Canara HSBC OBC Life Insurance Secure Smart Plan – Details
- Archana Singh
- Jan 3, 2017
- 3 min read
The Canara HSBC Oriental Bank of Commerce Life Insurance Secure Smart Plan is one that provisions assured benefits so as to ensure that the policy holder’s life is full of ‘wonderful memories and no compromises’.
It is, essentially, an Endowment Plan with Limited Pay Option and assured Maturity Benefit. All in all, it is a Traditional Insurance Plan without a Bonus Facility and there are no additional riders available in this policy. If one avails this plan, the premium needs to be paid for 10 years while the policy continues for the entire period of 15 years. (The Minimum and the Maximum term of the policy is 15 years, but the Minimum and Maximum of the Premium Payment term is that of 10 years.)
With this plan, there is Sum Assured Additions every time the premium is paid. Sum Assured Additions shall be bench marked to 5 Year Constant G-Sec Yield that was published by CRISIL and it is only a percentage of the Sum Assured. On survival till the end of the term of the policy, the Sum Assured as well as the Sum Assured Additions (depending on the 5-year benchmark yield published by CRISIL) accumulated during the premium payment term is remunerated to the policy holder as Maturity Benefit and the policy expires. Remember, that the minimum Entry Age of the policy holder is 18 and the maximum is that of 60.
In case the policy holder/life insured dies within the term of the policy, the Sum Assured (subject to minimum of 10 times annualized premium) + Sum Assured Additions accumulated is remunerated to the beneficiary or the beneficiaries as Death Benefit and the policy expires.
The principal Features of Canara HSBC Oriental Bank of Commerce Secure Smart Insurance Plan are -
First and Foremost, Secure Smart Insurance Plan is a Non Participating Endowment Plan.
The policy tenure is that of 15 years, but the premiums are to be paid for the first 10 years only.
In this policy, the life insured is entitled to receive Sum Assured Additions every time he/she pays a part of the premium.
Sum Assured Additions is a small percentage of the Sum Assured.
Sum Assured + accumulated Sum Assured additions is remunerated only on Maturity or in case of an early death of the life insured.
The first Sum Assured Addition would be accumulated at the beginning of the term of the policy and following additions would accumulate with each premium payment by the life insured.
Upon maturity, there is an assurance of the Sum Assured in this plan.
This plan warrants a Woman Discount for female policy holders of 3 years age setback in premium rates.
If the life insured opt for Annual and Semi Annual modes of payment, there is a modal discount available.
Benefits of the Canara HSBC OBC Life Insurance’s Secure Smart Insurance Plan –
1. Death Benefit – If the Life Insured dies within the policy tenure, the Sum Assured (subject to minimum of 10 times annualized premium) + Sum Assured Additions accumulated would be remunerated to the beneficiaries as Death Benefit and the policy ceases to exist.
In case of Suicide:
a) If the life insured commits within one year from the risk commencement date, the premium paid till then will be refunded, if he/she has paid last due premium.
b) If the life insured commit suicide within one year from the revival date, the entire premium paid for the revival would be refunded. Additionally, if the policy had acquired a paid up value prior to revival, the paid up benefits before the revival would also be remunerated.
2. Maturity Benefit – If the life insured survives till the maturity of the policy, Sum Assured, plus Sum Assured Additions (depending on the 5-year benchmark yield published by CRISIL) accumulated during the premium payment term is paid to him/her as Maturity Benefit.
3. Income Tax Benefit – If the Life Insurance premiums is paid up to INR 1,00,000, that amount is allowed a certain deduction from the taxable income each year under section 80C.
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