Consider your financial obligations

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.

Consider regular expenses

Your life insurance cover should include all recurring regular expenses including loan EMIs and other household expenses. You should also consider the rise in expenses with time before choosing the best life insurance plan.

Consider your working years

You should consider the number of active working years before choosing the life insurance sum assured. For example, if your current age is 30 and you plan to retire at the age of 50 then you will have 20 future active earning years to take into consideration.

Consider financial goals

There can be different goals in your life such as wedding, children’s education that may require large funding. Your sum assured should cover funding required for these goals so that your family’s future is secure.

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. Term insurance plans generally 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.

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. Life insurance plans are subject to specific term and conditions relating to different kinds of deaths. Here is an insight into the different kinds of deaths that your life insurance policy may not cover –

a) Due to driving a vehicle while intoxicated (under the influence of alcohol)

b) Due to any pre-existing health condition

c) Due to meeting an accident while driving a vehicle under the influence of drugs

d) Due to participation in any adventure sport

e) Due to participation in any racing event

f) Due to pregnancy and childbirth

g) Due to participation in any illegal activity

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.

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

a) Investment is tax-deductible

b) Accrued interest is not taxable

c) Maturity value and any payments are also tax-free

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.

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.

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.

Processing life insurance claim is a transparent and smooth process with Canara HSBC 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.

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

a) Customers should declare their disabilities duly in detail

b) They may be requested to submit a report from a doctor

c) Information related to any of your tests or recent visits to the doctor

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.

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.

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.

The standard life insurance policy requires you pay the premiums on an annual basis but Canara HSBC 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 Star term plan has yearly and monthly payment options..

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

a) 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.

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

c) 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.

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.

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.

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.

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 plans, 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.

It is a popular misconception that life insurance plans are only for accidental deaths. a term life insurance 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.

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.

Senior citizens will need life insurance coverage if they still have a financially dependent family member, or if they want to leave a legacy for the next generation. Life insurance also makes financial life easier for the dependent spouse after the death of the pensioner.

A terminal illness usually means that death is almost certain as the disease has already progressed to its final stages. So, if you are diagnosed with a terminal illness, insurers will not entertain the prospect of insuring your life.

Life insurance covers only the event of your ultimate demise, while critical illness insurance covers you for dangerous illnesses. Life cover usually benefits your dependents and family members, while critical illness cover helps you in getting the best treatment and recovering from illnesses. Add critical illness cover to your life insurance policy for comprehensive benefits.

If the nominee of your life insurance policy passes before you, you should change the nomination in the insurance as soon as possible. The new nominee can file the death claim after your demise. However, if you could not change the nomination before your demise, your legal heirs can still file the claim on the policy with proper documents.