3 Things to Consider While Buying the Best Term Insurance Plans for Working Women

Written by : Knowledge Centre Team

2021-08-23

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The women's percentage in India is 49% of the total population. The role of women in running the family is equal to that of a man. It is because of this reason, the financial security of women is equally important irrespective of the fact women are working or are a home-maker. Below are some of the reasons why women must have term insurance cover:

The term plan comes with high coverage for a small premium amount. With a term insurance cover, you have peace of mind. If something happens to you, you know your family's future is secure.
Your family maintains a certain living standard at present in which you contribute equally. You need to have a term plan to ensure your family continues to live the same living standard in case of an unfortunate event.
As per historical data, women are more prone to diseases. It means they need a term plan with cover for terminal illnesses even more compared to men.
Home-makers may not bring in monetary benefit to the family (directly), but they are also an important pillar of the family. They take care of so many things in the house that it is almost impossible to list them down. If something happens to them, term insurance provides a financial backup to the family for getting financial help around the house from outside.

Three Things to Keep in Mind While Buying the Best Term Life Plan Online for Working Women

1. Claim Settlement Ratio

You should check the claim settlement ratio of the company from which you plan to buy the term plan. Canara HSBC Life Insurance has a claim settlement ratio of 97.1 per cent.

2. Speed of Claim Settlement

You also need to evaluate the insurance company based on the speed of claim settlement. As per regulatory bodies, if the claim is valid, it should be settled within 30 days. However, the best life insurance companies, including Canara HSBC Life Insurance, offer one-day claim settlements for eligible policies.

Canara HSBC Life Insurance provides a one-day claim settlement option under the InstaPromise initiative for the eligible policies. The primary eligibility criteria for policies under InstaPromise are:

All related documents for the claim have been submitted with the claim form
The total payable sum assured is Rs 1 crore or less
The policy has been active for a minimum of three continuous years and all premiums have been paid
The claim does not require investigation on the part of the insurer

3. Claim Paying Ability of The Insurer

You also need to check the claim paying ability of the insurance company. There are independent rating agencies for this, and you can check the rating from these agencies to be sure you are making the right decision.

Canara HSBC Life Insurance enjoys a Care AAA rating, indicating a strong claim paying ability.

Five Features of Term Insurance Plan for Women

1. Terminal Illness Cover

In the last few decades, health conditions like breast and cervical cancer which are specific to women have become very common. As per stats, 14% of cancers in Indian women are breast cancer**. Canara HSBC Life Insurance iSelect Smart360 Term Plan provides you with cover against critical illness. Once you are diagnosed with a terminal illness, the sum assured is paid to you.

2. Option to Increase the Cover

With the increase in your family size, your responsibility and liabilities increase. For example, you take care of the educational expenses of your child. The cost of education is going to increase with time. If you die, you would want your child to continue the best schooling. For this, the iSelect Smart360 Term Plan gives you the option to increase your cover periodically.

While buying the term plan, you can select the 'Increase' coverage option. Under this, your cover will increase 5% every year (simple interest), with a maximum increase of 100% on the original sum assured. For example, at the time of purchase, the sum assured was Rs 50 lakh. It will increase 5% every year and in the 20th year, your sum assured will be Rs 1 crore. It will remain the same post that. It is an easy way to keep up with inflation.

3. Lifetime Cover Option

A regular term insurance plan gives you coverage only till the policy tenure, usually 10, 20, or 30 years. When you select the Life Plus option under the iSelect Smart360 Term Plan, you get lifetime coverage - cover till 99 years of age. The coverage age is far above the average age of death for women. It means even after your natural death, your nominee receives a sum assured, and you leave a legacy for your loved ones through the sum assured.

4. Joint Life Cover

iSelect Smart360 Term Plan gives you the option to add your spouse to the same plan. If you buy two-term plans, you need to pay the double premium amount. A joint life cover offers you a discount on the rates for the spouse. You both will be covered for your separate sum assured throughout the policy term. In case of your death, the sum assured is given to the spouse. The policy continues with the reduced premium.

5. Regular Income Pay-out Feature

You get to decide how you want to receive the death benefits - as a lump sum, monthly income, or as a combination of both. A regular income is a great way to ensure your family does not go through a financial crunch in your absence. You can either opt for constant monthly income or a level-up option. With level up, the payout will increase by 5 or 10% per annum.

If you are a working woman, a regular payout will help take care of the expense you manage monthly. If you are a homemaker, the regular payout can take care of household help your family will need from outside.

Women must realize the importance of getting themselves insured and should not wait for the right time or someone to guide them through the process.