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Canara HSBC Grow Smart Plan

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Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan

Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan is a Whole Life Unit Linked Insurance Plan (ULIP) with Limited Pay option. Thus, it is a Non-Traditional Insurance Plan without Bonus Facility.
 
How it works – In this plan, premium needs to be paid for a minimum period of 10 years. Premium can also be paid for as long as the policyholder chooses to pay. The policy however continues for the rest of his life. The Sum Assured can be increased or decreased after the 6th Policy Year onwards.
 
There is Loyalty Additions 1% of the Fund Value added by way of additional allocation of units at the end of 15 policy years.
 
Being a Whole Life Plan, there is no Maturity Benefit. Thus, whenever the Life Insured dies, the higher of the Sum Assured or the Fund Value would be paid to the nominee as the Death Benefit and the policy would be terminated. The Policy Tenure is till 99 years of the Life Insured’s age.

There are 5 funds for investment in this plan.
 

Key Features of Canara HSBC Oriental Bank of Commerce Grow Smart Insuance Plan

  • This is a Unit Linked Insurance Whole Life Plan
  • There is no Maturity Benefit in this plan
  • There are 5 funds for investment in this plan
  • In case of death of the Life Insured, higher of the Sum Assured and the Fund Value is paid as the Death Benefit
  • There is Loyalty addition of 1% of the Fund Value at the end of 15 policy years
  • There is an option to increase or decrease the sum assured from the 6th policy year onwards.


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Benefits you get from Canara HSBC Oriental Bank of Commerce Grow Smart Policy

Death Benefit – In the unfortunate event of the death of the Life Insured,
  • Before the age of 60 years, the nominee would receive the higher of
    • Sum Assured less withdrawals in the preceding two years, or
    • Fund value, or
    • 105% of all premiums paid less withdrawals in the preceding two years
  • At 60 years of age or above, the nominee would receive the higher of
    • Sum Assured less withdrawals after attaining 58 years of age, or
    • Fund Value, or
    • 105% of all premiums paid less withdrawals post attaining 58 years of age
 
Maturity Benefit – Being a pure Whole Life Plan, there is no Maturity Benefit in this plan.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C. The Maturity Proceeds are also tax free under section 10(10)D under the mentioned clauses.
 

Eligibility conditions and other restrictions in Canara HSBC Oriental Bank of Commerce Grow Smart Insurance Policy

 
 
Minimum
Maximum
Sum Assured (in Rs.)
For ages < 45, SA=0.5 X T X AP
( T= 70 – Age at Entry)
For ages 45 & above, SA=7 X AP
No Limit
Policy Term (in years)
Whole Life
Premium Payment Term (in years)
10
99 – Age at Entry
Entry Age of Life Insured (in years)
7
65
Age at Maturity (in years)
-
99
Annual Premium (in Rs.)
25,000
No Limit
Payment modes
Only Yearly
 
 


Sample illustration of returns at the end of 99 years in Canara HSBC Grow Smart Plan

This is an Illustration of Healthy Male of Ages 30, 35 and 40 years with Premium = Rs. 1,00,000 opting for Sum Assured = Rs 20,00,000 with 100% in Equity II Fund and a Premium Paying Term of 25 years. Thus, the Total Investment = Rs 1,00,000 X 25 years = Rs 25,00,000 

Canara HSBC Grow Smart Plan Sample Returns

 

Additional Features and Benefits of Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan

Riders - There are no Additional Riders available in this plan
 
Investment Fund Options
There are 5 Investment Funds available
  1. Equity II Fund
  2. Growth Plus Fund
  3. Balanced Plus Fund
  4. Debt Plus Fund
  5. Liquid Fund
 
Switching - The minimum amount that you can switch is Rs 10,000. The first 6 switches in a policy year are free post which there is a charge of Rs 250 per switch.
 
Partial Withdrawal - Partial withdrawals are allowed only after completion of 5 policy years or after completion of 18 years of the Life Insured. The minimum partial withdrawal is Rs 10,000 subject to at least 120% of the First Year’s Premium should remain in the Fund Value post withdrawal.
The first four partial withdrawals in any given policy year will be free of charges. Subsequent withdrawal will attract charges of Rs 250 per withdrawal.
 
 

Charges in Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan

Premium Allocation Charge – This charge is deducted from the Premium Paid by you

 

Policy Year
Premium Allocation Charge
1st
8.4% of Annual Premium Paid
2nd and 3rd
6.4% of Annual Premium Paid
4th to 10th
5.4% of Annual Premium Paid
11th onwards
NIL
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted on a monthly basis. There will be an absolute cap of Rs 416.67 per month on the policy administration charge.

 

Policy Year
Premium Allocation Charge
1st to 5th
0.05% of Annual Premium per month
6th onwards
The PAC will increase by 20% every 5 years
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

 

Type
Charge
Equity II Fund Management Charge
1.35% p.a. of the Equity II Fund Value
Growth Plus Fund Management Charge
1.35% p.a. of the Growth Plus Fund Value
Balanced Plus Fund Management Charge
1.35% p.a. of the Balanced Plus Fund Value
Debt Plus Fund Management Charge
1.35% p.a. of the Debt Plus Fund Value
Liquid Fund Management Charge
0.8% p.a. of the Liquid Fund Value
Discontinued Fund Management Charge
0.5% p.a. of the Discontinued Fund Value
 
 
Surrender Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 
 

What happens if?

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to the savings account rate of State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee.
The policy can be revived as well but within a period of 2 years from the Date of Discontinuance of the Policy or before completion of the Lock-in period of 5 policy years, whichever is earlier.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to the savings account rate of State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 

You want a loan against your policy - There is no loan available under this plan.




 

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