Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. has unveiled a new unit-linked insurance plan (ULIP) to take care of your child’s future.
Ltd. has unveiled a new unit-linked insurance plan (ULIP) to take care of your child’s future.
The ULIP is called the Future Smart plan and it provides a long-term investment opportunity. The policyholder can choose from multiple options and features of choosing a policy term that matures when their child is ready for marriage or higher studies. It also provides an option that allows withdrawal of 15% of the fund value in the last 5 years and the remaining on maturity. In an unfortunate incident resulting in the death of the parent, the sum assured is paid to take care of the child’s expenses, future premiums are paid by the insurer, and the fund value is paid at maturity.
Canara HSBC Oriental Bank of Commerce Life Insurance ULIP
Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. is formed jointly by Canara Bank with a 51% stake, Oriental Bank of Commerce with a 23% stake, and HSBC Insurance Holdings Ltd. owns a 26% stake in the joint venture.
Mario Perez, Director of Sales and Marketing, Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited said, “Our Future Smart Plan ensures that the future financial needs of a child remain undisturbed even in case of an unfortunate event”.
The Future Smart Plan ULIP has various options that allow customization. Policyholders can choose from 5 investment fund options depending on their risk appetite. These options allow equity exposure ranging from 0% to 100%. The policy can be taken by individuals aged between 18 – 60 years, provided their child to be covered is less than 18 years of age. The four policy terms available are 10 years, 15 years, 20 years, and 25 years provided that the age of the parent on maturity does not exceed 70 years. The premium has to be paid annually.
Tax benefits can be availed by policyholders under section 80C and 10(10D) of the Income Tax Act, 1961.
