Canara HSBC Smart Junior Plan

About Smart Junior Plan

The Smart Junior Plan is an Individual, Non-Linked, Non-Participating Life Insurance Savings cum Protection Plan that offers enhanced triple protection. It ensures life insurance protection by providing a lump sum benefit upon the policyholder's death. If the policyholder passes away, all remaining premiums are waived, and the planned benefits, including Guaranteed Annual Payouts and maturity benefits, continue "as is" to meet the child's education needs. The investment plan is designed to align annual payouts closely with a child’s educational milestones, providing funds when they are most needed

Eligibility Criteria of Canara HSBC Smart Junior Plan

Features Of Canara HSBC OBC Smart Junior Plan

The child plan comes with several features designed to offer flexibility and ensure a smooth build-up of funds:

• Enhanced Triple Protection: Provides life insurance coverage with a lump sum benefit on death, waiver of all remaining premiums, and continued Guaranteed Annual Payouts as planned for the child's education.

• Guaranteed Payouts: Offers annual payouts precisely aligned with a child's educational milestones.

• Customization: Allows customization of the savings horizon and key education milestones through multiple policy term options, which can be chosen to closely match the child's age and future education needs.

• Flexible Premium Payment Options: Provides a choice of flexible premium payment terms that can align with the policyholder's savings horizon.

• Smooth Education Fund Build-up: Facilitates the smooth accumulation of the education fund through the addition of regular Annual bonuses and a Final bonus (if any) on maturity. Annual bonuses are based on the profit from the With-Profit fund and are guaranteed once added to the policy.

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• Higher Premium Value: Offers a high sum assured rebate for policyholders who commit to higher premiums, providing extra benefits.

• Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Additionally, survival and death benefits received during the policy term are eligible for tax benefits under Section 10(10D) of the Income Tax Act.

Benefits of Canara HSBC OBC Smart Junior Plan

Below are the benefits of the Canara HSBC Child Plan: 

• Policyholders receive Guaranteed Annual Payouts equal to 20% of the Sum Assured at the end of each of the last four policy years before the maturity year, provided all due premiums have been paid.

• These payouts are designed to be utilized to fund the child's future education needs. For example, in an 18-year policy, these payouts would begin in policy year 14 and continue through year 17.

• The plan includes the addition of regular Annual bonuses (Simple Reversionary Bonus) and a Final bonus (if any).

• Bonuses are declared based on the profits emerging from the With-Profit fund managed by the Company.

• Annual bonuses, once added to the policy, are guaranteed.

• Bonuses will stop accruing if the policy is surrendered or terminated.

• Crucially, in the event of the policyholder's death, the policy continues to accrue annual bonuses, and there is no need to pay any remaining due premiums.

• However, annual bonuses will not accrue once the policy has acquired a Paid-up State.

• On survival until maturity, the policyholder receives the Guaranteed Sum Assured on Maturity, which is 20% of the Sum Assured, along with the accrued Annual Bonuses and the Final Bonus (if any).

• The plan provides enhanced triple protection in case of the policyholder's death.

• An Immediate Lump Sum Benefit is paid, which will be the higher of:

  • Sum Assured

  • 10 times the Annualized Premium

  • 105% of all the Premiums paid till the date of death (less any underwriting extra premium).

• No need to pay all future premiums (if any) after the death of the life assured, and all benefits will remain "as is", meaning the policy stays in force and continues to accrue annual bonuses.

• The Guaranteed Annual Payouts (20% of Sum Assured) will continue to be paid every year during the last four policy years before the maturity year as scheduled.

• The Guaranteed Sum Assured on Maturity (20% of Sum Assured), along with Annual Bonuses and Final Bonus (if any), will be payable at maturity.

• This comprehensive death benefit ensures that the child's immediate and intermediate education needs are met through the lump sum, and the planned future education funding continues through the guaranteed annual payouts and maturity benefits.

Policy Details of Canara HSBC OBC Smart Junior Plan

• Revival Period: You have the option to request the revival of the policy at any time within a five-year period starting from the due date of the first unpaid premium.

• Grace period: You are given a 30-day Grace Period for yearly policies and a 15-day Grace Period for monthly policies, starting from the premium due date, to make the required premium payments.

• Free Look Period: The policyholder has the option to check the terms and conditions of the policy within 15 days (or 30 days if the policy was obtained through remote marketing) after receiving the policy document.

• Surrender: At any point during the policy period, you have the option to terminate the policy. The amount you will receive upon surrendering the policy will be the greater of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). However, the policy only accumulates both GSV and SSV after you have paid premiums for at least two consecutive policy years.

• Paid-Up: Your policy will become Paid-up after the Grace Period expires, starting from the due date of the first unpaid premium, as long as you have paid the full premiums for the first two consecutive policy years. If the policy remains in the Paid-up state and is not surrendered or revived, you will receive a Paid-up value upon death or upon reaching the end of the policy term, whichever happens earlier.

• Loan Facility: Avail the loan facility to meet liquidity needs once the policy acquires a surrender value.

• Rebates: If the Sum Assured equals or exceeds Rs 4,00,000, a discount will be provided on the payable premium.

Exclusions of Canara HSBC OBC Smart Junior Plan

Suicide Exclusion

If the insured person, whether mentally stable or not, takes their own life, the benefits provided by this policy will be as follows:

• If suicide occurs within one year from the start of coverage and the policy is active, the higher amount between 80% of the total premiums paid up to the date of death and the surrender value available at the time of death will be paid.

• If suicide occurs within one year from the policy's revival date, the higher amount between 80% of the total premiums paid up to the date of death and the surrender value applicable at the time of death will be paid.

• If suicide is committed after one year from the start of coverage or from the policy's revival date, the death benefit will be based on the terms applicable to an active or paid-up policy.