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Canara HSBC OBC Life Insurance Insure Smart Plan

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Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan Review

Canara HSBC OBC Life Insurance Insure Smart Plan is a Unit Linked Insurance Plan which combines the benefits of high returns along with life insurance protection under the same umbrella. Thus, the plan enables an individual to build wealth for future requirements and also avail insurance coverage.


Highlights of the Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan

  • This is a Unit Linked Plan where premiums are payable only for a fixed limited period while the plan continues till the fixed term.
  • The plan has five funds to choose from according to the policyholder’s investment strategy.
  • Loyalty Additions payable on maturity increase the Fund Value.


Working of the Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan

  • The policyholder decides on the amount of annual premium he wants to pay, the life cover and the investment fund.
  • There are five available finds for investment which are as follows:
    • Equity II Fund
    • Growth Plus Fund
    • Balanced Plus Fund
    • Debt Plus Fund
    • Liquid Fund
  • The premium paid, net of the applicable allocation charge is invested in the above funds based on the policyholder’s investment strategy.
  • If the policyholder dies during the tenure of the plan the death benefit is paid.
  • If the plan attains maturity, the maturity benefit is paid.


COMPARE THIS PLAN WITH OTHER ULIP PLANS


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

  • Maturity Benefit – On maturity, the Fund Value including the Loyalty Addition would be paid to the policyholder. 
  • Death Benefit – If the insured dies when the plan is in-force, higher of the chosen Sum Assured or Fund Value as on the date of death is paid subject to a minimum death benefit of 105% of the single premium 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.
  • Loyalty Additions – The plan is eligible for Loyalty Additions which are added on plan maturity. 1% of the total Fund Value at maturity would be added as Loyalty Additions under the plan.
  • Bonus – Being a ULIP plan, bonus is not declared.
  • Loan –Loan is not available under the plan.
  • Tax benefit – 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.


Eligibility Criteria of Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
  Minimum Maximum
Entry age (Last Birthday) 8 years 70 years
Maturity Age (Last Birthday) 18 years 80 years
Plan tenure 10 years
Premium payable Rs.50,000 No limit
Premium Paying Term 5 years
Sum Assured Ages below 45 years – 10 times the annual premium
Ages 45 years and above – 7 times the annual premium
35 times the annual premium



Applicable charges in Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan

Being a ULIP plan, there are certain charges applicable. The charges include the following:
  • Premium Allocation Charge – This charge is deducted on receipt of the annual premium before the premium is credited into the fund. There is a discount in the charges levied if premiums are paid through ECS or SI mode. The charges are as follows:
Policy year Premium Allocation Charge Premium Allocation Charge in case of ECS or SI mode of payment
1 8.40% 8.25%
2 and 3 6.40% 6.30%
4 and 5 5.40% 5.30%
6 onwards Nil Nil
 
  • Policy Administration Charge – A monthly charge is deducted from the fund value at the start of each month every year and is expressed as a percentage of the annual premium. The applicable charges are as follows which can be later increased subject to a maximum of Rs.500:
Policy year Policy Administration Charge
1 to 5 0.50% per month
6 to 10 0.60% per month
 
  • Fund management Charge – These charges depend on the type of fund selected and are charged on a daily basis. The applicable charges are:
Fund Type Charge
Equity II Fund 1.35% per annum
Growth Plus Fund 1.35% per annum
Balanced plus Fund 1.35% per annum
Debt Plus Fund 1.35% per annum
Liquid Fund 0.80% per annum
Discontinued Policy Fund 0.50% per annum
 
  • Discontinuance Charge – Applicable if the plan is surrendered before the lock-in period of 5 years. The charges are:
Year of Discontinuance Charge
1 Lower of 6% of annual premium or Fund Value up to a maximum of Rs.6000
2 Lower of 4% of annual premium or Fund Value up to a maximum of Rs.5000
3 Lower of 3% of annual premium or Fund Value up to a maximum of Rs.4000
4 Lower of 2% of annual premium or Fund Value up to a maximum of Rs.2000
5 year onwards Nil
 
  • Miscellaneous Charge – Any medical examination required for increasing the Sum Assured would entail a miscellaneous charge. This charge would be a maximum of Rs.3000 and the maximum limit can be increased to Rs.5000 as per IRDA’s approval.
  • Mortality charge – This charge is deducted on the first day of each month based on the Sum at Risk, the policyholder’s age and gender.


Additional Benefits of Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan

  • Riders – There are no riders under this plan.
  • Partial Withdrawals – 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.
  • Switching –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.
  • Premium Redirection – 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.
  • Sum Assured Alterations – 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.
  • Grace Period – 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.
  • Free Look Period – 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


Exclusions in Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan

  • If the policyholder commits suicide anytime during the plan tenure, the available Fund Value would be paid to the nominee.


Non-payment of premiums in Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan

Premiums are required to be paid for the stipulated tenure of 5 years. If the premiums are not paid the policy would lapse. The policyholder can revive the lapsed policy by paying the due premiums or surrender the policy and avail the Surrender Value


Surrendering the policy

  • Within the first 5 policy years
The policy has a 5 year lock-in period. If the policy is surrendered within the first 5 years, the funds in the Fund Value would be transferred to the Discontinued Policy Fund net of the applicable charges where it would earn a minimum interest of 4% per annum. The money would remain in the Discontinuance Policy Fund till the completion of 5 years and the Fund Management charges would be deducted as and when applicable. If the policyholder dies during this period, the Fund Value as on the date of death would be paid. Otherwise, after the completion of the lock-in period of 5 years, the available Fund Value would be paid
 
  • After 5 years
If the plan is surrendered any time after the completion of 5 years, the available Fund Value would be paid.


Revival

Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.

 
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