Canara HSBC Traditional Plans
Canara HSBC traditional plans are also named savings plans. These plans are designed to increase your savings. It helps you plan your finances and increases your financial security.
During personal milestones such as marriage, career, overseas education, the money saved comes in handy. Canara HSBC provides a wide variety of traditional plans to fulfill the needs of investors of all types of risk appetites and incomes.
List of Canara HSBC Traditional Plans
Invest 4G Plan
This is a Unit Linked Insurance plan that not only protects you but also provides you an opportunity to save money to fulfill your life goals and ambitions. Savings are augmented by way of wealth boosters and loyalty additions.
On maturity of the policy, the mortality charges are returned, thus resulting in maximum savings.
- Death benefits are given.
- Maturity benefits are offered.
- Return of mortality charge is also provided.
Choice of Funds
A range of 7 Unit Linked Funds are available to choose from. You can allocate premiums to all, a combination of them, or only one of them. The current prevailing 7 ULIPs available are India Multi-Cap Equity Fund, Balanced Plus Fund, Liquid Fund, Debt Fund, Growth Plus Fund, Equity 2 Fund, and Emerging Leaders Equity Fund.
Choice of portfolio management option
As with all Canara HSBC traditional plans, there are different portfolio management options available.
- Systematic transfer option
- Return Protector Option (RPO)
- Auto funds rebalancing
Loyalty additions are added to the fund value at the end of the 5th, 10th, and 15th year if all premiums have been paid up. The proportion of loyalty additions added are in the same measure as the value of the total number of units held in the unit-linked plans.
As per the table below, wealth boosters are added to the fund. Based on the last sixty-month policy anniversaries fund value, the wealth booster is calculated as a percentage of that.
As per the frequency set by you, you can choose to receive your maturity benefit. The money is disbursed over 5 years. During this period, no life cover is provided. At any time during this period, you can completely withdraw the funds.
Tax benefits can be availed under Section 80 C of the Income Tax Act subject to currently applicable provisions.
During the lock-in period, no withdrawals are allowed. The lock-in period for Invest 4G Plan is 5 consecutive years. During this period, no benefits are payable, except upon the unforeseen demise of the policyholder, for which the death benefits may be paid.
Titanium Plus Plan
This plan boosts the savings by offering a two-pronged capability of being an investment as well as a protection plan, this is a flexible plan too. The investment asset can be altered or modified as per prevailing market conditions.
It provides you better control over your expendable income. Based on the availability of your funds, you can choose flexible premium payments.
Various portfolio management strategies can also be applied to the invested funds as with most Canara HSBC traditional plans, which helps to efficiently manage the funds.
Salient Features of the Plan
- Being a unit-linked cum protection plan, it is a highly customizable plan. Regardless of the market movement, this plan offers flexibility and full control over your savings.
- For the chosen policy term, apart from the life coverage, premium payments can be made as a single one-time payment, regular payments, or limited payments.
- To ensure that you receive optimized returns on investment, many portfolio management options are available.
- Additional allocation of units to your fund value via wealth boosters and loyalty additions boosts your funds.
- Change of risk appetite or redirection decision of funds can be supported with flexible allocation of funds.
- A partial withdrawal facility is available that allows you to plan for unforeseen contingencies.
- Creates directed benefits under the Married Women’s Property Act (MWPA)
- Death benefits are provided.
- Maturity benefits are offered.
- Choice of funds is given.
Portfolio Management Options
Similar to the Invest 4G plan, Systematic Transfer Option, and Auto Funds Rebalancing portfolio management options are available. This plan has the Safety Switch Option as well, which lets you safeguard your investments as the policy nears maturity. This option lets you systematically transfer your funds to a low-risk liquid fund.
At the end of each policy year, applicable premiums are paid, loyalty additions are added to the fund value. Additions start getting added from the 6th year onwards. The value of the last twelve-monthly policy anniversaries and 0.5% of its average will be loyalty addition value.
These are additional units that are added at the end of the 10th year, 15th year, and every 5th year thereafter. In the 10th year, the wealth booster Is 2.90% of the average fund value based on the previous sixty monthly policy anniversaries. From the 15th year onwards, it is 1.50%.
Premium Term Change
After payment of the first five years policy premium, you can change (increase or decrease) your premium payment term.
Alteration of Sum Assured
You can increase or decrease your sum assured from the sixth policy year based on your protection requirements.
Guaranteed Savings Plan
Some goals have to be planned with purpose and intent such as marriage, children's welfare and education, or providing financial assistance to a dear one. This plan fulfills such needs as per the insurer by providing you with a means to save regularly. This plan is one of the Canara HSBC traditional plans that also offers a low-risk guaranteed savings cum insurance cover with flexible payment options, flexible investment options, and more.
- On maturity of the policy, benefits are guaranteed - provided all premiums are paid-up up to maturity.
- Premium is paid only for a limited period, but life coverage is available for the entire term.
- In case of the unfortunate demise of the policyholder, the lumpsum death benefit is paid out to the dependents. Further premiums need not be paid.
Death benefits trigger a sum assured payout, whichever is higher than the following amount:
- 11 times the premium amount per annum
- 105% of the total premium paid value as on date of death intimation
- Guaranteed lump sum pay assured on maturity which is similar to the sum assured
- Absolute amount assured on death, which is similar to the sum assured
Death benefits under guaranteed savings option and guaranteed savings with double protection option
The death benefit is payable to the nominee. Sum assured is paid along with cumulative guaranteed yearly addition. If the death of the policyholder is due to an accident and the Guaranteed Savings with Double Protection Option is the selected option, then an additional ADB sum assured amount is paid.
Death benefits under guaranteed savings with premium protection option
Sum assured on death is paid. The policy remains in force. No future premium payment is required. Guaranteed yearly additions continue to accrue. On maturity of the policy, the guaranteed sum assured, guaranteed yearly additions, and guaranteed loyalty additions are paid out.
Maturity benefit under guaranteed savings option and guaranteed savings with double protection option
On surviving the policy term, you receive a guaranteed sum assured, guaranteed yearly additions, and guaranteed loyalty additions.
A loan facility allows you to take a loan against this policy once it attains a surrender value. The minimum loan amount that can be taken is Rs. 20000. The maximum value is calculated as 80 percent of the current surrender value at the time of taking the loan.
High Premium Booster
High premium boosters are a percentage of the basic sum assured. They increase the fund value periodically based on the premium amounts.
Smart Lifelong Plan
This plan helps you to create wealth and also get adequate insurance coverage for you and your dependents. Providing whole life coverage of up to 99 years. This plan can come in handy at different life stages so that nothing gets hampered due to a lack of funds. This aspect makes it unique out of Canara HSBC traditional plans,
- The premiums that are paid towards this life insurance cum unit-linked insurance plan are invested in mid-cap stocks. As per the insurer, long-term appreciation of the stock is guaranteed. Specifically, the fund invested in is the Emerging Leaders Equity Fund.
- Whole life protection of up to 99 years ensures that you are at complete peace of mind throughout your life.
- Premium payment terms can be chosen based on your earning capacity. The premium payment term can be a minimum of ten years or more.
- Premiums can be invested in various funds. Once invested, they are not locked. They can be switched over to various other fund options to take advantage of market movements.
- Partial withdrawals from the 6thpolicy year onwards allow you to be ready for any unforeseen contingencies with the money that may be required at that time.
- The Sum Assured can be increased or decreased from the 6thpolicy year onwards depending on your changing needs.
- Auto funds rebalancing allows you to allocate a proportion of your funds across various fund options.
- Death benefits are provided.
- Maturity benefits are also given.
- Premium paying mode: Premiums can be paid annually or monthly based on your income stream. During the policy term, the premium paying mode can be changed anytime.
Extra units will be allocated to your fund based on loyalty additions, provided all premiums have been paid up.
Investment fund options
Up to 7 investment fund options can be chosen to park premium payments. Equity exposure can be anywhere between 0% and 100%. The investment fund options are namely, India Multi-cap Equity Fund, Debt Fund Plus, Liquid Fund, Balanced Plus Fund, Growth Plus Fund, Equity 2 Fund, and Emerging Leaders Equity Fund.
Smart Future Income Plan
Amongst Canara HSBC traditional plans, this is a with-profit plan that comes as monthly income offering lumpsum amount and benefits. Monthly income is guaranteed for 15 years. Annual and final bonuses accumulate money to create a corpus of wealth. Life cover is available for 25 years that covers the primary policyholder as well as their dependents. Guaranteed income and bonuses are available. Limited premium payment terms are available for 10 years.
Salient features of the plan
Parameter Description Age of entry 18 - 55 Maturity age 43 - 80 Term of policy 25 Premium payment term 10 Premium payment mode and factors Annual and monthly premium payment modes available. Minimum monthly income or minimum premium The minimum income is Rs. 5000 per month. Premium depends on factors such as the age of entry, monthly income, and mode of premium chosen. Maximum monthly income or maximum premium No limit exists, subject to underwriting Sum assured 100 times the monthly income chosen Death benefit Death benefit sum assured is calculated as the higher of:- Sum Assured- 10 times the annual premium amount Maturity benefit As on the maturity date, if the life assured is alive and the policy is in force, the insurer will pay all annual reversionary bonuses that were added and final/terminal bonus if any such exists. There is no Sum Assured guaranteed amount under this plan. Guaranteed income benefit For 15 years, income is guaranteed, which is payable each month. The payment starts after the 121st month of the policy from the date of start of the policy to the end of the policy term. Sum assured rebate if the sum assured is high Premium payable rebate is applied if the sum assured is greater than or equal to Rs. 700,000
Bonuses are added to this product provided premiums are paid on time. The bonuses are declared after every fiscal year. Once added to the plan, the bonus is guaranteed to be payable either as a death benefit or on policy maturity.
Once the plan attains a surrender value, you can avail loan facility. The minimum loan that can be availed is Rs. 20,000 and the maximum loan that can be availed should not be 80% of the ongoing Surrender Value. A loan facility is not applicable once the insured starts receiving monthly income.
Ans: A traditional plan is the simplest policy that extends life cover for a predetermined number of years. Certain traditional plans have an investment component. ULIP is a plan that has no guaranteed minimum returns on investment. Returns could vary - it can be higher or lower.
Ans: These products not only offer death benefits or maturity benefits but may also provide higher returns on investment than traditional plans.
Is withdrawal before policy maturity allowed?
Yes, many plans in the Canara HSBC traditional plans list have a partial withdrawal facility.