What is Term Insurance?

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.

What should be the duration of your term plan policy?

The term of the policy is the time period for which you want to offer financial protection to your family in case of an unfortunate event. Therefore, the duration of your term insurance should depend upon the time when you see yourself fulfilling all your financial goals. It is not necessary to opt for the maximum duration available. Besides, here’re the following factors that you need to consider while deciding on the duration of a term insurance policy –

• Your financial liabilities – Your financial liabilities will help you decide the term of the policy. For instance, if an individual has a loan of 10 years, then the duration of the term policy needs to be 10 years.
• Dependents in your family – Considering how long your loved ones will be financially dependent on you will help you deciding on the term of your policy. For instance, if you are the sole breadwinner of the family, then buying a cover for long duration would be helpful.
• Large one-time expense – It is the maximum one-time expense that can arise in future. Your family’s financial status also plays an important role in deciding the term of the policy. For example, if your child’s age is 10 years and the goal is to provide coverage till your child’s marriage or higher education, then the duration of your term insurance policy could be 20-25 years.
• Your age – This is yet another factor to reckon with while deciding on the duration of the term insurance policy. For instance, your current age is 30 years and you opt for a 10-year plan, your plan will expire when you will turn 40. There are less chances that you will need coverage before this age. Moreover, if you plan to buy a plan at this point of time, then it will cost you a lot. Therefore, it is advisable to buy a term insurance at a younger age but for a longer duration.

How to buy term insurance online?

Buying a term insurance policy is now just a click away. It is an easy, simple and hassle-free process. Moreover, it hardly takes 30 seconds to complete the whole process. Here’s a step-by-step guide that will help you buy term insurance plan online:

• Log on to the insurance company’s website. For example, www.canarahsbclife.com
• Click on Life Insurance Plans and select ‘iSelect+ Term Plan’ present under the Buy Now category.
• Fill in few details such as your name, gender, date of birth, email, mobile number, etc.
• Choose the policy term
• Enter the sum assured
• Now, select your premium payment option like monthly, quarterly or annually depending on your needs
• Once you have filled in all the information, you will be redirected to the new page where you need to provide few more details like country, pin code, state of residence, educational qualification, your annual income, occupation type, etc.
• Choose between the plan options which includes life, life with return premium, life plus. You can also choose your coverage options or any in-built optional cover like accidental death, accidental death & permanent disability
• You will now see the premium amount basis your information
• 10- After filling all mandatory details and getting the premium amount, you can now click on ‘proceed’ button
• This will take you to the payment section. Once the transaction is successfully done, the insurance company will verify all the details provided by you and will send you a soft copy of the policy via email if your insurance policy request gets approved.
• For more details on iSelect+ Term Plan policy, please refer terms and conditions available at www.canarahsbclife.com/term-insurance/iselect-plus-term-plan.html

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.