Have Car Insurance? Why Not a Term Insurance Policy Too

Love your car? Of course, you know how bad it feels when the car gets a dent. It’s even more painful when it happens not because of something you did, but due to someone else.

You know the road has bested even the most disciplined and skilful drivers many times. Despite all the caution and skill, not everything would be in your control when you are travelling. So, you buy term insurance to avoid losing your financial status along with your car in accidents.

With adequate car insurance, you can be sure to continue your life even if you lose the vehicle due to misfortune. Ever thought that ‘you’ might be the ‘vehicle’ driving your family and children towards their goals in life?

Life vs The Road

You might not realise it, but life and the open road have more in common than you think. You could be on a six-lane highway, an interior road without partition, or the street near your house but you will always have twists, turns, ups, downs, breakers, red-lights and depending on the city, even unexpected potholes.

Both living and driving are often about navigating whatever comes with caution, and awareness. At times, accidents may still happen, and most of the times it’s difficult to ascertain the fault. But, regardless of who was at fault, you do need to get back on your feet as soon as possible and continue the journey.

If it’s about the car, your car insurance will help you get back in your car and on the road quickly. But, when it’s about life, you need something different- a term life insurance.

Term Life Insurance as a Backup for Your Family

A term life insurance plan is a very efficient way to safeguard your family’s financial health. Much like car insurance shields you from unexpected expenses on the road, term insurance offers your loved ones a financial cushion when life takes an unforeseen turn.

A term insurance plan offers financial protection to your family in case you face:

• Asudden demise

• A temporary or permanent disability (if covered through riders)

• Any Life-threatening illnesse (if opted as an additional cover)

As you can very well imagine, these situations affect your earning capacity. Without a financial backup to cushion the impact, all three situations can gravely harm your dependent’s financial future.

How Does Term Life Insurance Work?

Here is a step-wise breakdown of how a term plan works:

Step 1: Select the Term Insurance Benefit:

First, estimate how much money your family would need to meet their financial goals and maintain their current lifestyle. Then, calculate the maximum coverage you’re eligible for based on your income and age.

For example: if you are 30 years of age and your annual take-home income is ₹12 lakh your financial life value will range between ₹1.2 crores to ₹2 crores; i.e. 10 to 15 times of your income.

You can use an online term insurance calculator for this.

If the amount your family needs are higher than your financial value, you shouldconsider increasing the cover in the future.

Step 2: Evaluate Additional Riders:

Once you have decided your benefit amount for the term insurance cover, you can add other benefits such as:

• Personal accident covers: Insurance for accidental death and disabilities.

• Critical illness covers: Insurance for life-threatening diseases such as cancer, heart failure, and organ transplant needs.

Step 3: Select the Pay-Out Mode:

Select the mode of benefit pay-out at the time of claim. At this step, you can select whether your family should:

• Receive a large sum in a single payment or.

• A percentage of the benefit as a regular income.

Ideally, you should choose a mix of both. So that your family may receive a lump sum as well as a regular income.

The lump-sum amount will help them pay off any immediate liabilities and invest in long-term goals whereas, he regular income will help them continue running the household expenses.

Step 4: Choose Premium Payment Mode:

Decide how long you’d like to pay the premiums. You can go for limited years, spread it out over the policy term, or pay it all in one go.

Ideally, your premium payment tenure should be such that you pay all your premiums before retirement so that there is no burden on your post-retirement income if you choose a long-term life cover.

Step 5: Complete the Application & Submit Documents:

Life insurers need relevant information about your health, family history, employment, etc. You should fill out all the information in the application form and submit supporting documents online.

Step 6: Medical Examination & Policy:

Once you submit the proposal form for the term insurance cover, the insurer may ask you to undergo a medical check-up at a designated clinic.

This medical test is free of cost for you and the report goes directly to the insurer.

The insurer will accept your proposal based on all the information you have provided and the medical tests.

Note: At times, it may happen that the insurer may modify your term cover a little. Do not worry, it is not a rejection of policy, but the modification reflects insurer’s perception of risk and benefit eligibility for you.

Once the insurer approves the policy, you should check all the details and ensure that everything is in order.

Step 7: Claims & Settlement:

In the event of your passing during the policy term, your nominee needs to file a claim to receive the benefits. The process is simple and usually requires basic documentation. Term insurance plans from Canara HSBC Life Insurance enjoy a quick and stress-free claim settlement process. Additionally, for the most part, your nominees can file the claim online.

Final Word: Why Term Insurance Plan is Equally Important if Not More

Think about the care and attention you give to your car—you fuel it, maintain it, insure it, and protect it against risks on the road. Now imagine the role you play in your family’s life. To them, you are irreplaceable, their emotional anchor and financial backbone.

If you are willing to invest in car insurance to guard against unexpected breakdowns or accidents, shouldn’t you also protect your family against life’s most unpredictable event, your sudden absence?

A term insurance plan does just that. It ensures that your family doesn’t suffer financially if something happens to you. It gives them the strength to carry on, fulfill their goals, and maintain their lifestyle, even in your absence.

And here’s the surprising part; a sufficient term insurance cover often costs much less than your annual car insurance premium. Infact, here’s a list of 7 everyday things that cost more than the iSelect Smart360 Term Plan by Canra HSBC Life Insurance. Yet its value is far greater, offering peace of mind and lasting financial security to your loved ones.

In the end, it’s about securing futures and no asset is more precious than your family's well-being.