Phone NumberTo Buy: 1800-258-5899 (9 am to 6 pm)

|

Emailcustomerservice@canarahsbclife.in

|

Locate BranchLocate Branch

Best ULIP Child Plan Offered by Canara HSBC OBC Life Insurance for Your Child's Bright Future

Best ULIP Child Plan Offered by Canara HSBC OBC Life Insurance for Your Child's Bright Future

Best ULIP Child Plan

Having a child is one of the most beautiful feelings in the world. It's the time of your life when you realize your responsibilities while holding that tiny little one in your arms. As a parent, you always want them to stay healthy, pursue quality education and gets everything they would have dreamt of. In order to fulfil your child dream and career goals you can plan to buy a child plan for their betterment.

A child insurance plan is an insurance cum investment plan that not just offers a life cover but also gives the benefit of investment. As your child grows, your child might want to pursue higher studies which can cost you a fortune. Thus, if you plan your finances in a better way, then it will help in shaping up your child's future. For any long term goal, you need to plan in advance. So, if you are looking for a long-term investment option, then Canara HSBC OBC Life Insurance Smart Future Plan is the ideal choice for you. It gives you the flexibility to invest as per your child's education needs as well as other financial goals.

About The Plan

Canara HSBC OBC Life Insurance Smart Future Plan is a unit linked insurance child plan which is designed specially to secure the financial future of your child. The auto fund rebalancing, safety switch option, partial withdrawal facility is some of its unique features that ensures your child continues to get the best, even in your absence. Along with this, you will also get tax benefits on the premiums paid.

Key Features of ULIP Child Plan

  • Entry Age-18 years.
  • The policy offers policy term i.e., 10, 15, 20, and 25 years.
  • Annual Premium Range-25,000 (Minimum)
  • The policy helps in creating wealth so that there is enough money to finance your child's higher education, marriage, etc.
  • You get an additional feature of milestone withdrawal as an option

Here's why you must think of buying this ULIP for your child

You can avail tax benefits on the premiums paid as per Section 80C of the Income Tax Act, 1961. 6 fund options to choose from and you can switch between them anytime. 10,000 is the minimum amount that you can switch. The funds include

  • Debt plus funds
  • Liquid funds
  • Balanced plus funds
  • India multi-cap equity funds
  • Equity ll funds
  • Growth plus funds
  • You can make partial withdrawals from your investment for any emergency after the completion of 6 years with 10,000 Rupees as the minimum withdrawal amount You can change your sum assured from 6th policy year, given all premiums are paid by you. It gives you the flexibility to pay your premiums for the entire policy term based on the financial needs of your child.

Benefits of buying Future Smart-Investment Plan

You can avail the following benefits when buying a future smart-investment plan-

This plan takes care of your family's future financial needs, even in your absence. In case of your untimely demise, your nominee will get the following death benefits

  • Fund value on maturity
  • Lump sum amount on death of the policyholder
  • In case of death or total & permanent disability (if chosen), all your future premiums will be funded by the insurance company.

You can choose your policy term and premium payment term as per your needs. You can select any policy term of 10/15/20/25 years.

With safety switch option, you get the option to shift your money into low risk funds when your policy is about to mature.

From the beginning of your 2nd policy year, you will have the option to change the allocation of your investments. Although, auto fund rebalancing is allowed once in a year.

On the whole, this savings-cum-investment plan will not just help in meeting the growing needs of your children but will also safeguard their future when you are not around. So, this coming year, gift your child a safe and promising future with Canara HSBC OBC Life Insurance Smart Future Plan.

Get a Call Back

Do you want us to call back Please fill the form below

Annual Income (In Lacs)

FAQs

In order to understand ULIP NAV, you first need to understand how ULIPs work. In ULIPs, a portion of premium from different investors is accumulated to create one investment corpus. This money is invested in several different market instruments. So to divide the returns properly among all the investors, the fund manager divides the net asset value in to small units with a specific face value. NAV is the per market share value of a fund. To better understand the definition of NAV, take a look at the formula below -

Net Asset Value = [Assets-(Liabilities + Expenses)] / Outstanding Units

It's not risky to invest in ULIP if you chose a safer path. Risk factor in ULIPs depends on the investment option you choose. If you are not okay with sharp movements, then choosing a low risk investment is a better idea. For people with high risk appetite, it's good to choose equity funds while risk-averse investors can go for debt funds.

You can opt for settlement option if you want to take your fund value in periodic installments. With the settlement option, you can get your maturity amount in installment as per the frequency chosen by you over a maximum period of 5 years. You can choose complete withdrawal of fund value at any point of time. Although, you will not get any life cover during this period.

ULIPs are life insurance products that provide paths to invest. And just like other investment option, there's no guaranteed investment return in a ULIP. Although, if you like taking risks and want to earn more returns on your investment, then opt for equity funds.

At the time of maturity of ULIP policy, you will get the fund value on your prevailing NAV. Fund value is the number of units of policy multiplied by NAV (net asset value).

Value of the fund = Total units of policy x NAV (Net Asset Value)

Well, discontinuing your premium payment will disrupt your savings as well as financial goals. In such case, you can approach your insurance company and ask for the revival of discontinued policy within the stipulated timelines. Also, you will have to pay all the unpaid premiums.

ULIP plan is a combination of investment and insurance. Thus, one must hold this plan for a duration of at least 10 years so as to get investment benefits out of it. As an early exit will have its own consequences. ULIPs have a lock-in-period of 5 years. Thus, you may surrender your policy before the completion of 5 years, but you will be paid only after the end of 5 years.

Generally, minimum lock-in period for ULIP is 5 consecutive policy years. During this time period, if the policyholder discontinues or surrenders the policy, then he/she will not able to receive any payouts. Withdrawals are only allowed at the end of the lock-in period. In addition to this, if you surrender your policy before the lock-in period ends, then you will have to pay surrender charges as well. Also, it is advisable not to exit your plan after the completion of 5 years of lock-in period, because if you stay invested for a longer duration it will help you reap better benefits.

The amount that you pay towards the Unit Linked Insurance Policy is eligible for tax deduction as per Section 80C of the Income Tax Act, 1961. This means that the premium amount paid will be deducted under section 80C from your taxable income up to a maximum limit, which is currently ₹1.5 Lakhs. However, the aggregate amount of deductions under section 80C, section 80CCC and 80CCD (1) shall not, in any case, exceed ₹1.5 Lakhs. Also, upon the maturity of the policy, the payout amount you receive will be exempt from income tax, subject to the applicable provisions of Section 10(10D) of the Income Tax Act, 1961.

Here’re the following major benefits of buying ULIP

1. Tax Benefits – It helps you to reduce tax liabilities. This means you are liable to enjoy tax benefits on the premiums paid towards the policy as per Section 80C of the Income Tax Act.

2. Long-term growth– One of the major benefits of buying a ULIP plan is that it offers long-term benefits. ULIPs come with a lock-in period of 5 years which will keep you invested for a longer period.

3. Dual benefits – ULIPs not only offer life coverage but also come with a wide range of investment funds that will help you earn great returns. This includes balanced funds, debt funds or equity funds. You can invest in any of them depending on your need and risk appetite.

4. Flexibility – It gives you the flexibility to switch between funds basis your risk appetite. You could select multiple funds and different investment strategies.

5. Partial withdrawal option – It allows you to make partial withdrawal in case of any uncalled medical emergency or contingency after completion of lock-in period.

ULIP is a perfect investment option if you are looking for long term wealth creation. It could be buying your own house, a new car, going on a long vacation, or your child’s higher education or marriage, ULIP helps you to meet all your long-term financial goals. Moreover, it comes with a lock-in period of 5 years which keep you invested for a longer period and helps you earn better returns. The lock-in period is calculated from the date when the policy is issued.

Call BackCall Back Pay PremiumPay Premium
Chat
Back to top