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What is Term Insurance?

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.

Read more about term insurance

What are the benefits of term insurance

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Canara HSBC Oriental Bank of Commerce Life insuranceoffers online Term insurance plans which helps to secure your family financially in your absence.


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



Double life cover in case of accidental death

Return of premium on maturity

Premium payment term options

Tax benefits

Why Choose our iSelect Star Term Plan?

iSelect Star 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 Star Term Plan

Long Term Financial Security

iSelect Star term plan covers the age upto 80 years, ensuring the most prolonged financial security to avail for your family.

Spouse Cover

iSelect Star term plan considers your spouse as a part of your term policy, giving both of you maximum coverage against financial misfortunes.

Accidental Death Coverage

iSelect Star term plan arms you against financial challenges occurred due to sudden disability or accidental death. It never allows you to run out of money in the face of adversity.

Family's Financial Security

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 Star 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 Star term plan also provides comprehensive coverage that can help secure your child's future in your absence. Also, with the return of premium option, we pay back the total premium paid on maturity.

Increased Coverage with Aging

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 Star 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.

Tax Benefits

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.

Does the iSelect Star 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 Star 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 Term 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 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 Punjab National Bank along with HSBC Insurance (Asia Pacific) Holdings Limited. 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.

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.

Best investment options

There are several investment options in India that offer high returns. Some of these are ideal as short-term investments, while others make for excellent long-term investments.

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:

  • 1Log on to the insurance company’s website. For example, www.canarahsbclife.com
  • 2Click on Life Insurance Plans and select ‘iSelect Star Term Plan’ present under the Buy Now category.
  • 3Fill in few details such as your name, gender, date of birth, email, mobile number, etc.
  • 4Choose policy term & filter sum assured
  • 5Now, select your premium payment option like monthly, quarterly or annually depending on your needs
  • 6Once 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.
  • 7Choose 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
  • 8You will now see the premium amount basis your information. After filling all mandatory details and getting the premium amount, you can now click on ‘proceed’ button
  • 9This 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.
  • 10For more details on iSelect Star Term Plan policy, please refer terms and conditions available at

Why do you need Term Insurance?

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.

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?

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.

Solvency Ratio

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.

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.

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.
  • 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.
  • 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.

Factors impacting term plan premiums


Low risk of death when young, allows insurers to offer lower premium rates to policyholders.


Insurers don’t discriminate on the basis of gender, but life expectancy cannot be ignored. Women tend to live longer than men, hence low risk, which allows insurer to offer lower premium rates to women.


Not all professions are the same. While working, a miner is exposed to more risks than a software engineer. The risk perception reflects into the amount of the term insurance premium.

Duration/policy term

Term insurance is a promise to pay your family in the case of an unfortunate incident. A longer policy term means the insurer will be covering the risk for a prolonged period.

Medical history

Some diseases are known to recur. If you have suffered from a chronic illness in the past, it may resurface in the future. Considering the risk, the premium for people with a history of certain illnesses is higher.


Smoking increases the risk of lung-related diseases. Similarly, consumption of alcohol is harmful to the liver. If you are a smoker or drink alcohol, you will have to shell out more for term insurance.

Personal health

There is no certainty on when an irregular pulse rate or high cholesterol turns into a serious illness. Insurers ascertain your personal health before issuing a policy. The level of fitness decides the premium.


A high level of blood sugar can have an adverse effect on your heart and kidneys. The premiums for diabetic people are higher as they are more susceptible to cardiovascular and kidney diseases.

Who should buy a term insurance?

It is said that human needs change with age. A laptop may not be as crucial for a retiree as it is for a student. However, certain things are an exception to the rule, like Term Insurance.

A term insurance is equally important for people of all age groups, though the purpose may change with age. A college-going student may need a term insurance plan for a reason completely different from a married individual. The right question would be, who should buy term insurance and why?

Entering College
18-21 Years

Buy term insurance to guard against liabilities like education loan

Post 1st Salary
21-25 Years

Buy term insurance to ensure that your parents do not have to worry about money in your absence.

After Marriage
26-32 Years

Buy term insurance to protect your better half from financial turmoil.

After 1st Child
33-40 Years

Buy term insurance to provide a financially secure future for your child.

After Retirement
60 years+

Buy term insurance to take care of medical expenses in the event of being diagnosed with a terminal disease.

What does Claim Settlement Ratio mean?

Claim Settlement - What Does This Mean?

A term plan is meant to provide your family with a financial buffer in your absence or in case you are diagnosed with a terminal illness.

Consider a hypothetical situation. Rohan, a management executive, loses his life in an unfortunate accident. He had prepared for the eventuality and bought a term 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 term insurance?

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 98.12%*, you can rest assured that Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited will not let your loved ones down.

*Individual death claims settled and reported in public disclosure for FY 2019-20.

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:

  • Policy should have completed 3 continuous years before death with all premium paid.
  • All mandatory/ required documents should be received at 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.

CARE AAA, why is it important?

Term insurance is a formal agreement between the insurer and the policyholder. But financial instruments are fraught with risks.

What if the insurer fails to pay your loved ones in your absence? The situation can be avoided by ensuring the financial stability of the insurance company. The credit rating provides information about the financial strength of the insurer. It tells if the insurer will be able to pay the claims of the policyholders or not.

Credit ratings are provided by independent agencies after analysing the financial metrics of the insurer. Credit ratings are symbolised by the name of the agency followed by alphabets like ‘A’, ‘B’ or ‘AAA’.

Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited has the highest level of rating—CARE AAA . It simply means that the impact of an adverse external environment will be minimal on the claims-paying ability of the company.


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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