Canara HSBC Term Insurance Grace Period

Note: Know more about what is term insurance first before reading this article.

What Is Grace Period for Canara HSBC Term Insurance?

Canara HSBC Term Insurance offers a grace period of 15 - 30 days depending on the premium payment mode selected by you at the time of policy purchase. This period begins after the end of the premium due date, and during this period you can pay your premium without worrying about penalty charges or losing policy benefits. Let us take a look at the different premium payment methods and payment modes offered by Canara HSBC Life Insurance company.

The two premium payment methods available for term insurance plans are as follows:

• Single premium: Single lump sum payment

• Regular premiums: Monthly, quarterly, or half-annually installments according to the insurer.

Here is the Canara HSBC grace period offered for different premium payment modes

Note: You can easily calculate the term plan premium by using the term insurance calculator online tool.

How Does Canara HSBC Term Insurance Grace Period Work?

The term insurance grace period is essentially the extended period provided by insurers for policyholders to pay their premiums even after the end of the due date for premium payment. If for example, you didn't have enough money to pay your premiums on the due date, you can still pay your premiums during the grace period provided as per your selected premium mode, without any extra charges. During this grace period, your policy will remain active in case something were to happen to you during this period, your family can still avail of claim term insurance benefits.

What Happens When The Canara HSBC Term Insurance Is Over?

After the end of the grace period, in case you still haven't paid your outstanding premiums, your policy will lapse. It means that the insurer will cancel the policy and you will no longer be covered under the policy benefits. If an unfortunate event occurs during this period, your family will receive no death benefit nor will you receive the paid premiums on outliving the policy term, in case of a term plan with return of premium option.

Should I Buy A New Policy or Revive The Lapsed Term Plan?

Canara HSBC offers its customers a period of 2 years for term insurance, during which you can revive your lapsed term insurance if your policy has been active for more than 3 years. You should decide on reviving the previous plan or purchasing a new term plan by comparing the costs of both plans. If the price of reviving the previous plan is greater than buying a new plan then you should purchase the new plan.

However, it is less likely that you will find a new term plan at a lower cost than the previous plan, as the premium rates increase with age. Your previous plan might have a lower premium than the new plan, as your age at the time of the old policy purchase must have been lower than now. Whatever you choose, you need to make sure to avoid any further policy lapses by paying premiums timely, before the grace period expires.

Documents Required to Revive Canara HSBC Term Insurance

Here is a list of all the documents required to revive a lapsed Canara HSBC term insurance plan:

For a policy lapse of less than 6 months

• Outstanding premiums

• Revival Charge

For a policy lapse of more than 6 months

• Outstanding premiums

• Revival charge

• Interest rates

• Penalty amounts ranging 12-18% of the total premium paid

• Health certificate

For a policy lapse of more than a year

• Outstanding Premiums

• Revival Charges

• Interest rate charges

• Revival and quotes application

• Self-attested ID and Address proof

• Penalty amounts ranging 12-18% of the total premium paid

• Health certificate

• Proof of Income

Wrapping It Up!

The grace period offered by Canara HSBC is the extended period during which you can easily pay your premiums as per usual. You can get a grace period of 15 days for monthly premiums and 30 days for quarterly, yearly, or half-yearly premiums.