How To Boost Your Term Insurance Plan?

2024-08-02

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As a working professional, a term insurance policy is one of the first things that you should invest in. Contrary to popular belief, a term policy is not just a basic policy without additional benefits. There are different ways in which you can customize your policy and extract more benefits out of it. Before getting into these details, let us define what a term plan is.

What is a term insurance plan?

A term plan, as the name suggests, is an insurance plan for a specific term which could be anything from 5 years to 10 years, 20 years, etc. It is a pure life cover without maturity benefits. This means that if you outlive the policy term, there is no payout on completion of the term. However, in the event of your death within the policy term, your family receives the full sum assured regardless of the number of pending premiums. The further premiums are then waived off. One of the important features of a term plan is that it offers a large sum assured

iSelect term plan

If you are a newly employed working professional, you must consider a term insurance policy as one of the first investments to make. An excellent choice would be Canara HSBC life insuracne’s iSelect Term Plan. It is purely a protection plan which provides terminal illness cover and life insurance, along with options like spouse cover, accidental death cover, and accidental disability cover. What’s more, this online term plan is only a few clicks away!

How to boost your term plan

On its face, a term plan might seem like a very specific without a lot of extra benefits, especially when compared to investment tools. However, there are a variety of ways to boost your existing term insurance cover. Term insurance riders are just one of them. Here are the different ways in which you can add more value to your plan.

Increase cover A term plan generally provides a large cover at a nominal premium. However, understand that the term is generally a long time, often spanning a decade or more. What might seem like a sufficient amount for your family’s well-being now, might not actually be a lot when you factor in rising costs. Inflation is an unavoidable reality.
How inflation will affect your family This is going to have tangible effects on not just daily expenses, but also on the larger costs like higher education of your children, marriage, etc. For example, an IIT degree that costs around Rs.9.2 lakhs today is expected to cost a staggering 18.1 lakhs 10 years from now. An MBA from a top IIM institute costs around Rs.22 lakhs at present. 10 years later, the same degree is expected to cost Rs.43.28 lakhs
The above example must be enough for you to consider the largest sum assured possible for your term plan. Of course, you might or might not have the resources for that while taking your policy. This is why you should go for a policy that allows you to increase your sum assured in the middle of the term. This way, when you earn more, you can gradually invest more.
How to double your sum assured The Canara HSBC life insurance’s iSelect Smart360 Term Plan offers an excellent option of increasing your cover by 25% every 5 years. This way, you can increase cover by upto 100% during the policy term.

Term insurance riders

Accidental Death Benefit Rider When you opt for this rider, your family will receive an additional benefit amount along with the base sum assured. This will be really helpful to your family for covering medical costs. Different plans offer different benefits with this rider. Your policy term might also reduce when you opt for this rider, so check with your insurer.
Accidental Disability Rider If you meet with an accident and your life is saved but you end up with a temporary or permanent disability, you will receive the sum assured as per the payout option chosen by you in the beginning. The policy might terminate upon receipt of payout. Considering the huge costs of treatment, this is a very beneficial option.

Spouse cover

You might have taken your term insurance before getting married. Even if you take it after your marriage, you might later feel the need to take another policy in the name of your spouse. With a plan that offers an in-built spouse cover option, you can save yourself the effort. In the event of your spouse’s death, their sum assured is paid while your policy continues as it was.

With these lucrative options, a term insurance covers a lot more than basic life cover and also saves you some of the expenses and efforts of buying more policies. Hence, opt for a policy like Canara HSBC iSelect Term Plan which offers all of the above-mentioned benefits in one plan. Just a few clicks and you can secure the biggest online deal- your family’s well-being!