Canara HSBC Life Insurance Young Term Plan – Benefits, Features, and Complete Review (2025 Guide)
Life is full of uncertainties, and one of the smartest ways to protect your loved ones from financial hardship is through a term insurance plan.
The Canara HSBC Life Insurance Young Term Plan is specially designed for young individuals who want affordable life cover, flexible options, and long-term financial protection for their families.
This is a non-linked, non-participating, pure risk premium life insurance plan, which means it is focused entirely on life protection — not on investments or market returns.
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| Canara HSBC Life Insurance Young Term Plan 2025 |
In simple terms, if something unexpected happens to you, this plan ensures your loved ones get a lump sum payout to stay financially secure and continue their life goals.
Explore Canara HSBC Young Term Plan benefits, features, return of premium option, eligibility, and FAQs. Best affordable term insurance for young earners in 2025.
What is Canara HSBC Life Insurance Young Term Plan?
The Young Term Plan by Canara HSBC Life Insurance provides comprehensive life cover at an affordable cost. It offers two plan options to suit your financial needs:
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Life Secure – Offers pure life cover for the policy term.
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Life Secure with Return of Premium (ROP) – Provides life cover and returns all your paid premiums (excluding taxes and rider costs) at the end of the policy term if you survive.
You can think of it as a financial shield for your family — simple, smart, and affordable.
Key Features of the Plan
1. Two Flexible Plan Options
You can choose between:
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Life Secure: Get life cover for the selected term. Your nominee receives the Sum Assured in case of your unfortunate demise.
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Life Secure with Return of Premium: If you survive the policy term, you get back all the premiums you’ve paid.
2. Coverage Options
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Level Cover: The Sum Assured remains constant throughout the term.
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Increasing Cover: The Sum Assured increases by 10% each year for the first 10 years (up to 100% increase). Perfect for those expecting rising expenses or income in the future.
3. Life Stage Enhancement
You can increase your life cover during key life events such as:
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Marriage
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Childbirth or adoption
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Purchase of a new home
This helps your policy grow as your responsibilities increase.
4. Optional Riders for Extra Protection
You can enhance your base plan with the following add-on riders:
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Accidental Death Benefit
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Accidental Total & Permanent Disability (with premium waiver)
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Terminal Illness Cover (100% payout in advance)
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Child Care Benefit (extra protection for your child’s future)
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“Block Your Premium” benefit (lock your premium rate and increase cover later without medical tests)
These optional riders make your plan more comprehensive.
Eligibility Criteria
| Criteria | Details |
|---|---|
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 60 years |
| Policy Term | 5 years to up to age 99 years (depending on option) |
| Premium Payment Term | Regular or limited pay (5, 10, 15 years etc.) |
| Sum Assured (Minimum) | ₹25 Lakhs (Life Secure) / ₹15 Lakhs (ROP) |
| Sum Assured (Maximum) | No upper limit (subject to underwriting) |
| Premium Payment Mode | Monthly, Quarterly, Half-Yearly, Annually |
Benefits of Canara HSBC Young Term Plan
1. Financial Security for Family
In case of your unfortunate death, the plan ensures that your family receives a lump sum payout to cover living expenses, debts, education, and future goals.
2. Return of Premium Option
If you choose the Return of Premium variant, you’ll get back all your base premiums when the policy matures — a great choice for those who prefer not to lose their investment.
3. Affordable Premiums for Young Buyers
Buying this plan at a young age helps you lock in lower premiums for a long-term period.
For example, a 25-year-old non-smoker can get ₹1 crore cover for less than ₹900 per month.
4. Flexible Coverage and Riders
The plan allows you to customize your policy with increasing cover, premium waiver options, and riders for disability or accidents.
5. Tax Benefits
You can enjoy tax deductions under Section 80C for premiums paid and Section 10(10D) for benefits received (as per prevailing tax laws).
6. Spouse and Child Cover
The plan allows you to cover your spouse (even non-working) and also add a Child Care Benefit to secure your child’s future till they turn 21.
7. Peace of Mind
Knowing your loved ones are financially protected gives you complete peace of mind, even in uncertain times.
How Does the Plan Work? (Example)
Let’s take an example to understand how it works:
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Age: 30 years
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Plan: Life Secure (Level Cover)
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Sum Assured: ₹1 crore
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Policy Term: 30 years
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Premium Payment Term: 30 years (regular pay)
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Premium: ₹900/month (approx., non-smoker)
Scenario 1 – If Death Occurs During Policy Term:
Your nominee receives ₹1 crore as a lump sum death benefit.
Scenario 2 – If You Survive Till End of Term:
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For Life Secure: No payout (pure protection).
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For Life Secure with ROP: You receive all your paid premiums back (excluding GST and riders).
Why You Should Buy It Early
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Lower Premiums: Premiums are cheaper when you’re young and healthy.
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Early Financial Planning: Start protecting your family as soon as you start earning.
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Higher Eligibility: Fewer medical restrictions and easier approvals.
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Inflation Protection: Choose increasing cover to keep pace with rising costs.
What to Keep in Mind Before Buying
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No Investment Returns: This is a pure protection plan, not an investment product.
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Timely Premium Payment: Missing premiums may lead to policy lapse.
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Disclosure is Important: Be honest about health and lifestyle to avoid claim rejection.
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Understand Exclusions: Death due to suicide (within 12 months) or undisclosed health conditions may not be covered.
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Return of Premium Option Costs More: Compare both variants to see which fits your budget.
Who Should Buy This Plan?
The Canara HSBC Young Term Plan is ideal for:
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Young professionals starting their careers.
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Married couples or parents securing their children’s future.
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Loan borrowers (home, car, education loans).
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Individuals who want affordable and flexible term coverage.
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People looking for simple protection without market risks.
Advantages at a Glance
✅ Affordable premiums for young buyers
✅ Flexible plan and cover options
✅ Riders for accident/disability protection
✅ Return of Premium feature available
✅ Life stage and increasing cover options
✅ Option to cover spouse and child
✅ Tax benefits under Section 80C and 10(10D)
Step-by-Step Process to Buy the Plan
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Visit the Official Website – Canara HSBC Life Insurance
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Select “Young Term Plan” from term insurance options.
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Choose Your Option – Life Secure or Life Secure with Return of Premium.
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Enter Details – Age, income, smoking status, and coverage amount.
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Get a Quote – Compare premiums and select your payment frequency.
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Submit KYC and Health Details – Complete medical assessment if required.
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Pay Premium and Get Policy Issued.
You can also buy it through bank partners like Canara Bank or HSBC Bank branches.
Frequently Asked Questions (FAQ)
1. What is the main purpose of the Canara HSBC Young Term Plan?
The plan provides financial protection to your family in case of your death during the policy term. It ensures they have money to manage expenses and maintain their lifestyle.
2. Can I get my premiums back?
Yes, under the Life Secure with Return of Premium option, all your base premiums are returned if you survive till policy maturity.
3. Does it offer tax benefits?
Yes, you can claim tax deductions under Section 80C for premiums paid and Section 10(10D) for benefits received, as per current tax rules.
4. Can I increase my coverage later?
Yes, you can increase your Sum Assured with the Life Stage Enhancement feature during key milestones like marriage or childbirth.
5. What happens if I stop paying premiums?
If you miss premium payments, your policy may lapse, and you’ll lose coverage. You can, however, revive it within the revival period by paying pending dues.
6. Does it cover accidental death?
Yes, if you opt for the Accidental Death Rider, your nominee will receive an extra payout in case of death due to an accident.
7. What is the difference between Level Cover and Increasing Cover?
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Level Cover: Same Sum Assured throughout the policy term.
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Increasing Cover: Sum Assured increases by 10% per year for the first 10 years.
8. What if I outlive my policy?
If you survive the term:
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Under Life Secure: No payout (as it’s a pure term plan).
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Under Return of Premium: You’ll receive all your paid premiums back.
9. Can I buy this plan online?
Yes, you can buy it directly from the Canara HSBC Life Insurance website or through their partner banks.
10. Is medical test required?
It depends on your age, coverage amount, and health status. For higher cover amounts, a medical test may be required.
Conclusion
The Canara HSBC Life Insurance Young Term Plan is one of the best term insurance plans in India for those who want affordable protection, flexibility, and peace of mind.
With features like increasing cover, life stage benefits, return of premium option, and child/spouse protection, it is an excellent choice for young professionals and families who wish to build a secure financial foundation early in life.
If your goal is to protect your family’s future, manage financial risks, and enjoy tax benefits, this plan deserves serious consideration.
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