Canara Promise4Growth Plan

What is Canara Promise4Growth Plan?

The Canara Promise4Growth Plan is a Unit-Linked Insurance Plan (ULIP) from Canara HSBC Life Insurance. It offers a combination of investment and insurance benefits. You can grow your wealth while ensuring financial security for your family. The plan lets you choose from different fund options based on your goals and risk level. You can also select the premium payment term and policy duration as per your needs. It provides tax benefits under Sections 80C and 10(10D) of the Income Tax Act.

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Top Funds with High Returns (Past 7 Years)

16.4%

High Growth Fund

13.33%

Opportunities Fund

13.2%

Accelerator Mid-Cap Fund II

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Features of Canara Promise4Growth Plan

Canara Promise4Growth Plan offers attractive features to secure your financial growth and future stability; some of the key features are mentioned below:

• 3 Plan Options to Match Your Financial Goals: 

  • Promise4Wealth: This plan provides the accumulated fund value at maturity along with life cover, ensuring your financial security.

  • Promise4Care: In case the Life Assured is no longer around, this option ensures that the savings contributions continue through the "Premium Funding Benefit," securing the future of dependents.

  • Promise4Life: This investment plan offers life cover until the age of 100 and helps you create a legacy for your loved ones.

• 4 Investment Strategies: You can choose from four different investment strategies

  • Systematic Transfer Option (STO)

  • Auto Fund Rebalancing (AFR)

  • Return Protector Option (RPO)

  • Safety Switch Option (SSO)

  These strategies are designed to meet your financial goals and match your risk tolerance, offering flexibility and security.

• Flexible Premium Payment Terms: You can choose between limited or regular premium payment terms based on your preference.

• Premium Funding Benefit: If the Life Assured passes away prematurely, the "Premium Funding Benefit" ensures that the contributions continue without interruption.

• Diversified Fund Portfolio: You can choose from 9 different fund options, allowing for greater diversification and tailored investment choices.

• Flexibility to Reduce Premium: You have the option to reduce your premiums whenever needed, offering you greater flexibility.

• Enhanced Maturity Benefits: The plan offers enhanced maturity benefits, including loyalty additions, wealth boosters, and the return of mortality charges.

• Liquidity Options: You can access liquidity through partial withdrawals or opt for MWO/SWO as per your needs.

• Tax Benefits: The plan provides tax advantages based on the prevailing tax laws, helping you save more.

• Settlement Option: After maturity, you can stay invested and secure by choosing the flexible settlement option.

Eligibility Criteria for Canara Promise4Growth Plan

Death Benefits under Canara Promise4Growth Plan

The death benefit ensures financial protection for your loved ones in case of the Life Assured's untimely demise, offering different payouts based on the plan option and policy status. 

Let us learn the death benefits offered with different investment options offered under Canara Promise4Growth plan:

1. Promise4Wealth

   Policy Status	Benefit Details
   In-Force Policy	The higher of: - Sum Assured minus partial withdrawals/MWO/SWO withdrawals (last 2 years). - Fund value on death claim date. - 105% of premiums paid.
   Discontinued Policy	Fund value in the Discontinued Policy Fund. Policy terminates.
   Reduced Paid-Up Policy	The higher of: - Paid-Up Sum Assured minus partial withdrawals/MWO/SWO withdrawals (last 2 years). - Fund value on death claim date. - 105% of premiums paid.

2. Promise4Care

   Policy Status	Benefit Details
   In-Force Policy	The higher of: - Sum Assured*. - 105% of premiums paid. - Premium Funding Benefit is activated.
   Discontinued Policy	Fund value in the Discontinued Policy Fund. Policy terminates.
   Reduced Paid-Up Policy	The higher of: - Paid-Up Sum Assured. - 105% of premiums paid. - Fund value on death claim date. Policy terminates.

   *Note: Sum Assured under Promise4Care is not reduced by partial withdrawals/MWO/SWO made before the Life Assured's death.

3. Promise4Life

   Policy Status	Benefit Details
   In-Force Policy	The higher of: - Sum Assured minus partial withdrawals/MWO/SWO withdrawals (last 2 years). - Fund value on death claim date. - 105% of premiums paid.
   Discontinued Policy	Fund value in the Discontinued Policy Fund. Policy terminates.
   Reduced Paid-Up Policy	The higher of: - Paid-Up Sum Assured minus partial withdrawals/MWO/SWO withdrawals (last 2 years). - Fund value on death claim date. - 105% of premiums paid. Policy terminates.

Key Benefits of Canara Promise4Growth Plan

The Canara Promise4Growth Plan offers you with the following benefits:

1. Maturity Benefit

   The maturity benefit ensures financial security by providing the accumulated fund value at the end of the policy term.

   • Promise4Wealth: The fund value as on the maturity date will be paid to the policyholder.

   • Promise4Care: The fund value as on the maturity date will be paid, ensuring a secure future for dependents.

   • Promise4Life: The fund value as on the maturity date will be paid, helping to create a legacy for loved ones.

2. Settlement Option

   The settlement option provides flexibility to grow your investment even after policy maturity, offering multiple payout options for added convenience.

   • Purpose: You can continue investing in diversified funds to further grow your corpus post-maturity.

   • Flexibility: Receive the maturity corpus based on your chosen frequency—monthly, quarterly, half-yearly, yearly—or withdraw it as a lump sum whenever needed.

   • Availability: This option is available under all plan variants. However, it is not allowed after the Life Assured’s death under the Promise4Care option.

   • Conditions: You can opt for the settlement option at the start of the policy or anytime during its term, at least 3 months before maturity. (The policy remains active for a maximum of 5 years after maturity.)

   • Death Benefit During Settlement: In case of the Life Assured’s demise during the settlement period, the higher of the fund value or 105% of premiums paid will be payable.

   • Option to Withdraw: You also have the flexibility to fully withdraw the fund value and terminate the policy during the settlement period.

3. Loyalty Addition

   Loyalty Addition is added every 5th policy year during the premium payment term, starting from the policy’s commencement. It is calculated as a percentage of the average fund value over the last 60 monthly policy anniversaries.

4. Wealth Booster

   Wealth Boosters are credited as a percentage of the average fund value over the last 60 monthly policy anniversaries for each unit-linked fund. They are added if all premiums are paid on time.

   • If the Premium Reduction option is exercised, Wealth Boosters will be based on the reduced annual premium.

   • Wealth Boosters will be added only if premiums are up to date.

5. Return of Mortality Charges - Enhanced Maturity Benefit

   The Return of Mortality Charges feature adds the total mortality charges deducted during the policy term to the fund value at maturity, provided all premiums have been paid. This amount is added proportionally to the total units held in the unit-linked funds at maturity, using the unit price on the maturity date. It excludes GST, cess, and additional charges for sub-standard lives due to health or higher-risk factors like occupation.

6. Reduction in Premium

   Policyholders have the option to reduce their premium after paying premiums for the first five completed policy years. The premium can be reduced by up to 50% of the annualized premium, subject to minimum premium limits.

7. Premium Redirection

   Premium Redirection allows policyholders to change the allocation of future premiums to different funds, free of charge, once per policy year. It takes effect from the next premium due date and only affects future premium allocations without impacting past investments or allocations.

8. Withdrawal Options

   • Partial Withdrawal: Available from the 6th policy year onwards, with a minimum withdrawal of Rs. 5000, provided all premiums for the first 5 years have been paid, and the Life Assured is at least 18 years old.

   • Milestone Withdrawal Option (MWO): Allows a 20% withdrawal of the fund value at the time of payment, starting from the end of the 10th policy year and every 5th year thereafter, excluding the policy maturity year.

   • Systematic Withdrawal Option (SWO): Enables withdrawals between 1% and 12% of the fund value, as selected by the policyholder, starting from the 11th policy year or the policy year immediately following the SWO request. Only one option, MWO or SWO, can be used during the policy term.

9. Switching

   Switching allows policyholders to change their investment patterns during the policy term or settlement period. It can be done at any time in percentage or absolute amount, with a minimum of Rs. 5000. All switches are free under this plan. 

10. Increase in Policy Term

    The policyholder has the option to increase the policy term after paying premiums for the first five completed policy years. This can be done up to two times during the entire policy term, and the increase will always be in multiples of one year.

11. Change in Premium Payment Term (PPT)

    The policyholder has the option to alter the Premium Payment Term (PPT) after paying premiums for the first five completed policy years. This can be done up to two times during the entire policy term. The change can result in either an increase or decrease in the PPT, within specified limits.

12. Change in Premium Payment Mode

    The policyholder can change the premium payment mode by submitting a written request to the company anytime during the Premium Payment Term (PPT). The change will take effect from the next policy anniversary, provided all due premiums are paid and minimum limits are met. The request should be made at least 60 days before the policy anniversary from which the change is to be applied.

13. Return of Mortality Charge

    At maturity, the total mortality charges deducted during the policy term will be added to the fund value, provided all premiums are paid. However, the following exclusions apply:

    • The amount excludes additional charges due to sub-standard life (e.g., health or occupation-related risks).

    • GST and applicable cess deducted for mortality charges are not included.

    • The return is calculated based on the total units held in the unit-linked funds at maturity, using the unit price on the maturity date.

    • Note: Return of Mortality Charge is not applicable for surrendered, discontinued, or reduced paid-up policies.

14. Premium Funding Benefit (PFB)

    The Premium Funding Benefit (PFB) ensures that, in case of the life assured's death, the company funds all future premiums due until the end of the premium payment term. These premiums will be invested in the same unit-linked funds as per the policyholder's last chosen allocation.

4 Portfolio Management Strategies of Canara Promise4Growth Plan

The investment strategies, offered under the Canara Promise4Growth Plan, are designed to help you achieve your financial goals by managing risk and optimizing growth effectively.

1. Systematic Transfer Option (STO)

   STO helps you invest in equity funds step-by-step to reduce the risk of lump sum investments and market volatility. Your premium is first invested in the Liquid Fund and then transferred monthly to your selected equity fund, like Equity II Fund, India Multi-Cap Equity Fund, Large Cap Advantage Fund, or Emerging Leaders Equity Fund.

2. Auto Fund Rebalancing (AFR)

   AFR automatically adjusts your fund allocation every 3 months to match your chosen percentages and take advantage of market changes. It starts from the policy’s beginning, stays active even in reduced paid-up status, and stops if you make fund switches, redirect premiums, or opt for other strategies like RPO or SWO.

3. Return Protector Option (RPO)

   RPO protects your gains from equity funds by transferring them to a debt fund once they reach your selected target appreciation (5%-15%). It works with all premium payment options and starts from the first policy anniversary. However, it stops if you activate options like STO, AFR, SWO, MWO, or SSO. RPO must be chosen when buying the policy and helps secure your gains from market risks.

4. Safety Switch Option (SSO)

   The Safety Switch Option (SSO) automatically moves your funds to a low-risk Liquid Fund during the last four years of the policy. This helps protect your corpus from market volatility as the policy matures. By reducing exposure to equity markets, the SSO ensures that your investment remains stable and secure towards the end of the policy term.

Policy Details of Canara Promise4Growth Plan

• Revival of Policy After Discontinuance Due to Non-Payment of Premium(s): If the policy is discontinued due to non-payment of premiums, you can revive it by paying all due and unpaid premiums within the Revival Period of 3 consecutive years from the first unpaid premium. The policy may be revived under its original or modified terms, depending on the underwriting decision.

• Revival During the Lock-in Period: If the policy is discontinued during the lock-in period, it can be revived by restoring the risk cover and investments from the Discontinued Policy Fund (DPF) (minus applicable charges). The company will:

  • Collect all due and unpaid premiums without charging interest or fees.

  • Not levy any additional charges at the time of revival.

  • Add back the discontinuance charges deducted earlier to the fund value.

• Revival of a Reduced Paid-up Policy After the Lock-in Period: If the policy has entered a reduced paid-up status after the lock-in period, it can be revived by restoring the original risk cover. The company will:

  • Collect all due and unpaid premiums without charging interest or fees.

  • Not levy any additional charges at the time of revival.

• Surrender of Policy: The policyholder can surrender the policy at any time, except after the death of the life assured under the Promise4Care option. The surrender value payable will be the Fund Value minus the applicable surrender charge.

• Discontinuance of Policy During the Lock-in Period (First 5 Years): If the premium is not paid by the end of the Grace Period, the fund value (minus discontinuance charge) is transferred to the Discontinued Policy Fund (DPF), and risk cover ends. The policyholder will be notified within 3 months and can revive the policy during the Revival Period. If not revived, the DPF proceeds will be paid at the end of the Revival or Lock-in Period, and the policy will terminate. The policyholder can also surrender the policy, with proceeds paid after the lock-in period or surrender date.

• Discontinuance of Policy After the Lock-in Period (Post 5 Years): If the premium is not paid by the end of the Grace Period, the policy will convert to a Reduced Paid-up Policy with a reduced sum assured. The policyholder will be notified within 3 months and can choose to:

  • Revive the policy within the Revival Period

  • Withdraw the policy entirely

How the Canara Promise4Growth Plan Works?

You can learn the workings of the Canara Promise4Growth Plan from the following steps:

• Choose Your Plan Option: Select the plan that best matches your financial goals:

  • Promise4Wealth: For wealth accumulation.

  • Promise4Care: To secure your dependents.

  • Promise4Life: To create a legacy with life cover till 100 years.

• Decide the Premium Payment Term and Policy Term: Choose a premium payment term and policy duration that fits your financial needs and commitments.

• Set Your Premium Amount and Payment Mode: Decide the premium amount you want to pay and choose a payment mode that is convenient for you:

  • Monthly

  • Quarterly

  • Half-Yearly

  • Yearly

• Select Your Funds: Choose from the available funds to invest your money based on your risk appetite and financial goals.

• Choose a Portfolio Management Strategy: Pick a portfolio management strategy that suits your investment preferences and long-term plans.

Suicide Exclusion Criteria of Canara Promise4Growth Plan

In case of suicide, whether sane or insane, within 12 months from the policy's start date, the nominee will receive the fund value, excluding any charges. If suicide occurs within 12 months from the date of policy revival, the nominee will receive the fund value after deducting revival-related charges. Risk coverage will not apply in either case, and no other benefits will be paid.