What Makes Canara HSBC Life Term Insurance a Smart Pick?

Canara HSBC Life Term Insurance: Overview

Canara HSBC Life Term Insurance offers a range of pure protection plans designed to secure a family’s financial future in case of an unfortunate event. Its popular offerings, such as the iSelect Smart360 Term Plan and Young Term Plan, provide flexible coverage, varied premium payment options, and multiple rider benefits.

Introduction

Founded in 2008, Canara HSBC Life Insurance brings together the backing of Canara Bank, the global strength of HSBC, and the reach of Punjab National Bank. The company operates through 100+ branches and a wide bancassurance network. As an insurer, Canara HSBC has covered more than 80 lakh lives so far.

In FY 2024–25, the company generated ₹3,122 crore in new business and maintained a strong solvency ratio of 2.1x. This reflects its consistent performance and continued commitment to being a trusted 'Promises Ka Partner.'

Let's delve deeper into the overall metrics of Canara HSBC Life Insurance to analyze whether it's a good fit for your needs.

If you’re comparing Canara HSBC with others, Ditto can help you make the call with confidence. Book a call now.

Metrics for Canara HSBC Life Insurance

Understanding an insurer’s claims performance helps you evaluate reliability. Here’s how Canara HSBC performs across three core metrics:

1. Claim Settlement Ratio (CSR)

Key Insight: Canara HSBC’s 3-year average CSR of 99.28% is consistently higher than the industry’s 98.66%. This highlights its strong reliability in settling valid claims.

2. Amount Settlement Ratio (ASR)

Key Insight: Canara HSBC’s 3-year average ASR of 96.80% is also higher than the industry’s 94.17% and shows that the insurer settles both high-value and low-value claims fairly and consistently.

3. Complaint Volume per 10,000 claims

Key Insight: Canara HSBC has steadily reduced its complaint volume from 27 to 12 per 10,000 claims over three years, though it still sits slightly higher than top insurers like HDFC Life, Axis Max Life, and Bajaj Allianz Life.

4. Annual Business Volumes (Crores)

Key Insight: Canara HSBC’s yearly business stays steady at around ₹3,200 crore, but it’s still well below the industry’s scale and its larger players, which highlights its smaller footprint in the market.

Top Canara HSBC Life Term Plans

1. Canara HSBC Life Young Term Plan

This plan is designed for young adults who want long-term, affordable protection.

Key Features:

• Entry age: 18–60 years
• Coverage till age 99
• Minimum cover: ₹25 lakh
• Policy term: 5–81 years
• Choose between:
  • Level Cover (fixed cover)
  • Increasing Cover (10% rise every year)
• Two variants: Pure term plan or Return of Premium
• Pay premiums regularly or for limited years (5–25 years or till 60)
• Payment frequency: yearly, half-yearly, quarterly, monthly
• Optional add-ons: accidental death, disability, child benefit
• “Block Your Premium”: lock premium for 5 years and increase coverage without medical tests
• Discounts for women, high cover, and online buyers

Note: Premiums are based on a ₹1 crore cover, a non-smoker profile till age 70, with annual payments and no riders.

Key Insights: Canara HSBC offers some of the lowest premiums across most profiles, often beating larger insurers like HDFC Life and ICICI Prudential. With strong pricing and credible coverage, the Canara HSBC Young Term Plan stands out as a value-for-money choice for a ₹1 crore cover.

2. Canara HSBC iSelect Smart360 Term Plan 

A customizable plan with flexible payout choices and income options.

Key Features:

• Cover options: Level or Increasing Cover
• “Pay till 60” option, which reduces the maximum entry age to 50.
• Policy term is defined by age (65 minus entry age as minimum term and up to 81 years maximum).
• Three variants:
  • Basic cover
  • Cover + Monthly Income (from age 60)
  • Return of Premium
• Fully customizable death benefit: lump sum, monthly income, or a combination in fixed ratios.
• Spouse coverage is available for non-working spouses (up to ₹50 lakh).
• Special Exit Value, which allows return of total premiums paid (excluding taxes/riders) under specific conditions.
• Built-in terminal illness and child care benefits.

3. Canara HSBC Life Promise2Protect

A clean, mid-range protection product for individuals who want optional ROP, increasing cover, and spouse benefits without lifetime cover till 99.

Key Features:

• The maximum maturity age is limited to 80 years, unlike the 99-year cover in other plans.
• Short-term structure: policy term of 5 years up to (80 – entry age), which makes it a mid-range protection plan rather than a lifetime cover.
• More focused plan design with only two variants:
  • Life Secure (pure term cover)
  • Life Secure with ROP (return of premiums)
• Increasing cover option at 10% per year, capped at 100%, but without the lifelong coverage found in the other plans.
• Spouse benefits with rebates for covering a non-working spouse, whose coverage amount stays constant.
• Structured Special Exit Value option under the Life Secure variant.

Eligibility Criteria for Canara HSBC Term Insurance Plans

1. Entry Age: Individuals between 18 and 65 years can apply. Younger applicants usually get lower premiums and more flexible options.

2. Maximum Maturity Age: Coverage can extend up to 99 years for long-term protection. However, some riders, such as Accidental Death Benefit and Accidental Total & Permanent Disability, may have lower maturity limits.

3. Medical Tests: Medical exams may be required based on age, health history, lifestyle, and chosen sum assured. These help the insurer assess risk and ensure smooth claim processing.

4. Income Proof: Salary slips, ITRs, Form 16, or bank statements must be provided to determine eligibility and the appropriate sum assured.

5. Education: Applicants are generally expected to be graduates. Those who do not meet this may face stricter eligibility conditions, such as higher income requirements.

Documents Required for a Canara HSBC Term Insurance Policy

The documents required for a Canara HSBC term insurance are pretty standard. You can check out our blog on documents required for term insurance for more details, or take a look at this infographic:

How to Buy a Canara HSBC Term Insurance Policy?

1. Compare Plans: Start by reviewing the available term plans online or with the help of an advisor. Check the coverage options, features, riders, and premiums to see which plan suits your needs.

2. Choose Your Cover and Policy Term: Decide the sum assured, policy term, and premium payment mode. You can also select any riders you want to add for extra protection.

3. Fill out the Proposal Form: Complete the application form with personal, health, and lifestyle details. This information helps the insurer assess your risk profile.

4. Submit Documents: Upload or provide your KYC documents, proof of income, and any additional paperwork requested by the insurer.

5. Complete the Medical Test: Depending on your age and chosen cover, you may be asked to undergo a medical examination. The insurer arranges this through an approved medical partner.

6. Await Underwriting Approval: Once your medicals and documents are reviewed, the insurer makes a final decision. If approved, your policy is issued and shared with you digitally.

Note: The approval for a Canara HSBC term insurance application typically takes 3–7 working days and may extend to 7–10 days if additional medical checks or documents are required.

How to File a Canara HSBC Term Insurance Claim?

The process to file a claim for a Canara HSBC term insurance is the same as that for any other term plan. Check out this infographic to get a clear understanding:

Why Choose Ditto for Your Term Insurance?

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Ditto’s Take on HSBC Life Term Insurance

Canara HSBC operates on a smaller scale than larger insurers like HDFC Life or ICICI Prudential, which may matter if you prefer a wider service footprint. Since it is not one of our partner insurers, we cannot comment on post-sales support or claim-assistance quality.

From a product POV, the absence of a critical illness rider is a noticeable gap, but the term portfolio is otherwise well-rounded with cover up to age 99, increasing cover options, spouse protection, child-focused add-ons, and the convenience of bank-assisted servicing through Canara Bank, PNB, and HSBC branches.

Want to compare Canara HSBC with other insurers for your profile? Chat with our advisors and get clear guidance. Book a call now.