tenure are cheaper as compared to short-duration policies.

Mode of purchase: The platform that you use to buy the best life insurance policy also determines how much you will have to pay for the plan. People who buy life insurance policies online have to pay lower premiums as compared to offline policies.

Occupation: The nature of your work is an important factor that influences the premium amount. Certain occupations like shipping and mining are considered more dangerous as compared to jobs in services industries. The insurance premium rises with the risk profile.

Processing life insurance claim is a transparent and smooth process with Canara HSBC Oriental Bank of Commerce Life Insurance.

In case of the death of the life insured, the nominee will have to intimate the company by filling a Death Claim Form and sending it to the nearest branch office.

Once the form is received, the claim is registered by the insurer.

After the registration of the claim, the company will send the claims pack along with the related forms such as physician’s statement form and employer certificate that need to be filled.

Along with the duly filled forms a few documents such as original [policy document, death certificate, copy of bank passbook, hospital or treatment records, photo identification and address proof have to be provided.

The claim is processed on the submission of relevant documents. Once the documents are verified, the claim amount is released post all due diligence.

Household expenses rise with age. The cost of children's education increases along with other lifestyle expenses. The iSelect term plan offers an option to increase the cover according to the life stage. If opted, the insurance cover increases by 25% at every 5-year terminal till the 20th policy year.

Even though a life insurance policy is bought to protect your family in your absence, there are chances of the claim being rejected due to several factors.

False information: If the policyholder provides false information or conceals important information while buying the life insurance policy, the insurer has the right to reject the claim after his/her death.

Type of death: Deaths due to suicide in first policy year, intoxication or pre-existing disease is not covered under life insurance plan.

Premium payment: The payment of premiums on time is of utmost important to avail the benefits of life insurance. Life insurance policy may lapse on the failure to pay the premiums

Nominee details: A life insurance company can put the claim on hold if the nominee details have not been filled or not been updated by the policyholder.

Suicide: If the life insured commits suicide within 12 months of buying the life insurance policy, the insurance companies generally pay 80% of the total premiums paid.

Buying the best life insurance plan online is not only safe but a better option. Online life insurance policies have lower premiums and the individual is not required to visit the insurer's branch or a bank. The best life insurance policies online insurance offer higher benefits. Customers should, however, buy online life insurance policies only from credible insurers and should check for SSL certificate on the website to ensure that the website is legitimate.

The cost of life insurance policies varies depending on factors like age, gender and occupation. The average cost of life insurance plans, especially term plans, is very low compared to the amount of coverage offered.

An individual is allowed to have multiple life insurance policies. People opt for more than one life insurance policy to increase the cover or avoid claim rejection. In case of multiple life insurance policies, even if the claim is rejected by one insurer, the beneficiaries may receive the benefit from a different insurer.

Life insurance policies are of different types. In case of unit-linked or endowment policies the policyholder receives the maturity benefit at the end of the policy term. However, in the case of term insurance plans, there are no maturity benefits. The death benefit is only paid out after the death of the life insured.

When you buy a life insurance policy, the insurance company asks for the nominee details. Only the person named as the nominee in the life insurance plan can cash out in case of death of life insured.

A life insurance policy is generally taken for a specified period. After the policy duration of a term plan gets over, the policy simply terminates and ceases to exist. However, in case of unit-linked plans or endowment, you can use the policy as a tool for retirement planning and the accumulated corpus is used by the insurer to pay you monthly amounts for your entire life.

If a policyholder purchases a term plan for 25 years and dies during the policy term, the beneficiary receives the death benefit. In case of iSelect term plan, the policy provides four payment options to the beneficiaries. If the regular payment option is chosen, the policy works as a source of regular income.

It is a popular misconception that life insurance plans are only for accidental deaths. A term life insurance plan like iSelect Star Term Plan also covers terminal disease along with death. A terminal illness cover is important as health insurance pays only for the cost of treatment and hospitalization, but a terminal illness cover pays you a lump-sum amount which takes care of other expenses. On the other hand, unit-linked policies such as Invest 4G cover death and also provide decent returns for other financial goals such as buying a house of child's education.

It is ideal to buy a life insurance plan in your early 20s because it is the time when people have just started with their professional life and so there are lesser responsibilities and financial liabilities to take care of. Also, if you buy the best life insurance plan at this age, you will be paying relatively lower insurance premiums since it’s a due fact that mortality rate in case of young people is low. And that is why life insurance companies offer lesser premium rates to younger people as they think that they are most likely to be fit and healthier with less chances of filing a claim in future.

Once you have cancelled your life insurance policy, you will instantly lose your life insurance cover. Afterwards, your insurance company will get in touch with you and ask for valid reasons regarding the cancellation of your policy. In case you cancel your life insurance policy within the grace period, i.e. 15 to 30 days, depending on your insurer, then insurance company will reimburse the premium amount paid by you. But, no refunds will be paid to you if the policy is cancelled after the grace period.

Yes, you can take life insurance under Married Women’s Property (MWP) Act, 1984 only if you are a married man and a resident of India. Buying a life insurance plan under MWP Act would be helpful in saving your family’s financial well-being when you are not around. As per this policy, only wife and children would be eligible to receive the death benefits. You can also buy a policy if you are a widower or a divorcee. However, in that case, you can give your child’s name as your beneficiary. It is very simple to buy a life plan under MWP Act. All you need to do is to fill up an MWP addendum while purchasing an insurance policy.

Yes, there are different payment options for you to pay premiums. Here’re some of them

    1. Regular premium payment option – This premium payment option allows you to pay premiums equal to your policy term either monthly, quarterly, half yearly or annually.

    2. Single payment option – Through this premium payment option, you can pay the lump-sum amount in one single payment.

    3. Limited payment option -In this premium payment option, you can pay premiums for a specific period of time less than policy term either monthly, quarterly, half yearly or annually, but benefits of insurance can be enjoyed for a longer period of time.

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