Invest 4G| ULIP plan in India |Canara HSBC OBC Life Insurance
What Canara HSBC Oriental Bank of Commerce Life Insurance offers you?
The credibility of the insurer is of the utmost importance while buying life insurance.
All life insurance policies of Canara HSBC Oriental Bank of Commerce Life Insurance are backed by three major financial institutions--Canara Bank, HSBC and Oriental Bank of Commerce.
Along with an easy-to-use web portal, the company has a network of over 10,000 bank branches of its corporate agents.
Canara HSBC Oriental Bank of Commerce Life Insurance has 95.22% individual death claim settlement ratio and the asset under management stood at Rs 14,854 crore as of Mar 31, 2019.
Online Life Insurance Plans
With the spread of the internet, online life insurance plans and policies have gained substantial popularity. Canara HSBC Oriental Bank of Commerce offers three online life insurance plans - iSelect+ Term Plan, Invest 4G ULIP and Health First plan
In simple terms, life insurance is a formal arrangement between an insurance company and a policyholder, where the insurer promises to pay a pre-decided amount to specified beneficiaries in case the policyholder meets an unfortunate death. The death compensation is guaranteed by the insurer in lieu of premiums that have to be paid by the policyholder. We at Canara HSBC Oriental Bank of Commerce Life Insurance secure the financial future of your loved ones in case of an unforeseen incident by paying the promised amount through a smooth and hassle-free process.
Pure Protection: A pure protection plan secures your family's future by providing a lump-sum amount in the case of an untoward incident.
Protection and Savings: As the name suggests, a protection and savings plan has a savings component along with insurance. It helps you plan for life goals such as a child's marriage and education.
Life insurance provides a high-risk cover that helps you and your family stay protected and lead a stress-free life.
With life insurance, you can live with the assurance that your family will stay financially secured in case something happens to you
The premiums paid for life insurance are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The death benefit paid to the nominee is also tax-exempt under Section 10 (10D) of the income tax law.
The riders offered with life insurance provide comprehensive coverage to the policyholder. The accidental death and disability or the spouse cover option offered with Canara HSBC Oriental Bank of Commerce iSelect term life insurance provides all-round protection to your family.
Which Life Insurance plan suits your needs?
Life insurance plans come in different hues and colours. You should choose a life insurance plan depending on your financial goal.
1.Term Insurance
Term insurance is the simplest of life insurance policies. It provides the death benefit to the nominee only if the life insured dies. If the life insured survives the policy tenure no maturity benefit is paid and the policy terminates. Due to the linear nature of the benefit, term insurance premiums are not very expensive.
2.Whole-life Insurance
Whole life insurance is a long-duration policy that provides coverage for the entire life. These policies come with a surrender (cash) value component that increases with time. You can surrender the policy to take cash value and can also avail loan based on the policy.
3.Endownment Policy
It is a type of protection and savings policy. The benefit is payable to the insured if he/she is living on the maturity date. In case of unfortunate demise of life insured during the policy term, the benefit is paid to the nominee.
4.ULIP
Some life insurance policies such as unit-linked insurance policies provide market-linked returns on your investment. These plans are ideal for people who want to accumulate funds for family's future goals along with life insurance cover.
5.Retirement Plan
A life insurance plan that provides you with a regular income after retirement. It is a type of savings and investment plan and the corpus generated is invested further to generate regular income.
What are the important life insurance terms that you must know?
Here are a few important terms everyone should know before buying life insurance.
It is the contractual document between the insurer and the policyholder that contains all the terms and conditions related to the specific life insurance plan. The policy document generally outlines the sum assured, the policy number, the premium amount and the name of beneficiaries.
It is the amount that is promised by the insurer and is paid to the beneficiary in the event of life insured's death. Many people get confused between the sum assured and the maturity amount. The sum assured is paid if the policyholder dies during the policy term, whereas the maturity amount is paid back when the policy term ends and the life insured is alive.
It is the amount that has to be paid to the insurance company to maintain the insurance cover and allied services. It is a fixed amount that has to be paid annually, but can also be paid half-yearly, quarterly or monthly in some cases. Life insurance premiums vary across products. Term life insurance plans have lower premiums while policies with savings component have higher premiums.
A life insurance policy requires the policyholder to pay the premiums for a specified duration. The duration is known as the premium payment term. The premium payment term can be one time (single pay) or limited duration (less than policy term) or for regular duration (equal to policy term).
Nominee is the person who receives the amount promised by the insurance company in the event of the life insured's death. The nominee, also known as the beneficiary, is generally parents, wife or children of the life insured.
Some life insurance policies offer enhanced coverage which has to be opted by the policyholder which are called riders. Riders have to be activated by paying an extra premium.
How to buy a life insurance policy online?
Why should I buy life insurance?
Looking after loved ones in your absence:A life insurance policy ensures that your loved ones are taken care of even in your absence. If you are the breadwinner of the family, then your absence can leave a deep void in the finances of the family. With life insurance, your family will not have to worry about important expenses such as medical bills and tuition fees etc.
Takes care of liabilities:Life is unpredictable and even the best of plans can unravel with an untimely death. Having a substantial death cover secures your family from the liabilities like car loan and house loan.
Helps in achieving long-term goals:Life insurance products with savings option keep you invested for a long-term, which helps in achieving life goals such as buying a house or funding your child's higher education.
Cheaper when younger:Life insurance products are cheaper when the life insured is younger as the risks associated with the individual are lower. When you are young the body is healthier and the chances of diseases are low which leads to lower premiums for life insurance policy.
Advance payment:The policyholder should note that the premium of life insurance policies has to be paid in advance. These advance payment of premiums are done according to the premium payment tenure chosen by the policyholder.
Grace period:The premium payment schedule should be taken very seriously when opting for life insurance. The failure to pay premiums on time can lead to lapsing of the policy. But sometimes, policyholder's are unable to pay the premium on time due to unavoidable circumstances. The insurance company provides a grace period for the payment of the missed premium. Canara HSBC Oriental Life Insurance Company provides a grace period of 30 days (15 days in case of monthly mode) to pay the missed premium and continue with the policy.
Questions that you need to ask while buying life insurance
How much cover do I need?
The first question to ask before buying a policy is what amount of insurance is needed to financially take care of your family in your absence. As a thumb rule, the insurance cover should at least be 10-12 times of your annual salary. You should also consider the rise in expenses with time before finalising the policy.
How much will I have to pay?
It is mandatory to pay premiums in time for the policy to be functional. Having a premium that is payable without comprising with other commitments is important. Therefore, always calculate the premiums that you will have to pay before buying a life insurance policy. The better way of calculating your premiums is to use the premium calculator available on www.canarahsbclife.com.
What will happen if you are unable to pay the premiums on time?
Even though it is compulsory to pay the premiums on time, sometimes due to unavoidable circumstances, people miss their premiums. You should read the terms and conditions thoroughly or ask your agent what will happen in case you miss premium payments. Generally, insurers provide a grace period of up to 30 days (15 days in case of monthly mode) for the payment of the missed premium, but it is always better to have advance knowledge of the situation.
What are the benefits of the insurance policy?
The needs of every family are different. A uniform policy may not be suitable for everyone. Take into consideration the benefits offered with a policy while buying it. Life insurance plans come with optional critical illness cover, accidental death cover and disability cover.
How much life insurance do I need?
The quantum of death benefit varies from person to person depending on the lifestyle and income. As the generic formula for calculating life insurance cover is to subtract financial obligations like expenses and debt from resources such as liquid assets and income. The life insurance cover should be equal to the difference. Another rule states that people should have a life cover equal to 10-12 times of the annual income. You can also calculate the life insurance amount through the life cover calculator available on www.canarahsbclife.com.
How much money can you get from Life Insurance?
Different life insurance plans have different quantum of payments. The maximum cover largely depends on the policyholder. If you are able to pay the premiums for a large cover, the insurer will issue the policy. For instance, the Canara HSBC Oriental Bank of Commerce iSelect term plan has a minimum sum assured of Rs 25 lakhs, but the maximum sum assured depends on the life insured.
How easy is it to buy Life Insurance?
Life insurance can either be bought through banks and branches of the insurer or directly online. Buying a policy online is very easy and hassle-free. You can simply visit www.canarahsbclife.com and opt for an online policy. The entire process from form submission to payment can be completed online.
How can you pay for a Life Insurance?
The standard life insurance policy requires you pay the premiums on an annual basis but Canara HSBC Oriental Bank of Commerce Life Insurance provides you ample flexibility in the premium payment schedule. The premiums for the Invest 4G ULIP can be paid on an annual, half-yearly, quarterly or monthly basis, while the iSelect term plan has yearly and monthly payment options.
What will happen if you are unable to pay the premiums on time?
Even though it is compulsory to pay the premiums on time, sometimes due to unavoidable circumstances, people miss their premiums. You should read the terms and conditions thoroughly or ask your agent what will happen in case you miss premium payments. Generally, insurers provide a grace period of up to 30 days (15 days in case of monthly mode) for the payment of the missed premium, but it is always better to have advance knowledge of the situation.
What are the benefits of the insurance policy?
The needs of every family are different. A uniform policy may not be suitable for everyone. Take into consideration the benefits offered with a policy while buying it. Life insurance plans come with optional critical illness cover, accidental death cover and disability cover.
Frequently Asked Questions (FAQs) for Life Insurance
The premium is one of the most important factors to consider before buying a policy. Many people buy a life insurance policy with a high sum assured but are unable to process the premiums for the entire premium payment tenure. You can get a better idea of the premium outgo with the premium calculator available in the 'Tools and Calculator' section of www.canarahsbclife.com.
Life insurance plans come with several riders which increase the efficiency of the policy for the buyer. For instance, if you have a history of terminal illness in your family it would be advisable to opt for terminal illness rider with your term insurance. Riders or add-ons help in customising the standard policy benefits for the requirement of different families. The iSelect term insurance plan comes with a built-in cover for terminal illness, and option for protection against accidental death or disability. You can also opt to cover your spouse's life under the same policy by paying an additional premium.
Insurance companies calculate the premiums based on several factors such as age, gender and occupation.
Age: It is one of the biggest factors that influence life insurance premiums. Premiums tend to be low when the life insured is younger as the chances of contracting diseases is low. Young people also opt for policies with longer tenures and pay premiums for a longer duration, which makes the policy cheaper for young people.
Gender: The insurance premium for women is generally lower when it comes to life insurance plans. Women live longer and pose a lesser risk of a claim leading to lower premiums for them.
Lifestyle habits: The premiums for people who smoke or drink is always higher due to higher health risks.
Policy term: Policy terms are also taken into consideration by insurers while deciding the premium amount. Policies with longer tenure are cheaper as compared to short-duration policies.
Mode of purchase: The platform that you use to buy the policy also determines how much you will have to pay for the plan. People who buy life insurance policies online have to pay lower premiums as compared to offline policies.
Occupation: The nature of your work is an important factor that influences the premium amount. Certain occupations like shipping and mining are considered more dangerous as compared to jobs in services industries. The insurance premium rises with the risk profile.
Processing life insurance claim is a transparent and smooth process with Canara HSBC Oriental Bank of Commerce Life Insurance.
In case of the death of the life insured, the nominee will have to intimate the company by filling a Death Claim Form and sending it to the nearest branch office.
Once the form is received, the claim is registered by the insurer.
After the registration of the claim, the company will send the claims pack along with the related forms such as physicianâs statement form and employer certificate that need to be filled.
Along with the duly filled forms a few documents such as original [policy document, death certificate, copy of bank passbook, hospital or treatment records, photo identification and address proof have to be provided.
The claim is processed on the submission of relevant documents. Once the documents are verified, the claim amount is released post all due diligence.
Household expenses rise with age. The cost of children's education increases along with other lifestyle expenses. The iSelect term plan offers an option to increase the cover according to the life stage. If opted, the insurance cover increases by 25% at every 5-year terminal till the 20th policy year.
Even though a life insurance policy is bought to protect your family in your absence. There are chances of the claim being rejected due to several factors.
False information: If the policyholder provides false information or conceals important information while buying the policy, the insurer has the right to reject the claim after his/her death.
Type of death: Deaths due to suicide in first policy year, intoxication or pre-existing disease is not covered under life insurance.
Premium payment: The payment of premiums on time is of utmost important to avail the benefits of life insurance. Life insurance policy may lapse on the failure to pay the premiums.
Nominee details:An insurance company can put the claim on hold if the nominee details have not been filled or not been updated by the policyholder.
Suicide: If the life insured commits suicide within 12 months of buying the policy, the insurance companies generally pay 80% of the total premiums paid.
Buying life insurance online is not only safe but a better option. Online life insurance policies have lower premiums and the individual is not required to visit the insurer's branch or a bank. Online insurance policies also offer higher benefits. Customers should, however, buy online policies only from credible insurers and should check for SSL certificate on the website to ensure that the website is legitimate.
The cost of life insurance policies varies depending on factors like age, gender and occupation. The average cost of life insurance plans, especially term plans, is very low compared to the amount of coverage offered.
An individual is allowed to have multiple life insurance policies. People opt for more than one policy to increase the cover or avoid claim rejection. In case of multiple policies, even if the claim is rejected by one insurer, the beneficiaries may receive the benefit from a different insurer.
Life insurance policies are of different types. In the case of unit-linked or endowment policies the policyholder receives the maturity benefit at the end of the policy term. However, in the case of term insurance plans, there are no maturity benefits. The death benefit is only paid out after the death of the life insured.
When you buy life insurance, the insurance company asks for the nominee details. Only the person named as the nominee in the policy can cash out a life insurance policy in case of death of life insured.
A life insurance policy is generally taken for a specified period. After the policy duration of a term plan gets over, the policy simply terminates and ceases to exist. However, in the case of unit-linked plans or endowment, you can use the policy as a tool for retirement planning and the accumulated corpus is used by the insurer to pay you monthly amounts for your entire life.
If a policyholder purchases a term plan for 25 years and dies during the policy term. The family receives the death benefit. In the case of iSelect term plan, the policy provides four payment options to the beneficiaries. If the regular payment options are chosen the policy works as a source of regular income.
It is a popular misconception that life insurance is only for accidental deaths. A term life insurance plan like iSelect also covers terminal disease along with death. A terminal illness cover is important as health insurance pays only for the cost of treatment and hospitalization, but a terminal illness cover pays you a lump-sum amount which takes care of other expenses. On the other hand, unit-linked policies such as Invest 4G cover death and also provide decent returns for other financial goals such as buying a house of child's education.
