Child Insurance Plans - Canara Bank
Updated On Jul 07, 2022
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Canara HSBC child insurance plan is an excellent option for securing your child’s future. Being a long-term investment opportunity, it is a suitable option for providing insurance cover in case of any unfortunate event. Depending on the age of your child, it is advisable that you start investing as early as possible in order to reap the benefits of long-term investment.
Features of Canara HSBC OBC Smart Junior Plan
1. It is a non-linked participating savings-cum-protection endowment life insurance plan.
2. Premium payment options are on an annual and monthly basis.
3. Entitles a tax benefit on the premium paid and benefit received under Section 80C and Section 4. 10(10D), as per the Income Tax Act, 1961.
5. The grace period is 30 days from the premium due date.
6. The policy can be reinstated within 2 years from the due date of the first unpaid premium.
7. Has a 15 day free-look period from the date of policy receipt.
Benefits of Canara HSBC OBC Smart Junior Plan
The Smart Junior Plan entitles guaranteed payouts to the insured for the last 4 years of policy which can be sourced for achieving the child's educational milestones. You are also entitled to maturity benefit along with annual bonus and final bonus on maturity. In case of death of the insured, this plan provides comprehensive protection in the form of a lump sum amount which is paid immediately, all due premiums are waived off and guaranteed annual payouts will be paid as scheduled. You also have an option of flexible premium payment terms to help you choose a policy that suits your financial constraint.
Survival benefit
Under this plan, you will receive a guaranteed annual payouts at the end of each of the last 4 policy years before the maturity year, provided that you have paid all due premiums on time. The amount of annual payout is 20% of the sum assured.
Maturity benefit
You will receive a guaranteed sum assured on maturity of the plan equal to 20% of sum assured along with annual and final bonus, if any.
Death benefit
In case of death of the insured, an immediate lump sum benefit, higher of: sum assured | 10 times the annualized premium | 105% of (the total premiums paid till the date of death less underwriting extra premium, if any) will be payable.
Also, all future premiums (if any) need not be paid and the policy shall continue to be in force for the remaining tenure. The plan will continue to accrue annual bonuses.
Annual payout
As scheduled, the annual payouts will continue to be payable at the end of each of the last 4 policy years before the maturity year.
Bonus
Upon maturity of this plan, all accrued annual and final bonuses, if declared, will be payable on maturity.
Other benefits
If the sum assured under this plan is greater than ₹4,00,000, you are entitled to a rebate on the premium payable.
Loan facility
Once the policy reaches a surrender value, you can avail a loan of minimum amount ₹20,000 while the maximum loan amount cannot exceed 80% of the surrender value.
Eligibility Details
The minimum age of entry is 18 years while the maximum age of entry is 50 years (40 years in case of monthly mode). The maximum maturity age is 70 years.
Conclusion
80% of the premium or higher will be paid in case the policy holder commits suicide within 1 year of the policy revival date. 80% of the premium will be refunded if the policy holder commits suicide within 1 year from the date of inception of the plan. Death benefit will be payable if the policy holder commits suicide after 1 year of the date of inception or revival.
Also Read: Best Child Plans in India - Best Child Saving Plans
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