When this year I had a monetary problem in the family I had to withdraw part payment, the customer service team told me it will take 7 days but it only took 3 days. This made me really happy that I took this policy.
Term insurance 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 insurance cover will provide a large sum of money to the beneficiaries so that they can:
Canara HSBC Oriental Bank of Commerce Life insurance offers online Term insurance plans which helps to secure your family financially in your absence.
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
There are different types of term 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 plan allows you to choose any of the following term insurance cover options:
A standard term 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 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 policy tenure.
Once you complete the 30-year tenure the plan will simply expire.
This term plan is the same as the standard term 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 term cover of Rs. 1 Crore with the 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 plan will expire and the insurer will return Rs. 6 lakhs to you.
Read more about return of premium.
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 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.
For example, you purchase a Rs 1 crore term plan under whole life and choose “pay till 60 option”. The 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.
An increasing term 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:
This plan is very useful if you want your term insurance cover to keep up with the growth in your financial needs.
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 greatest advantage of joint life plan is that the surviving spouse may not need to pay the premiums to continue his or her life cover after a claim.
Another aspect is that you can manage a single policy far easily.
You can select any of these plan options while buying term insurance plan.
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.
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.
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.
Buying a term cover can prove beneficial for you and your family over long-term horizon. As we grow, our needs and liabilities also change. With term insurance plans, you can increase the cover for catering your financial needs as per the changing life stages.
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:
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 plan and make the payment. Canara HSBC Oriental Bank of Commerce Life Insurance makes sure 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”.
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.
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.
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.
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.
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 select the sum assured accordingly.
Your child’s future depends on the way you have planned and saved for it. A 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 plan.
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. A term life insurance helps you to at your every life stage – no matter what.
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. 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.
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.
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 policy period.
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 a term insurance plan are regular income payout option, critical illnesses cover, accidental death benefit, and premium waiver in case of disability.
Step 1: Calculate your term cover need and decide premium payment mode
If you are buying term insurance online, 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 also select a premium payment mode 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 policy by the insurer. So, make sure that you regularly access the email you provide.
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:
Apart from the additional benefits, you can also decide the following:
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 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 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):
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:
However, if you are eligible for a term cover 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:
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 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 policy.
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.
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.
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.
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.
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?
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.
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:
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.
When this year I had a monetary problem in the family I had to withdraw part payment, the customer service team told me it will take 7 days but it only took 3 days. This made me really happy that I took this policy.
Promise is all about faith. My family has faith in me. Similarly, I have faith that Canara HSBC Oriental Bank of Commerce Life Insurance will help me protect my family even in my absence.
A promise is a thing of faith. With Canara HSBC Oriental Bank of Commerce Life Insurance, we are confident that we will be able to keep our promises to each other.
With Canara HSBC Oriental Bank of Commerce Life Insurance, I will not only meet the financial requirements for my daughter’s wedding but also for various other life goals.
A promise has to be fulfilled. We had promised our son to send him abroad for education. We sent him there and fulfilled our promise. He also returned to India after completing his education as he had promised. Canara HSBC Oriental Bank of Commerce Life Insurance helped us fulfill our promise with Child Future Plan.
The customer service staff always gives a quick response. Usually, we get a personal message within 5-10 minutes of the query. Also, Canara HSBC Oriental Bank of Commerce Life Insurance has done systematic management of investments, which helps our money to grow.
Keeping my promises is a priority for me. Canara HSBC Oriental Bank of Commerce Life Insurance has ensured that my second innings will be as beautiful as my first.
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 policy covering all the family members, the father is the policyholder while the family members are the beneficiaries.
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 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 cover of Rs. 1 crore. Rs. 1 crore is the sum assured of the policy.
Policy term refers to the duration for which a policy remains in force. For example, if you buy term insurance plan at the age of 30 and wish to continue the same till you reach 60, your policy term has to be 30 years.
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 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.
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.
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:
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.