• Canara HSBC Future Smart Plan

    Life Insurance
    • Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
    • Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
    • Do more with plans that offer pure protection, retirement planning and investment options

    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.

    Eligibility - Who is the Canara HSBC Future Smart Plan for?

    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:

    Parameters Eligibility
    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:
    • 10,15, and 20 years term - 10 x annual premium
    • 25 years term - 12.5 x annual premium
    For 45 years of age and above:
    • 7 x annual premium
    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.

    Sum Assured and Premium Range- What You Get and What It Costs

    • Sum assured –Under the Canara HSBC Future Smart Plan, the policyholder is provided with the flexibility to choose the sum assured based on the policy term and the age of the life insured. The policyholder is allowed to increase or decrease the sum assured after the end of the 5th policy year. Throughout the policy term, the option to change the sum assured is available once every year (subject to a maximum of three times in the policy term). The changes to the sum assured doesn’t impact the annual premium amount.
    • Premium –This policy can be purchased for a minimum premium of Rs.25,000 and there is no limit on the maximum contribution. With a minimum premium payment term of 10 years and a maximum term of 25 years, the policyholder can modify the allocation of future premiums once in a policy year. If the policyholder chooses to pay the renewal premiums through ECS/standing instructions, further discounts on premium allocation charge can be availed.If the policyholder has opted for premium funding benefit for disability, all future premiums will be paid by the insurer in the event of policyholder’s total and permanent disability.

    Plan Coverage- What the Canara HSBC Future Smart Plan covers

    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:
    • Option 1: Death only
    • Option 2: Death or Total and Permanent Disability (TPD)

    Riders / Add-On Plans – Additional coverage under the Canara HSBC Future Smart Plan

    There is no add-on or rider available for Canara HSBC Future Smart Plan.

    Exclusions - What the Canara HSBC Future Smart Plan doesn’t cover

    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.

    Other Key Features – Free-look Period, Surrender Values, Grace Period etc.

    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:
    • Equity II Fund
    • Growth Plus Fund
    • Balanced Plus Fund
    • Debt Plus Fund
    • Liquid Fund
    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.

    Tax benefits – How you can save with the Canara HSBC Future Smart Plan

     

    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.

    Other benefits – How you can save with the Canara HSBC Future Smart Plan

    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:

    • Policy information - The customers can obtain any policy related information from Canara HSBC Oriental Bank of Commerce Life Insurance Company through a wide range of communication channels such as toll-free number, e-mail, website, and outlets across India.
    • Policy notifications - The insurer sends important policy notification through email, text SMS to keep the customers updated about the upcoming premium due date, policy renewal date, etc.

    Why you should buy the Canara HSBC Future Smart Plan from Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited

    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.

    *The customer reviews/feedback/opinions expressed on this website are solely of their authors and do not reflect, in any way, the view of BankBazaar Insurance.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.