Canara HSBC Grow Smart Plan
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
Benefits
- 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
Being a pure Whole Life Plan, there is no Maturity Benefit in this plan.
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.
- Equity II Fund
- Growth Plus Fund
- Balanced Plus Fund
- Debt Plus Fund
- Liquid Fund
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.
Variants
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 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
|
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
|
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
|
Eligibility
|
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
|
FAQs
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.
There is no loan available under this plan.