Canara HSBC OBC Life Smart One Pay Plan

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Introduction/Overview

The Canara HSBC OBC Life Smart One Pay Plan is a non-participating endowment Unit Linked Insurance Plan with a single premium payment. This plan enables policyholders to plan and prepare for future financial requirements and future goals and dreams, while providing protection for their loved ones in the unfortunate event of their premature demise.

Key Features

  • The policyholder has to pay a single premium and enjoys coverage for a longer period along with wealth creation.
  • The policy has a choice of five different funds in which policyholders can allocate their investments.
  • Management of investment portfolios can be done through features such as premium redirection, switching between funds, Auto Rebalancing Option.
  • The policy offers a potential safeguard of funds that a re nearing maturity with the Safety Switch Option.

Benefits

  • Based on the customer’s risk appetite, there is a choice of five Unit Linked Funds for investment.
  • On survival until the end of the policy, the policyholder will receive a Maturity Benefit that is the Fund Value as on the date of maturity.
  • In the unfortunate event of the demise of the policyholder, the nominee receives a Death Benefit.  The Death Benefit payable is the higher of:
  1. The Fund Value, or
  2. The Sum Assured minus any partial withdrawals, or
  • Loyalty Additions are added from the sixty-first policy month onwards until the policy ends.
  • The Auto Rebalancing option and the Safety Switch option helps policyholders manage their investment portfolios.
  1. The Auto Rebalancing option maintains the allocation of investments across all funds in a specific proportion throughout the policy term. It is opted for at the inception of the policy. Every three-policy months, the policy automatically rebalances the allocation of the investments in various funds to the allocation proportions that were chosen by the policyholder.
  2. Safety Switch Option allows policyholders to move their investments in a systematic manner to a low-risk Liquid Fund in the last four policy years in order to avoid market volatility and movement and to safeguard the funds.
  • Tax benefits are available on the premium paid and Death Benefit as per sections 80(C) and 10 (10D) of the Income Tax Act.
  • Liquidity is available in the form of partial withdrawals, which are allowed from the sixth policy year onward. The minimum amount for partial withdrawals is Rs. 10000.

Product Specification:

 

Minimum

Maximum

Entry Age of the Life Assured (Last Birthday)

7 years

70 years

Maturity Age (Last Birthday) of the Life Assured

18 years

80 years

Policy Term (PT) in years

5 years

25 years

Premium Paying Term (PPT) in years

Single Premium

Premium Paying Frequency

Single Premium

Single Premium

Rs. 100000

No limit

Sum Assured

Greater than 1.25 times the Single Premium or 10 times the Annual Premium applicable for:

PT of 5 years <= 42 years of age

PT of 6 to 10 years <= 38 years of age

PT of 11 to 15 years <=35 years of age

PT of 16 to 20 years <= 33 years of age

PT of 21 to 25 years<=30 years

1.25 times the Single Premium for all ages up to 70 years

Details About Premium

Benefit illustration for 45 year old male. Single Premium amount = Rs. 1000000. Sum Assured = 110% of Single Premium with 100% investment in Equity II Fund.

Single Premium (Rs.)

Sum Assured (Rs.)

Fund Values assuming Gross Investment Return for a 15 year Policy Term

4%

8%

1000000

1250000

1435084

2546659

Policy Details

Grace Period: The policy gives policyholders thirty days to pay all due premiums. The policy will acquire a “Discontinued” status if payment is not made within the applicable timeframe.

Policy Termination or Surrender Benefit: If the policy is surrendered before the completion of 5 years, then the insurance cover ceases, and the Fund Value will be transferred to the Discontinued Policy Fund. Proceeds from this will be payable only after the fifth policy anniversary. In case of the death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee. After completing five policy years, if it is surrendered, then there is no Surrender/Discontinuance Charges, the Fund Value is paid to the policyholder, and the policy will terminate immediately. If the policy is not reinstated within the revival period, the policy is terminated. Termination of the policy also occurs on payment of the Death Benefit. The policy will also automatically terminate if at any time the Fund Value falls below or become equal to one year’s regular premium because of poor market performance. In that case, the Fund Value is paid to the policyholder.

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 customer will receive the Fund Value plus the unallocated premium 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

  • The policyholder may increase or decrease the Sum Assured as per their changing life coverage. This change can be done from the sixth policy year onwards.
  • The policy allows policyholders to receive the Maturity Benefit in installments via the Settlement Option. The installments will be received over a maximum period of five years, via monthly, quarterly, half-yearly or yearly modes.
  • Policyholders may opt to change the allocation of future premiums with the Premium Redirection facility.
  • The policyholder may switch between the unit-linked funds at any point of time during the policy term. The minimum amount that can be switched is Rs. 10000.

Additional Features or Riders

  • 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.
  • Various charges apply to this policy. They are as follows:
  1. Premium Allocation Charge, which is deducted from the Premium paid by the customer. The balance is invested in the investments chosen by the policyholder
  2. Policy Administration Charge is deducted at the start of each month.
  3. Fund Management Charges are deducted daily while calculating the NAV of the funds.
  4. At the beginning of each month, Mortality Charges are deducted by the cancellation of units from the fund value.
  5. Switching Charge – There is no charge for switching between funds.
  6. Partial Withdrawal Charge – The first four partial withdrawals are free, while subsequent withdrawals are charged at Rs. 250 per withdrawal.
  7. A Surrender Charge is levied on policies that are surrendered or discontinued before the end of the lock-in period of the first five years.

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 the Fund Value as on the date of death.

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.

Written By: PolicyBazaar - Updated: 17 September 2020
Canara HSBC OBC Life Smart One Pay Plan Reviews & Ratings
4.5 / 5 (Based on 23 Reviews)
(Showing Newest 23 reviews)
Hitesh
Chittaurgarh, July 18, 2016
Pension Policy
I have pension plan from canara hsbc obc life insurance. The plan is good with low premiums. Policy coverage is high and claims are easy to cleared. Service provided by the staff members of the company is fantastic. Updates are regularly mailed to my email id.
Jitender
Nagaur, July 07, 2016
Future Investment Policy
The insurance policy i purchase secure my future with full health and wealth care. Service of the staff is good and behaviour too. Policy cover maximum expenditure and claims are high too. Claiming is easy due to fast service given by the staff and executives.
Robin
Amritsar, June 28, 2016
Good Plan
My pension plan is good and now I'm relax for my future. The policy coverage is nice and premium is low. The service is fantastic and claims are okay. Easy to sanction the claiming amount due to fast service provided by the executives. I'm happy to invest my money for my future.
Surjeet
Bengaluru, April 12, 2016
Trustworthy
Service is bit slow but the work is completed with full terms and conditions. Claims are good and the policy coverage is high around 95%. Premiums are normal ~55 K per year and the returns are Rs.47 K per month after policy get mature. Awesome pension policy plan which i buy from canara hsbc life insurance.
Dixit
Sonipat, April 12, 2016
Super Pensuion Plan
I purchase canara hsbc pension policy plan. The policy is really very nice with its many benefits. The policy coverage is approx. 92% and the claims are around minimum 24 L before policy get mature and after the time period ends the final amount is ~Rs.45 K per month. The services are very fast and the behaviour of the executives and staff members are nice. Very responsive for any query or help.
Akrosh
Hyderabad, April 12, 2016
Satisfactory
Recently took pension policy plan with canara hsbc Life Insurance. Great future investment policy plan with low premiums and high policy coverage ~94%. The service providers facilitate the very nice benefits with calm behaviour. Claims are easily sanctioned and time period is less. Nice policy plan, satisfied with it.
Japendra
Gwalior, April 12, 2016
Fantastic Pension Plan
I got a very good policy plan from canara hsbc Life Insurance. The policy is great for future investment nice pension policy plan. The coverage is good ~89%, service is great, even the claims are better. Great policy, very happy with it.
Dinesh
Udupi, April 12, 2016
Great Policy
I have a policy plan for getting pension in future time. The policy is great with high returns and in low premiums. Policy coverage is also nice ~97% and service is fast and on time. Really good job guys, you provide best policy i.e., canara hsbc life insurance pension plans. I like it very much.
Lokesh
Mohali, April 12, 2016
Good Service
I own the canara hsbc life insurance pension plans. The investment is low and the returns is huge. Policy coverage is 88% and claims are good. The service is awesome and fast with very calm behaviour from executives and team members. Nice future investment which saves taxes too. Extra 5% less for women on premiums.
Vabhav
Haldwani, April 12, 2016
Awesome
I bought a pension policy plan with canara hsbc life insurance. Investment is low but the returns are high. Services are bit slow but the policy coverage is 78% and the amount of Rs.39 K per month is given after policy maturity. Good response from executives and staff members. The policy is good for future investment and tax savers also. I like my policy.
Ishant
Rai_bareilly, April 12, 2016
Future Security
I purchase canara hsbc life insurance pension plan. Plan is good with nice services and always on time. Policy coverage is 95% and the claim are high, the amount after maturity of policy is of Rs.41 K per month. Investment is low and returns are high, what else i needed now and future. The behaviour of the executives and staff members is nice. Good work.
Pankaj
Bhojpur, April 12, 2016
Manageable And Satisfied
I have pension plan from canara hsbc life insurance. Policy doesn't work for me. Except policy coverage which is 79%, the rest of the things and stuff are not good. Service is bit slow. Claims are normal. The good thing is it save my money by reducing my taxes. Manageable plan.
Jigar
Jaipur, April 12, 2016
Simple Pension Plan
I found pension policy plan and canara hsbc life insurance provide low premiums and high returns. Claims and policy coverage are good but the service is always up to the mark till last visit. The good treatment serve from executives and staff members. Nice future investment and one more thing it save taxes also. Happy with my policy plan.
Bhupesh
Nainital, April 11, 2016
Fantastic plan
I have pension policy plan with canara hsbc life insurance. The plan is having low investment and the policy coverage is 89%. In fact the claim is high and the amount in return is 41 K per month after policy ends. Overall nice policy with good services provided by executives and staff members.
Gautam
Bilaspur, April 11, 2016
Fine
My pension policy plan is suggestion of the friend, So i took it from canara hsbc life insurance. Staff members and executives provide good and quick services. Policy coverage is good approx. 91% but the premiums are normal. Good terms in compare with other companies.
Kamal
Agra, April 11, 2016
Above Average
I recently buy canara hsbc life insurance pension policy plan. Policy is really good with good policy coverage around 87%. Claims are high and after policy maturity the amount approx. Rs.39 K per month. Premium is for 20 years and policy mature after 35 years. Service is quick that's the best part of the policy.
Lalit
Lonavla, April 11, 2016
Okay Policy
I buy canara hsbc life insurance pension plan. The policy coverage is 65%. Claims are fine according to premiums. Service is okay and main thing is that this is good investment for future which saves taxes too. Just improve your web services.
Hemant
Greater_noida, April 11, 2016
Nice Policy
I invest my money with canara hsbc life insurance by taking pension policy plan. Plan is good and the premium is less. Policy coverage is 89% and claims are high. The payback returns are ~33 K per month after policy get mature. The services provided by the executives and staff members are really very good with nice behaviour.
Devesh
Noida, April 11, 2016
Trustworthy
I have a pension policy plan from canara hsbc life insurance. The policy is great with high returns and low premiums. Policy coverage is also good and service is fast and always on time. Really good job guys, you provide best pension plans. Even the behaviour of the executives and staff members are very nice. I like the policy very much.
Jayant
Chittoor, April 11, 2016
Poor Policy
I buy pension plan from canara hsbc life insurance but the policy is not that good as i expected. Service is very slow and claim are take long time to sanctioned. Even policy coverage is less ~59 %. Bad experience. The web services are also slow. Please improve the policy and its service.
Saahir
Bikaner, April 11, 2016
Fantastic plan
My pension policy plan is with canara hsbc life insurance. The policy has good coverage approx. 91% with low premium. Claims are also high and the returns is Rs.35 K per month after policy end. Service is fantastic and the executives do best work. Good investment for future and taxes are also reduced.
Prashant
Mumbai, April 11, 2016
Good Investment
Canara hsbc life insurance pension policy plan is introduce by an agent of policybazaar and i took the policy plan. Policy coverage is good 91% as i expected. Service is fast and always on time. Claims are also easily sanction. Good future investment and tax saver too.
Abhishek
Laxmipur, April 11, 2016
Nice Policy
I have canara hsbc life insurance pension policy plan which has low premiums and payed thrice time per year. Policy coverage is 91% and claims are high and the payback amount is around Rs.39 K per month. Service is very good and fast. The policy is nice investment for future and it is good tax saver too. Nice plan, I like it.