Canara HSBC OBC Life Insurance ISelect Term Plan

• Life cover up to age 80
• Inbuilt level death benefit and terminal illness cover
• Need-based benefit payout options to choose from
• Option to cover your spouse under this policy
• Optional inbuilt Accidental death & disability cover
• Special premium rates for non-tobacco users
• Lower premium rates for women
• Premium differential for opting higher sum assured
• Tax benefits as per prevailing tax laws

Coverage Option

As far as coverage option is concerned, you can opt for Level Cover or Increasing Cover.

Level Cover: Sum Assured will remain fixed for the entire policy term.

Increasing Cover: Sum Assured will increase by 25% after every 5th policy year up to the 20th policy year. The increase in cover is limited to 100% of the original cover.

Death Benefit

The Death Benefit is payable, depending on whether coverage has opted for ‘Only Me’ or ‘My Spouse and I’.

For ‘Only Me’

The death benefit (including terminal illness cover) for the life assured is the Sum Assured opted.

In the event of an unfortunate demise of the life assured, the Sum Assured is payable through one of the following chosen benefits payout options:

Option 1- Lump Sum: Entire benefit is paid out as a one-time lump sum.

Option 2- Lump Sum + Monthly Income: 50% of the benefit is paid out immediately, on the date of death/terminal illness/Accidental Total and Permanent Disability. The remaining benefit amount is paid out in equal monthly installments over a period of 120 months.

Option 3- Monthly Income for a fixed term: The entire benefit amount is payable in equal monthly installments over 120 months.

Option 4- Monthly Income till the end of your policy term: The entire benefit amount is payable in equal monthly installments till the end of the policy term.

Note: The monthly income payout will start from the first monthly anniversary after accepting claims.

For ‘My Spouse and I’

In addition to the benefits mentioned under the ‘Only Me’ option, a fixed amount of Rs 25 Lacs is payable upon insuring the spouse.

In-Built Covers

In case, you need additional cover against accidental events, you have the option to choose any one of the optional in-built covers for Accidental Death and Accidental Total & Permanent Disability (ATPD).

Accidental Death: An additional amount up to Rs 3 Crores (in addition to the sum assured) is payable in a lump sum.

Accidental Total & Permanent Disability (ATPD): The sum assured is payable depending on the payout option chosen. The maximum benefit amount under ATPD is Rs 1 Crore. This cover is available for Level Cover option only.

Maturity Benefit

It is a pure protection plan and no maturity benefits are payable if the life assured survives the policy term.

Surrender Benefit

There is no surrender value payable under this policy.

This plan provides in-built cover for Terminal illness and optional in-built cover for Accidental Death, Accidental Total & Permanent Disability.

Canara HSBC OBC Life iSelect Term Plan is eligible for Tax benefits as stated:

• Premiums paid to qualify for tax benefits under Section 80C of the Income Tax Act, 1961.
• Benefits received are entitled for tax benefits under Section 10 (10D) of the Income Tax Act, 1961.

(Subject to the provision stated therein.)

Let’s understand this plan with an example:

Sanjay at 34 years is looking to ensure the financial security for his spouse and son, when he is not around. He thus opts for Canara HSBC OBC Life iSelect Term Plan with the sum assured of Rs 1.5 crore for a policy term of 26 years and the death benefit to be paid out as regular monthly income for a period of 10 years to his family. The annual policy premium is Rs 10,818.

Benefit Payable

In case of Sanjay’s untimely demise any time during the term of the policy, his family will receive equal monthly instalments of Rs 1,51,350 for 120 months as a regular income which will help support his son’s education apart from fulfilling other financial obligations.