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Benefits of Guaranteed Savings Plan by Canara HSBC Oriental Bank of Commerce Life Insurance

dateKnowledge Centre Team dateJanuary 12, 2021 views324 Views
Benefits of Guaranteed Savings Plan by Canara HSBC Oriental Bank of Commerce Life Insurance

You cannot just leave your goals such as marriage, child's education, or financial security to destiny. To fulfill them, you require a structured plan that will help you reach the objectives. The plan should give you assured returns that don't depend on the capital markets' fluctuations or the bonuses declared by the insurance company.

Moreover, the plan should be achievable even in any case of mishappenings. If you're looking for a good savings plan, then consider Canara HSBC Oriental Bank of Commerce Life Insurance Company. The Guaranteed Savings Plan offers comprehensive and guaranteed benefits. Besides, the program is flexible for choosing your savings compass. Let us discuss the benefits in a detailed manner:

Benefits of Guaranteed Savings Plan

  • On payment of all dues, the bank will pay all the guaranteed benefits upon maturity.
  • Life cover for the entire term despite the payment of premium for a set period.
  • The payment term will be flexible, as per your choice. You have the freedom to choose the premium payment terms that best suits your payment capacity.
  • You can customize the savings horizon according to your critical financial goals. The bank gives you an option of multiple policy terms that resonates with your financial goals.
  • With high premium commitment, you can avail high premium booster. It offers you extra benefits for paying a high premium. We will talk about this benefit later in this article.
  • According to Section 80C and Section 10(10D) of the Income Tax Act, 1961, you get tax benefits on premium and benefits payment. However, the tax benefits are subject to the prevailing IT laws and regular amendments.
  • The policy also offers enhanced Protection for your family by providing life insurance protection through the lump-sum payment on death of the policyholder. It will not ask for the payment of the remaining term and grant all the guaranteed benefits that were payable on maturity. The scheme is valid under Guaranteed Savings with Premium Protection Option.

These are a few primary benefits the savings plan offers. However, the benefits vary with the type of plan you opt for. The information below will help you have a better idea of the benefits.

The Sum guaranteed on death is the amount which is higher among the following:-

  • 11 times the total amount of premium paid annually
  • The full amount is guaranteed to be paid when you die, which is also equivalent to Sum Assured
  • 105% of the total amount paid as insurance till the date of death
  • The Sum which you were guaranteed on maturity.

The amount of Accidental Death Benefit(ADB) Sum Assured and Sum Assured on Death is the same in terms of money.

The Guaranteed Savings Plan has three options. They are:

  • Guaranteed Savings Options
  • Guaranteed Savings with Double Protection Option
  • Guaranteed Savings with Premium Protection Option

Guaranteed Savings Option: The minimum entry age is 0, and the maximum is 60 years, and the minimum maturity age is 18 years, whereas the maximum is 75.

Guaranteed Savings with Double Protection Option: The minimum and maximum entry age are 18 and 60 years, respectively, whereas the minimum maturity age is 28 years and maximum is 75.

Guaranteed Savings with Premium Protection Option: The minimum and maximum entry age are 18 and 55 years, respectively, whereas the minimum maturity age is 28 years and maximum is 75.

Let us discuss the benefits of these three options.

Benefits under Guaranteed Savings plan and Guaranteed Savings with Double Protection Option

  • Maturity Benefit: When the entire Policy Term is completed, including all the paid premiums, you will receive a certain sum of money. This Sum consists of the Sum guaranteed on maturity, guaranteed yearly addition, and the loyalty addition which was guaranteed. Your policy will be terminated only after the payment of all the above benefits.
  • Death Benefit: In case of death of the life assured during the policy term, the benefit payable to the nominee is the summation of the Sum assured on death, and the cumulative guaranteed yearly addition added till the date of death. This condition is valid if the policy is functional. If you have availed this option and the insured passes away due to an accident, the insurance company will pay an additional sum equal to ADB Sum assured. After the payment of all the above benefits, the policy will terminate, and no further benefit would remain outstanding.

Benefits under Guaranteed Savings with Premium Protection Option

  • Maturity Benefit: When the entire Policy Term is completed, including all the paid premiums, you will receive a certain sum of money. This Sum consists of the Sum guaranteed on maturity, guaranteed yearly addition, and 11 times the annualised premium which was guaranteed. Your policy will be terminated only after the payment of all the above benefits. After this, no more benefits remain outstanding.
  • Death Benefit: If an unfortunate death of the life assured occurs during the term of the policy, on condition that the approach is functional, the benefit payable to the nominee is the summation of the Sum assured on death, and the future premiums are not required to be paid, and the policy shall remain life for the remaining policy term. The policy opted will also continue to result in guaranteed yearly addition and the loyalty addition acquired on payment of all benefits mentioned above. After this, the policy will terminate, and no further benefit would remain outstanding.

Other Benefits:

Apart from the above benefits, the Canara HSBC Oriental Bank of Commerce offers additional benefits in Guaranteed Savings Plans. Let us brief you about it.

  • Loan Facility:

    The bank offers a loan facility in this plan if you suddenly come across any unforeseen event. This is applicable when your policy obtains a Surrender Value. You can get a minimum amount of ₹ 20,000. However, the maximum amount can be 80% of the prevalent Surrender Value when you avail of the loan. You have to keep in mind that you can help the loan for an in-force policy itself and you cannot avail of the loan on paid-up policies.

  • High Premium Booster

    The bank will increase the basic Sum Assured for a particular premium if your annual premium is more than ₹30,000. Refer to the table below to know your High Premium Booster percentage:

Annual Premium (in ₹) High Premium Booster(as % of Basic Sum Assured)
20,000 to less than 30,000 Nil
30,000 to less than 40,000 4%
40,000 to less than 50,000 7%
50,000 to less than 75,000 8%
75,000 to less than 1,00,000 10%
Greater than or equal to 1,00,000 11%

How do the benefits work?

As mentioned above, the bank offers you to customize the plans that best suit your financial needs and goals. You can follow these three simple steps:

Step 1- Select your plan option: You should select the plan according to your financial needs. If you aim to get a round sum of money on maturity and a life cover during the policy period, we would suggest you go for the "Guaranteed Savings Option". Else, if you aim to get intensified Protection during the policy and a round sum of money on maturity, we would suggest you go for "Guaranteed Savings with Double Protection Option". Nevertheless, if you aim to save for your little one's future, we advise you to opt for "Guaranteed Savings with Premium Protection Option".

Step 2- Select the premium: Choose your premium according to your financial sustainability. To ensure that your economic necessities are met, you can look over the guaranteed amount at policy maturity. We suggest you should save at least 20% of your monthly income if your income is steady. Since investments are diversified, you shouldn't necessarily invest all of your savings into saving schemes. Generally, your aim should be a financial buffer of over ten times your yearly income.

Step 3- Select your premium payment term, policy term, and premium payment mode: You should be aware of your ability to pay the premium. Select the period for which you would pay the premium. Also, select the policy term and frequency of the payment to align with your payment preference, savings horizon, and future goals.

The total Sum Assured in the option/plan would be set based on your age and the option selected above. If your annual premium is entitled to High Premium Booster, the Sum assured would be intensified by the High Premium Booster %.

Types of Savings Plans offered by Canara HSBC Oriental Bank of Commerce:

  • Invest 4G Plan
  • Titanium Plus Plan
  • Guaranteed Savings Plan
  • Smart Lifelong Plan
  • Insure Smart Plan
  • Smart Future Income Plan
  • Grow Smart Plan
  • Future Smart Plan
  • Easy Bachat Plan
  • Guaranteed Income Plan
  • Guaranteed Income Advantage Plan
  • Money-Back Advantage Plan
  • Jivan Nivesh Plan

You can choose as per your plan according to your financial goals and needs. The bank offers a withdrawal facility with all major savings, thus helping you take care of unplanned contingencies. The savings plan of Canara HSBC Oriental Bank of Commerce Life Insurance offers you abundant flexibility while investing and receiving the benefits of the savings plan.

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Frequently Asked Questions

What is saving plan?

A savings plan is likely to be different for everyone depending on the financial goal, risk profile, returns, and investment horizon. If you are young and want to save for your retirement, ULIPs like Invest 4G or Titanium Plus plan would be the best option. You are likely to create a large corpus by your retirement through market-linked returns if you invest in this savings plan. If capital protection is your aim, then traditional insurance plans such as Guaranteed Money Saving Plan should be suitable for you.

Who should invest in a Savings Plan?

If you are looking for a guaranteed income plan, then saving plans should be on your list of investments that you are planning to make. Savings plan require you to invest a pre-decided amount on a regular basis. People with a regular stream of income who require a lump-sum amount after a period should opt for a savings plan. Working professionals, self-employed people and businessmen should consider a savings plan to meet their long-term financial obligations. Saving plans are also ideal for people who are risk-averse and want to accumulate funds through relatively safer mediums. These saving plans inculcate financial discipline in policyholders which make them crucial for every portfolio.

How much money should you put in savings each month?

The amount that should be invested in a savings plan each month depends on the income, existing financial obligations and the long-term financial goal. If you have a steady income, you should save at least 20% of your monthly income. It is not necessary to invest your entire money into a savings scheme as investments should be diversified. Ideally, you should aim to have a financial buffer of over 10 times of your annual income. Choose an income plan based on your financial circumstances to stay afloat.

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What is the difference between saving and investing?

Saving is the money that you keep aside for emergencies or for buying any big-ticket item. Investing means growing or multiplying the wealth that you have by buying savings plan, or any other assets. Buying a savings plan will help you in achieving your investment goals such as retirement, your child’s higher education or marriage, or for buying a new house.

Which savings plan is best for retirement?

The Invest 4G plan with its multiple investment options and various portfolio management strategies for capital protection is an ideal saving plan for retirement. Also, Guaranteed Income4Life is also another savings plan that you can consider for building your retirement corpus as it acts as a guaranteed income plan that will provide you maturity benefits to manage your post-retirement expenses.

Which savings plan is best for long-term goals?

Smart Goals Plan is a savings plan with its unique features such as modification of the sum assured partial withdrawal and fund switch can help you plan for your long-term financial goals. Canara HSBC Oriental Bank of Commerce Life Insurance offers a wide variety of saving plans that you can invest in as per your risk appetite and investment goal.

Which savings plan is suitable for girl child?

The Future Smart unit-linked plan from Canara HSBC Oriental Bank of Commerce Life Insurance is the ideal savings plan for the girl child. Monthly Income Advantage Plans are also a good option if you are planning to invest in a savings plan for your girl child.

Where should I invest my money?

You should spread your investments across financial instruments. However, having the best savings cum guaranteed income plan in your portfolio is extremely important. Savings plan ensures financial stability and also helps in fulfilling short, medium and long-term monetary goals.

What is a monthly income advantage plan?

A monthly income advantage plan ensures that you lead a stress-free life with your loved ones as it provides a life cover along with giving you guaranteed monthly income. In short, it is a life insurance and income plan that will financially secure commitments made to your loved ones. Canara HSBC Oriental Bank of Commerce Life Insurance Guaranteed Income Advantage Plan is a monthly income advantage plan that provides life cover for the entire term while you pay premium only for a limited period.

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What is a good age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the capital gets adequate time multiply. Even a small amount invested for a long time can give substantial returns due to compounding in a savings plan. Invest in an income plan as early as possible to build a significant corpus that will later help you in life. Ensure that you buy the best saving plan in India that can be aligned with your investment goals.

Should you use a savings plan for retirement planning?

Yes. Retirement planning is one of the most important financial decisions of our lives. The best saving plan offers a host of features that may help you build your retirement corpus. Some of the saving plans like Guaranteed Income4Life offer guaranteed returns at policy maturity. Such returns can act as a regular income stream even after your retirement to help you stay financially stable.

Are saving plans beneficial for managing unexpected expenses?

Yes. Best saving plans in India offer partial withdrawal system that can be utilized during your rainy days. Being financially prepared to tackle such odds will help you manage any unforeseen expenses in a smooth manner. Buy a monthly income advantage plan that will generate a steady source of income for you to take care of both long-term and short-term financial goals.

How to save tax by using savings plan?

Saving plans are known for helping us achieve our financial goals. Best saving plans allow you to grow your wealth while providing life cover. Saving and investment plans are also beneficial for tax planning. Premiums of savings cum protection plans come with tax benefit under Section 80C of the Income Tax Act. Moreover, proceeds received upon the death of the policyholder or upon the maturity of the policy are tax free under Section 10 10(D).

What is the right age to start saving money?

When you plan to invest in an income plan, it always pays well to start early. The earlier you start investing in a savings plan, the better. When you start investing early, the appreciation in capital is significant. Even a small amount invested in the best saving scheme for a long time can give substantial returns due to compounding. Buy the best savings plan as soon as you start earning to achieve all your milestones on time.

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How a savings plan can help in building your child’s education fund?

Saving plans help in building wealth over time against the investments that you make. Buy the best savings plan to build an education fund for your child. The best saving plan for kids offered by Canara HSBC Oriental Bank of Commerce Life Insurance eases the stress of planning your child's future by providing a lump-sum payout on the investment. Consider investing in a monthly income advantage plan to assist you in fulfilling your financial goals.

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How Savings Plans by Canara HSBC Oriental Bank of Commerce Life Insurance can help you?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits, which makes them a good investment choice for investors looking for income plans.

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