What is Term Insurance and How Does it Work?

Planning for the future is always a smart choice, and term insurance is one such financial product that allows you to do so.  We all want to provide our families with the best, and term insurance makes that possible. Term insurance provides your loved ones with financial security in case of any unfortunate events in your life. In this guide, you will explore what term insurance is, how it works, age limits and factors to consider before buying one. 

Term insurance is a type of life insurance that provides coverage for a specific term called the policy term. The cover is offered on the life of the person who holds the policy for the period. 

If the policyholder comes across an unfortunate situation where they lose their life, the insurance provider pays death benefits to the nominee mentioned in the policy. This financial benefit acts as a shield for the family members and helps them meet their expenses. This financial tool also allows the policyholders' loved ones to pursue their goals, so that they do not have to compromise on living their lives as planned. 

On the contrary, if the policyholder survives the policy term, then no payouts are made, as only death benefits are offered under term insurance.

The following are the key benefits of buying a term insurance policy:

1. Financial Aid for your Family

Term insurance provides financial protection to your family. If you are the only one earning in your house and have nobody to look after you, and if something unexpected happens to you, your loved ones can rely on term insurance.

2. Large Sum Assured at Affordable Premiums

Another benefit that term insurance offers is affordability. You can get a large sum of term insurance at an affordable premium. If you buy this loan at a young age, then your premiums are likely to be lower as well. 

3. Customisable Policy  Choices

A lot of features of a term life insurance can be customised. From the sum assured to the policy term, you can choose all of it. Not just this, but you can also select the frequency of premium payments, whether you want to pay it monthly, annually or quarterly. 

The term insurance upper age limit in India is from 65 to 75 years. Here at Canara HSBC Life Insurance, we provide a maximum age limit for term insurance till the age of 65 years. However, policyholders can avail benefits up to the age of 99 years.

The following factors should be considered when buying a term insurance:

• The amount of coverage needed

• Policy term

• Features of the policy

• The reputation of the insurer

• Claim settlement ratio

• Add-on riders you wish to include

Summing Up

Your family's financial well-being depends on the choices you make today. Term life insurance is the best way to secure the security of your loved ones, no matter what happens. Whether you are in your 30s or approaching your retirement, you can avail of a term insurance at any time. While most insurers offer term insurance up to the age of 65 years, iSelect Smart360 Term Plan by Canara HSBC Life Insurance offers benefits up to the age of 99 years. At Canara HSBC Life Insurance, age should never be a barrier when it comes to the financial security of your loved ones. Invest in a Canara HSBC Life Insurance Plan today and plan for the future.