Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited is a joint venture by Canara Bank, Oriental Bank of Commerce and HSBC Insurance Holdings Limited. The Canara HSBC Oriental Bank of Commerce Smart Monthly Income Plan is a life insurance plan that offers financial protection for an individual when he/she retires. This plan offers a lump sum amount through annual bonuses and final bonuses accumulated on the initial premium paid. The Smart Monthly Income Plan also provides life cover for 25 years and offers loan flexibility.
Features of Canara HSBC Oriental Bank of Commerce Smart Monthly Income Plan
|Premium Payable||The premium that has to be paid by an individual to avail this plan depends on factors such as monthly income, age of the insured and the mode of premium payment that the policyholder opts for. The minimum monthly income required to determine a premium amount is Rs. 2,000.|
|Death Benefit||In the unfortunate event of death of the insured, a death benefit is paid to his/her beneficiaries. This is equal to the death benefit sum assured which is more than 10X the Annualized Premium or Sum Assured + annual bonus + interim bonus (if any) + final bonus. The minimum amount payable as death benefit is equal to 105% of the overall premiums paid.|
|Survival Benefit||The insured is eligible to receive the monthly income opted for under this plan as survival benefit. This will be paid out from the 121st policy month till the end of the policy term.|
|Set- Off Option||This option is offered to policyholders in order to enable them to adjust the premium payable from the 11th policy year to the 15th policy year, against the income receivable during this period.|
|Maturity Benefit||The maturity benefit that is paid out to the insured is equal to the sum of Annual Bonuses plus Final Bonus.|
|Loan Facility||The policyholder can avail a loan as per his/her requirement, against this life insurance policy. However, this can be done only once the Canara HSBC Oriental Bank of Commerce Smart Monthly Income Plan secures a surrender value.|
Benefits of Canara HSBC Oriental Bank of Commerce Smart Monthly Income Plan
- Avail tax exemption on the monthly income earned under this plan as well as other tax benefits specified under Section 80C of the Income Tax Act, 1961.
- Pay premium for 15 years and avail life insurance cover for 25 years.
- The sum assured is 100X the assured monthly income earned by the insured.
- Avail a discount on premium if your sum assured is equal to Rs. 3, 00,000 or above.
- This Canara HSBC Oriental Bank of Commerce life policy can be revived upon request, anytime within 2 years from the date of non-payment of the premium.
- The Smart Monthly Plan also offers a 15 day free look period to the policyholder.
- Nomination facility is available under this plan.
|Minimum entry age||18 years|
|Maximum entry age||55 years|
|Maximum age of policyholder at maturity||80 years|
|Minimum age of policyholder at maturity||43 years|
|Term of the policy (fixed tenure)||25 years|
|Premium payment term||15 years|
|Sum Assured||100 X the guaranteed monthly income|
How the Canara HSBC Oriental Bank of Commerce Smart Monthly Income Plan Works
The Canara HSBC Oriental Bank of Commerce Smart Monthly Income Plan works as follows:
The individual aspiring to avail this plan should first choose the Guaranteed Monthly Income he/she wishes to receive as monthly benefit during the policy period. This will help determine the Sum Assured, which is usually equal to 100X the guaranteed monthly income. The next step would be to choose the mode of premium payment and premium payment frequency. Based on this option as well as other factors such as age of the insured, etc., the premium payable by the policyholder is determined. Once the premium is paid, the policy is in effect. By paying the premium for 15 years, the insured can enjoy life insurance cover for a total policy period of 25 years. Other benefits include death benefit, bonuses, loan facility against the policy once it attains surrender value, maturity benefit and so on.