Canara HSBC OBC Life Smart Lifelong Plan

This is a Unit Linked Plan which runs till the insured reaches 99 years of age.

Premiums under the plan can be paid either for a limited duration or for the entire tenure of the plan.

The Auto Funds Rebalancing Option under the plan ensures that the policyholder’s investment strategies remain constant.

The plan has five funds to choose from according to the policyholder’s investment strategy.

Loyalty Additions payable under the plan help to boost the Fund Value.

Switching between the different funds is allowed provided that the minimum amount of a switch is Rs.10, 000. The first 6 switches in a policy year are free of cost after which a charge of Rs.250 per switch would be applicable. This charge can be increased subject to a maximum of Rs.500.

Future premiums can be redirected to be invested in another fund once in one policy year. Subsequent premiums would then be invested as per the revised redirected allocation. Premium Redirections can be done only from the 2nd policy year.

The policyholder can increase or decrease the chosen Sum Assured after the completion of the first 5 years of the plan. Only one increment or decrement per policy year is allowed and a maximum of 3 alterations can be done in a chosen policy term.

On maturity, the Fund Value including the Loyalty Addition would be paid to the policyholder.

If the insured dies when the plan is in-force, higher of the following is paid as death benefit:

• Sum Assured or
• Fund Value as on the date of death or
• 105% of the total premiums paid till death.
  If the insured dies before attaining 60 years of age, the Sum Assured would be reduced by the amount of partial withdrawals made in the two years immediately preceding death
  If the insured dies after crossing 60 years of age, the Sum Assured would be reduced by the amount of partial withdrawals made from the Fund Value in the two years before attaining 60 years and all withdrawals made after attaining 60 years.

The plan is eligible for Loyalty Additions which are added twice during the plan tenure if the due premiums have been paid. The first Loyalty Addition accrues at the end of the 10th policy year @1.25% of the average Fund Value over the last 36 months. The other addition accrues at the end of 15th policy year at the same rate, i.e. 1.25% of the average Fund Value over the last 36 months.

Being a ULIP plan, bonus is not declared.

Loan is not available under the plan.

Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.

There are no riders under this plan.

First four partial withdrawals are allowed free of cost in the plan after a completion of 5 policy years if the insured is above 18 years of age. Any exceeding withdrawal would attract a charge of Rs.250 per withdrawal. This charge can be increased up to a maximum of Rs.500 per withdrawals. The minimum amount of partial withdrawal is Rs.10, 000 and the maximum allowed withdrawal amount is such that the Fund Value after withdrawal should not be less than 120% of one annual premium.

A grace period of 30 days is allowed for annual, half-yearly and quarterly payment of premium and 15 days for monthly mode of premium payment.

A cooling off period or a free look period of 15 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid