Canara HSBC OBC Life Smart Junior Plan

• Guaranteed payouts for child’s education
• Guaranteed sum assured on maturity
• Enhanced Triple Protection
• Life insurance coverage is available
• Multiple policy term options
• Limited premium payment term
• Bonuses to boost child’s education fund
• High sum assured rebate
• Loan benefit is available
• Avail tax benefits

Death Benefit

In the event of unfortunate death of the life insured during the term of the policy, an immediate lump sum benefit plus Guaranteed Annual Payouts plus Guaranteed Sum Assured on maturity plus Bonuses are payable. Moreover, all future premiums are waived and the policy will continue for the remaining policy term and it will accrue Annual bonuses as well.

The lump sum benefit payable is higher of Sum Assured, 10 times of annualized premium, or 105% of the total premiums paid. The policy terminates on payment of benefits.

Survival Benefit

Guaranteed Annual payouts as 20% of sum assured payable at the end of each of the last 4 policy years prior to the year of maturity. These payouts can be used to fund the future educational needs of your child.

Maturity Benefit

On survival of life insured till maturity of the policy, Guaranteed Sum Assured on maturity equal to 20% of Sum Assured plus accrued Annual bonuses and Final bonus is payable. The policy terminates on payment of benefits.

Bonus

Annual Bonus: Annual bonus may be added and is expressed as a percentage of Sum Assured. This bonus may be declared at the end of every financial year on the basis of the profits emerging from the with-profit fund managed by the Company. Once declared, this bonus gets accrued to the policy and become guaranteed benefit to be payable under the policy.

Final Bonus: Final bonus on the basis of the profits emerging from the with-profit fund may also be payable at maturity.

Loan Benefit

The maximum loan amount that can be availed is up to 80% of the surrender value and the minimum loan amount is Rs 20,000.

Surrender Value

The Surrender Value payable is higher of Guaranteed Surrender Value or Special Surrender Value. The Surrender Value can be acquired on payment of at least 2/3 years’ premiums, when premium paying term is less than 10 years/10 years or more, respectively.

Tax Benefit

You can avail tax benefits under section 80C & 10 (10D) of the Income Tax Act. Tax benefits are applicable, as per the prevailing tax laws.

No riders can be opted, under this plan.

Mr. Gupta at 35 years of age, opts to buy Canara HSBC Life Smart Junior Plan to secure his son’s future through planned savings for his education milestones. He buys this plan with the policy term of 18 years, premium payment term of 10 years, annual premium of Rs 101,400 and the sum assured is Rs 10,00,000.

Scenario A: Mr. Gupta Survives the Policy Term

Mr. Gupta will get a guaranteed payout of Rs 2,00,000 every year in last four policy years before the maturity year, that is from end of policy year 14 till policy year 17. On maturity, Mr. Gupta will receive an amount of Rs 2,00,000 as Guaranteed Sum Assured on maturity along with accrued Annual bonuses and Final bonus.



Scenario B: Mr. Gupta dies during the Term of the Policy

In the event of unfortunate demise of Mr. Gupta in the 3^rd policy year after payment of 3 years’ premiums, his family will receive a lump sum amount of Rs 1,014,000, Guaranteed Sum Assured on maturity equal to Rs 2,00,000 along with accrued Annual bonuses and Final bonus, is payable on maturity.

Moreover, all future premiums are waived and Guaranteed Annual Payouts of Rs 2,00,000 will be payable in the last four policy years before the maturity of the policy. Annual bonuses is accrued for the rest of policy term.