15 Year Term Insurance Plan

Not every situation calls for lifetime insurance coverage. In many cases, what you truly need is a targeted short term life insurance or protection plan, one that provides a solid safety net during a defined and financially crucial period of your life. That’s exactly where a 15-year term insurance plan fits in. It offers affordable, high-value life cover for a fixed duration, making it perfect for individuals who have clear, time-bound financial goals. 

Whether your priority is loan repayment, educational funding, or simply bridging the gap until retirement, this type of plan ensures your loved ones remain protected without the long-term commitment or higher premiums associated with extended policies. It’s timely, purposeful, and built to secure the years that matter most.

Here is a step-by-step process on how a 15-year term plan works.

1. Choose Your Cover and Term: Set the sum assured based on what your family might need in your absence - typically 10x–15x your annual income. Fix the term at 15 years.
   
   
2. Pay Premiums Regularly: Choose how you want to pay - monthly, quarterly, annually, or limited-pay. Once fixed, your premium stays the same for all 15 years.
   
   
3. If You Pass Away During the Term: Your nominee gets the full sum assured, tax-free. It helps them manage expenses, repay loans, or continue with planned milestones.
   
   
4. If You Survive the Term: There’s no payout unless you choose a Return of Premium (ROP) variant. In that case, you’ll get all premiums paid back at the end of the policy.

When choosing a term insurance plan, one of the most important factors to consider is the duration of the policy, because the length of your coverage directly influences whether or not your nominee will receive the claim payout.

A term insurance policy only pays out the sum assured if the policyholder passes away during the active policy term. If the individual survives beyond the selected duration, the policy simply expires (unless it includes a Return of Premium feature). Here’s how this plays out in real-world terms:

Here is a list of individuals who may want to consider purchasing a 15-year term plan.

• Young Parents or New Homeowners: Perfect if you want coverage while your child grows or until your home loan is paid off.
  
  Example: A 34-year-old father with a ₹50 lakh home loan buys a 15-year term plan. If something happens to him, the payout helps the family pay off the loan and maintain lifestyle stability.

• Professionals with Fixed Financial Goals: If you have clear 10–15-year goals (loan repayments, business capital), this plan offers just the right safety net.
• Mid-Career Individuals Who Missed Early Plans: Didn’t buy insurance in your 20s? No problem. A 15-year plan gives you efficient coverage without a lifetime commitment.
• People Nearing Retirement: Don’t need a 30–40 year plan? Choose a 15-year term to stay protected till your 60s, when dependents are still financially reliant.
• Business Owners: Looking to cover a loan or a partner buyout arrangement? This plan offers cost-effective risk cover for fixed-term business liabilities.

Selecting the right 15-year term insurance plan is about more than just picking a number and paying premiums. It is about aligning your policy with your specific financial responsibilities, life stage, and future uncertainties.

Here's a step-by-step guide to help you make a confident, well-informed decision:

1. Decide the Right Sum Assured:

Your sum assured is the amount your nominee will receive if you pass away during the policy term. Choosing the correct coverage amount is crucial for your family’s financial stability.

To arrive at an ideal figure:

• Add all outstanding liabilities: Include home loans, personal loans, credit card dues, business debts, etc.
  

• Factor in future responsibilities: Such as your children’s school/college fees, wedding costs, and long-term healthcare needs for dependents.
  

• Include income replacement: A good rule of thumb is 10–15 times your annual income to help your family maintain their lifestyle and meet daily expenses in your absence.
  

• Account for inflation: What seems like a large amount today may fall short 10–15 years from now due to rising living costs.

2. Opt for Riders for Added Security:

Riders are optional add-ons that enhance your policy’s protection by covering more risks.

For a modest increase in premium, you can add the following:

• Accidental Death Benefit Rider: Provides an additional payout (over and above the sum assured) if the death is due to an accident.
  

• Critical Illness Rider: Pays a lump sum if you're diagnosed with a life-threatening illness like cancer, heart attack, or kidney failure. This helps cover medical expenses and lost income during treatment.
  

• Waiver of Premium Rider: If you’re diagnosed with a critical illness or suffer a disability that impacts your earning capacity, all future premiums are waived off, and the policy remains active.
  

These riders can be tailored to your lifestyle, health history, and risk profile, ensuring more well-rounded protection for your family.

3. Compare Return of Premium (ROP) vs. Pure Term Plans:

You’ll typically have two major types of 15-year term plans to choose from:

• Pure Term Plan: This is a no-frills, low-cost option that offers a death benefit only. If you survive the 15-year term, there’s no maturity benefit. It’s ideal for those seeking maximum coverage at minimum cost.
  

• Return of Premium (ROP) Plan: If you prefer getting your premiums back at the end of the term (provided you survive), ROP plans are a good fit. These offer maturity benefits equal to the total premium paid (excluding taxes and rider costs), but they come at higher premium rates.

4. Check the Insurer’s Claim Settlement Ratio & Service Reputation:

When it comes to term insurance, the credibility and reliability of the insurer are non-negotiable.

• Claim Settlement Ratio (CSR): This indicates how many claims the insurer has approved vs. how many were filed in a year. Look for insurers with a CSR of 95% or higher. Canara HSBC Life Insurance, for instance, has an impressive CSR of 99.31%, reflecting a strong commitment to honouring claims promptly.
  

• Customer Reviews and Service Quality: Read real customer experiences, especially around claim processing times, customer support responsiveness, and policy servicing ease.
  

• Digital Access and Transparency: Choose an insurer that offers easy online access for buying, managing, and tracking your policy.

5. Consider Flexibility in Premium Payment Options:

Check if the insurer offers:

• Monthly, Quarterly, Half-Yearly, or Annual payment frequencies, depending on your cash flow preference.
  

• Limited Pay Options, where you pay premiums for a shorter period (e.g., 5 or 10 years) but enjoy full coverage for the entire 15-year term.

This helps you manage your finances more comfortably without compromising protection.

6. Evaluate Policy Exclusions and Terms Carefully:

Before finalising your plan:

1. Read the fine print on exclusions, such as deaths from suicide within the first year, deaths due to pre-existing conditions, or high-risk occupations.

2. Understand the payout terms for riders.

3. Clarify the grace period and policy lapse rules to avoid unintentional loss of coverage.

4. Decide the Right Sum Assured
   Cover liabilities + 10x annual income for living expenses. Don't forget to factor in children’s education, ongoing EMIs, and inflation.

5. Opt for Riders for Added Security

Final Words

Choosing the right term insurance plan is a vital step toward securing your family’s financial future, and at Canara HSBC Life Insurance, we make that decision simple, trustworthy, and worthwhile. With our high claim settlement ratio of 99.31%, flexible and affordable plans, and a commitment to delivering seamless, digital-first experiences, we’re here to ensure that your protection plan is not only easy to manage but also dependable when it matters most. Whether you need coverage for 15 years or more, we offer the expertise, support, and peace of mind you deserve. Because for us, it’s about promises kept.