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Canara HSBC OBC Smart Stage Money Back Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

Canara HSBC OBC Smart Stage Money Back Plan

Canara HSBC OBC Smart Stage Money Back Plan is a traditional, participating, money back insurance plan which provides liquidity by providing money back benefits at regular intervals.


Highlights of the Canara HSBC OBC Smart Stage Money Back Plan

  • This is a traditional Money Back Plan having a fixed tenure.
  • Premiums are payable for a limited tenure which is also fixed. 
  • Survival benefits are paid in the 4th, 8th and the 12th policy year.
  • Premium rebates are available for high Sum Assured levels.


Working of the Canara HSBC OBC Smart Stage Money Back Plan

  • The policyholder chooses the Sum Assured and the premium paying frequency based on which the amount of premium would be determined.
  • Premiums are to be paid for a limited tenure of 11 years.
  • Guaranteed Survival benefits accrue from the 4th policy year and are payable after every 4 years.
  • On death during the period, the death benefit is paid.
  • On maturity, the maturity benefit is paid.

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Benefits and Features of Canara HSBC OBC Smart Stage Money Back Plan

  • Maturity Benefit – When the plan matures and the premiums have been duly paid, 55% of the Sum Assured including all annual bonuses added and any Final Bonus would be paid as the Maturity Benefit.
  • Death Benefit – If the insured dies during plan term and the policy is in force, the death benefit payable would be the Death Benefit Sum Assured plus the annual bonuses added during the term, an interim bonus and any Final Bonus if declared. The death benefit payable should be at least 105% of the total premiums paid till death. The Death Benefit Sum Assured is defined as the higher of the following:
    • 10 times the annual premium
    • Sum Assured chosen on plan commencement
  • Survival Benefit – 15% of the Sum Assured is paid as Survival Benefit in the 4th, 8th and the 12th policy year. 
  • Bonus – Annual bonuses are added for every year the premiums are duly paid. Annual bonuses depend on the company’s profits and are expressed as a percentage of the Sum Assured. A Final Bonus may also be declared on maturity or death and is also expressed as a percentage of the Sum Assured. 
  • Loan –Loans are 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 and the Survival benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.


Eligibility Criteria of Canara HSBC OBC Smart Stage Money Back 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 55 years
Maturity Age (Last Birthday) NA 70 years
Plan tenure 15 years
Premium payable Depends on the age and the Sum Assured chosen. No limit
Premium Paying Term (PPT) 11 years
Sum Assured Rs.1 lakh No limit
Premium payment mode Monthly and annually



Additional Benefits of Canara HSBC OBC Smart Stage Money Back Plan

  • Riders – The plan does not have any riders available.
  • Sum Assured Rebate – Discounts are also given in premiums for choosing high Sum Assured levels. The applicable rebates are as follows:
Sum Assured Range Rebate per 1000 Sum Assured
Rs.1.5 lakhs to Rs.199,999 Rs.5
Rs.2 lakhs to Rs.299,999 Rs.7.50
Rs.3 lakhs to Rs.499,999 Rs.10
Rs.5 lakhs to Rs.999,999 Rs.12
Rs.10 lakhs and above Rs.13
 
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for annual mode of premium payment. For monthly mode, the allowed period is 15 days. The life cover under the policy would continue during the grace period.
  • 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


Premium Illustration

The following chart shows the premiums payable at different ages for different Sum Assured levels opted by an individual.



The premium rates are also tabulated hereunder for a quick reference:
Age Sum Assured - Rs.2.5 lakhs Sum Assured - Rs.5 lakhs
30 years 26,150 50,050
40 years 26,748 51,245
50 years 28,375 54,500



Exclusions  in Canara HSBC OBC Smart Stage Money Back Plan

  • If the insured commits suicide within a year of policy issuance, 80% of the premiums paid would be refunded and the policy would become void.
  • If suicide is committed within a year of policy revival, higher of 80% of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force


Non-Payment of premium in Canara HSBC OBC Smart Stage Money Back Plan

Premiums have to be paid for at least 3 years otherwise the policy would lapse and no benefit would be payable. After this compulsory period, the policyholder can surrender the policy or make it paid-up.

Making the policy Paid-up

If at least3 full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The Sum Assured under the plan would be reduced and future bonuses and money backs would not be payable. 

The benefits payable would be reduced and would be as follows:
  • Death Benefit – The death benefit would be calculated as follows:
    Death Benefit Sum Assured *(number of premiums paid/total number of premiums payable) + Accrued bonuses – guaranteed money backs already paid
  • Maturity Benefit – The maturity benefit would be calculated as follows:
    Sum Assured*(number of premiums paid/total number of premiums payable) + Accrued bonuses – guaranteed money backs already paid


Surrendering the policy

Surrender is allowed only after the policy becomes paid-up, i.e. after3 full years’ premiums have been paid. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.
  • GSV = (Basic Premium paid excluding taxes * GSV Factor of premiums) + (accrued bonuses * GSV Factor of bonuses)
  • The SSV factors would be declared by the company based on its performance 

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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