Customers or members are the most important asset of an organisation. With growing competition, it has become increasingly important that an organisation can not only attract new customers but also retain the and existing ones. When it comes to building customer loyalty, one of the most important ways in which an organisation can achieve that is by providing their customers with some form of financial safety. It is to address this very need that Canara HSBC OBC Life Insurance has launched the Group Advantage Term Plan.
This is a non-linked, non-participating, group term insurance plan which is renewable on an annual basis. The objective of this plan is to offer your customers/members with life insurance cover that will help protect them from any financial uncertainty that arises from unfortunate events. Any non-employer-employee group is eligible for this plan. In addition to life cover, this plan offers a number of other benefits such as the option to provide life cover to the spouse of the insured, option to choose between level or reducing cover, and the option to take accidental death benefit, among other benefits.
Eligibility - Canara HSBC OBC Life Insurance Group Advantage Term Plan
|Death Only||Death & ADB||Death Only||Death & ADB|
|Entry age (age as on last birthday)||Member must at least be 18 years of age at the time of entering the plan||Maximum age for entering the plan is 79 years||Maximum age for entering the plan is 69 years|
|Cover ceasing age||Not applicable||Maximum age at which cover shall cease is 80 years||Maximum age at which cover shall cease is 70 years|
|Sum assured||Min. sum assured is Rs.5,000||Min. sum assured is Rs.2 lakh||There is no upper limit on the sum assured; subject to insurer’s underwriting policy||Maximum sum assured is fixed at Rs.1 crore/member; subject to insurer’s underwriting process|
|Policy term||This policy comes with a one year term and is renewable annually|
|Premium payment mode||Premiums for this plan can be paid in a single lump sum, or on a half-yearly, quarterly, and monthly basis.|
|Group size||The minimum number of people in the group must be 50||No upper limit on the group size for coverage|
Benefits - Canara HSBC OBC Life Insurance Group Advantage Term Plan
If the member covered under the policy passes while the policy is still active, the death benefit amount shall be payable. The death benefit payable will vary depending on the plan option that has been chosen.
|Plan/coverage option||Level Option||Reducing option|
|Death only||Sum assured will be provided in event of death||Sum assured, as specified at the beginning of the Master Policy, will be provided|
|Death & ADB||In case of death, the sum assured will be provided. If death has been caused due to an accident, the Accidental Death Benefit, that is equal to the amount of sum assured, will also be paid.||Sum assured, as specified at the beginning of the Master Policy, will be provided. In case of death due to an accident, the Accidental Death Benefit, which is equal to the amount of sum assured, will also be provided.|
Note: This plan does not offer any Maturity Benefit or Surrender Benefit.
Key Features - Canara HSBC OBC Life Insurance Group Advantage Term
- This is a non-participating, non-linked group term insurance plan.
- Master policyholders can choose between a contributory or non-contributory option wherein either the master policyholder, or the members make the premium payments.
- This plan offers multiple premium payment options such as single pay, annual payment, quarterly payment, or monthly payment.
- You can choose between 2 plan options – Level and Reducing Option.
- Under the Level option, the sum assured will stay unchanged during the entire tenure of the policy.
- Under the Reducing option, not only the sum assured, but also the Accidental Death Benefit (ADB) Sum Assured will reduce according to the established schedule over the course of the policy tenure. Option to cover your spouse will not be available under this option.
- There are also 2 coverage options to choose from – Death Only and Death & Accidental Death Benefit.
- This plan also offers an add-on option wherein the member’s spouse can also enjoy life cover under the same plan.
- The policy is simple to understand and implement as well.
- This plan features a tenure of one year. The policy must be renewed every year.
- Group members may be required to undergo medical examinations for the purpose of policy underwriting. This will be done on the basis of the group’s age distribution and risk characteristics.
Add-on Options - Canara HSBC OBC Life Insurance Group Advantage Term
Increase in Sum Assured Option
The Master Policyholder can opt to enhance the sum assured of the policy during its term. The increase in sum assured will be done as per pre-defined criteria and upon the mutual agreement between the insurer and the Master Policyholder. Following the increase in sum assured, calculation of premium payable will be done on a pro-rata basis, for the duration of the plan. Increase in sum assured will only be done as per the insurer’s underwriting policy. Spouse coverage cannot be opted for under this option.
Spouse Coverage Option
Under this plan, members also have the option of getting life insurance cover for their spouse, only if the same has been opted for at the Master Policy level. The sum assured chosen for the spouse must not be higher than the sum assured chosen by the member. Coverage provided to the spouse will depend on the insurer’s underwriting policy and will be subject to the terms and conditions of the Master Policy.
Similar to an arrangement that many other insurers offer under group plans, the Canara HSBC OBC Group Advantage Term Plan also offers members the option to get individual coverage once they exit the Group Term Plan. While availing this option, the insured is not required to provide any additional proof of good health or insurability. Members can choose this option within a period of 30 days, starting from the date on which they exist and are no longer members of the Master Policy. The convertibility option will be offered as per the insurer’s underwriting policy with regards to a standard life and will be subject to limitations in terms of maximum sum assured, entry age, the plan chosen for individual cover, etc. Do remember that the option to convert is not available to the spouse of an insured member.
Policy provisions - Canara HSBC OBC Life Insurance Group Advantage Term
|Free look period||
|Tax benefit||Policyholders can avail attractive tax benefits on the purchase of this plan under the provision of the Income Tax Act|
|Policy lapse||If missed/due policy premiums have not been paid by the expiry of the permitted grace period, the policy will lapse and cease to provide cover|
|Policy revival||If a policy has lapsed due to non-payment of premiums, the policy can revive it within a period of 90 days, starting from the policy’s yearly renewal date, or from the date of the due premium payment. The revival of the policy will be done as per the insurer’s underwriting policy.|
|Termination of the master policy||The policy can be terminated due to various reasons like non-revival of a lapsed policy, surrender of the master policy, the policy is cancelled during the free look period, the policy has not been renewed on due renewal date, etc.|
|Addition of members||Coverage for new members joining the policy will begin from the date on which they join the policy subject to fulfilment of the eligibility criteria.|
|Nomination||Nomination facility is provided as per Sec 39 of the Insurance Act.|
|Assignment||Policy assignment is also permitted as per the rules of Sec 38 of the Insurance Act.|
About Canara HSBC OBC Life Insurance
Established in June 2008, Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited is among India’s biggest life insurance providers which was established following a 3-way joint venture including Canara Bank, Oriental Bank of Commerce, and HSBC Insurance (Asia Pacific) Holdings Limited. The insurer enjoys a trusted presence across India and operates via a well-penetrating network of 10,000 branches and partner banks, catering to a large-scale customer base of more than 115 million customers.
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