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Canara HSBC Child Insurance Plans

A child plan is an insurance cover specifically designed to secure and meet your child’s higher education needs.

Canara HSBC child insurance plan is an excellent option for securing your child’s future. Being a long-term investment opportunity, it is a suitable option for providing insurance cover in case of any unfortunate event. Depending on the age of your child, it is advisable that you start investing as early as possible in order to reap the benefits of long-term investment.

To begin with, Canara HSBC Oriental Bank of Commerce Life Insurance Smart Junior Plan is a non-linked participating savings-cum-protection endowment life insurance plan specifically designed to cater to your child's future education needs in case of your absence.

Features of Canara HSBC OBC Smart Junior Plan

  • It is a non-linked participating savings-cum-protection endowment life insurance plan.
  • Premium payment options are on an annual and monthly basis.
  • Entitles a tax benefit on the premium paid and benefit received under Section 80C and Section 10(10D), as per the Income Tax Act, 1961.
  • The grace period is 30 days from the premium due date.
  • The policy can be reinstated within 2 years from the due date of the first unpaid premium.
  • Has a 15 day free-look period from the date of policy receipt.

Benefits of Canara HSBC OBC Smart Junior Plan

The Smart Junior Plan entitles guaranteed payouts to the insured for the last 4 years of policy which can be sourced for achieving the child's educational milestones. You are also entitled to maturity benefit along with annual bonus and final bonus on maturity. In case of death of the insured, this plan provides comprehensive protection in the form of a lump sum amount which is paid immediately, all due premiums are waived off and guaranteed annual payouts will be paid as scheduled. You also have an option of flexible premium payment terms to help you choose a policy that suits your financial constraint.

Survival benefit

Under this plan, you will receive a guaranteed annual payouts at the end of each of the last 4 policy years before the maturity year, provided that you have paid all due premiums on time. The amount of annual payout is 20% of the sum assured.

Maturity benefit

You will receive a guaranteed sum assured on maturity of the plan equal to 20% of sum assured along with annual and final bonus, if any.

Death benefit

In case of death of the insured, an immediate lump sum benefit, higher of: sum assured | 10 times the annualized premium | 105% of (the total premiums paid till the date of death less underwriting extra premium, if any) will be payable.

Also, all future premiums (if any) need not be paid and the policy shall continue to be in force for the remaining tenure. The plan will continue to accrue annual bonuses.

Annual payout

As scheduled, the annual payouts will continue to be payable at the end of each of the last 4 policy years before the maturity year.

Bonus

Upon maturity of this plan, all accrued annual and final bonuses, if declared, will be payable on maturity.

Other benefits

If the sum assured under this plan is greater than ₹4,00,000, you are entitled to a rebate on the premium payable.

Loan facility

Once the policy reaches a surrender value, you can avail a loan of minimum amount ₹20,000 while the maximum loan amount cannot exceed 80% of the surrender value.

Eligibility Details

The minimum age of entry is 18 years while the maximum age of entry is 50 years (40 years in case of monthly mode). The maximum maturity age is 70 years.

Exclusions

  • 80% of the premium or higher will be paid in case the policy holder commits suicide within 1 year of the policy revival date.
  • 80% of the premium will be refunded if the policy holder commits suicide within 1 year from the date of inception of the plan.
  • Death benefit will be payable if the policy holder commits suicide after 1 year of the date of inception or revival.

Summary of Canara HSBC OBC Smart Junior Plan

CategoryDescription
Age of entry
  • Minimum: 18 years
  • Maximum: 50 years (In case of monthly mode, maximum entry age is 40 years)
Maturity age (max)70 years
Policy term12-25 years
Premium payment term - Policy term
  • Policy term minus 8 years - 13 to 25 years
  • 5 years - 12|15|20 years
  • 10 years - 19 to 25 years
Sum assured
  • Minimum Sum Assured for annual mode is ₹3,00,000 and monthly mode is ₹5,00,000.
  • Maximum Sum Assured: No limit

How does a Smart Junior Plan Work?

Let us illustrate an example to help you understand better.

Mr. Amar is a 35 year old salaried person with a 4 year old son named Vaibhav. Mr. Amar seeks to secure Vaibhav’s future educational needs by investing in a child plan. To begin with, Mr. Amar has anticipated Vaibhav's educational requirements of which comes to ₹2,00,000 for four years when Vaibhav turns 18. Also, he seeks an additional lump sum amount for Vaibhav at the age of 22.

To cater to this, Mr. Amar purchases a policy term of 18 years with a sum assured of ₹10,00,000 and a premium payment of 10 years on an annual basis.

Now, there are two possible outcomes to this situation.

  1. Mr. Amar will get a guaranteed payout of ₹2,00,000 every year in last four policy years before the maturity year along with accrued or final bonuses as a part of survival and maturity benefit.
  2. In case of death of Mr. Amar, his family will get lump sum amount of ₹10,14,000 which is higher of sum assured or 10 times the annualized premium or 105% of all premiums paid till date of death less underwriting extra premium paid, if any. Guaranteed sum assured on maturity equal to ₹2,00,000 along with accrued annual and final bonus, if any, will be payable on maturity.

FAQs on Canara HSBC Child Insurance Plans

What is the death benefit under a child plan?

In case of death of the policy holder, the death benefit will be payable as a lump sum amount which is higher of sum assured or 10 times the annualized premium or 105% of all premiums paid to the family.

Can I make an early withdrawal from my child plan?

Yes, you can make an early withdrawal from your child plan by surrendering the policy at the nearest branch with the necessary policy and KYC documents.

Are there tax advantages accompanying Child plans in India?

Yes, you are entitled a tax benefit on the premium paid and benefit received under Section 80C and Section 10(10D), as per the Income Tax Act, 1961.

What are the modes of payment available?

The various modes of payment are - credit/debit card, net banking, eWallet, payments app or cheque.

How can I check policy status for Canara HSBC Child Plans?

If you are registered user, simply visit the e-portal of Canara HSBC Child Plan.

What is the policy renewal process for Canara HSBC Child Plans?

If you are registered user, simply visit the e-portal of Canara HSBC Child Plan to pay your renewal premium online.

What is the company’s process to settle claim for Canara HSBC Child Plans?

In case of policy settlement, the nominee will have to personally visit the branch with the policy document and death certificate and fill/submit a claim intimation form.

What is the policy cancellation process for Canara HSBC Child Plans?

You can cancel the child policy by visiting the nearest branch with the necessary policy and KYC documents. For this, you will have to surrender the policy.

What are the entry age criteria for buying Canara HSBC Child Plans?

The minimum age of entry is 18 years while the maximum age of entry is 50 years.

What are the premium paying term options available under Canara HSBC Child Plans?

The premium paying term options available under Canara HSBC Child Plans is between 12 to 25 years.

Are there any riders available under Canara HSBC Child Plans?

Are there any riders available under Canara HSBC Child Plans? - No, there are no riders available under Canara HSBC Child Plans.

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