Canara HSBC Future Smart Plan is a unit linked, non-participating life insurance plan that offers a long-term investment opportunity. This plan enables the policyholders to build a bright future for their child, even in their absence. The policyholder is provided with the flexibility to choose the policy term, premium payment term, sum assured, investment funds, and milestone withdrawal in order to suit his/her requirements. If the policyholder survives till the end of the policy term, he/she will be entitled to the fund value that can be used for the child’s future. In the event of policyholder’s unfortunate death during the policy term, the nominee will be provided with the sum assured and all the future premiums will be paid by the insurer until the end of the policy term. The nominee is also entitled to the total fund value at maturity.
The Canara HSBC Future Smart Plan is for individuals who wish to invest in a long-term saving plan that is flexible and offers unit-linked benefits along with a life cover. In order to buy this plan, the applicant needs to meet the following eligibility criteria:
|Minimum age at entry||18 years (the nominee needs to be less than 18 years)|
|Maximum age at entry||60 years|
|Minimum sum assured||For 45 years of age and below:
|Maximum sum assured||No maximum limit (subject to underwriting)|
|Policy term||10, 15, 20, or 25 years|
|Minimum annual premium||Rs.25,000 (Rs.50,000 for policy term of 10 years)|
|Maximum premium||No limit|
|Premium payment term||Minimum - 10 years Maximum - 25 years (or up to term policy)|
The age is based on the last birthday of the customer.
|Death benefit||In the event of policyholder's unfortunate death within the policy term, the child will be entitled to the sum assured. Moreover, all the future premiums will be paid by the insurer for the remaining policy term. In any situation, the death benefit will not be less than 105% of the total premiums paid by the policyholder.|
|Maturity benefit||If the policyholder survives till the end of the policy term, he/she will be entitled to the fund value as the maturity benefit. The policyholder can choose a particular settlement option that allows him/her to receive the money as structured payouts for not more than 5 years.|
|Nomination||The nominee details can be changed anytime during the policy term by contacting Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited.|
|Premium funding benefits||The policyholder will need to choose one of the following Premium Funding Benefit at the inception of the policy which cannot be changed later:
There is no add-on or rider available for Canara HSBC Future Smart Plan.
Suicide exclusion – If the policyholder encounters death due to suicide, no benefit is payable except fund value as on the date of death. The exclusion is applicable for revived policies as well.
|Free look period||The policyholder can cancel/return the policy within 15 days from the date of receipt of the policy document. If the policyholder doesn’t agree with the terms and conditions of the policy, he/she can get in touch with the insurer to cancel the policy and also to get a refund for the premiums paid by him/her. The insurer will refund the money after the deduction of stamp duty, medical test, and other charges, if any.|
|Surrender values||If the policyholder decides to surrender the policy within the first 5 years of the policy term, the surrender value (fund value after deduction of applicable surrender charges) will be moved to the discontinued policy fund and it will continue to earn at least a minimum guaranteed interest rate of 4% till the completion of the 5th policy year. The funds of the discontinuance policy will be paid to the policyholder after completion of the 5th policy year.|
|Revival of the policy||Once the policy has lapsed, the policyholder can choose to revive the policy by paying all the due premium within 2 years from the date of discontinuance of the plan.|
|Investment funds||The policyholder can choose to invest in 5 investment funds. Depending on the risk appetite and financial goals, the policyholder can opt for asset allocations ranging from 0% to100% in any of the fund options. The risk profile ranges from high to low. The following investment fund options are available under this plan:
|Milestone withdrawal||Considering the child's academic milestones, the policyholder can opt for milestone withdrawals ( available for policy term 15, 20 and 25 years) that allow him/her to receive 15% of the fund value in each of the last 5 years. The policyholder will be entitled to the remaining fund value at maturity.|
|Partial withdrawal||If the policyholder requires fund for any unforeseen contingency, he/she take advantage of the partial withdrawal option that is available from the 6th policy year. The policy allows a minimum partial withdrawal of Rs.10,000 and the maximum of a certain amount that doesn't make the fund value fall below 120% of the annual premium after the withdrawal.|
|Fund switching||The policyholder can switch some or all of his/her investments from one fund to another, any number of times provided the minimum amount for switching is Rs.10,000.|
|Premium options||If the policyholder chooses ECS/standing instructions for premium renewal payment, he/she will get discounts on premium allocation charges.|
|Change in sum assured||If all the premiums and dues are paid, the policyholder can increase or decrease the sum assured from the 6th policy year onwards. This option is available once every year (subject to a maximum of 3 times) during the policy term.|
|Auto fund rebalancing||This option helps the policyholder to maintain the investments in preferred proportion across different investment funds without being impacted by market movements.|
|Safety switch option||This option enables the policyholder to move his/her gains to a low-risk fund option in order to protect it from market uncertainties.|
|Settlement option||At the end of the policy term, the policyholder can opt for a settlement option that allows him/her to receive the funds as structured payouts for a maximum period of 5 years. Based on the settlement option, the units will be canceled periodically to carry out the payments.|
The policy offers tax savings through Section 80C and Section 10(10D) of the Income Tax Act,1961. The premiums paid towards the policy allows the investments for tax deductions while the maturity benefits are exempted from tax. The tax benefits are subject to the latest tax rules and regulations that change from time to time. Customers are advised to consult a qualified tax advisor before making any investment plans.
The Canara HSBC Future Smart Plan allows customers to earn more through a long-term plan. While the plan allows the customers to boost their savings, they are also securing their child's future while being protected with a life cover. Additionally, customers can also consider the following benefits to make an effective decision:
Canara HSBC Future Smart Plan offers comprehensive insurance cover that includes sum assured on death and premium funding on death or disability. By taking advantage of this policy, the policyholder can secure his/her child's future even in his/her absence. The plan offers many benefits starting from the life cover, investment fund option, flexible policy term, partial withdrawal to safety switch, milestone withdrawal, and more. Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited is the first Life Insurance Company to launch 'Immediate Payout on Death Claim Registration'. The customer service team can communicate with customers in 10 different languages to ensure customer satisfaction with the highest standard of services. The customers can contact the insurer through telephone, e-mail, website, or a branch to buy this plan.
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