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  • Rs. 1 Crore
    Term Cover @Rs 16/Day
  • Tax Benefits
    Under Section 80C & 10(D)
  • Extra Benefits
    Accidental, Terminal & Critical Illness
  • 7 Lac+
    Families Secured
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Is Canara HSBC iSelect Term Plan Best for Beginners in India?

Canara HSBC iSelect term plan is a term insurance policy that offers comprehensive coverage such as life insurance cover, death & disability cover, and terminal illness cover.

Moreover, the plan also offers as source of regular income to the dependent family members of the insured in case of unforeseen circumstances. It is a good term plan for beginners as anyone between n the age group of 18 years and 70 years can buy this plan. The age limit for the insured’s spouse is up to 50 years.

You make every effort to protect your family and want their future to be secure all the times. However, your best efforts can go in vein if there is any unforeseen incident. And iSelect term plan will act as a safety net for your family ensuring that they lead a comfortable life without any financial worries, even when you are gone.

Here is a quick rundown of this term plan that makes a perfect choice for beginners as well:

Why buy iSelect Term Plan?

Even if you are buying a term plan for the first time, your vision is to protect your loved ones and ensure them a regular source of income even when you are gone.  Your responsibilities will continue to grow in future and this comprehensive term protection plan is all that you need for your family. Below are some of the good reasons that make this term plan a reliable choice:

  1. Coverage to Spouse: Along with the policy you can choose to cover your spouse
  2. Long-term Financial Security: Life insurance cover up to the age of 80 years with terminal illness and death cover.
  3. Family's Financial Liabilities: This term plan can work as a regular income plan on a monthly basis. It offers you the flexibility to opt for a part of the plan or the entire sum assured.
  4. Increased Cover for Life Stage Responsibilities: There is an option to increase your coverage amount by 25% every 5 years so as to ensure that the financial requirements of your dependents at all the life stages are met. Once you have opted for this, your sum assured can be increased up to 100% of the original sum assured during the policy tenure.
  5. In-built Protection Cover: This term plan also covers accidental disabilities and accidental death.
  6. Takes Care of your Family's Monthly Expenditure: You can choose the benefit payout option till the end of the policy term. This way your family will get regular monthly income that can be used for monthly expenses. It is helpful when there is no source of income after your demises.
  7. Tax-saving Benefits: This term policy also offers tax benefits per the current income tax laws. You can check the same while purchasing the policy.

Who can buy iSelect Term Plan?

The eligibility criterion to buy this term plan is mentioned in the below table:

Entry Age

Life Assured: 18 to 70 years
Spouse ( optional): 18 to 50 years

Maturity Age

80 years

Policy Duration

5-40 years

Sum Assured ( including terminal illness cover)

Life Assured: INR 25 lakhs & above (subject to underwriting)

Spouse:  INR 25 lakhs (fixed)

Premium Payment


In-built cover (if opted for)

Accidental Death Benefit from INR 25 lakh to INR 3 Crore,

Accidental Total and Permanent Disability from INR 25 lakh to INR 1 Crore

What are the coverage benefits offered under Canara HSBC iSelect term plan?

It is a protection term plan that offers life insurance coverage benefits along with terminal illness cover in case of accidental death or disability, and a source of income for your family after your unfortunate demise. Below are the benefits of Canara HSBC iSelect term plan in detail:

  1. Death and Terminal Illness Cover: The sum assured is paid in the event of unfortunate death/terminal illness
  2. Optional Accidental Total and Permanent Disability Cover: If the policyholder suffers from permanent or total accidental disability, the policy sum assured will be paid to the insured life and the policy will get terminated.
  3. Optional Accidental Death Cover: In case of sudden demise of the policyholder following an accident, the nominee will get the sum assured along with an additional amount.

Benefit Payout Options

Below are some of the payout options that you can select the time of purchase. Once you make the selection the payout option will remain the same throughout the duration of the term plan:  

  1. Lump sum Payment: The benefit amount is paid together in a lump sum
  2. Lump sum + Monthly Income: With this option, you get 50% of the benefits on an immediate basis. The remaining amount is paid over a period of 120 months as equal monthly installments
  3. Monthly income till the end of the Policy Tenure: At the end of the term insurance policy term, the insurer pays the entire benefit amount in equal installments every month
  4. Monthly Income for a Fixed Tenure: The benefit amount will be paid in monthly installments over a span of 120 months

*This option is available for the assured life only.

*The payout will be calculated from the date of incident (i.e. terminal illness/ death/, as applicable) and

The payout will begin after completion of one month following claim admission.

Here is an Illustration

Ritesh is a 33-year old market professional, is married and has a son. He has the financial responsibilities of his family and wants to secure this son’s future in case of his sudden demise.

He opts for this term Plan for a sum insured of INR 1.5 crore for 26 years. He opts for a death benefit to be paid in regular monthly income to his family for duration of 10 years.

His annual term insurance premium is INR 10,818. After his demise, his dependent family members will be paid equal monthly installments of INR 151, 350 for 120 months. His family can use this amount as a regular source of income that he can be utilized for his son’s education, marriage and fulfilling other financial obligations.

Over to you

As you can see iSelect term plan can be used as a replacement of the policyholder’s income in case of his death during the policy term. You can check out the above-mentioned policy features and payout option before making the purchase. Ideally, it makes sense to opt for a term plan till 60-65 years of age.