Canara HSBC iNVESTSHIELD Plan is a non-participating, unit-linked endowment life insurance plan. This policy can be bought directly via Canara HSBC’s online portal. Policyholders can customize the plan as per their requirements as it comes with 3 options:
- Life Option
- Life Option with ADB
- Life Option with PFB
Canara HSBC iNVESTSHIELD Plan offers a wide choice of Investment Funds to match the investment appetite of the policyholder. You can also conveniently move around your funds with the Safety Switch Option in the last 4 policy years.
The iNVESTSHIELD Plan boasts of additional features like allocation of units as Loyalty Additions, partial withdrawal of liquidity to help in unforeseen emergency situations, and no Premium Allocation Charge during the entire premium paying term.
Eligibility - Who is the Canara HSBC iNVESTSHIELD Plan for?
|Minimum entry age
|Maximum entry age
|Minimum maturity age
|Maximum maturity age
Sum Assured and Premium Range - What you get and what it costs?
- Single PPT:
- Minimum: 1.25 x Single Premium
- Maximum: 10 x Single Premium (till age 37 years only)
- Limited and Regular PPT: 10 x Annual Premium
- Single Pay: 10 years
- Limited and Regular Pay: 10 to 15 years
|Premium Payment Terms
- Single Pay
- Limited Pay: 5 years to Policy Term
- Regular Pay: Same as Policy Term
- Single Pay:
- Minimum: Rs.50,000 (not available with Life Option with PFB)
- Maximum: No limit
- Minimum: Rs.3,000 p.m.
- Maximum: No limit
- Minimum: Rs.25,000 p.a.
- Maximum: No limit
Plan Coverage - What does the Canara HSBC iNVESTSHIELD Plan covers?
This is how Canara HSBC iNVESTSHIELD Plan works:
- Death benefit: In the event of death or disability of the policyholder, the assured benefit payable on death depends on the policy option chosen. Death benefit under the 3 policy options will be:
- If the Life Assured is below 60 years in age, then the higher of
- 16 x Sum Assured minus partial withdrawals made in the last 2 years.
- Fund Value.
- 105% of total paid-up Premiums or SP (Single Premium) paid
- If the Life Assured is 60 years or more in age, then the higher of
- Sum Assured minus any partial withdrawals made after reaching the age of 58 years.
- Fund Value.
- 105% of total paid-up Premiums or SP paid.
|Life Option with ADB
||Policyholder get twin benefits with this option:
- Death benefit as under 'Life Option'.
- Sum Assured under Accidental Death Benefit (ADB), equal to the Policy Sum Assured, payable in event of death of the policyholder because of an accident.
|Life Option with PFB
||Death benefit is the higher of the following, payable as a lump sum:
- Sum Assured.
- 105% of all paid-up premiums till death.
- All due premiums in the future funded by Canara HSBC.
- Fund Value paid on maturity.
- Maturity benefit: Upon reaching policy maturity, you will receive the fund value.
- Premium funding benefit: In the case of the demise or total permanent disability of the life assured during the policy term, the future premiums will be paid by the company, and the beneficiary will receive fund value upon policy maturity.
- Switching funds: You have the option to switch funds any number of times during the policy term to have complete control over your investment. The minimum amount that can be switched is Rs.10,000.
- Premium redirection: You have the option to reallocate future premiums once in a policy year.
- Loyalty Addition: The plan provides for loyalty additions depending on policy term chosen by the policyholder. Loyalty additions added as extra units allocated to the policyholder’s Fund, provided that all Premiums have been paid till date. Loyalty additions for different premium payment options are payable as follows:
||Frequency of LA
||At the end of Policy Year
Regular and Limited
||Less than 15 years
Equal to 15 years
- Partial withdrawal: From the 6th policy year, partial withdrawal can be made to meet any financial emergency. The minimum withdrawal amount in Rs.10,000 and the maximum amount should be such that the fund value doesn't fall below 120% of the annual premium.
- Fund options: You can choose from 5 fund options to for your one-time investment:
|Equity II Fund
||Long-term capital appreciation by investing in diversified equities.
||Equity - 60-100%, Debt Securities - 0%, and Money Market - 0-40%
|Growth Plus Fund
||Capital appreciation by investing majorly in equities with limited investment in fixed income securities.
||Equity - 50-90%, Debt Securities - 10-50%, and Money Market - 0-40%
||Medium to high
|Balanced Plus Fund
||Capital appreciation and current income through a mix of investments in equities and fixed income securities.
||Equity - 30-70%, Debt Securities - 30-70%, and Money Market - 0-40%
|Debt Plus Fund
||Regular income by investing in high-quality debt securities.
||Equity - 0%, Debt Securities - 60-100%, and Money Market - 0-40%
||Low to medium
||Reasonable returns, low risk, and a high liquidity.
||Equity - 0%, Debt Securities - 0-60%, and Money Market - 40-100%
- Safety switch option: As Canara HSBC iNVESTSHIELD Policy comes with a Safety Switch Option that allows you to transfer your funds to a relatively lower risk Liquid Fund systematically. This option can be availed at the beginning of each of the last 4 policy years. The proportion of investment in Liquid Fund and other Unit Linked Funds in the last 4 Years are:
|Beginning of Policy Year
||In Liquid Fund
||In Other Unit Linked Funds
|Fourth last Policy Year
|Third last Policy Year
|Second last Policy Year
|Last Policy Year
- Auto fund rebalancing: After every 3 months, the auto fund rebalancing option automatically rebalances the allocation of your investments in various funds as opted by you.
- Settlement option: You can opt to receive the maturity benefit in installments over a period of 5 years.
Charges on Canara HSBC iNVESTSHIELD Plan
The various charges applicable for the iNVESTSHIELD Plan are:
- Fund management charge is 1.35% p.a. Policy administration charge is 0.05% (per month) of the annualised premium.
- Mortality charge will be deducted at the beginning of each policy month by cancellation of units.
- Discontinuance Charge is levied on the fund value upon the surrender or discontinuance of the policy.
- Switching charge is Rs.250 per switch after the first 6 free switches.
- Partial withdrawal charge is Rs.250 per request after the first 4 free withdrawals.
- Mortality charges are levied on a monthly basis based on the age of the life assured and the sum at risk.
- Premium allocation charge is deducted upfront with reducing premiums.
Exclusions - What the Canara HSBC iNVESTSHIELD Plan doesn’t cover?
- Suicide Exclusion: In case of the policyholder dies as a direct result of a suicide attempt within a year of the policy commencement date, whether in a sane or an insane state of mind at the time, the nominee under the said policy will get a sum equal to fund value on the date of death of the policyholder. The policy itself is voided and all other policy benefits cease to exist.
- Exclusions for Accidental Death Benefit: No death benefit is payable if death results as a direct or indirect consequence of the following:
- Any injury that occurred before the date of risk commencement in the policy.
- Partial or whole disability caused directly or indirectly by AIDS (Acquired ImmunoDeficiency Syndrome) or HIV (Human Immunodeficiency Virus) infection.
- Taking part in hazardous sport or leisure activities like hunting, racing, mountaineering, bungee jumping, any subterranean or underwater activity, etc.
- While flying in an aircraft, other than as a fare paying passenger, of an airline licensed to fly the said route.
- Self-inflicted injury or attempted suicide.
- Under influence of drugs, narcotics, alcohol, or psychotropic meds not prescribed by a medical practitioner.
- Service in military, naval air force, or paramilitary body.
- War, terrorism, civil commotion, invasion, hostilities (whether declared or undeclared).
- Taking part in any strike, riot, industrial dispute, etc.
- Taking part in illegal activity with criminal intent or breaching law including involvement in a fight.
- Nuclear, chemical or biological contamination or radiation.
- Any mental infirmity or physical handicap.
Other Key Features - Freelook Period, Surrender Values, Grace Period etc.
- Freelook period: From the date of receipt of the policy document, you are given 30 days to review the terms and conditions of the policy. If you have any objection to the terms and conditions, you have the option to return the policy. A refund of all premiums paid without interest after deducting proportionate risk premium for the period on cover, Stamp duty charges, and medical examination costs. For policies purchased through distance marketing, the free-look period is 30 days.
- Grace period: You will be given a grace period of 15 days for the monthly payment mode and 30 days for the other modes to pay your premium during which the policy benefits and life cover will be active. If you fail to pay the premium within the grace period, then your policy will lapse.
- Revival: You can revive the policy within 2 years from the date of first unpaid premium. Pay all due premiums till date, provide proof of insurability to revive the policy and submit a written request for reinstatement.
- Surrender Value: If the policy is surrendered within the first 5 policy years, the surrender value which is the fund value minus surrender charges, will be transferred to the Discontinued Policy Fund. It will earn a minimum interest rate of 4%. If the Policy is surrendered after completion of 5 Policy Year, the Fund Value will be paid immediately. On such payment your risk cover will cease and the Policy will terminate and cannot be revived thereafter.
Tax Benefits - How you can save with the Canara HSBC iNVESTSHIELD Plan?
You can get tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961 on premiums paid and maturity proceeds, respectively.
Other Benefits - How you can save more with the Canara HSBC iNVESTSHIELD Plan?
There are several other benefits of purchasing ULIPs from Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited such as:
- Buy online: The company offers online term plans and ULIPs that can be bought and renewed online through the company website.
- Immediate Payout on Death Claim Registration: Canara HSBC Life was the first life insurance company to pay fund value immediately on registering death claim even before the formalities are completed.
- Customer care: The company has a dedicated customer care centre (Resolution Centre) to cater to the needs of its customers across India in 10 different languages.
- Premium calculator: With the online premium calculator, you can find out how much premium you need to pay for your chosen plan. The company website has other tools to help you calculate how much life cover you require.
- Grievance redressal: The company has a dedicated grievance redressal cell to resolve the complaints and queries of its customers within 15 days.
Why you should buy the iNVESTSHIELD Plan from Canara HSBC Life Insurance?
Canara HSBC Oriental Bank of Commerce Life Insurance Smart Future Plan gives you the opportunity to build your wealth in order to ensure a bright future for your child. With experience and expertise in the insurance market, Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited offers an array of insurance products from ULIPs to protection plans.
The company has tied up with 3 rural banks in an effort to offer affordable insurance products to meet the needs of its rural customers. It is one of the fastest growing life insurance companies in India with its excellent investment strategy and consistent fund performance. As of 31 January 2016, the company's total capital is Rs.950 crore. The Claims Settlement Ratio of the company in FY 2015-16 was 93%.