The Canara Smart Junior Plan is a child-focused life insurance policy which offers both protection and savings, ensuring that your child's key milestones, like education and marriage, are financially supported. This investment plan helps you build a solid foundation for your child's aspirations while providing peace of mind.
Insurer pays premium in case of loss of life of parent
Create wealth for child’s aspirations
Tax Free maturity amount+
12+ plans available
Invest ₹10k/month your child will get ₹1 Cr Tax Free*
Canara HSBC Smart Junior Plan is an individual, non-linked, participating life insurance savings plus protection plan offered by Canara HSBC Life Insurance. It is a mix of insurance and savings designed to help you meet your child's future education needs. This investment plan provides guaranteed lump sum payouts during the last 5 years of the policy term. This can be helpful for aligning the payouts with your child's educational milestones.
Following are the key features of this investment option offered by Canara HSBC Smart Junior Plan:
Triple Protection: Life insurance with a lump-sum death benefit, waived premiums, and annual payouts for your child's education.
Education-Focused: Guaranteed payouts timed with key educational milestones.
Flexible Policy Terms: Choose a policy duration that matches your child's education needs.
Customizable Premium Plans: Flexible payment options to align with your budget.
Steady Growth: Annual bonuses help build the education fund, with a potential final bonus at maturity.
Value for Higher Premiums: Get a rebate for higher premium commitments.
Tax Benefits: Enjoy tax advantages on premiums and payouts under Sections 80C and 10(10D) of the Income Tax Act, 1961.
People also read: Canara HSBC Child Plan
Eligibility Criteria | Details |
Entry Age |
|
Maximum Maturity Age | 70 years |
Policy Term | 12 – 25 years |
Premium Payment Term (PPT) |
|
Minimum Sum Assured | Annually: Rs. 3 lakhs; Monthly: Rs. 5 lakhs; |
Maximum Sum Assured | No Limit* |
Premium Payment Mode | Annual/ Monthly |
Premium Amount | Depends on various factors like age, sum assured, policy term, etc. |
* Decided as per the Board Approved Underwriting Policy (BAUP) of the company.
Survival Benefit: Receive guaranteed annual payouts at the end of each of the last 4 policy years before maturity, provided all premiums are paid. Ideal for funding your child's education.
Maturity Benefit: Upon policy maturity, you will receive:
20% of the Sum Assured
Accrued annual bonuses
Final bonus, if applicable
Death Benefit: If the policyholder dies during the policy term (provided the policy is active), the Canara Smart Junior Plan provides the following benefits:
Lump-Sum Payment: The higher of:
Sum Assured
10 times the annual premium
105% of total premiums paid (minus any underwriting extra charges)
Premium Waiver: No more premiums are required, and the policy stays active.
Guaranteed Annual Payouts: The same guaranteed payouts continue to be paid at the end of each of the last 4 policy years before maturity.
Maturity Payment: 20% of the Sum Assured, along with any accrued bonuses, will be paid at maturity.
Bonuses
Annual Bonus: A simple reversionary bonus may be declared yearly if premiums are paid on time. This bonus accumulates and is guaranteed once added to the policy.
Final Bonus: This may be declared at maturity based on the company's profits. The amount varies at the company's discretion.
Paid-Up Policy: If the policy enters a paid-up status (due to missed premium payments after the grace period), here is what happens:
Reduced Survival Benefit: The annual payouts are reduced based on the ratio of premiums paid to the total premiums due.
Reduced Maturity Benefit: Maturity benefits are calculated similarly, based on the proportion of premiums paid.
Reduced Death Benefit: The lump-sum payment is reduced according to the ratio of premiums paid.
Loan Facility: Once the policy acquires a surrender value, you can borrow against it:
Minimum Loan Amount: Rs. 20,000
Maximum Loan Amount: 80% of the surrender value at the time of loan application.
High Sum Assured Rebate: If the Sum Assured is Rs. 4,00,000 or more, you may receive a rebate on your premium.
Tax Benefits: You can avail of tax deductions of up to Rs. 1.5 lakhs under Section 80C on investment made to this child plan. The maturity returns are also tax-free under Section 10(10D) if your annual premium payment is below Rs. 2.5 lakhs.
Surrender Options: You can surrender the Canara HSBC Smart Junior Plan at any time, but it is best to avoid this unless absolutely necessary.
The Surrender Value is the higher of: Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).
The policy must have at least 2 years of consecutive premium payments to qualify for these values.
Policy Loan: A loan against your Canara HSBC Smart Junior Policy can be availed, subject to terms and conditions, to meet liquidity needs.
Grace Period: You have 30 days for yearly payments and 15 days for monthly payments to make overdue premium payments. If you do not pay within the grace period during the first two years, the policy will lapse, and coverage ends.
Revival: You can request revival within 5 years from the first unpaid premium due date. The revival requires paying all overdue premiums with applicable interest. Once revived, all benefits, including bonuses, will be reinstated as if the policy never lapsed.
Free Look Period: You have 15 days (30 days if acquired through distance marketing) to review the policy terms after receiving the policy document. If you cancel within this period, you will get a refund minus the proportionate risk premium, stamp duty, and any medical costs.
People also read: Child Investment Plans
Decide how much you need to cover your child's education costs. This becomes your "sum assured." The payouts and maturity benefits depend on this amount.
Set the policy length to match your child's key education milestones. For example, if your child is currently 6 years old, you might choose a 16-year term to start payouts when they turn 18.
Choose how long you will make premium payments and how often (e.g., annually or monthly). Consider your income and savings plans.
Note: Your premium amount is determined by factors like your age, sum assured, policy term, and payment frequency.
The Canara HSBC Smart Junior Plan excludes full death benefit payout in case of suicide within the first year of the policy or its revival. Here is a breakdown of the exclusion:
Within 1 year of policy commencement: If the life insured commits suicide during the first year after the policy starts, the nominee will receive either 80% of the total premiums paid till death or the surrender value available on the date of death, whichever is higher.
Within 1 year of policy revival: The same exclusion applies if the suicide happens within one year from the date the policy was revived.
There is no exclusion for suicide after one year from the policy commencement or revival date. In such cases, the full death benefit is payable to the nominee.
People also read: Government Schemes for Girl Child
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Please note that the quotes shown will be from our partners
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.