Canara HSBC Smart One Pay Plan is a unit-linked, non-participating endowment insurance plan helps people maximise their wealth by investing in profit-making investment options and also offers life cover. This plan is ideal for those who wish to increase their wealth and stay covered meanwhile.
This single premium plan helps you fulfill your financial goals and keep your family protected in your absence. The policyholders will get an option to choose from 5 fund options and can switch multiple times within these fund options.
Please note that under the Canara HSBC Smart One Pay Plan, the risk involved in investing will be borne by the insured person/policyholder. During the first five years, the policyholder will not be allowed to surrender or withdraw the monies either completely or partially. Also, during the first years, none of the linked insurance products will offer any liquidity. After the first five years, policyholders will be allowed to make partial withdrawals.
To buy the Canara HSBC Smart One Pay Plan, one has to meet the eligibility criteria set by the insurer.
|Plan Type||Unit-linked, non-participating endowment insurance plan|
|Minimum Entry Age||7 years|
|Maximum Entry Age||70 years|
|Maturity Age||80 years|
|Minimum Policy Year||5 years|
|Maximum Policy Year||25 years|
Sum Assured – It is the amount that is received by the insured person at the time of maturity. In case the insured individual encounters death and the Canara HSBC Smart One Pay Plan is still active, the sum assured is received by the legal heir or a nominee assigned by the insured.
|Minimum Sum Assured||1.25 x single premium|
|Maximum Sum Assured||The maximum sum assured under this plan depends on the the age of the insured and the policy term. The maximum sum assured will be 10 x single premium.|
|Minimum Annual Premium||Rs.1,00,000|
|Maximum Annual Premium||There is no limit on the maximum annual premium. However, it is subject to underwriting.|
|Premium Payment Term||Single premium|
|Death Benefit||In case of the unfortunate death of the insured within the policy term, a death benefit is payable.
The death benefit payable to the nominee will be higher of:
|Maturity Benefit||Under the Canara HSBC Smart One Pay Plan, if the policyholder survives till the end of the policy term, a maturity benefit will become payable. The maturity benefit will be the fund value. The fund value will be decided based on the then prevailing NAVs.|
|Loyalty Additions||From the 61st policy month, policyholders under this plan are eligible to receive a percentage of the fund value as loyalty additions. These additions will be credited at the end of every policy month. The loyalty additions will be given as per the table below:
|Investment Options Available||The policyholder can choose from anyone of the following 5 fund options. They can choose to invest anywhere between 0% to 100%.
Currently, the insurer does not offer any add-on plans with Canara HSBC Smart One Pay Plan. However, they may allow policyholders attach riders to this plan in the future. Please check with your insurer from time to time for the riders available.
Suicide Exclusion – In case the insured person commits suicide within a period of one year from the commencement date of the policy, whether insane or sane, the nominee will be eligible to receive the fund value as on the date of the death of the insured.
Other Key Features
|Auto Funds Rebalancing||Under this Canara HSBC Smart One Pay Plan, the policyholder can choose to allocate the funds in a pre agreed proportion across the 5 fund options available. Once the policyholder chooses this option, once in every 3 months, the funds will automatically rebalance and reallocate between other investment options according to the proportion chosen by the insured.|
|Safety Switch Option||One big fear among people who choose life insurance cover with investment option is the risk of investment in the last few years. What if the funds do not perform well and they suffer loss? To eliminate this issue, Canara HSBC Smart One Pay Plan comes with safety switch option.
Under the safety switch option, you will be allowed to transfer your funds to a low risk fund option in the last 4 years of the policy to avoid major fluctuations. The following table explains the last four years investment type under the safety switch option:
|Partial Withdrawals||Starting from the sixth policy year, policyholders will be allowed to make partial withdrawals. The minimum withdrawal one can make under this plan is Rs.10,000 and the maximum partial withdrawal will be decided based on the factor that the fund value after the partial withdrawal is at least equal to 25% of the single premium paid during the inception of the policy.|
|Fund Switching Option||Under the Canara HSBC Smart One Pay Plan, policyholders can switch the total investment or a part of it to another fund option at anytime and for any number of times during the term of the policy without any additional charge. The minimum amount that can be switched between funds is Rs.10,000.|
|Change in Sum Assured||After the 6th policy year, policyholders will have an option either increase or decrease the sum assured amount. Please note that this option is available once in every policy year and a maximum of 3 times is allowed throughout the term of the policy.|
|Settlement Option||Any time before the last 3 months of the policy term, the policyholder can choose settlement option. If the policyholder chooses settlement option, then the money payable will be paid in installments in regular intervals for the next 5 years as chosen by the policyholder. During the settlement period, life cover will cease to exists.|
|Surrender Value||At any time during the term of the policy, a policyholder can go ahead and surrender the policy. In this case, the surrender value payable will be the fund value. If the policyholder has surrendered the policy within the first 5 years from the date of commencement of the policy, the surrender value will be transferred to a discontinued policy fund and the proceeds from it will be paid to the insured person after completing 5 policy years if no death claim is made. On the other hand, if the policyholder surrenders the policy after completing 5 policy years, the the fund value will be paid immediately and the plan will be terminated immediately.|
|Charges under this plan||
|Free-look Period||After buying the Canara HSBC Smart One Pay Plan, the policyholder will get 15 days to return the policy back to the insurer if they do not agree to the terms and conditions of the policy.|
|Nomination||Nomination can be made under this policy as per Section 39 of of The Insurance Act 1938.|
|Assignment||Assignment is allowed under Section 38 of The Insurance Act 1938|
|Auto Termination||After the free-look period, anytime during the policy term, if the available fund value is less to deduct the charges or becomes zero, then the policy will be terminated automatically. If there is any remaining fund value as on the termination date, such amount will be paid to the insured.|
Under this plan, tax benefits are available under Section 80C and Section 10(10D) of The Income Tax Act, 1961.
Established in the year 2008, Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited is one of the leading insurance providers in India. They offer a wide range of insurance products at affordable prices. It is a jointly owned by the most reputed financial institutions ins the country, namely Canara Bank, Oriental Bank of Commerce, and HSBC Insurance Holdings Limited. With all three prestigious institutions joining hands, they surely offer excellent service and uniquely designed insurance products.