Canara HSBC OBC Insure Smart Plan

• Pay premiums for 5 years
• Life cover for 10 years
• Get Fund Value as maturity benefit
• Loyalty Additions @1% of Fund Value
• Invest in any 5 available fund options
• Change in sum assured allowed
• 6 free switches during a policy year
• 1 Premium re-direction in a policy year
• 4 free partial withdrawals during a policy year
• Avail tax benefits

This policy offers following 5 investment funds and you have the option to invest in any one or combination of fund options.

• Equity II Fund
• Growth Plus Fund
• Balanced Plus Fund
• Debt Plus Fund
• Liquid Fund

Death Benefit

In the event of death of the life assured, the nominee is entitled to receive the higher of Fund Value or Sum Assured (less applicable partial withdrawals). In case the life assured is a minor, the death benefit is payable to the policyholder. The Death Benefit shall be at least 105% of the total premiums paid.

If the policy is in discontinuance state, the Death Benefit is equivalent to the Proceeds of Discontinuance Policy Fund.

Before age 60 years of the life insured, Sum Assured is reduced to the extent of Partial Withdrawals made during the last two years prior the date of death. On or after attaining 60 years of age, Sum Assured is reduced to the extent of Partial Withdrawals made from 58 years onwards.

Maturity Benefit

On survival of the life insured till the end of the policy term, the Fund Value is payable as calculated on the prevailing NAVs at maturity.

Loyalty Addition

Loyalty Addition as 1% of the total fund value is payable at maturity of the policy.

Change in Sum Assured

Increase or Decrease in Sum Assured is allowed from 6th policy year onwards. This option is available once in a policy year, up to a maximum of three times during the entire policy term. Request for any change in sum assured should be given at least 2 months before the policy anniversary.

Switching

You can switch among 5 available fund options to suit your changing investment needs. The minimum switch amount allowed is Rs 10,000.

Premium Re-direction

Premium Re-direction facility is available to alter future premium allocation and it will apply to your subsequent premiums.

Partial Withdrawal

Partial Withdrawal is allowed from 6^th policy years onwards (in case of minor lives, life assured attains 18 years). The minimum partial withdrawal amount allowed is Rs 10,000. The minimum fund value required after such withdrawal should not fall below 120% of the annual premium.

Bonus

The plan is not eligible for the bonuses.

Loan Benefit

No loan benefit can be availed under this plan.

Surrender Value

Upon surrendering the policy with-in the lock-in period of 5 years, the fund value less applicable discontinuance charges is credited to the ‘Discontinued Policy Fund’ and it is refunded upon completion of the lock-in period. The proceeds after addition of interest subject to a minimum guaranteed interest rate of 4% per annum or as stipulated by IRDAI is payable after the end of the lock-in period.

Upon surrendering the policy after the lock-in period of 5 years, the Fund Value as on the date of surrender is payable immediately. The policy gets terminated and the life cover ceases upon surrender of the policy.

No rider is available under this plan.

Premium Allocation Charges: This charge is deducted from the premium paid. The Premium Allocation Charge is 8.4%/6.4%/5.4% during the 1^st policy year, 2^nd & 3^rd  policy year, 4^th & 5^th policy year, respectively. When pay through ECS/SI mode, the Premium Allocation Charge is 8.25%/6.3%/5.3% during the 1^st policy year, 2^nd & 3^rd  policy year, 4^th & 5^th policy year, respectively.

Policy Administration Charge: Policy administration charge is 0.05%/0.06% per month during 1^st to 5^th policy year/6^th to 10^th policy year, respectively subject to a maximum of Rs 500 per month.

Mortality Charges: Mortality charge is based on the age of the life insured and life cover. This charge is deducted every month by cancellation of units.

Fund Management Charges: Fund management charge levied is a percentage of the Fund Value. It is 1.35% p.a for Equity II Fund, Growth Plus Fund, Balanced Plus Fund & Debt Plus Fund, 0.80% p.a for Liquid Fund, 0.50% p.a for Discontinued Policy Fund. Fund management charge for Liquid Fund may be revised up to 1.35% p.a on prior approval from IRDAI.

Discontinuance Charge: This charge is levied, in case the policy is discontinued during the first 4 policy years. This charge is levied as applicable under the policy terms & conditions. For more details, please refer the policy brochure.

Switching Charge: You can avail 6 free switches during a policy year. A charge of Rs 250 is levied per switch when opted for subsequent switches in the same policy year. This charge can be revised to Rs 500, with prior approval from IRDAI.

Premium Re-direction: Premium re-direction once in a policy year is available.

Partial Withdrawal: 4 free partial withdrawals are allowed during a policy year. A charge of Rs 250 is levied when opted for subsequent withdrawal in the same policy year. This charge can be revised to Rs 500, with prior approval from IRDAI.

Miscellaneous Charges: Medical examination expenses in case of increase in sum assured, subject to a maximum of Rs 3000. This charge can be revised to a maximum of Rs 5000, upon prior approval from IRDAI.

Taxes: The charges mentioned under this plan are subject to applicable tax and cess, as applicable.

Tax benefits can be availed under section 80C & 10(10D) under the Income Tax Act, subject to change in tax laws.

Mr. Raman aged 40 years, is leading a happy life with his wife Ananya and a daughter Sanya. He wants to build a corpus amount, so his family can achieve their dreams such as Sanya’s education, her marriage, etc. He also wants to ensure financial security of the family, in case of a mishap. He thus opts for Insure Smart Plan with the policy term of 10 years, premium payment term of 5 years, annual premium of Rs 1,00,000, and the sum assured is Rs 10,00,000.

Scenario A- Maturity Benefit: In case of his survival till maturity of the policy, the Fund Value is payable as calculated on the prevailing NAVs at maturity. Loyalty Addition as 1% of the total fund value is also payable at maturity of the policy.

Scenario B- Death Benefit: In the event of his death during the policy term, the higher of Fund Value or Sum Assured (less applicable partial withdrawals) is payable to the nominee.

Benefit Illustration: