Canara HSBC Child Plans

Canara backed Oriental Bank of Commerce and HSBC Insurance Holding Limited Asia Pacific which is the Asian arm of the HSBC insurance wing came together to form Canara HSBC OBC Life Insurance Company Limited. They are the first insurance company in India to execute the model of bancassurance. The Canara HSBC OBC Life Insurance has a network of over 10,000 branches with three main bank branches selling insurance policies with more than 300 years of experience. Besides these, the company also has an easy to use web portal.

Child Plans are a part of the broader child-specific financial products. They also include child education plans making them a mixture of insurance and investment. Child Plans ensure the financial security of the child's future. These plans pay a lump sum amount as a life cover at the end of the term of the policy. In addition to the lump sum payout, Child Plans also have a regular periodic payment during the important milestones of the child's education. Child Plans are usually customizable with a variety of rider options that enhance the Child Plan as per the specific needs of the child.

Features and Benefits of Canara HSBC Child Plans

The following are the common features and benefits of Canara HSBC Child Plans:

These plans provide a flexible disbursement of funds on the death of the policyholder or the maturity of the policy

A plan provides for Premium waivers if in case of the untimely demise of the policyholder within the term of the policy. It means that the insurance company will pay a premium for the remaining term. The sum assured will be receivable by the beneficiary at the stipulated time or upon the death of the policyholder. In case if there is no waiver in the policy, it can be availed by way of a rider to the policy

The plan offers an option of availing of secured loans as against child insurance plans

The policyholders can also avail of the policy tax benefits under various sections of the Income Tax Act 

Since the Child Plans are a mix of insurance and investment, they provide an option to choose between ULIPs and endowment plans

The child plans offer very flexible periodic options for the payment of the premium such as monthly, quarterly, semi-annually and annual payment

The maturity benefits are available on either the untimely death of the policyholder before the maturity of the policy and/or if the policy has reached its maturity

The amount of premium depends on the type of plan chosen with the period of maturity, and the sum assured figures

The sum assured is the amount, which will be payable to the beneficiary in case of the death of the insured, and that would be about ten-times of the current gross income of the deceased insured

The amount of maturity is chosen with the consideration of some of the factors like inflation, interest rates, child's requirement in the future and the maturity period of a policy. Also, there are certain single premium plans which may not provide maturity benefits. So, check the policy documents before applying for the same.

Usually, the child plans are for a duration when the child attains the age of 18 or 21 years. There are some specific plans which have a higher age ceiling. Thus, the tenure of a plan can be from the birth of the child till he or she reaches a predefined age as per the policy with the policyholder not more than 70 years during the policy maturity.

There are these segmented payout options available with child plans. The policyholders can either select a lump-sum payment or a payment by way of yearly instalments. Such payments enable them to pay the dues in the form of college fees or higher education fees or mortgage amounts etc.

Specific riders that are available in the child insurance plans are premium waiver, critical illness and accidental death and disability. The premium waiver is usually added to the plan. The critical illness rider covers a certain predefined set of critical illnesses. The accidental death and disability rider are applicable in case of unfortunate accidents that are the cause of some permanent disability or the death of the policyholder.  

List of Plans

It is essential to understand a Child Plan before investing in them. The Child Plans are those plans wherein the parent is the policyholder, and the beneficiary or the nominee is the child. In case if the insured dies during the term of the plan then the policy will continue, and the nominee or the beneficiary will not have to pay any further premiums. During maturity, the sum assured and other benefits as decided at the time of the purchase of the policy will be receivable by the child.

Some of the Child Plans from Canara HSBC Child Plans are as follows -

  • Invest 4G
  • Smart Future Plans
  • Jeevan Nivesh Plans
  • Future Smart Plan
  • Money-Back Advantage Plan
  • Smart Junior Plan

Canara HSBC Child Plans Details

Canara HSBC Child Plans offers two types of child insurance plans which are as follows –

  • Canara HSBC OBC Smart Junior Plan

     This plan is a smart plan to start saving early for the child's education and future. One can choose a suitable term of the policy to add flexible options for the payment of premium depending upon the age of the child. There is an assurance of guaranteed lump-sum payouts, ensuring that the child receives the necessary funds towards further educational endeavours.

    Key Features of Canara HSBC OBC Smart Junior Plan

    Type of Plan

    It is a Non-linked, individual, participating - a limited premium payment plus endowment life insurance plan

    Options for Premium Payment

    Monthly and Yearly.

    Grace period

    30 days from the due date of the premium.

    Free-look period

    The policy comes with a 15-day free-look period from the date of purchase of the policy. There is a free-look period is 30 days for policies bought through intermediaries. The policyholder will receive a refund of the premiums table after detecting the necessary premium and the stamp duty on return of the policy.

    Revival after a lapse of the policy

    There will be a revival of the policy on paying all the dues plus interest within two years from the due date of the first premium that is unpaid.

    Tax benefit

    Tax benefit will be as per the prevailing Income Tax laws

    Service Tax

    Service tax and education cess will be levied as per the prevailing law.

    Assignment

    Available as per the provision of Section 38 of the Insurance Act, 1938

    Nomination

    Available as per the provision of Section 39 of the Insurance Act, 1938

    Eligibility Conditions for the Canara HSBC OBC Smart Junior Plan

    Minimum Entry Age

    18 years

    Maximum Entry Age

    50 years to 40 years in case of the monthly premium

     payment mode

    Maximum Maturity Age

    70 years

    Sum Assured Offered by the Canara HSBC OBC Smart Junior Plan

    Sum Assured - Minimum

    Monthly payment mode - Rs.3 lakhs

    Annual payment mode - Rs.5 lakhs

    Sum Assured - Maximum

    No limit, subject to the underwriting policy

    approved by the board

    Policy Terms for the Canara HSBC OBC Smart Junior Plan

    Policy term

    12 years and 25 years

    Premium Terms for the Canara HSBC OBC Smart Junior Plan

    Modes of Premium Payment

    Annual and Monthly

    Minimum premium

    Depends on the minimum age of entry and minimum sum assured

    Maximum Premium

    No limit, subject to the underwriting policy approved by the board

    The table below indicates the life insurance policy terms and premium payment terms available under this policy.

    Policy Term

    Premium Payment Term

    13 years to 25 years

    Policy term minus 8 years

    12 years, 15 years and 20 years

    5 years

    19 years to 25 years

    10 years

    Advantages and Benefits of Canara HSBC OBC Smart Junior Plan

    The Canara HSBC OBC Smart Junior Plan provides the following key benefits:

    • The plan enables the protection of the beneficiary even after the death of the policyholder. A lump sum amount is payable by way of death benefit along with a waiver of the remaining premium and a guaranteed payout during the last four years of the term of the policy—downturn off the policy of the beneficiary.
    • The yearly payouts are aligned with the child's educational milestones to fulfil the financial expenses.
    • The policyholder can choose from multiple options for the term of the policy and flexible terms for the payment of premium, which will help them to choose a policy that is best suited for them.
    • Tax benefits are applicable as under as per section 80Cand 10 (10 D) of the Income Tax Act 1961
    Death Benefit

    Upon the death of the policyholder, the higher of the following will be payable if the policy is active -

    Lump-Sum Benefit

    • By way of sum assured
    • 10 times the yearly premium
    • 105% of the total premiums paid an extra premium if any

    Guaranteed Yearly Pay-out

    Guarantee continuous yearly pay-outs payable every year as per the schedule during the last four years of the policy.

    Bonus

    All the bonuses which have been accruing, yearly or terminal, will be payable on maturity.

    Guaranteed Sum Assured on Maturity

    A guarantee of sum assured to be payable on maturity will be equal to the 20% of the sum assured.

    Maturity Benefit

    The policyholder receives a guaranteed annual payout at the end of every year for the duration of the last four years of the policy before its maturity on surviving the maturity term of the policy. For receiving these benefits, the policyholder must have paid all the premiums till the term of maturity of the policy. Up to 20% of the sum assured will be payable at the end of every year of the policy. On maturity, 20% of the sum assured with your yearly and terminal bonus, if there is any, will also be payable.

    Annual Bonus

    This kind of bonus is a simple reversionary bonus declared every financial year and depends on the profits that come from the with-profit fund. The bonus is payable upon the death of the policyholder or on the maturity of the policy, whichever falls early. The annual bonus is expressed in terms of the percentage of the sum assured and its declaration guarantees its receipt.

    Final Bonus

    In case if there is any final bonus, then it will be a table as a terminal bonus. This bonus is expressed in terms of the percentage of the sum assured. The bonus is however based on the profits of the company which is managed through a with-profit fund and is payable upon maturity.

    Rebates

    On the premium payable, this plan offers rebates if the sum assured is equal to or higher than Rs.4 lakhs.

    Sum Assured

    Rebate on Premiums (Per 1000 Sum

    Assured)

    Less than Rs.4 Lakh

    Rs.0.00

    Rs 4 Lakh to less than Rs 5 Lakh

    Rs.0.9

    Rs 5 Lakh to less than Rs 7.5 Lakh

    Rs.1.5

    Rs 7.5 Lakh to less than Rs 10 Lakh

    Rs.2.2

    Rs 10 Lakh to less than Rs 20 Lakh

    Rs.2.6

    Rs 20 Lakh to less than Rs 50 Lakh

    Rs.3.1

    Rs 50 Lakh and above

    Rs.3.5

    Exclusions under Canara HSBC OBC Smart Junior Plan

    • If the policyholder commits suicide within a year of the policy revival date, the beneficiary will receive 80% of the paid premiums or the surrender value of the policy whichever is on the higher side
    • If the policyholder commits suicide within a single year of the purchase of the policy whether in a sane or an insane condition, then there will be a refund of 80% of the premiums paid up to the date of death
    • If the policyholder commits suicide after a year of the purchase of the policy or its revival, then the beneficiary will receive the death benefit.

    Loan

    This plan provides a loan facility to the policyholders for unforeseen financial requirements. Once the policy achieves a surrender value, it can be used for availing a loan for a minimum amount of Rs. 20,000. However, the maximum amount of the loan cannot exceed 80% of the surrender value of the policy during the time of availing the loan.

    Revival

    The policyholder can request the insurance company to revive a lapsed policy. The period of revival is 2 years from the due date of the first premium which is unpaid. However, to revive a policy, all the past premiums must be paid along with its applicable interest. On the revival of the policy, all the applicable benefits and bonuses will also revive and be receivable to the beneficiary.  

  • Canara HSBC OBC Smart Future Plan

    This is a long term investment opportunity to fulfil the needs of the insured's family in the future. The plan's comprehensive cover ensures that there is a backup to fulfil every need of the family even if some unforeseen incident happens in the life of the policyholder.  

    Eligibility criteria for Canara HSBC OBC Smart Future Plan

    Given below are the eligibility criteria for Canara HSBC OBC Smart Future Plan

    Eligibility factor

    Eligibility criteria

    Minimum entry age

    18 years

    Maximum entry age

    51

    Minimum age at the time of maturity

    28 years

    Maturity Age (Life Assured)

    Policy Term  (years)

    Age at Entry (years)

    Age at maturity (years)

    15

    51

    66

    20

    49

    69

    25

    45

    70

    Premium

    Policy Term

    Payment Mode

    Yearly

    Monthly

    10 years

    Rs. 50,000 p.a.

    Rs. 5,000 p.m.

    15/ 20/ 25 years

    Rs. 25,000 p.a.

    Rs. 3,000 p.m.

     

     

     

     

     

    Key features of Canara HSBC OBC Smart Future Plan

    The following are the key important features of Canara HSBC OBC Smart Future Plan -

    Type of plan

    It is a unit-linked plan

    Basis of the plan

    Individual basis

     Terms of the Policy

    15, 20 and 25 Years

    Mode of Premium Payment

    Monthly or Yearly

    The benefit of Premium Funding

    The benefit of Premium Funding can be chosen at the time of purchasing the plan. It has two options –

    Option 1: Death only

    Option 2: Total and Permanent Disability (TPD) or Death

    Once the buyer chooses the option there can be no change in it later on.

    Switching of funds

    The plan gives an offer option to switch some or all of the policyholder's investments from one fund to another. Multiple switches are provided by the plan. However, Rs. 10,000 is the minimum amount that is used to switch the funds.

    Change in Sum Assured

    The policyholder can increase or decrease the sum assured from the 6th year of the policy with the condition that all due premiums are paid. The policyholder can use this facility once every year and up to 3 times during the full term of the policy. However, while making use of this facility yearly income will not be affected.

    Redirection of the Premium

    The policyholder can modify or redirect the allocation of premiums in the future once in a policy year. Once the premiums are redirected or revised this modification will be applicable to all future premiums.

    Partial Withdrawal

    The plan provides for partial withdrawal in case of any unforeseen financial requirement. These withdrawals can be made only after only from the 6th year of the policy. The minimum amount, which the policy Holder can withdraw is Rs. 10,000. However, the maximum amount of withdrawable depends on the value of the fund, which should not fall below 120% of the yearly premium.

    Option of Safety Switch

    The plan provides the policyholder with the facility of safety switch option to move their funds to a relatively low-risk liquid fund during the last 4 years of the policy in order to safeguard the funds and avoid market volatility especially when the policy is about to mature.

    Auto Fund Rebalancing

     This plan offers the facility of Auto Funds Rebalancing. This facility is similar to the bank allowing the policyholder to maintain an allocation of investment in a specific proportion for different funds irrespective of the market movements. In case if the policyholder goes for this facility it rebalances the investment allocation every three months. It allocates the various funds in the proportions of allocation chosen by the policyholder.

    Benefits of Canara HSBC OBC Smart Future Plan

    The following are the benefits of the Canara HSBC OBC Smart Future Plan -

    Death Benefit

    This policy provides the death benefit to the family to the beneficiary, which is not less than 105% of the total premiums paid at any point in time. The policy provides a good financial backup to satisfy the needs of the beneficiary in case of an unfortunate event of death or disability of the policyholder.

    Maturity Benefit

    The maturity benefit or the fund value will give it to the beneficiary when the policy matures, or the term of the policy ends.

    Flexible Policy Terms and Premium Options

    The policyholder can choose from the Policy Term of 10, 15, 20 or 25 years. Similarly, a premium payment term can be chosen from 10 to 20 years, depending upon the earning capacity of the policyholder.

    Modes of Premium Payment

    In case if the policyholder dies during the term of the policy, then the policy continues, and the insurance company will pay all the future premiums. The beneficiary or the child of the policyholder will receive the fund value at maturity.

    Death or Disability Benefit

    In case if the policyholder meets with an unfortunate accident and is totally and permanently disabled, then the premium funding benefit for disability must be availed. The life cover however continues, and the sum assured will be payable on the demise of the policyholder.

    Investment Funds

    Under this plan, the policyholder has an option for investment in 5 different funds with equity exposure ranging from 0% to 100%.

Details of Other Child Plans by Canara HSBC

Here is a rundown of the other child insurance plans offered by Canara HSBC:

  • Invest 4G

    This plan is a protection and savings oriented unit-linked insurance plan. It provides the option for protection suitable for the policyholder while giving an opportunity to save money for the dreams and future life goals. Moreover, it adds to the savings through loyalty additions and wealth boosters, and it also returns the mortality charges on the maturity of the policy, thereby maximizing the policyholder's savings.

  • Jeevan Nivesh Plan

    A proper disciplined financial planning is essential to meet the important goals of life, which is achievable by this plan. Good financial support or a backup is provided by the plan for a child's education, marriage, leaving behind a legacy, buying a dream house or having a blissful retirement life. This plan also prepares one for unforeseen circumstances.

  • Future Smart Plan

    This plan is a unit-linked child plan providing long term investment opportunity for building a bright future for a child. It is an all comprehensive plan which includes sum assured on death and premium funding on death or disability, ensuring that the child's future remains unaffected even in any unfortunate circumstances.

  • Money-Back Advantage Plan

    This plan provides financial protection to the policyholder's family by offering a life cover and payouts which are based on milestone events of life. These are guaranteed money back payouts and it also has a maturity benefit.  

Common Exclusions in Canara HSBC Child Plans

Here are some of the exclusions which mean those instances when the beneficiary does not receive the sum assured under Canara HSBC Child Plans –

  • If the policyholder commits suicide within a single year of the purchase of the policy, then such a death would be out of coverage, and there will be a refund of the premiums paid till the date of the death
  • If the policyholder commits suicide within a year of the revival of a lapsed plan, then such a death would be out of coverage. However, in such a case, 80% of the premiums paid or the surrender value of the policy whichever is higher will be available for payment under the plan  
  • In case if the policyholder dies due to an overdose of drug or alcohol, then the nominee does not receive any death benefit
  • In case if the policyholder has taken part in any adventurous or risky sports like rock climbing, skydiving, racing, etc. that may lead to death, then the insurance provider will not entertain any claims
  • In case if the policyholder dies due to participation in any criminal or illegal act or activities or any act of war, then the same will not be given coverage by the insurance company
 

Claim Settlement Process for Canara HSBC Child Plans

Below given is the procedure for claim settlement and Canara HSBC Child Plans which must be followed by the claimant –

  • The claimant must intimate the company about the unfortunate event either online or through email, by calling upon the toll-free number of the company, writing a letter to the company or by visiting any nearest branch of the insurance company
  • Upon receiving the death claim form from the claimant or the beneficiary, the insurance company will release an amount that is equal to the fund value of the policy
  • The claimant or the beneficiary must fill-up the Death (claim) form completely with all the relevant details and submitted to the company either online or offline
  • The claimant or the beneficiary must submit the form with all the supporting and relevant documents with due attestation and certification wherever needed
  • Upon submission of the form with relevant documents, the insurance company undertakes an investigation of the claim
  • If the insurer finds everything in proper order, then there is a claim settlement as per the terms of the policy or usually within 30 days of the claim application

Documents required for the Claim Settlement Process of Canara HSBC Child Plans

The claimant or the beneficiary must submit the following documents while filing for a claim settlement process for Child Plans -

  • Death or Claim Form - To be filled by the claimant
  • Consulting Physician's statement - To be filled by the doctor treating the deceased person, and the family doctor of the deceased person
  • Certificate from the Treating Hospital - To be filled by the hospitalization authorities of the deceased person
  • Employer/College/School Certificate – It must be filled by the deceased person's relevant authorities

The other supporting documents that the claimant needs to submit with the forms mentioned above:

  • Original copy of the policy document
  • Death certificate by the municipal authority
  • Copy of bank passbook or a cancelled cheque
  • Hospital records and other treatment records
  • Claimant's Photo ID and address proof
  • Post-mortem report
  • Chemical organ report (if conducted)
  • Statement of the Physician

The following are the documents that the claimant needs to submit in case of accidental or unnatural deaths:

  • Police or FIR report
  • Newspaper cutting (if any)

The claimant or the beneficiary needs to submit all of the above-mentioned documents to the head office, branch office or any other bank branch. The insurance company may request any additional documents apart from those that are mentioned above. 

Once the documents reach the insurance company, they process all the claim related forms and documents. Upon verification of all the documents, the insurance company finally settles the claim and pays the dues to the claimant or the beneficiary within 30 days from the application of the claim.

Tax Benefits for Canara HSBC Child Plans

Tax deduction on premiums payable as well as tax exemption on the sum assured is available under section 80(C) and 10 (10D) of the Income Tax Act 1961 for Canara HSBC Child Plans.

The policyholders can claim deductions under section 80C, if the payable premium is more than 10% of the basic insured amount in a year, only 10% of the sum assured amount of the benefits is eligible for a claim.

Similarly, tax exemptions are available under section 10(10D) for one-tenth of the basic sum assured payable premium in one year or on the interest earned over investment or on the funds disbursed in case of death of the insured.

How to Buy Canara HSBC Child Plans?

The buying procedure for Canara HSBC Child Plans is an easy process. There are two modes of buying the plans. One can buy either online or make an offline purchase of the plans. Let us go through the details of both modes of purchase.

  • Online Purchase of Plans

    Some specific plans are available only online. A customer who wishes to buy Canara HSBC Child Plans should log in to the company's official website and select the required plan. A customer then needs to provide all the details and select the coverage. There will be a calculation of the premium because of the information given by the customer. The customer will have to pay the premium amount online, and thereby, the policy document will be issued. The policyholder can either download a policy document or receive it through email on their registered email ID.

  • Offline Purchase of Plans

    There are certain plans that are not available online for purchase. The customer can purchase such plans offline through intermediaries like agents, banks, or brokers. The customer can visit any of the nearest branches of the company or schedule an appointment with the agent of the company. The insurance company or the agency will send a representative to the interested customer for collecting the details and educating an individual more about the plans. The interested customer must fill up a proposal form and attach the relevant documents. Then the customer needs to pay the premium in advance. Thereafter, they need to submit everything and wait for the acceptance of the proposal by the company. Upon acceptance of the proposal, there will be an issue with the policy.  

How to Renew Canara HSBC Child Plans?

Canara HSBC Child Plans are renewable online with a simple procedure. The policyholder needs to be a registered user on the company's e-portal and can log in using the login ID or customer ID along with the password. The following steps will lead towards the renewal of Canara HSBC Child Plans –

Step 1: The policyholder will enter the login ID and the date of birth to login into the e-portal

Step 2: They will choose the policy for which they want to pay the premium

Step 3: Then select the premium payment option from net banking or debit or credit card or other options

Step 4: Upon successful completion of the premium payment, a print or save the premium deposit receipt option will be available to the policyholder

Documents Required for buying Canara HSBC Child Plans

The following is the list of documents that are essential to buy Canara HSBC Child Plans –

  • Policy Form

    It is the proposal form that should be duly filled with all the policy-related information.

  • Proof of Address

    Any government-issued document such as an Aadhar card, passport, electricity bill, a driving license can be used as proof for address.

  • Proof of Income

    The individual interested in buying the policy must produce documents to prove that he or she has sufficient income to pay the premiums.

  • Proof of Identity

    Any document such as Voter ID, PAN card, Aadhar card, a driving license can verify the buyer's identity.

  • Proof of Age

    The buyer's 10th and 12th mark sheets, passport, or birth certificate can be used for age proof.

Canara HSBC Child Plans - FAQs