An Investment that protects against financial loss
Flexible premium payments
Customizable tenure
Customizable sum assured
A Secured Investment options with better returns
Pay-out on death or on maturity
Tax benefit under Section 80C
Insurance provides risk coverage to the Insured family in form of monetary compensation in lieu of premium paid.
Life Insurance enables Individuals to protect themselves and their families, in case of any unfortunate happening in the Life of the Insurer. The Insurer pays an amount equivalent to the sum assured as specified in the contract along with applicable bonuses. This is know as the death benefit.
Insurance policies come with the guaranteed sum assured amount which is payable on happening of the event.
Certain whole Life Insurance Policies offer two-pronged benefits of both Insurance and investment. While one half of your premium is paid toward Insurance, the other half is invested in equity, debt or combinations of both. You get the best of both worlds with a protective covering as well as high returns on your investments. You can make the most of this component by investing in funds that align with your investment horizon and risk appetite. Certain policies allow you to switch between funds as per your evolving goals. The Invest 4G plan offered by Canara HSBC Oriental Bank of Commerce gives you the option of choosing from a range of 7 unit-linked funds and 4 different portfolio management options as per your preference.
Insurance companies provide the option to the Insured that they can borrow a certain sum of amount. This option is available on selected policies only.
Life Insurance Policies can also double as a savings instrument by offering maturity benefits. If the Insured survives the policy term and no claims have been made, the total premiums paid are returned at the time of maturity of the policy. In this manner, your Life Insurance plan can have a savings component, while also offering a protective cover.
Insurance premium is tax deductible under section 80C of the income tax Act, 1961.
This rider allows you to purchase additional Insurance coverage in the stated period without the need for further medical examination. A guaranteed insurability rider is most beneficial when there has been a significant change in your Life circumstances, such as the birth of your child, marriage, or an increase in your income. If your Health declines with age, you will be able to apply for extra coverage without giving any evidence of Insurability. This type of rider may also provide a renewal of your base policy at the end of its term without medical checkups. Guaranteed Insurability riders may end at a certain age.
An accidental death rider pays out an additional amount of death benefit if the Insured dies as the result of an accident. Normally, the additional benefit paid out on death due to an accident is equivalent to the face amount of the original policy, which doubles the benefit. In the event of death due to accidental bodily injury, the insured's family gets twice the amount of the policy. That's why this rider is called a double indemnity rider. If you are the sole provider for your family, an accidental death rider can be ideal because the double benefit will take good care of your surviving family's expenses.
Under this rider, future premiums are waived if the Insured becomes permanently disabled or loses their income as a result of injury or illness prior to a specified age. Disability of the main breadwinner can have a crippling effect on a family. In these circumstances, the rider exempts policyholders from paying the premium due on the base policy until they are ready to work again. A waiver of premium rider can be valuable, particularly when the premium on the policy is high. The definition of the term "totally disabled" may vary from one Insurer to another, so be aware of the terms and conditions of your specific rider.
In case the Insured dies, a family income benefit rider will provide a steady flow of income to family members. When buying this rider, you need to determine the number of years your family is going to receive the benefit. The merit of having this rider is obvious—in case of death, the surviving family will face fewer financial difficulties thanks to the regular monthly income from the rider.
Under an accelerated death benefit rider, an Insured Person can use the death benefits if diagnosed with a terminal illness that will considerably shorten their lifespan. On average, Insurers advance a percentage of the death benefit of the base policy to the Insured. Insurance companies may subtract the amount you receive, plus interest, from what your beneficiaries receive on your death. Most often a small premium or, in some cases, no premium is charged for this rider. Insurers have different definition.
Under this rider, you pay a marginal premium and at the end of the term, your premiums are returned to you in full. In the event of death, your beneficiaries will receive the paid premium amount. Insurers sell return of premium riders with many variations so make sure you understand the phrasing of the rider before you buy.