Canara HSBC OBC Life Smart Stage Money Back Plan

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Introduction/Overview

The Canara HSBC OBC Life Smart Stage Money Back Plan is a life insurance plan that is savings oriented with bonus facility. This policy helps policyholders to prepare of milestones in the lives of the policyholders and their loved ones, through the feature of money back guarantee at regular intervals during the policy term. The plan offers high life coverage for fifteen years at the end of which, on survival the policyholders enjoy the benefits of their savings along with added profits from yearly bonuses. Through this policy, the policyholder also gives protection to his loved ones in case of their premature demise.

Key Feature

  • The policy is a traditional participating money-back plan with bonus facility
  • Policyholders receive guaranteed money back at 15% of the Sum Assured at regular intervals during the policy term.
  • The policyholder has to pay premiums for a limited period of eleven years while enjoying coverage for fifteen years.
  • Along with the Death Benefit that is paid to the nominee, the policy offers an additional benefit in the form of a Maturity Benefit for policyholders who survive until the end of the policy term.

Benefits

  • If the policyholder survives until the policy matures, he or she receives a Maturity Benefit. The Maturity Benefit is 55% of the Sum Assured plus the sum of all annual Simple Reversionary Bonuses and Terminal Bonus (if any).
  • In the sad event of the demise of the policyholder, the nominee receives a Death Benefit.  The Death Sum Assured is the higher of the Sum Assured or ten times the Annualized Premium. The Death Benefit received by the nominee is the Death Sum Assured plus any added annual bonuses as applicable, subject to a minimum of 105% of the premiums paid by the policyholder.
  • The policy gives Guaranteed Money Back payouts in which the company pays the policyholder 15% of the Sum Assured at the end of the fourth, eighth and twelfth years.
  • Tax benefits are available as per the prevailing rules of the Income Tax Act.
  • The policy offers rebates on high Sum Assured amounts.
  • Bonuses (Simple Reversionary Bonus and Terminal Bonus) are added to the policy at the end of every financial year provided all premiums have been paid.

Product Specification:

 

Minimum

Maximum

Entry Age of the Policyholder (Last Birthday)

8 years

55 years

Maturity Age (Last Birthday) of the Life Assured

-

70 years

Policy Term (PT) in years

15 years

Premium Paying Term (PPT) in years

Limited Pay – 11 years

Premium Paying Frequency

Monthly

Annual

Annual Premium

Dependant on the minimum age entry and minimum Sum Assured

No Limit

Sum Assured

Rs. 100000

No Limit

Details About Premium

Benefit illustration for 35-year-old male. Life coverage of Rs. 500000.

 

 

 

Guaranteed Benefits

Non-Guaranteed Benefits

Policy year

Age at the beginning of the year

Annualized Premium (Rs.)

Death Benefit (Rs.)

Survival / Maturity Benefit (Rs.)

Surrender Value (Rs.)

Accumulated Bonus at an assumed investment return of 4% p.a.

Accumulated Bonus at an assumed investment return of 8% p.a.

1

35

50500

505000

0

0

10000

12500

2

36

50500

505000

0

0

20000

25000

3

37

50500

505000

0

45450

30000

37500

4

38

50500

505000

75000

26000

40000

50000

5

39

50500

505000

0

51250

50000

62500

6

40

50500

505000

0

76500

60000

75000

7

41

50500

505000

0

101750

70000

87500

8

42

50500

505000

75000

60080

80000

100000

9

43

50500

505000

0

95430

90000

112500

10

44

50500

505000

0

132800

100000

125000

11

45

50500

505000

0

172190

110000

137500

12

46

0

505000

75000

108300

120000

150000

13

47

0

505000

0

119410

130000

162500

14

48

0

505000

0

130520

140000

175000

15

49

0

505000

75000

 

150000

187500

 

 

 

 

 

Final Maturity at Bonus

50000

100000

 

 

 

 

 

Total Bonus

200000

287500

Policy Details

Grace Period: The policy gives policyholders thirty days to pay all due premiums.

Policy Termination or Surrender Benefit: The policy acquires Surrender Value after the full premium payment of the first three policy years. If the policyholder fails to reinstate the policy within the revival period, the policy is terminated. Termination of the policy also occurs on payment of the Maturity benefit or the Death Benefit.

Free Look Period: Policyholders have a limited free look period of 15 days from the date of receiving policy documents to review the policy. If the policyholder does not wish to continue with the policy, then he or she can cancel the policy. The company will refund the premium paid minus a proportionate premium for the risk borne by the company, including as any extra expenses, such as towards a medical examination or stamp duty charges.

Inclusions

  • A policy loan is available once the policy acquires Surrender Value. The minimum loan amount is Rs. 20000 and cannot exceed 80% of the Surrender Value.

Additional Features or Riders

  • If the premiums for three policy years are not paid within the Grace Period, the policy will lapse.
  • If policyholders pay the premiums for the first three policy years but subsequently no further premiums are paid, the policy acquires Paid- up Value at the end of the Grace Period.
  • The revival of a lapsed or discontinued policy is possible if the policyholder submits a request for reinstatement within a timeframe of two years from the date of the first unpaid premium and pays all due premium

Exclusions

  • The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover. The company will refund 80% of the premiums paid. If the suicide takes place within one year of policy reinstatement, the company will refund the higher of 80% of the premiums paid or the Surrender Value.

Documents Required

The policyholder has to fill up an ‘Application form ’with identity proof, bank account proof, address proof and a recent photograph. Select cases may require income proof and medical examination.