Term insurance is a policy offering which makes sure that your family is financially stable and secure in your absence. If an individual is insured under this policy, they will have to pay a specific amount at fixed intervals. However, if at any point of time the life insured dies, the nominees selected by him/her during the time of purchasing the policy, will be given an assured sum amount.
Term insurance is the most effective form of insurance that provide financial protection to the insured individual and his/her family in case of sudden death.
Term Insurance Plans
Canara HSBC Oriental Bank of Commerce Life Insurance offers online Term insurance plans which helps to secure your family financially in your absence.
How the Term Insurance Plan from Canara HSBC OBC Life Insurance helps You?
Canara HSBC OBC is a joint venture of two of India's largest public-sector banks named Canara Bank and Oriental Bank of Commerce . Canara HSBC OBC was launched in 2008 to offer life insurance to individuals seeking financial freedom in unfortunate circumstances. The organization continually works on providing various life insurance plans that make premium payments easier and payouts beneficial for the term policyholders.
The in-depth knowledge of the two renowned public sector banks combined with years of experience with HSBC makes Canara HSBC OBC life insurance stand out from the others. The company is aware of today's families' needs and their reliance on a few people for financial needs. They know when misfortune hits, how families suffer due to lack of money. That's why Canara HSBC OBC Life Insurance offers a wide range of products catering to various financial needs of consumers. Its products guarantee lifetime income, uninterrupted child education, customized worth as per high individuals, etc.
Why do you need Term Insurance?
For Your Family Protection
If your family relies on you for financial needs, you need term insurance more than anything. You don't know what the future holds. You can't stop the rain from falling, but you can take an umbrella to save you and your family from the storm. A term plan is your umbrella against the sudden financial storms.
For Your Assets' Protection
You may have an ongoing loan on house, vehicle, or any of your property. If something happens to you, the loan repayment burden will fall on your family. With term plan's payout, your family will be able to repay your loans and save your property as well.
For Dealing with Lifestyle Risks
Critical illness like cancer, heart attack, kidney failure can take place at any moment. If something similar happens to you, your family may suffer emotionally and financially. Term insurance keeps your family safe from financial drain out so that they get enough time to recover.
Why Choose our - iSelect Term Plan?
iSelect Term Plan is online term insurance plan that provides one with enhanced protection options. It covers everything ranging from protection against sudden death to disability to secure a regular income for your family.
Here are some other reasons to choose iSelect Term Plan
What do you always dream about for your family? That they never run out of money, no matter if you are there or not. iSelect term plan makes your dreams come true by offering you a monthly income option to meet your family's financial needs in your absence or disability. iSelect term plan also provides comprehensive coverage that can help secure your child's future in your absence
As you age, so do your responsibilities. You need more facilities and coverage that takes care of illnesses or accidents that come with aging. iSelect term plan offers full flexibility on your premium and coverage. The term plan ensures to increase 25% coverage every five years based on your aging requirements. If you opt-in for flexible aging options, you will receive 100% more coverage than the original one defined when you took the term insurance policy.
When thinking of the best term insurance plan, people worry about the extra bucks they have to pay in the name of security. But they never look at the tax benefits they are getting in front of insurance. Term insurance plans work in two ways. On one side, it gives you tax benefits under section 80C and 80D, and on the other hand, it gives lifetime security even after your death. So, if you are worried about paying extra money from your pocket, think of how much you are saving from tax. Hence, there won't be a big hole in your deep pockets when you plan for a term plan.
What customers say about the iSelect Term Plan?
"Canara HSBC OBC Life Insurance"iSelect term plan comes in the lowest premium rate and highest advantages for your beloved ones. It offers the best term insurance policy coverage and claims. Customer service is always eager to help you out with all queries. Claiming is fast and hassle-free. You don't have to go through long procedures to claim what's rightfully yours".
Being an only earning individual in my Family, I was worried about what will happen to my family after me or if something goes wrong. iSelect term plan faded my worries for my family. They offered me a regular income plan for my family if something happens to me. The premium is too low, and tax benefits are icing on the cake.
iSelect term plan is like a little investment with the highest ROI and tax benefits. Against paying a minimum premium, I receive hoards of benefits, including my family's financial protection (the most important one) and my children's education. I am saving extra bucks each year from the tax..
Does the iSelect Term Plan help in saving income tax?
According to Section 80C, term insurance plan allows you to claim approximately 1.5 lakh each financial year for the premium you paid for yourself, your family, spouse, and children. iSelect term plan gives you access to claim such benefits each year by paying the minimum premium for the term policy. Looking at the tax benefits in legal terms, under Section 10(10D) any sum received at maturity of a Life Insurance Policy, is exempted from tax. This exemption however, is not applicable to: the amount received Section 80DDA(3) or 80DD(3), maturity benefits received under a Keyman Insurance Policy, sum received under any insurance policy issued on or after April 1, 2003, during the term of which the premium paid is more than 20 percent of the sum assured.
Benefits of Life Insurance:
Term Insurance can help you plan your finance during unforeseen circumstances by offering solution to financial needs at the right time. The term plan deals with your vulnerable conditions by offering you a repayment plus interest of the premium you paid.
Just the way you financially protect your family from unforeseen circumstances, term insurance similarly protects your loved ones. The term plan replaces your income. It takes care of your family's financial needs in your absence.
Term insurance offers additional payouts in case of critical illness like kidney failure, heart attack, cancer, etc.
Under section 80D and 80C, term plan provides you tax benefits and additional tax savings if your term plan covers critical illness.
How Much Term Insurance Cover do you need?
Insurance experts recommend buying term insurance plans covering 15-20 times of your total annual income. For example, if your yearly salary is Rs. 8 lakh, term insurance must include a minimum Rs. 1 crore life insurance.Here are the other factors to consider while calculating term insurance plan coverage you need -
Individuals in the younger age bracket are generally of the view that one can pay the premium for a long time with less chances of illness in order to keep the premium rate low. While those in the older age bracket are more susceptible to diseases but a lesser capacity to pay and thus they have to pay higher premiums.
2.Current Cost of Family
Each family has its lifestyle and expenses. You don't want your family's lifestyle to suffer if something happens to you. Hence, you must consider the current cost of the family to make sure you select the sum assured accordingly.
You don't want your children's education to be interrupted due to financial problems. Calculate sum assured that covers children's education.
If you are concerned about your children's wedding and want them to have it the best - no matter whether you are there or not - must consider it while calculating sum assured.
At last, you should calculate your ability to pay the premium. Premium amount must be more comfortable to pay so that you won't think of closing it down because of the inability to pay.
How to Choose the Best Term Plan?
1.Claim Settlement Ratio
The claim settlement ratio includes the total number of claims the insurance company covers out of the claims filed when the insured individual dies. For example, if the insurance company has an 80 percent claim ratio, it means the insurer pays 80 out of every 100 claims filed.
The solvency ratio indicates the capability of the insurer to meet its debt obligations, which includes cases where the insurer has to pay the insurance cover to the beneficiary in case of death of the policy holder. It should be at least 1.5.
3.Inquire the Existing Customer Experience
In order to know the service of the company, one can enquire existing customers about their experience with the insurance company. Another way can be to check online reviews and ratings of the company. Ensure that the customer experience is excellent to avoid emergence of any issues during the ongoing term policy period.
4.Choose the Benefits Carefully
While choosing the insurance company, see the list of benefits they offer or enquire about the benefits you want to cover. Check out the below-given list of most common benefits you must look out for when choosing your best term insurance plan.
1.Regular income payout option
2. Number of critical illnesses covered
3. Accidental death benefit
4.Premium waiver in case of disability
Key Features of Term Life insurance plan
Security at Affordable Premiums: Your financial freedom comes at a minimum cost with term insurance. The term plan covers all your misfortunes at minimum premium possible, depending on your age even when suffer through critical illness.
Extremely Easy to Buy: Purchasing a term plan is a fairly easy process. Everything is available online, ranging from a form to term insurance calculator where you know about the premium you have to pay as per your criteria.
An Essential Investment for Future: A monetary investment is important to secure one's future. Hence, term insurance can be seen as an investment as it helps one secure their family from financial misfortunes.
Flexible Payment Options: The term plan gives you a wide range of payment options to choose from as per your convenience. You can go for monthly/quarterly /yearly payment.
Various Payout Options: If you are worried that your family won't be able to justify the amount received due to lack of financial planning, you can choose various payout options. For example, you can request the insurance company to pay your family every month, like a regular income.
Wide Range of Customized Offers: Term insurance comes with customized premium offers based on your age and habits. For example, a non-smoker gets an extra discount on premium rates as opposed to the smoker. Similarly, females get additional advantages in premium rates.
How Does Term Plan Work?
Duration: Term insurance plans are available for different periods. You can choose any period as per your comfort.
Payment Option: You can choose any option like monthly, quarterly, half-yearly or yearly, as applicable, to pay a premium.
Premium Calculation: The insurer calculates your premium based on age, health, and life expectancy. For example, a 30-year old non-smoker has to pay around Rs. 3500 per year while a smoker has to pay approximately Rs. 4500 per year.
Medical Test: You may be required to give medical proof of your health and your family's health to the insurance company.
Terms & Conditions: Terms and conditions fill guidelines for payout options in various situations. For instance, if you die before the policy expiration date, the beneficiary will receive the face value. If the insurer survives during the policy, there won't be any payout, depending on the term policy of insurer.
Insurance Renewal: If nothing happens to you till the expiration of the term insurance policy, you can renew it again. The premium will depend on your current age and health condition.
Frequently Asked Questions (FAQs) for Life Insurance
Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Term Plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.
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 RiderWhen 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 RiderIf 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. Amount of premium you have to pay based on your age, habits, education, and monthly income
2. The total number of benefits covered in the term plan. Do they include benefits that you care about the most?
3. How to save money on tax if you pay for the term plan?
4. Do they offer regular income options?
5. Can you change the coverage and premium in the future?
6. Does the claim consider valid if death occurs outside India?
7. Which kind of death is not covered by insurance?
8. Can NRIs take term insurance? If yes, what are the conditions?