Term insurance is a type of life insurance that provides coverage for a specific period, usually for a few years or more. This type of policy is designed to financially support your family in case you die, or suffer a critical illness or disability during the policy term. One of the major benefits of a term plan is that it provides a lump sum amount to your family in case of an unfortunate event.
While term insurance is an essential financial tool, many people are unsure about the coverage it provides. One of the questions that people often ask is whether term insurance covers suicide. In this blog, we will explore the answer to this question.
First, let’s understand what a term plan is and how it works. A term insurance policy is a contract between the policyholder and the insurance company. The policyholder pays a premium for a specific term, and in case of his/her death or critical illness, the insurance company pays a predetermined amount to the nominee.
Term plans clearly mention the type of deaths they provide cover for. However, suicide is often excluded from coverage for the first year of the policy. This is known as the waiting period, and it is standard practice across all insurance companies. After the waiting period is over, most term plans provide coverage for suicide as well.
The Canara HSBC Life Insurance iSelect Smart360 Term Plan is one such policy that offers coverage for suicide. In addition to this, the policy also offers the following benefits:
Cover against 40 critical illnesses
The policy provides coverage against 40 critical illnesses, including cancer, heart attack, and stroke. In case of a diagnosis, the policyholder will receive a lump sum amount to cover medical expenses.
Child Care benefits
The policy offers an additional sum till the child attains 21 years of age.
Cover till 99 years of age
The policy provides coverage till the age of 99 years, ensuring that the policyholder and his/her family are financially secure for a long time.
Return of total premiums
The policy provides the option of a return of total premiums, which means that the policyholder can get back all the premiums paid in case he/she outlives the policy term.
Steady income benefit upon attaining 60 years of age
The policy provides a steady income benefit to the policyholder upon attaining 60 years of age, ensuring that he/she has a regular source of income even after retirement.
The iSelect Smart360 Term Plan is an excellent option for those looking for a comprehensive term insurance policy. The policy provides coverage for suicide, which is a common exclusion in most term plans. In addition to this, the policy also provides coverage for critical illnesses and child care benefits, ensuring that the policyholder and his/her family are financially secure in case of any unforeseen events.
In conclusion, term insurance policies are an essential financial tool that provides financial security to your family in case of an unfortunate event. While suicide is often excluded from coverage for the first year of the policy, most term plans provide coverage for suicide after the waiting period is over. The Canara HSBC Life Insurance iSelect Smart360 Term Plan is an excellent option for those looking for a comprehensive term insurance policy that covers suicide and provides coverage for critical illnesses and child care benefits.