Canara HSBC Smart Junior Plan

About Smart Junior Plan

The Canara HSBC Life Insurance Smart Junior Plan is a personalized non-linked par life insurance policy that combines savings and protection, specifically designed to secure your child's future education needs, regardless of your presence.

With the Smart Junior plan, you can expect assured payouts during the final five years of the policy, which can be aligned with your child's educational milestones. Additionally, the plan includes annual bonuses and, upon maturity, a final bonus, if applicable.

This plan offers comprehensive protection, ensuring that in the event of the unfortunate demise of the Life Assured, an immediate lump sum amount is paid, and any remaining premiums due are waived. The policy remains active, and the scheduled policy benefits continue to be paid.

Eligibility Criteria of Canara HSBC Smart Junior Plan

Features Of Canara HSBC OBC Smart Junior Plan

Features of Canara HSBC OBC Smart Junior Plan are: 

1. Triple Protection

   This plan offers enhanced life insurance protection, providing a lump sum benefit upon the policyholder's death. The unique feature of this best child education plan is that all remaining premiums are waived, ensuring financial security for the insured's family. Additionally, it guarantees annual payouts specifically designed to meet the educational needs of the insured's child.

2. Guaranteed Payouts

   The plan includes guaranteed annual payouts that are closely aligned with your child's educational milestones. These payouts are structured to provide consistent financial support for your child's education as they progress through their academic journey.

3. Tailored to Your Savings Goals and Milestones

   With multiple policy term options, you have the flexibility to choose a term that aligns closely with your child's age and anticipated future milestones. This customization ensures that your policy is well-suited to meet your specific savings goals and educational objectives.

4. Flexible Premium Payment Options

   The plan offers a variety of premium payment terms to choose from, allowing you to select a payment schedule that closely aligns with your savings horizon. This flexibility ensures that you can comfortably manage your premium payments while working towards your child's education fund.

5. Building a Solid Education Fund

   Canara HSBC Smart Junior Plan focuses on building a substantial fund for your child's education. In addition to regular annual bonuses, a final bonus may also be added upon maturity. This approach guarantees a smooth accumulation of funds dedicated to your child's educational expenses.

6. Enhanced Benefits for Higher Premiums

   To reward policyholders who commit to higher premiums, the plan offers a high sum assured rebate. This means that by making a higher premium commitment for the chosen policy term, you can enjoy even greater benefits and value from the plan.

7. Tax Benefits

   The premiums paid and the benefits received under the Smart Junior Plan are eligible for tax benefits under Section 80C and Section 10(10D), as per the Income Tax Act, 1961.

Benefits of Canara HSBC OBC Smart Junior Plan

The Canara HSBC OBC Smart Junior Plan offers a range of benefits designed to secure your child's future. Some of the key benefits of the plan include:

1. Survival Benefit

   Receive guaranteed annual payouts at the end of each of the last 4 policy years before maturity, provided all premiums are paid. Use payouts for future education needs of your child. The amount of annual payouts will be as per below table.

   At the end of Policy Year	Payout as % of Sum Assured
   Policy Term minus 4	20%
   Policy Term minus 3	20%
   Policy Term minus 2	20%
   Policy Term minus 1	20%

2. Maturity Benefit

   On survival till maturity, receive Guaranteed Sum Assured on maturity (equal to 20% of Sum Assured), along with annual bonuses and final bonus, if any.

3. Death Benefit

   In case of the unfortunate demise of the insured during the policy term, the following benefits will be payable to the nominee: 

   Immediate lump sum benefit (higher of):

   • Sum Assured: 10x the Annualized Premium

   • 105% of the Total Premiums Paid till the date of death, less underwriting extra premium, if any

   • Future premiums need not be paid, and the policy will continue to be in force for the remaining Policy Term.

4. Guaranteed Annual Payouts

   Guaranteed annual payouts that are scheduled will continue to be payable at the end of each of the last 4 policy years before the maturity year.

5. Guaranteed Sum Assured

   On maturity, you receive a benefit equal to 20% of the Sum Assured.

6. Bonuses

   Upon maturity of the policy, any accumulated annual bonuses, as well as a potential final bonus, will be paid out.

7. Tax Benefits

   You can avail tax benefits on the premium paid, under Section 80C of the Income Tax Act, 1961.

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Discontinuance of Premium Conditions 

The terms regarding the discontinuance of premium conditions under the Canara HSBC OBC Smart Junior Plan are as follows:

1. Description Discontinuance during first policy year (Policy has not acquired paid-up value)

   • Life cover lapses after grace period 

   • No policy benefits are payable 

2. Discontinuance after paying first policy year full premium but before paying second policy year full premium(s) (Policy has not acquired paid-up value)

   • Life cover lapses after grace period 

   • Early Exit Value of 10% of the Total Premiums Paid, excluding underwriting extra premium, if any, will be payable on earlier of upon death or surrender or end of 5 years’ revival period 

3. Discontinuance after paying first 2 policy years full premiums (Policy has acquired paid-up value)

   • Acquires Paid-up value after grace period and continues at paid-up value 

   • Continues with reduced benefit till maturity or death, whichever is earlier 

   • Surrender request can be accepted and Surrender Value paid immediately 

Why Buy Canara HSBC Smart Junior Plan

The Canara HSBC Smart Junior Plan is a beneficial investment for securing your child's future. It offers comprehensive protection by combining life insurance coverage with investment opportunities, allowing you to build a corpus for your child's education, marriage, or other future needs. With flexible customization options, potential investment growth, wealth transfer benefits, and tax advantages, this plan provides a well-rounded financial solution for parents or guardians looking to safeguard their child's financial well-being.

Policy Details of Canara HSBC OBC Smart Junior Plan

• Revival Period: You have the option to request the revival of the policy at any time within a five-year period starting from the due date of the first unpaid premium.

• Grace period: You are given a 30-day Grace Period for yearly policies and a 15-day Grace Period for monthly policies, starting from the premium due date, to make the required premium payments.

• Free Look Period: The policyholder has the option to check the terms and conditions of the policy within 15 days (or 30 days if the policy was obtained through remote marketing) after receiving the policy document.

• Surrender: At any point during the policy period, you have the option to terminate the policy. The amount you will receive upon surrendering the policy will be the greater of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). However, the policy only accumulates both GSV and SSV after you have paid premiums for at least two consecutive policy years.

• Paid-Up: Your policy will become Paid-up after the Grace Period expires, starting from the due date of the first unpaid premium, as long as you have paid the full premiums for the first two consecutive policy years. If the policy remains in the Paid-up state and is not surrendered or revived, you will receive a Paid-up value upon death or upon reaching the end of the policy term, whichever happens earlier.

• Loan Facility: Avail the loan facility to meet liquidity needs once the policy acquires a surrender value.

• Rebates: If the Sum Assured equals or exceeds Rs 4,00,000, a discount will be provided on the payable premium.

Exclusions of Canara HSBC OBC Smart Junior Plan

Suicide Exclusion

If the insured person, whether mentally stable or not, takes their own life, the benefits provided by this policy will be as follows:

• If suicide occurs within one year from the start of coverage and the policy is active, the higher amount between 80% of the total premiums paid up to the date of death and the surrender value available at the time of death will be paid.

• If suicide occurs within one year from the policy's revival date, the higher amount between 80% of the total premiums paid up to the date of death and the surrender value applicable at the time of death will be paid.

• If suicide is committed after one year from the start of coverage or from the policy's revival date, the death benefit will be based on the terms applicable to an active or paid-up policy.

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