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Canara HSBC Term Insurance Plans

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Canara HSBC Oriental Bank of Commerce Life Insurance Company was founded in June 2008 to emerge as an insurer giant in India. A Joint venture between HSBC Insurance, Canara Bank and Punjab National Bank, aims to provide life insurance solutions across all segments delivering a portfolio comprising of term, savings, investment, health, and retirement products, both in individual and group categories.

Among 32 life insurance products in its bouquet, Canara HSBC term insurance plan offers a pure risk protection policy with a wide range of options and variants to cater to the entire life cycle of the policyholder. Drawing from the strong legacy of two Public Sector Banking giants and the expertise of global HSBC insurance, their penetration spreads across all segments of the Indian society, including rural. Thus, Canara HSBC Term Insurance offers the widest choice to its customers related to a potent financial planning tool.

What is Canara HSBC Term Insurance Plan?

Term Insurance Plan is defined as a pure insurance policy designed to protect the financial future and stability of the family on the demise of the policyholder. The key takeaways in a term insurance plan are that one gets the very high sum assured instead of a very affordable premium, as the death benefit is confined only to the sum assured without any addition of bonus or profit. It is also referred to as a non-linked, non-participating insurance policy. Canara HSBC Term Insurance Plans offer a range of options to the policyholder covering lump sum or staggered monthly death benefit, as agreed at inception. Additionally, there are a host of rider options to augment the cover suitably. A new age provision also incorporates Return of Premium option on survival, much against the grain of a normal term plan.

Why should Canara HSBC OBC Term Insurance Plan be chosen?

Canara HSBC OBC Life Insurance operates out of its headquarters in Gurugram with 50 pan India branches. Working on the model of Bancassurance, their service and distribution network comprises of more than 20000 outlets in Tier I, II and III cities, as also the rural belt. It also partners new age technology avenues, in harmony with the choices of the present generation, an essential component of the 6 Crore customer base acquired by the insurer. Committed to customer preference and needs, Canara HSBC Life Insurance provides a broad umbrella for the protection of the family to weather financial storms in the absence of the policyholder. 

Primary reasons to opt for Canara Term Insurance are:

  • Family Protection

    With a profound understanding of the Indian family ethos, financial stability in the event of the demise of the policyholder is the prime focus. A suitable Canara Term Plan is just the tool to ensure that financial ruin does not stare in the face of the family.

  • Safeguarding of Assets

    Every individual sets life goals to procure assets in different life stages. More often than not, these are created with loans. In the event of an unfortunate demise of the policyholder, these assets become liabilities unless a term policy payout helps its liquidation.

  • Protection from Lifestyle Risks

    Some critical illnesses can be attributed to modern lifestyles. Diseases like Cardiovascular Diseases, Diabetes, Kidney ailments, and certain types of cancer are directly related to living habits and professional stress inherent to modern society. Ample provisions are possible in term plans to mitigate financial hardship in such an eventuality.

Features and benefits of Canara HSBC Term Insurance Plans

Riding on a portfolio with the widest range of life insurance plans, Canara HSBC Life Insurance offers two-term plans covering the entire gamut of flavours to match individual tastes. Among the key features that make Canara Term Insurance Plan attractive to the customers are:

Salient Features of Canara HSBC Term Insurance Plans:

  • Protection at Economical Premium

    One of the primary reasons to opt for the Canara HSBC Term Plan is the high sum assured against a very affordable premium. It is incredibly suitable to cover all the financial misfortunes that befall a family on the demise of the breadwinner policyholder.

  • Flexible Payment Options

    Customer convenience is maximized by the range of options, making it easy on the pocket to meet one's financial strength. One can thus pay the premium in Yearly, Half-Yearly, Quarterly, and Monthly Options to suit the financial capabilities of individuals.

  • Flexible Payout Options

    This is again designed to suit the needs of the family to enable them to cope with financial hardship. Accordingly, in terms of financial planning, the payout can be a lump sum, regular monthly income, or a combination of the two.

  • Customized Offers

    Lifestyle habits like non-smoking earn a premium discount. Women applicants similarly pay a lower premium.

  • Easy Purchase Facility

    Canara Term Plan can be purchased with the facility to compare online to process it in the portal of the insurer or the aggregator. Tools like insurance and premium calculator help in choosing the right term plan.

Core Benefits of Canara HSBC Term Insurance Plans:

Here is a rundown to key benefits of term insurance plans offered by Canara HSBC:

  • Financial Protection

    It helps to provide security to the family in times of financial uncertainty as an outcome of the unfortunate demise of the policyholder.

  • Security of Dependents

    Canara Term Plan, both in the form of lump sum and monthly payout, enables the family to sustain their existing lifestyle and also fulfil their dreams and life stage aspirations. It also helps them liquidate the existing liabilities and protect family assets.

  • Addition of Riders

    With the help of several riders, one can augment the cover against Critical Illness on diagnosis, Accidental Death, Accidental Permanent Disability, Waiver of Premium, and Child Support

  • Inbuilt Cover

    The inbuilt cover extends to terminal illness with a guaranteed payout on its diagnosis or death, whichever is earlier.

  • Limited Pay Option

    The policyholder can opt to pay a premium for a limited term and continue with the risk cover for the entire policy term.

  • Longer Coverage

    The Canara Term Plan comes with coverage extending to 99 years of age, referred to as Whole Life.

  • Extended Cover

    There is an option for joint life cover, which is extended to the spouse of the policyholder.

  • Return of Premium

    It is a new-age provision acting as a survival benefit where the entire paid premium is returned if the policyholder outlives the policy term.

  • Enhance or Reduce Coverage

    There is the flexibility of step-up or step-down matching life stage needs of the policyholder.

  • Tax Benefits

    Income Tax Act 1961, has provisions for tax benefits under Section 80C concerning premium paid in a financial year, subject to underlying conditions. Critical illness Benefit premium component is exempt under Section 80D. Benefit payout is exempted from Income Tax under Section 10(10D).

Types of Canara HSBC Term Insurance Plans:

There are two plans for individuals, which can be classified as term plans viz:

  • iSelect+ Term Plan
  • POS easy Bima Plan

  • iSelect+ Term Plan

    It is an online term plan designed to deliver the widest range of options to the policyholder covering every aspect of a term policy protecting the family from financial uncertainties. Some of the key advantages of the plan are:

    Affordable Premium: 

    The premium concerning the sum assured is such that it is not a drain on financial resources. 

    Multiple Options: 

    The host of options related to Coverage, Payouts, and Premium Payment in alignment with the needs of the policyholder. 

    Addition of Riders: 

    The policyholder gets a range of riders to choose from to help augment the sum assured. 

    • Accidental Death Benefit
    • Child Support Benefit
    • Accidental Total Permanent Disability Benefit

    Multiple Premium Payment Options: 

    The range includes Single Bullet Payment, Limited Payment but with Lifetime Cover, Pay during the working life until 60 years of age, and pay for the entire policy term.  

    Multiple Payout Options:

    It comprises of Lump Sum, Monthly or a combination of Lump Sum and Monthly. The monthly option can further be chosen for a level or increasing payment.

    Step-Up Facility: 

    The sum assured can be revised upwards in different life stages to suit the needs of the policyholder. 

    Spouse Cover: 

    The risk cover can be extended to include the spouse of the policyholder. 

    Premium Discount: 

    Both women, including spouses and non-smoker, get a preferential premium for a higher cover. Existing customers can enjoy a loyalty discount.

    Detailed Benefits:

    iSelect+ Term Plan
    Plan Options   Life Sum assured is paid on death or terminal illness, whichever is earlier, and the plan terminates. It applies to the spouse also.
    Life with ROP Sum assured the same as in Life. On survival of the policy term, the entire paid premium is paid on maturity.
    Life Plus Sum assured and ROP similar to the other two. The policy will continue until 99 years of age when the sum assured will be paid.  
    Coverage       Life Option     Level   Uniform throughout the policy term  
    For  life stage enhancement
    1. Marriage: 50%
    2. Child: 25%
    3. House: 25%
     
    Increasing Increase by 5% (simple) every policy anniversary till 100% of SA  
    Decreasing After reaching 60 years, 5% every policy anniversary until 50% of SA is reached.  
    Self Spouse   
    Riders Life Option Accidental Death Benefit
    Accidental Disability-Premium Protection: Future premium will be waived
    Accidental Disability-Premium Protection Plus: Sum assured will be paid, the future premium will be waived, but the cover will continue.
    Child Support Benefit: To safeguard the child's future
    Payout Options Lump-Sum Entire sum assured
    Monthly Increasing at 5 to 10% for up to 120 months
    Lump-Sum + Monthly In different proportions and the monthly income for 120 months
    Sum Assured Minimum Rs 25 Lakh    
    Maximum Rs 3 Crore    
  • POS Easy Bima Plan

    The advantage of this term plan is the liberal design for the financial protection of the family and hassle-free purchase without any medical test. Some key features to be noted are:

    • Double cover in Accidental Death
    • Return of Premium on Survival
    • Multiple premium payment terms of 5 and 10 years

    Detailed Benefits

    POS Easy Bima Plan
    Death Benefit
    1. Within 90 days of commencement of risk: Return of paid  Premium
    2. After 90 days of commencement of risk: The full sum assured.
    3. The policy will terminate after payment of death benefit
    Accidental Death Benefit
    1. Both the Death and Accidental Death Benefit are payable. 
    2. Accidental Death Benefit is equivalent to the sum assured.
    3. A waiting period of 90 days is not applicable for accidental Death Benefit.
    Return of Premium The total of all premiums paid on survival until maturity is paid provided the policy is in force.   
    Sum Assured Minimum: Rs 50000 Maximum: Rs 15 Lakh    
    Policy Term 10 to 20 years    
    Payment Term
    • 5 years for a 10-year term
    • 10 years for a 15-year term
    • 10 years for a 20-year term
       
    Annual Premium Minimum: 10-year Policy Term: Rs 2219 15-year Policy Term: Rs 1076 20-year Policy Term: Rs 989    
    Maximum: Determined by the chosen sum assured

Documents required to apply for Canara HSBC Term Insurance Plan

Purchase of a selected term plan from Canara HSBC OBC Insurance requires submission of requisite documents. While specific documents may be required on a selection of options or riders, the standard document list applicable across plans is listed below. It is to be importantly noted that the documents have to be submitted at the time of purchase, whether online or offline, as the case may be.

  • Identity Proof

    It is a normal KYC protocol needing submission of any of the valid photo identity cards acceptable to the insurer.

  • Age Proof

    It is a crucial factor impacting the fixing of premiums. Any of the ID cards with DOB are accepted as valid. Additionally, School leaving certificate besides Birth Certificate are the other valid documents.

  • Address Proof

    Current and permanent address proof is mandatory. Any ID proof with the address is accepted. Additionally, current utility bills like Electricity and Telephone are also accepted.

  • Income Proof

    It is dependent on the category of the applicant, which can be salaried or self-employed.

    Salaried: (For periods specified by the insurer)
    • Salary Slip
    • Form 16
    • ITR
    Self Employed: (For periods specified by the insurer)
    • P&L statement
    • Balance Sheet
    • ITR
    • Bank Statement

    It is to be important to understand that the insurer is free to call for any other document, which is specific to the term plan and its options, to its satisfaction.

Eligibility criteria to apply for Canara HSBC Term Insurance Plan

Modern technology tools have made it easier for applicants to use Insurance and Premium Calculator available at the insurer portal as well as that of aggregators to determine the suitability of term plan, matching the financial resources and goals of individuals. Despite the facility, it makes sense to be aware of the eligibility criteria defined for individual term plans to be able to arrive at an informed decision while making a purchase.

iSelect+ Term Plan
Age Minimum Maximum
Entry Age 18 65 years Decreasing Option: 55 years PPT up to 60 Years: 55 and 50 years Single-Premium: 45 years Non-working Spouse: 50 years
Maturity Age 28 80 years For Whole Life: 99 years For ADB and ATPD: 75 years
Policy Term Life Option: 5 years Decreasing Cover and Other Options: 10 years Life Option: 62 Years Decreasing: 5 years to 30 years
Policy Payment Terms    Life Single (Other than whole Life) Limited: 5/10/15//20/25 up to 60 years Regular: For the entire policy term
Life with ROP Limited: 5/10/15//20/25 up to 60 years Regular: For the entire policy term
Life Plus Limited: 5/10/15//20/25 up to 60 years Regular: For the entire policy term
Premium Payment Mode Yearly, Half-Yearly, Quarterly, and Monthly

POS Easy Bima Plan
Age Minimum Maximum
Entry Age 18 years 55 years
Maturity Age 28 years 65 years
Policy Term 10 years 20 years
Policy Payment Terms 10 years of Policy Term 5 Pay
15 years of Policy Term 10 pay
20 years of Policy Term 10 pay
Premium Payment Mode Yearly, Half-Yearly, Quarterly, and Monthly

Inclusions and exclusions of Canara HSBC Term Insurance

The policyholder needs to scan through the fine print of the policy document to learn about the exclusions to ensure a seamless claim process, which may impact the settlement in due course. Some of the essential exclusions are:

  • General Exclusion

    It is applicable for a death benefit if the incident occurs within 90 days of the commencement of risk. Only paid premiums will be returned. Full sum assured is paid only of completion of 90 days from commencement of risk.

  • Suicide

    If the incident occurs within 12 months of the commencement of the risk or revival, 80% of the total premium paid or the surrender value on the date of death, whichever is higher.

  • Accidental Death or Permanent Disability Benefit

    • Any pre-existing medical condition within 48 months of the commencement of risk
    • Participation in any adventure or hazardous sports like racing, bungee jumping, mountaineering, etc.
    • Self-inflicted injury or attempt to suicide
    • Participating in any military operations, war, hostilities, etc.
    • Under the influence of any intoxicants, including drugs and alcohol
    • Participating in any illegal or criminal activity
    • Physical or mental infirmity
    • Exposure to Radioactive, Nuclear, Biological, or Chemical contamination

Claim Process of Canara HSBC Term Insurance Plan

An elaborate claim settlement mechanism operates at Canara HSBC OBC Insurance, where claim intimation can either be done online or at the nearest branch. 

The entire process is completed in three well-defined steps:

  • Step 1: Visit PaisaWiki official website – www.paisawiki.com
  • Step 2: Click on ‘Claim’ tab.

  • Step 3: Fill in the claim form with the necessary details including – Insurance type, registered mobile number, email id, and policy number.

  • Step 4: Click on ‘Request Claim Assistance’.

Documents Required

  • Below are the key benefits of ABSL Term Insurance:
  • Death Certificate

  • Hospital records

  • Physician’s statement

  • KYC documents of the claimant

  • Bank details/Cancelled cheque for remittance

  • For Unnatural Death

  • Police FIR, Panchanama, inquest Report

  • Post mortem report

  • Newspaper cutting, if any

Canara HSBC Term Insurance Renewal Process

The renewal of term insurance needs payment of premium on before the due date of payment determined by the premium payment frequency. If the premium is not paid on before the specified date or the permissible grace period, the policy is deemed to have lapsed, and the benefits cease to exist. However, a policy can be revived within 5 years from the unpaid due date.

  • Step 1: Go to www.paisawiki.com
  • Step 2: Click on the ‘Renewal’ tab. The insured will be directed to the renewal page.

  • Step 3: Choose Canara HSBC Company. The policyholder will be redirected to a short form.

  • Step 4: Fill in the details – Policy Number, and Date of birth in ‘YYYY-MM-DD’ format. Hit the ‘Get Premium’ button.

  • Step 5: Choose the mode of payment – Debit/Credit card, NEFT transfer, or Net banking.

  • Step 6: The insured will receive the details on your registered mobile number and email id confirming the renewal of the policy.

How to buy Canara HSBC Term Insurance Plan?

The term plan can be bought online at any of the insurers or their partner's portal. The Canara Term website is ww.canarahsbslife.in. The purchase starts with an Insurance calculator and compares plans online before the process is initiated to complete in few steps.

  • Step 1: Open the official website of PaisaWiki on your browser.
  • Step 2: Choose Canara HSBC Term Insurance. Select the policy that you are interested in and check the details.

  • Step 3: Fill in the form with necessary details including name, date of birth in DD/MM/YYYY format along with your mobile number.

  • Step 4: Hit the ‘View Free Quotes’ button. Choose the annual income and the type of occupation.

  • Step 5: Choose the appropriate plan along with add-on riders. Fill in additional details including email id, city, qualification, and marital status.
  • Step 6: Click on ‘Proceed’ tab. Choose the mode of payment - Debit/Credit card, NEFT transfer, or Net banking.

The policy document is ready for dispatch if a medical test is required as per rules for the issue of term insurance.

Faqs

Written By: Paisawiki - Updated: 22 September 2020