Canara HSBC Oriental Bank of Commerce Life Insurance Company was founded in June 2008 to emerge as an insurer giant in India. A Joint venture between HSBC Insurance, Canara Bank and Punjab National Bank, aims to provide life insurance solutions across all segments delivering a portfolio comprising of term, savings, investment, health, and retirement products, both in individual and group categories.
Among 32 life insurance products in its bouquet, Canara HSBC term insurance plan offers a pure risk protection policy with a wide range of options and variants to cater to the entire life cycle of the policyholder. Drawing from the strong legacy of two Public Sector Banking giants and the expertise of global HSBC insurance, their penetration spreads across all segments of the Indian society, including rural. Thus, Canara HSBC Term Insurance offers the widest choice to its customers related to a potent financial planning tool.
Term Insurance Plan is defined as a pure insurance policy designed to protect the financial future and stability of the family on the demise of the policyholder. The key takeaways in a term insurance plan are that one gets the very high sum assured instead of a very affordable premium, as the death benefit is confined only to the sum assured without any addition of bonus or profit. It is also referred to as a non-linked, non-participating insurance policy. Canara HSBC Term Insurance Plans offer a range of options to the policyholder covering lump sum or staggered monthly death benefit, as agreed at inception. Additionally, there are a host of rider options to augment the cover suitably. A new age provision also incorporates Return of Premium option on survival, much against the grain of a normal term plan.
Canara HSBC OBC Life Insurance operates out of its headquarters in Gurugram with 50 pan India branches. Working on the model of Bancassurance, their service and distribution network comprises of more than 20000 outlets in Tier I, II and III cities, as also the rural belt. It also partners new age technology avenues, in harmony with the choices of the present generation, an essential component of the 6 Crore customer base acquired by the insurer. Committed to customer preference and needs, Canara HSBC Life Insurance provides a broad umbrella for the protection of the family to weather financial storms in the absence of the policyholder.
Primary reasons to opt for Canara Term Insurance are:
With a profound understanding of the Indian family ethos, financial stability in the event of the demise of the policyholder is the prime focus. A suitable Canara Term Plan is just the tool to ensure that financial ruin does not stare in the face of the family.
Every individual sets life goals to procure assets in different life stages. More often than not, these are created with loans. In the event of an unfortunate demise of the policyholder, these assets become liabilities unless a term policy payout helps its liquidation.
Some critical illnesses can be attributed to modern lifestyles. Diseases like Cardiovascular Diseases, Diabetes, Kidney ailments, and certain types of cancer are directly related to living habits and professional stress inherent to modern society. Ample provisions are possible in term plans to mitigate financial hardship in such an eventuality.
Features that make Canara Term Insurance Plan attractive to the customers are:
One of the primary reasons to opt for the Canara HSBC Term Plan is the high sum assured against a very affordable premium. It is incredibly suitable to cover all the financial misfortunes that befall a family on the demise of the breadwinner policyholder.
Customer convenience is maximized by the range of options, making it easy on the pocket to meet one's financial strength. One can thus pay the premium in Yearly, Half-Yearly, Quarterly, and Monthly Options to suit the financial capabilities of individuals.
This is again designed to suit the needs of the family to enable them to cope with financial hardship. Accordingly, in terms of financial planning, the payout can be a lump sum, regular monthly income, or a combination of the two.
Lifestyle habits like non-smoking earn a premium discount. Women applicants similarly pay a lower premium.
Canara Term Plan can be purchased with the facility to compare online to process it in the portal of the insurer or the aggregator. Tools like insurance and premium calculator help in choosing the right term plan.
Here is a rundown to key benefits of term insurance plans offered by Canara HSBC:
It helps to provide security to the family in times of financial uncertainty as an outcome of the unfortunate demise of the policyholder.
Canara Term Plan, both in the form of lump sum and monthly payout, enables the family to sustain their existing lifestyle and also fulfil their dreams and life stage aspirations. It also helps them liquidate the existing liabilities and protect family assets.
With the help of several riders, one can augment the cover against Critical Illness on diagnosis, Accidental Death, Accidental Permanent Disability, Waiver of Premium, and Child Support
The inbuilt cover extends to terminal illness with a guaranteed payout on its diagnosis or death, whichever is earlier.
The policyholder can opt to pay a premium for a limited term and continue with the risk cover for the entire policy term.
The Canara Term Plan comes with coverage extending to 99 years of age, referred to as Whole Life.
There is an option for joint life cover, which is extended to the spouse of the policyholder.
It is a new-age provision acting as a survival benefit where the entire paid premium is returned if the policyholder outlives the policy term.
There is the flexibility of step-up or step-down matching life stage needs of the policyholder.
Income Tax Act 1961, has provisions for tax benefits under Section 80C concerning premium paid in a financial year, subject to underlying conditions. Critical illness Benefit premium component is exempt under Section 80D. Benefit payout is exempted from Income Tax under Section 10(10D).
There are two plans for individuals, which can be classified as term plans viz:
POS easy Bima Plan
It is an online term plan designed to deliver the widest range of options to the policyholder covering every aspect of a term policy protecting the family from financial uncertainties. Some of the key advantages of the plan are:
The premium concerning the sum assured is such that it is not a drain on financial resources.
The host of options related to Coverage, Payouts, and Premium Payment in alignment with the needs of the policyholder.
The policyholder gets a range of riders to choose from to help augment the sum assured.
The range includes Single Bullet Payment, Limited Payment but with Lifetime Cover, Pay during the working life until 60 years of age, and pay for the entire policy term.
It comprises of Lump Sum, Monthly or a combination of Lump Sum and Monthly. The monthly option can further be chosen for a level or increasing payment.
The sum assured can be revised upwards in different life stages to suit the needs of the policyholder.
The risk cover can be extended to include the spouse of the policyholder.
Both women, including spouses and non-smoker, get a preferential premium for a higher cover. Existing customers can enjoy a loyalty discount.
|iSelect+ Term Plan|
|Plan Options||Life||Sum assured is paid on death or terminal illness, whichever is earlier, and the plan terminates. It applies to the spouse also.|
|Life with ROP||Sum assured the same as in Life. On survival of the policy term, the entire paid premium is paid on maturity.|
|Life Plus||Sum assured and ROP similar to the other two. The policy will continue until 99 years of age when the sum assured will be paid.|
|Coverage||Life Option||Level||Uniform throughout the policy term|
|For life stage enhancement
|Increasing||Increase by 5% (simple) every policy anniversary till 100% of SA|
|Decreasing||After reaching 60 years, 5% every policy anniversary until 50% of SA is reached.|
|Riders||Life Option||Accidental Death Benefit|
|Accidental Disability-Premium Protection: Future premium will be waived|
|Accidental Disability-Premium Protection Plus: Sum assured will be paid, the future premium will be waived, but the cover will continue.|
|Child Support Benefit: To safeguard the child's future|
|Payout Options||Lump-Sum||Entire sum assured|
|Monthly||Increasing at 5 to 10% for up to 120 months|
|Lump-Sum + Monthly||In different proportions and the monthly income for 120 months|
|Sum Assured||Minimum||Rs 25 Lakh|
|Maximum||Rs 3 Crore|
The advantage of this term plan is the liberal design for the financial protection of the family and hassle-free purchase without any medical test. Some key features to be noted are:
|POS Easy Bima Plan|
|Accidental Death Benefit||
|Return of Premium||The total of all premiums paid on survival until maturity is paid provided the policy is in force.|
|Sum Assured||Minimum: Rs 50000 Maximum: Rs 15 Lakh|
|Policy Term||10 to 20 years|
|Annual Premium||Minimum: 10-year Policy Term: Rs 2219 15-year Policy Term: Rs 1076 20-year Policy Term: Rs 989|
|Maximum: Determined by the chosen sum assured|
Purchase of a selected term plan from Canara HSBC OBC Insurance requires submission of requisite documents. While specific documents may be required on a selection of options or riders, the standard document list applicable across plans is listed below. It is to be importantly noted that the documents have to be submitted at the time of purchase, whether online or offline, as the case may be.
It is a normal KYC protocol needing submission of any of the valid photo identity cards acceptable to the insurer.
It is a crucial factor impacting the fixing of premiums. Any of the ID cards with DOB are accepted as valid. Additionally, School leaving certificate besides Birth Certificate are the other valid documents.
Current and permanent address proof is mandatory. Any ID proof with the address is accepted. Additionally, current utility bills like Electricity and Telephone are also accepted.
It is dependent on the category of the applicant, which can be salaried or self-employed.
It is to be important to understand that the insurer is free to call for any other document, which is specific to the term plan and its options, to its satisfaction.
Modern technology tools have made it easier for applicants to use Insurance and Premium Calculator available at the insurer portal as well as that of aggregators to determine the suitability of term plan, matching the financial resources and goals of individuals. Despite the facility, it makes sense to be aware of the eligibility criteria defined for individual term plans to be able to arrive at an informed decision while making a purchase.
|iSelect+ Term Plan|
|Entry Age||18||65 years Decreasing Option: 55 years PPT up to 60 Years: 55 and 50 years Single-Premium: 45 years Non-working Spouse: 50 years|
|Maturity Age||28||80 years For Whole Life: 99 years For ADB and ATPD: 75 years|
|Policy Term||Life Option: 5 years Decreasing Cover and Other Options: 10 years||Life Option: 62 Years Decreasing: 5 years to 30 years|
|Policy Payment Terms||Life||Single (Other than whole Life) Limited: 5/10/15//20/25 up to 60 years Regular: For the entire policy term|
|Life with ROP||Limited: 5/10/15//20/25 up to 60 years Regular: For the entire policy term|
|Life Plus||Limited: 5/10/15//20/25 up to 60 years Regular: For the entire policy term|
|Premium Payment Mode||Yearly, Half-Yearly, Quarterly, and Monthly|
|POS Easy Bima Plan|
|Entry Age||18 years||55 years|
|Maturity Age||28 years||65 years|
|Policy Term||10 years||20 years|
|Policy Payment Terms||10 years of Policy Term||5 Pay|
|15 years of Policy Term||10 pay|
|20 years of Policy Term||10 pay|
|Premium Payment Mode||Yearly, Half-Yearly, Quarterly, and Monthly|
The policyholder needs to scan through the fine print of the policy document to learn about the exclusions to ensure a seamless claim process, which may impact the settlement in due course. Some of the essential exclusions are:
It is applicable for a death benefit if the incident occurs within 90 days of the commencement of risk. Only paid premiums will be returned. Full sum assured is paid only of completion of 90 days from commencement of risk.
If the incident occurs within 12 months of the commencement of the risk or revival, 80% of the total premium paid or the surrender value on the date of death, whichever is higher.
An elaborate claim settlement mechanism operates at Canara HSBC OBC Insurance, where claim intimation can either be done online or at the nearest branch.
The entire process is completed in three well-defined steps:
Step 2: Click on ‘Claim’ tab.
Step 3: Fill in the claim form with the necessary details including – Insurance type, registered mobile number, email id, and policy number.
Step 4: Click on ‘Request Claim Assistance’.
KYC documents of the claimant
Bank details/Cancelled cheque for remittance
For Unnatural Death
Police FIR, Panchanama, inquest Report
Post mortem report
Newspaper cutting, if any
The renewal of term insurance needs payment of premium on before the due date of payment determined by the premium payment frequency. If the premium is not paid on before the specified date or the permissible grace period, the policy is deemed to have lapsed, and the benefits cease to exist. However, a policy can be revived within 5 years from the unpaid due date.
Step 2: Click on the ‘Renewal’ tab. The insured will be directed to the renewal page.
Step 3: Choose Canara HSBC Company. The policyholder will be redirected to a short form.
Step 4: Fill in the details – Policy Number, and Date of birth in ‘YYYY-MM-DD’ format. Hit the ‘Get Premium’ button.
Step 5: Choose the mode of payment – Debit/Credit card, NEFT transfer, or Net banking.
The term plan can be bought online at any of the insurers or their partner's portal. The Canara Term website is ww.canarahsbslife.in. The purchase starts with an Insurance calculator and compares plans online before the process is initiated to complete in few steps.
Step 2: Choose Canara HSBC Term Insurance. Select the policy that you are interested in and check the details.
Step 3: Fill in the form with necessary details including name, date of birth in DD/MM/YYYY format along with your mobile number.
Step 4: Hit the ‘View Free Quotes’ button. Choose the annual income and the type of occupation.
The policy document is ready for dispatch if a medical test is required as per rules for the issue of term insurance.