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What is Term Insurance Plan?

What is Term Insurance Plan?

Term insurance plan is a life insurance plan which covers your family from the risk of your early death. A standard term insurance plan only covers your life for a limited period of up to a certain age. If you survive the tenure of the term cover, a standard policy will simply expire.

The role of a term insurance cover is to protect the financial status of your dependents in case of your early demise. In the event of an unfortunate death, the term life insurance cover will provide a large sum of money to the beneficiaries so that they can:

  • Look after their regular monthly living expenses
  • Pay off any financial liabilities like a car loan or housing loan you had
  • Invest money towards achieving important life goals like children’s education and marriage, a retirement fund for their spouse
Read more about term insurance plan

What are the benefits of term insurance

Choose from our best 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.

SARAL JEEVAN BIMA

Multiple Premium Payment Term Options

Sum Assured starting from Rs. 5 Lakhs

Tax Benefits as per applicable laws

iSELECT STAR TERM 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

Investment

POS - EASY BIMA PLAN

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 enhanced protection options. It covers everything ranging from protection against sudden death to disability to secure a regular income for your family.

iSelect Star Term Plan offers multiple options like whole life coverage, multiple premium payment options including short tenure like 5 or 10 years as well as option to pay during your working years i.e. till you get 60 years old. It also offers an option to avail return of premium benefit wherein all your premiums will be returned once you outlive the term insurance policy tenure. You can buy this term plan online and here are some other reasons to choose iSelect Star Term Plan.

1
Long Term Financial Security

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

2
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.

3
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. Term life insurance policies with riders help you enhance your current term plan to align with your financial goals and requirements.

4
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.

5
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 life insurance 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.

6
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, a smart term plan gives you tax benefits under section 80C and 80D, and on the other hand, term life insurance policies give 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 buy the best term insurance plan.

Types of Term Insurance Plan

There are different types of term insurance plans that you can consider buying. Here’s a list of term insurance plans to choose from that may help you to secure the dreams and aspirations of your loved ones. A term insurance policy allows you to choose any of the following term insurance cover options:

Standard Term Insurance Plan

A standard term insurance plan is where you pay a fixed sum regularly for a specific amount of life cover until your retirement age.

For example, if you buy a Rs. 1 crore term insurance plan for 30 years at the age of 30, you may need to pay about Rs. 10,000 per year as premium.

You will pay the same premium regularly for the next 30 years and your cover amount will also remain the same throughout the term insurance policy tenure.

Once you complete the 30-year tenure the term insurance plan will simply expire.

Term Insurance Plan With Return Of Premium

This term insurance policy is the same as the standard term insurance plan, except that it returns all your premiums at expiry. Thus, whatever premiums you have paid through the tenure of the cover, the insurer will return it to you upon expiry.

For example, you have a 30-year smart term plan with a cover of Rs. 1 Crore that offers return of premium option. You will pay an annual premium of Rs. 20,000 for the next 30 years for the cover.

If you are 30 years old right now, by the time you touch 59 you would have paid Rs. 6 lakhs as premiums for the cover. If you survive till retirement, which is at 60, the term insurance plan will expire and the insurer will return Rs. 6 lakhs to you.

Read more about return of premium.

Whole Life Term Insurance Plan

Whole life term plan allows you to use your term cover as a tool of wealth transfer to the next generation. The unique feature of the whole life plan is that the cover continues till the age of 99. Thus, benefit payout from this term life insurance plan is almost certain.

The best of whole life term plans allow you to limit your premium payment term till the age of 60. This will allow you to keep your pension from the burden of term insurance cover. With iSelect Star Term Plan this option is called ‘pay till 60’ option. Consider these features while looking for term life insurance policies, to buy the smart term plan available.

For example, you purchase a Rs 1 crore term insurance plan under whole life and choose “pay till 60 option”. The term insurance plan will cover your family in case of your early demise during your working years, like the standard term insurance plan. After retirement, the plan will pay the benefit even in case of natural death.

However, if you survive the term of the policy; i.e., you attain the age of 99, the policy pays the entire sum assured to you.

Read more about whole life insurance.

Increasing Term Insurance Plan

An increasing term life insurance plan is similar to the standard term plan with one unique difference. The sum assured keeps growing every year by a fixed percentage of the base sum assured.

For example, assume that you buy an increasing term cover with Rs. 1 crore base sum assured. The life cover will grow at a rate of 5% per year. In the second year, your total life cover will be Rs. 1.05 crore, in the third it will be Rs. 1.1 crore and so on.

The growth only stops in the following three cases:

  • The term insurance plan expires, that is the policy tenure is over
  • A claim is made on the policy. In the case of iSelect Star Term Plan, it could be death or terminal illness claim
  • The total available sum assured becomes 200% of the base sum assured; i.e. the cover started with Rs. 1 crore and is now Rs. 2 crores.

This term insurance plan is very useful if you want your term insurance cover to keep up with the growth in your financial needs.

Joint Life Term Insurance Plan

This term insurance plan allows you to add your spouse under the same term insurance plan. This addition is also applicable to a homemaker spouse.

The biggest advantage of buying the best term plan – jointly, is that the surviving spouse may not need to pay the premiums to continue his or her life cover after a claim. If you are looking for a smart term plan that covers you and your partner, then iSelect Star Term Plan is your go-to option as it allows you to add your spouse to the same policy.

Another aspect is that you can manage a single policy far easily.

You can select any of these plan options while searching for the best term insurance plan.

Should you Buy a Term Insurance Plan Online to Cover COVID-19?

The pandemic has been a real eye-opener for a lot of people who never thought of insuring themselves and their loved ones. The best term insurance plans in India offer life cover along with providing terminal illness cover. Be protected by buying the best term insurance plan to cover you and your family members during the pandemic. It is never too late to cushion your financial interests with a term insurance plan. The policyholder can enquire about the COVID-19 term insurance plans. If you are a new policyholder, then you may be asked to disclose this information to your insurer. If you plan to buy a new term insurance policy, bear in mind that it depends on your health condition and medical history. So, the insurance company will want a detailed medical history to deem you eligible for a term insurance 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 term insurance 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 insurance 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 Buying the Best Term Insurance Plan:

The best term insurance plans can help you plan your finance during unforeseen circumstances by offering solution to financial needs at the right time. The term insurance plan deals with your vulnerable conditions by offering you a repayment plus interest of the premium you paid. Term life insurance policies are designed to protect your loved ones if something were to happen to you. The best term plan ensures that you lead a worry-free life with your loved ones.

Just the way you financially protect your family from unforeseen circumstances, the best term insurance plan similarly protects your loved ones. The term insurance plan replaces your income. It takes care of your family's financial needs in your absence. Buying a term plan with return of premium secures the future of your loved ones along with you. With this option, all the term insurance premium you have paid will be paid back to you, if you outlive the policy term.

Term life insurance plan offers additional payouts in case of critical illness like kidney failure, heart attack, cancer, etc. Term life insurance policies offer different riders that you can add to your plan as per your financial requirements and goals. Before buying the best term insurance policy, check whether the plan offers protection against terminal or critical illnesses.

Under section 80D and 80C, term insurance plan provides you tax benefits and additional tax savings if you have the best term insurance plan that covers critical illness.

How Term Insurance Plan from
Canara HSBC Oriental Bank of Commerce Life Insurance
Help You?

  • Canara HSBC Oriental Bank of Commerce Life Insurance 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 Oriental Bank of Commerce Life Insurance was launched in 2008 to offer life insurance to individuals seeking financial freedom in unfortunate circumstances. The organization continually works on providing various term life insurance policies 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 Oriental Bank of Commerce 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 Oriental Bank of Commerce 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 insurance 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 plan 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 insurance 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. Term life insurance policies help your dependants pay for their lifestyle expenses in your absence. For instance, if you are the sole breadwinner of the family, then buying a term policy 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 you buy a term insurance 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 term insurance plan will expire when you will turn 40. There are less chances that you will need coverage before this age. Moreover, if you even consider to buy an online term plan at this point of time, then it will cost you a lot. Therefore, it is advisable to buy the best term insurance plan at a younger age but for a longer duration.

Term Insurance Plans with Increasing Cover

Buying a smart term plan with adequate cover can prove beneficial for you and your family over long-term horizon. As we grow, our needs and liabilities also change. With the best term insurance plans, you can increase the cover for catering your financial needs as per the changing life stages.

How to buy best online term plan ?

Buying an online term plan 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. 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 from 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 term insurance policy request gets approved.
  • 10For more details on iSelect Star Term Plan policy, please refer terms and conditions available at
    www.canarahsbclife.com/term-insurance/iselect-star-term-plan.html

Is it Safe to Buy Term Insurance Plan Online?

Yes. It is completely safe to buy a term insurance plan online in India. If you are buying a term plan online, you can simply visit the insurance company’s website to select a term insurance plan and make the payment. Canara HSBC Oriental Bank of Commerce Life Insurance has a wide variety of online term insurance plans you can choose from. We ensure that your personal and financial details are protected.

Beware of fraudsters who may send you phishing emails that may contain suspicious links. Your financial details may be compromised as the scammers may commit fraud on your bank account. Check for the URL of the website where you are supposed to enter your personal and financial details for “https”. Do not provide any details if the URL contain “http”. Buy a term insurance plan online from reliable life insurance companies to stay protected.

Why do you need Buy the Best Term Insurance Plan ?

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 plan must include a minimum Rs. 1 crore life insurance. Buy a term insurance plan while considering these factors while calculating term insurance plan coverage you need.

Age

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. Buy a smart term plan that offers appropriate riders to enhance your current plan.

Current Cost of Family

Each family has its lifestyle and expenses. The amount needed to cover those regular expenses will vary from family to family. 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 buy a term insurance plan with the right sum assured.

Education

Your child’s future depends on the way you have planned and saved for it. The best term insurance plan allows you to protect your child’s future even if you are not around. You don't want your children's education to be interrupted due to financial problems. Calculate sum assured that covers children's education and buy the right term insurance plan.

Wedding

Financial issues may impact the way you have dreamt of your child’s marriage. 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. The best term life insurance plan helps you to at your every life stage – no matter what.

Premium

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 not continuing with your term policy. Also, ensure to choose the right premium payment mode as per your finances. A term insurance plan offers multiple premium payment options that you can choose from.

How to Choose the Best Term Insurance Plan Duration?

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 policyholder. It should be at least 1.5. Buy term insurance policy from life insurers who have a good solvency ratio.

Inquire the Existing Customer Experience

In order to know more about the company, one can enquire existing customers about their experience with us. Another way is to check online reviews and ratings of the company. Ensure that the customer experience is excellent to avoid any issues during the ongoing term insurance policy period.

Choose the Benefits Carefully

While choosing the insurance company, see the benefits they offer or enquire about it. Some of the most common benefits you must look out for when choosing the best term insurance plan are regular income payout option, critical illnesses cover, accidental death benefit, and premium waiver in case of disability.

Looking to Buy a Term Insurance Plan?

Pros and Cons of Buying a Term Insurance Plan

It is important that you weigh the pros and cons of buying the best term insurance plan. Understanding the advantages and disadvantages of a term life insurance plan help you make an informed decision.

Pros of a Term Insurance Plan Cons of a Term Insurance Plan
It is one of the simplest forms of life insurance policy. So, you can easily understand the functioning of a term insurance plan. No maturity benefit is available in a term policy. The nominee will receive death benefits when the policyholder passes away.
Premiums of term life insurance plans are generally affordable. It is a budget-friendly financial instrument that is a “must-add” in your financial plan. As you age, the premiums of the term life insurance policy also increases. Because you are more susceptible to lifestyle diseases.
As you age, the premiums of the term life insurance policy also increases. Because you are more susceptible to lifestyle diseases. under Section 80C. The death benefit received by the nominee in a term plan is also tax-free under Section 80D. If the policyholder outlives the policy term, then no maturity benefit is offered to them. However, if opted for Return of Premium, the policyholder can get all the premiums back.
You can increase the Sum Assured as per your changing lifestyle and milestones. Term life insurance application can be rejected by the insurer if the policyholder has a significant health issue while applying for the term plan.

Key Features of Best Term Life Insurance Plan

  • Security at Affordable Premiums: Your financial freedom comes at a minimum cost with the best term insurance plan. The term plan covers all your misfortunes at minimum premium possible, depending on your age even when suffer through critical illness. Term insurance premium increases with age, hence, buying a term plan early will be beneficial.
  • Extremely Easy to Buy: Purchasing an online 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 plan can be seen as an investment as it helps one secure their family from financial misfortunes. Buy a term insurance plan to provide your family a financial security.
  • Flexible Payment Options: The best term insurance 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 available in a term policy. 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 plan 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.

Factors to Consider while Buying the Best Term Insurance Plan

  • Duration:Best 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 while applying for a term policy.
  • Terms & Conditions: Terms and conditions fill guidelines for payout options in various situations. For instance, if you die before the term 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 insurance 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. You can calculate your term insurance premium using calculator to know how much you will have to pay. 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.
  • Financial Requirements: Assess your family’s future financial requirements to opt for the best term insurance plan that will prove to be beneficial. Determining the coverage that you need is an important aspect of buying an online term plan.
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Step by Step Guide to Buy a Term Insurance Plan Online

Step 1: Calculate your term insurance cover need and decide premium payment mode

If you are buying an online term plan, the process starts with your contact details and personal details. Your personal details give a clear idea about your maximum life cover eligibility. After the cover amount, you need to choose the policy tenure and premium payment tenure for the policy.

You can calculate your term insurance premium using a calculator to see a tentative figure for the amount you will pay. If you are salaried you can select a monthly mode of premium payment.

You should pay special attention to the e-mail ID you provide, as this will be used for all communications regarding the term insurance policy by the insurer. So, make sure that you regularly access the email you provide for receiving updates on your term policy.

Step 2:Provide Additional Details

The second step considers your occupation, location and education details. These details help determine your maximum cover eligibility.

Some of these factors like state of residence and occupation can influence your premium for the life cover.

Step 3:Customize Your Term Insurance Plan

Once you have decided on the amount and tenure of the cover, it’s time to add more benefits and decide the pay-out options.

You can add the following add-on benefits to your basic term cover when you buy a term insurance plan:

  • The increased sum assured for accidental death
  • Waiver of premium benefit in case of permanent total disability due to an accident
  • Child support benefit to provide for the child’s education along with normal term insurance plan benefit

Apart from the additional benefits, you can also decide the following:

  • The ratio to divide your life cover benefit into a lump sum and regular income pay-out
  • Add your spouse to your term life cover

You can divide your base life cover into two parts where one is paid as a lump sum and the other is converted to a monthly income. You can also opt to grow this income at a fixed percentage every year.

Adding the spouse doesn’t mean that they have to be an earning member. You can also add a homemaker spouse to your life cover. However, if the spouse is a homemaker the life cover will be limited to Rs. 25 lakhs.

Step 4: Pay the premium and or complete the Proposal Form

Once you have decided on the benefits and premium amount of the term insurance cover, you can review your choices and benefit amounts. After reviewing your plan details you can complete the proposal form and pay the term insurance premium.

You can use your credit or debit card, net banking, UPI or a Wallet account for online premium payment. Don’t forget to opt for auto-debit option, so that your term policy can continue even if you forget about making the premium payment later.

The proposal form contains more detailed questionnaire about personal, professional, lifestyle and medical history. Along with the proposal form you will need to submit supporting documents as well which will include the following (but not limited to):

  • KYC Documents
    • Identity & Address proof
    • Aadhaar details
  • Recent medical reports
  • Bank statements or salary slips supporting your income details

Step 5: Go through the Medical check-up

After the insurer has accepted your premium and proposal form, based on the details provided, you may have to go through either of the following:

  • Tele-medical examination
  • A medical check-up at a designated clinic nearby

However, if you are eligible for a term insurance plan without medical you can simply move to the next step.

If you need to undergo a medical check-up physically, you will be assigned a date and place for the insurer’s health check-up requirements. Health check-up is an important step as it ensures that your health status is understood by the insurer and there is no risk of an early demise.

Step 6: Revised premium or sum assured

In case, you have a health condition, occupation or hobbies which may increase the risk of your early death, the insurer may offer any of the following choices:

  • Increased premium amount
  • Reduced sum assured

In any case, you should get a term cover even with the extra premium, as the premium increase will be minuscule compared to the benefits.

Step 7: Receive the term insurance policy document and get any mistakes corrected

After the medical check-up and paying the balance premium after revision (if applicable) the insurer will dispatch the policy document to you. In the case of the online application, the policy documents are sent online to your registered e-mail ID.

You should check yours and your nominee’s personal details like name, contact number, date of birth and address on the documents. Ensure that these match the details on the legal documents so that you don’t face any challenges in managing the term insurance policy.

How much coverage are you considering to take in your term life insurance plan?

Factors impacting term insurance plan premiums

AGE

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

Gender

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.

Profession

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

A term insurance plan 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 and that affects your term insurance premium. Considering the risk, the premium for people with a history of certain illnesses is higher.

Smoking/Drinking

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 your term insurance plan.

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 term insurance policy. The level of fitness decides the premium.

Diabetic

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.

How your age impact term insurance plan premium?

When you're young, you're more likely to find cheaper premium insurance because your mortality risk is minimal. You may also have additional debts, liabilities, and financial obligations later in life. As a result, it is preferable to purchase a term insurance policy when you are young, preferably in your twenties.

As soon as you start your first job, you should purchase term life insurance plan. Premiums increase as you get older. As a result, the sooner you buy - the better. As you become older, you get closer to your life expectancy, which increases your insurance costs.

Who should buy a term life insurance plan?

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 a Term Insurance Plan.

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

Entering College
18-21 Years

Buy a term insurance plan to guard against liabilities like education loan

Post 1st Salary
21-25 Years

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

After Marriage
26-32 Years

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

After 1st Child
33-40 Years

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

After Retirement
60 years+

Buy the best term insurance plan 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 insurance 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 an online 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 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.

*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.

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Important Jargons You Should Know While Planning to Buy the Best Term Insurance Plan

  • Policyholder
  • A policyholder is a person buying the policy. In other words, the policyholder fills the proposal form of the insurance plan and applies for the insurance cover. The policyholder is also responsible for paying premiums of the cover.

    For example, if a father buys a term life insurance policy covering all the family members, the father is the policyholder while the family members are the beneficiaries.

  • Life Assured
  • The person or persons whose risk the policy covers are called insured. For example, when a father buys a family floater policy, the father is the policyholder as well as the insured. The rest of the family covered by the policy are also insured.

  • Sum Assured/Coverage
  • Sum assured is the guaranteed benefit amount in case the covered risk or risks materialise. For example, in a term insurance policy, the covered risk is the death of the insured. If insured dies within the policy term, the policy is liable to pay at least the sum assured.

    If you buy a term insurance policy of Rs. 1 crore. Rs. 1 crore is the sum assured of the policy.

  • Policy Term (PT)
  • Policy term refers to the duration for which a policy remains in force. For example, if you buy a term plan online at the age of 30 and wish to continue the same till you reach 60, your policy term has to be 30 years.

  • Premium Payment Term (PPT)
  • Usually, you are supposed to pay a regular annual premium for any insurance policy until the claim or expiry. For example, if your policy term is 30 years you need to pay 30 annual premiums. Thus your premium payment term will be 30 years or equal to the policy term.

    However, your premium payment term or PPT can be shorter than the policy term. With a shorter PPT, you can pay the premiums of the entire 30-year term cover within five years.

  • Terminal Illness
  • Terminal illnesses are those diseases which are life-threatening due to their unpredictable and rapid growth nature. Few examples of such diseases are cancer, heart failure, renal failure, etc.

  • Surrender Value
  • Surrender Value, also known as cash surrender value, is the amount of money that the policyholder receive if they decide to surrender or terminate their life insurance policy before the maturity date or before the policyholder passes away.

      • Maturity Claim
      • Maturity claim is a claim procedure that the life insured is entitled to claim the maturity benefits of the life insurance policy or term life insurance policy if all the premiums have been duly paid.

      • Vesting Age
      • It is the age when the policyholder becomes eligible to receive the benefits as defined under the life insurance policy they have bought.

      • Payout Option
      • The policyholder can choose the frequency of receiving the Sum Assured at maturity of the term insurance policy, or any other life insurance policy. Usually, policyholders are given the option to choose from (i) Lump Sum (ii) Monthly, and (iii) Part Lump Sum and Part Monthly.

      • Free Look Period
      • A free look period is the buffer time given to the policyholder within which they can cancel their term life insurance policy, or any other life insurance policy without any penalties.

        Know more about Free Look Period.

      • Nominee
      • A nominee is registered by the policyholder while buying a life insurance policy. In case, the policyholder passes away, the nominee or the beneficiary receives the benefits of the policy.

        Know all about a nominee.

      • Riders
      • A rider is an add-on that can be opted by the policyholder to enhance the term life insurance plan. Riders provide additional coverage options like Accidental Death Benefit, Child Support Benefit, Waiver of Premium, Accidental Total and Permanent Disability Benefit.

        Learn what are term insurance plan riders and how it can benefit you.

      • Waiver of Premium
      • It is a rider that waives the premium payments when the policyholder becomes critically ill, injured or disabled.

Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance 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 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

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 when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

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, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan 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 plan 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 insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan 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 insurance 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 the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
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