Canara HSBC Traditional Plans

What do you mean by Traditional / Investment Plans?

Traditional or Conventional plans are different from linked insurance plans because their plan structure is different. The plans do not invest money in capital markets but as per insurance laws and offer a fixed amount of benefit. Other common features which differentiate the plans are:

• The plans have a long tenure like 10-20 years and money is locked-in and cannot be withdrawn before the expiry of the plan term

• The plan will become paid-up if premium is paid for a minimum of 3 full years and thereafter stopped. The death and maturity benefit will also become paid-up

• The plans are available as participating plans which participate in the company’s bonus or non-participating plans which do not participate in the company’s bonus.

• Endowment and money back are the two types of variants which can be offered under traditional plans

Canara HSBC Traditional / Investment Plans

Canara HSBC Life Insurance Company sells a range of traditional / Investment plans to customers to meet all their savings and protection related needs. Let us take a look at the different types of traditional / investment plans offered by Canara HSBC and the features and benefits of each of them in details.

Smart Monthly Income Plan –

It is a traditional insurance plan which promises monthly incomes for a fixed period of time. The plan has the below mentioned facets:

• Premiums under the plan are payable for a limited term under the Limited Pay option of premium payment

• Premiums are payable for 15 years while the coverage continues for 25 years

• Bonuses are declared on the plan

• Guaranteed monthly incomes accrue from 11^th year for a 15 year period. This income can be utilized by the policyholder to set-off future premiums.

• When the plan matures, the reversionary bonuses and any Final bonus is paid

• On the insured’s death, the death benefit payable is higher of the chosen Sum Assured which is 100 times the monthly income or the annual premium multiplied by 10 with a minimum of 105% of premiums paid till death along with the vested reversionary bonuses and any Final Bonus

• If the policyholder opts for a coverage of Rs.3 lakhs and above, there will be a premium discount

• Loan facility is available to take loans

• Premiums paid and claims received earn income tax benefit

Eligibility Details

Smart Stage Money Back Plan –

It is a traditional money back plan which promises regular payouts at definite intervals. The features and benefits of the plan are as follows:

• Premiums under the plan are payable for a limited period under the Limited Pay option of premium payment

• There is bonus accrual in the plan which participates in the profits of the insurer

• Guaranteed survival benefits are paid in the 4^th, 8^th and 12^th policy year @15% of the Sum Assured

• On maturity, 55% of the Sum Assured is payablewhich also includes the accrued reversionary bonuses and any Final Bonus

• On the insured’s demise during the tenure of the plan, the death benefit payable will be higher of the Sum Assured or 10 times the annual premium subject to a minimum of 105% of all premiums paid till death along with the vested reversionary bonuses and any Final Bonus

• Rebates in premium for choosing a Sum Assured level of Rs.3 lakhs and above

• Section 80C exempts premiums paid and Section 10(10D) exempts claims received from tax

Eligibility Details

Smart Vriddhi Plan –

It is a traditional savings insurance plan with the following features and benefits:

• Premiums under the plan are payable for a limited tenure under the Limited Pay option of premium payment

• On maturity, 137.5% of the aggregate premiums paid are paid back as Maturity Benefit

• In case of death of the insured during the tenure of the plan, the death benefit payable will be higher of the Sum Assured which is the annual premium multiplied by the Sum Assured multiple or maturity Sum Assured or 105% of premiums paid till death

• There is an inbuilt accidental benefit rider which pays additional Sum Assured in case of accidental death

• The plan can be taken without any medical examinations

• The Income Tax Act exempts the premiums and claims under the plan 

Eligibility Details

Smart Future Income Plan –

It is a savings plan which promises guaranteed incomes. The features and benefits of the plan are as follows:

• Premiums under the plan are payable for a limited tenure under the Limited Pay option of premium payment

• The plan participates in the profits of the company by way of earning bonuses

• Guaranteed monthly incomes accrue in the last 15 years

• Up on maturity, the reversionary bonuses and any Final bonus is payable

• In case of death of the insured during the tenure of the plan, the death benefit payable will be higher of the Sum Assured which is 100 times the monthly income or 10 times the annual premium subject to a minimum of 105% of all premiums paid till death along with the vested reversionary bonuses and any Final Bonus

• Rebates in premium for choosing a Sum Assured level of Rs.7 lakhs and above

• Loans are available under the plan

Eligibility Details

Applying For Traditional Insurance through PolicyBazaar

• On the PolicyBazaar homepage, click on Traditional Insurance under the Personal tab.

• Click New Quotes to compare and choose from top insurance providers.

• Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.

• Fill in your name, email address, city, country code, and mobile number. Click Continue.

• You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.

• After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.

• You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.

• This will take you to the insurer’s website. Fill in the necessary details to buy the plan.

Canara HSBC Traditional Plans - FAQs