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Things To Know About Canara HSBC Endowment Policy

Updated On Jul 28, 2021

Life Insurance from Canara HSBC Oriental Bank of Commerce Plan Jeevan Nivesh is an Individual, non-linked, participatory, limited/regular premium payment endowment savings cum protection Plan for Life Insurance, which helps you in the journey through life. Whether it's a child's education, marriage, leaving a legacy, purchasing a dream home, or enjoying a joyful retirement with our loved ones, we all have goals. However, you'll need a disciplined financial planning approach to achieve all of these vital goals throughout your lifetime. 

Hence, it is advisable to invest in Canara HSBC Oriental Bank of Commerce Plan Jeevan Nivesh to start planning ahead of time.

Which Options Are Available Under The Plan?

You can choose from the following options:

  1. Endowment with the possibility of Whole Life Coverage
  2. Only Endowment option 

The benefits portion of this document goes over each of these possibilities in great depth. The plan option should be selected at the start of the policy and cannot be changed afterwards.

Endowment with Whole Life Cover option

  • Maturity Benefit

  1. You will receive the Guaranteed Sum Assured on Maturity, as well as any accrued Annual bonuses and Final bonuses, if any, if you survive the Policy Term (assuming that all due premiums are paid).
  2. The insurance will not expire when the Maturity Benefit is paid at the conclusion of the Policy Term; it will continue until you reach the age of 100 or die, whichever comes first.
  • Survival Benefit

Guaranteed Sum Assured on Maturity will be given to you if you live to be 100 years old (and all due premiums have been paid).

Your coverage will expire if the above benefit is paid, and no additional benefits will be paid.

This benefit is in addition to the Maturity Benefit, which will be paid at the end of the Policy Term.

Only Endowment option

  • Maturity Benefit

If you chose the Settlement option, the Maturity Benefit will be paid in the following manner, assuming that all required premiums have been paid:

  1. Accrued annual bonuses and final bonuses, if any, paid out in one lump sum at Maturity.
  2. The Guaranteed Sum Assured on Maturity will be paid in accordance with the Settlement option described above.

Under the terms of the Settlement, the policy will expire after 15 years.

  • Death Benefit 

If you die within the Insurance Term while the policy is still active, the death benefit will be as follows:

the greater of:

  1. Death Benefit, plus accrued Annual Bonus, Interim Bonus, and Final Bonus (if any).
  2. 105 percent of the entire premiums paid up to the date of death, less any underwriting additional premiums that may have been paid.

Your coverage will be terminated once the above benefits have been paid, and no further benefits will be paid.

What Are The Primary Advantages Of The Plan?

  • Lump-sum payout at maturity - Ensured savings with a guaranteed Sum Assured payout at maturity.
  • Lifelong protection - Life Insurance coverage for the duration of the policy and beyond (if you choose the Endowment with Whole Life Cover option).
  • Settlement option - You have the option to convert your Guaranteed Sum Assured on Maturity into yearly payouts for the next 15 years, with a 5% compounded annual increase to meet your rising demands (under the only Endowment option).
  • Customize your savings horizon and important financial goals - With multiple Policy Term options, you'll be able to choose the Policy Term that's right for you and closely linked with your financial objectives.
  • Premium payment term options - Select from a variety of customizable premium payment terms to match your financial goals.
  • Consistent accumulation of funds for your financial objectives - A lump-sum gain from the delivery of cumulative annual bonuses and the final bonus (if any).

Why Better value for greater premiums - You'll obtain a higher sum assured rebate if you commit to a higher premium commitment.

  • Section 80C and Section 10(10D) of the Income Tax Act of 1961, as amended from time to time, provide tax benefits on premiums paid and benefits received.

What Are The Bonuses In This Plan And How Do They Work?

a) Annual bonus (Simple Reversionary Bonus): If you pay your premiums on time, you may be eligible for an annual bonus, which is indicated as a percentage of the Sum Assured. This bonus may be declared at the conclusion of each financial year based on profits generated by the Company's with-profit fund. The Annual Bonus is accrued to the insurance once declared and is guaranteed to be paid once accrued.

b) Final bonus (Terminal Bonus): A final bonus may be granted depending on revenues from the Company's with-profit funds.

Suicide exclusion

If the Life Assured, whether sane or insane, commits suicide within 12 months of the Policy's inception or date of Revival, the following benefits will be payable under this Policy: If the Life Assured commits suicide within 12 months of the Policy's inception or date of Revival, the following benefits will be payable under this Policy: If the Life Assured commits suicide within 12 months of the Policy's inception and the Policy is still in force,

In the event of a suicide death within 12 months of the Policy's Revival date, the higher of 80 percent of the Premiums paid up to the day of death or the surrender value as of the date of death is payable.

Revision of Policy Requirements

You can request a policy revival at any moment during the 2-year term following the due date of the first unpaid premium. The policy will be revived in accordance with the Company's Board Approved Underwriting Policy. Following the policy's resuscitation, all product advantages, including bonuses, would be reinstated to their original levels, as if the policy had never gone into Paid-up or Lapse status. To reinstate the policy, you must pay all past due premiums, as well as the appropriate interest rate set by the Company from time to time (from respective premium due dates till the revival date). Revisions to the policy are not permitted post maturity of the policy.

Entry Age For Endowment with Whole Life Cover Option & Only Endowment Option Eligibility

Minimum age: 18 years; maximum age: 55 years

Minimum age is 18 and the maximum age is 45.

Maximum Maturity Age: 80 years for Annual mode and 75 years for Monthly mode; however, if Endowment with Whole Life Cover option is selected, life insurance coverage will continue up to 100 years of age.

Take Away

Endowment plans are regarded as a path to long-term financial security. 

Endowment plans give the basic advantages as well as additional perks in the form of riders to enhance the investor's experience. It is critical for the investor to understand the policy's exclusions and benefits in order to facilitate the process of applying for future payouts.

Also read 

Which Is Better, Money-Back Or Endowment Plan?

Different Types Of Endowment Policies In India

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.         

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