Canara HSBC OBC Life Insurance Insure Smart Plan
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.
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 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.
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.
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.
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 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.
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.
How it works
- 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.
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
|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|
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
If the plan is surrendered any time after the completion of 5 years, the available Fund Value would be paid.
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.
- If the policyholder commits suicide anytime during the plan tenure, the available Fund Value would be paid to the nominee.