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Smart Junior Plan

Smart Junior Plan

Promise to give wings to your child’s dreams

Smart Junior Plan

Smart Junior Plan
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About Smart Junior Plan

UIN: 136N043V03

Canara HSBC Oriental Bank of Commerce Life Insurance Smart Junior Plan an Individual Non-linked Par Life Insurance Savings cum Protection Plan designed to fulfill your child`s future education needs, whether you are around or not.

Smart Junior plan provides Guaranteed* payouts during the last 5 years of policy which can be aligned to child's educational milestones. Further, the plan also provides Annual bonuses and Final bonus, if any, on maturity.

This plan provides comprehensive protection - in case of unfortunate demise of Life Assured - a lump sum amount is paid immediately and the remaining due premiums, if any, are not payable. The policy continues to be in-force & policy benefits are paid as scheduled.

*Guaranteed payouts will be paid during the last 5 years of the policy provided premiums are paid as and when due.

CLICK HERE for reversionary bonus rates in participating plans.

Why Buy

As we encourage our little ones to be ambitious and never settle for the ordinary, we as parents do our best to make our children dreams and aspirations a reality. Their goals today are bigger than ever and achievement requires far more focus, especially on education. Meeting their ever increasing cost however requires substantial financial planning. Since life is full of uncertainties, as responsible parents we need to ensure our child's need is always met, whether we are around or not. Hence as parents, we need to plan ahead, and also take care of the increasing cost of education.

Key Feature Of This Plan:

  • Enhanced Triple ProtectionLife insurance protection through payment of lump sum benefit on death, all remaining premiums need not be paid and Guaranteed Annual Payouts as planned to meet child`s education needs.
  • Guaranteed payouts for child`s educationAnnual payouts aligned closely to your child's educational milestones
  • Customize to your savings horizon and key milestones for educationMultiple policy term options will ensure that you are able to choose the best suited policy term closely aligned to your child's age and future milestones for education
  • Premium payment optionsChoice of flexible premium payment terms which can closely align to your savings horizon
  • Building up a fund for education needsAddition of regular Annual bonuses along with Final bonus (if any) on maturity, to ensure that the fund for your child's education gets built up smoothly
  • Better Value for higher premiumsHigh sum assured rebate to ensure that you get the extra benefit for making a higher premium commitment for the chosen policy term
  • Tax benefits#Tax benefits are available on the premiums paid and on the benefits received during the policy term under Section 80C and Section 10(10D), as per the Income Tax Act, 1961.
#Tax benefits under the policy will be as per the prevailing Income Tax laws and are subject to amendments from time to time. For tax related queries, contact your independent tax advisor.
READ MORE

Survival Benefit


You will receive the Guaranteed Annual payouts at the end of each of the last 4 policy years before the maturity year provided that all due premiums are paid. You can utilize these guaranteed payouts to fund the 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%

Maturity Benefit


On your survival till maturity, You will receive Guaranteed Sum Assured on maturity equal to 20% of Sum Assured along with Annual bonuses and Final bonus, if any.

Death Benefit


In case of unfortunate demise of Life Assured during the policy term, provided the policy is in-force, following benefits will be payable:

Immediate lump sum benefit, higher of :

  • Sum Assured
  • 10 times the Annualized Premium,
  • 105% of {the Total Premiums Paid till the date of death less underwriting extra premium, if any}.
  • In addition to the above, all future premiums (if any) need not be paid and the policy shall continue to be in force for the remaining Policy Term. The policy will also continue to accrue Annual bonuses.

Guaranteed Annual Payouts


All Guaranteed Annual Payouts as scheduled will continue to be payable at the end of each of the last 4 policy years before the maturity year.

Guaranteed Sum Assured on maturity

This benefit will be equal to 20% & will be paid on maturity.

Bonuses

Accrued Annual bonuses along with Final bonus, if any, will also be payable on maturity.

Other Benefits


Rebate: This plan offers rebate on the premium payable, if Sum Assured is higher than or equal to Rs 4,00,000.

Loans: You can avail of the loan facility to meet your liquidity needs, once the policy acquires a surrender value.

Tax Benefits#


You can avail tax benefit on the premium paid subject to current applicable provisions of Section 80C of income Tax Act, 1961.

#Tax benefits under the policy will be as per the prevailing Income Tax laws and are subject to amendments from time to time. For tax related queries, contact your independent tax advisor.

Mr. Gupta is a 35 year old businessman with a 4 year old son named Yash. He wants to secure his son's future through planned savings for his education milestones. He also wants to ensure that his plans (funding for education) are not impacted even if he is not there tomorrow. Mr. Gupta therefore takes a wise decision to save through our Smart Junior Plan.
To fulfill future education milestone, Mr. Gupta estimates that he requires a guaranteed benefit of at least 200,000 every year for four years when Yash turns 18 and additional lump sum amount at age 22 to plan for Yash's higher education/ professional course. Therefore he opts for a policy term of 18 years and takes a Sum Assured of 1,000,000 with premium paying term of 10 years and yearly premium payment mode. The premium he has to pay annually for 10 years is 101,400 (before applicable taxes and cess(es)).

Below are two scenarios illustrating benefits which will be payable under each of them.

Scenario 1: Survival and Maturity Benefit

Mr. Gupta will get a guaranteed payout of 200,000 every year in last four policy years before the maturity year (subject to all premiums being paid as and when due) which is from end of policy year 14 till policy year 17. On maturity , Mr. Gupta will receive an amount of 200,000 as Guaranteed Sum Assured on maturity along with accrued Annual bonuses and Final bonus, if any, as illustrated below.

Mr. Gupta can utilize the Guaranteed Annual Payouts and Guaranteed Sum Assured on maturity along with accrued Annual bonuses including Final bonus, if any, on maturity in the following way:

On Yash's Age
Guaranteed Annual Payouts (20% of Sum Assured)
Payout can be utilized for Yash's education as follows

18

₹ 2,00,000

Support for 1st year Engineering Fee

19

₹ 2,00,000

Support for 2nd year Engineering Fee

20

₹ 2,00,000

Support for 3rd year Engineering Fee

21

₹ 2,00,000

Support for 4th year Engineering Fee

On Yash's Age

Maturity Benefit

Payout can be utilized for Yash's education as follows

(Yash's at age 22)

₹ 2,00,000 (Guaranteed Sum Assured on maturity) plus Accrued Annual bonuses including Final bonus, if any

Higher Education/Professional Course

Premium rates for tobacco users will vary. Under this Plan, women enjoy better rates as compared to men of the same age. Women will get a 3 year age setback in premium rates as compared to the men. Your actual premium will depend on the Company's assessment of risks on your health, lifestyle, occupation, etc. Annualized premium may vary for monthly mode. For a personalized quote please refer to the premium calculator.

Scenario 2: Death Benefitss

Case of unfortunate death of Mr. Gupta in 3rd policy year after payment of 3 years premiums, his family will receive the following benefits:

Mr. Gupta's family will immediately get lump sum amount of 1,014,000 which is higher of {Sum Assured or 10 times the Annualized Premium or 105% of Total Premiums Paid till date of death less underwriting extra premium paid, if any}

In addition, all future premiums, if any, need not be paid and Guaranteed Annual Payouts of 200,000 will be payable as scheduled in the last 4 policy years before the maturity year. Annual bonuses will continue to accrue for the rest of policy term, as applicable.

Guaranteed Sum Assured on maturity equal to ₹ 200,000 along with accrued Annual bonuses and Final bonus, if any, will be payable on maturity.

All of above benefits ensure that Yash's immediate and intermediate education needs are met through the lump sum benefit paid on death. Furthermore, Guaranteed Annual Payouts will be paid as scheduled starting from when Yash turns 18. Also, on maturity, Guaranteed Sum Assured on maturity of 200,000 along with accrued Annual bonuses & Final bonus, if any, will be payable.

GUIDE : How To Choose Policy Term Basis Your Child's Age

Below the indicative guide which you can use to decide on the Policy Term basis your child's age so as to ensure that money is available at different educational milestones.

Child Age (years)
Suitable Policy Term
Premium Payment Term available (years)
Start of Guaranteed Annual Payouts (from : to, child age)
Payment of Guaranteed Sum Assured on maturity along with accrued Annual bonuses and Final bonus, if any, on child age

2

20 years

5,10,12

18 to 21 years

22 years

4

18 years

10

18 to 21 years

22 years

5

17 years

9

18 to 21 years

22 years

8

14 years

6

18 to 21 years

22 years

7

15 years

5,7

18 to 21 years

22 years

10

12 years

5

18 to 21 years

22 years

The above policy terms are indicative only and you may choose any policy terms as per plan's eligibility parameters

Entry Age


Minimum

18 years

Maximum

50 years

(In case of monthly mode, maximum entry age is 40 years)

Maximum Maturity Age


70 years

Minimum Sum Assured


Annual Mode: ₹ 3,00,000

Monthly Mode: ₹ 5,00,000

Maximum Sum Assured


No limit (Subject to Board Approved Underwriting Policy (BAUP) of the Company

Premium Payment Mode & Modal Factors


Annual and Monthly mode
For monthly mode, the annual premium needs to be multiplied with a factor of 0.09 to arrive at the monthly installment premium payable

Premium Payment Term


The premium payment term will depend upon the chosen policy term & will be as per following table.

Premium Payment Term (in years)
Policy Term (in years)

Policy Term minus 8 years

13 to 25(pick a term option)

5

12,15,20

10

19 to 25 (pick a term option)

Minimum Premium


Depends on factors such as age, sum assured, etc

Maximum Premium


No limit, will be subject to BAUP of the company

Plan early to keep up with your child's changing dreams

Canara HSBC Oriental Bank of Commerce Life Insurance Smart Junior Plan is an Individual Non-linked Par Life Insurance Savings cum Protection Plan.

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