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A Guide to smart monthly income plan

dateKnowledge Centre Team dateFebruary 03, 2021 views125 Views
A Guide to smart monthly income plan

Are you looking for a way to manage your income to get benefits in the future? Then you are in the right place. Smart Monthly Income plan by Canara HSBC Oriental Bank Of Commerce Life Insurance can provide you with security and assurance in life.

What is a Savings plan?

A Savings plan helps to provide you life insurance and safety with efficient and disciplined management of your income. A savings plan comes with various benefits such as tax benefits, terminal illness benefits, death benefits, and many more. A savings plan can be an ultimate package for managing your’s and your family's financial needs.

Types of Savings plan

There are various types of Savings Plan offered by Canara HSBC Oriental Bank Of Commerce Life Insurance such as:

  • Invest 4G Plan

    This plan allows you to protect your life goals and achieve your dreams and the protection for your family. You can customize this plan according to your goals and requirements, and you have absolute control over your savings. It provides you with death benefits, maturity benefits, tax benefits, wealth boosters, and much more. Invest 4G is a savings cum protection plan to help you secure the life goals of you and your loved ones.

  • Titanium plus plan

    This plan provides you with investment along with protection to help you improve your savings. You can change the investment asset according to market conditions and thus, provides you with better control over your savings. There are various payment options available.

  • Guaranteed Saving plan

    This plan provides guaranteed benefits along with complete control over savings. It offers various benefits, such as death benefits, maturity benefits, loan facility, tax benefits, and many more.

  • Smart Lifelong Plan

    This plan allows you to build your wealth along with whole life coverage. With this plan's help, you can fulfil your various responsibilities, and help you make the right decisions. It provides various benefits, such as death benefits, maturity benefits, investment funds, loyalty additions, and many more.

  • Insure Smart Plan

    This plan allows you to meet various financial expenses along with investment. It provides various benefits, such as death benefits, maturity benefits, loyalty additions, investment funds, and many more.

  • Future Smart Plan

    This plan allows you to easily manage your income to meet your family's future needs easily. It provides various benefits, such as death benefits, maturity benefits, premium options, and many more.

  • Grow Smart Plan

    This is an affordable plan which requires you to pay premiums for a limited duration. It provides lifelong insurance cover and financial security. The benefits are death benefits, loyalty additions, investment funds, tax benefits, and many more.

  • Guaranteed income plan

    It provides life cover for the entire term, and you are required to pay the premium only for a particular time. It provides various benefits, such as survival benefits, death benefits, maturity benefits, and many more.

  • Easy Bachat plan

    It allows you to save to provide financial security to your family with affordable premiums and a hassle-free manner. The benefits include death benefits, maturity benefits, survival benefits, and many more.

  • Jeevan Nivesh Plan

    This plan allows you to provide complete financial security to your family. There are various benefits, such as maturity benefits, death benefits, survival benefits, tax benefits, and many more.

  • Money-Back Advantage Plan

    This plan provides you with the double benefit of insurance and protection. The benefits include survival benefits, death benefits, maturity benefits, and many more.

  • Guaranteed Income Advantage Plan

    It helps to provide you with financial security for you and your family without compromising your current needs. It provides guaranteed benefits along with regular income. The benefits include survival benefits, death benefits, maturity benefits, and many more.

    In this article, we are going to cover everything about smart value income plans.

Smart Monthly Income Plan of Canara HSBC Oriental Bank Of Commerce Life Insurance

Who doesn't want future security for their loved ones? Unexpected events can happen any time, and in such a case, everyone wants the needs and requirements of their family to be taken care of. This is what this plan does. This plan helps you to provide complete financial security to your family even when you are not around.

It is a unit-linked plan that helps to deliver long-term investment opportunities for you and your family. It helps to furnish complete financial security for your future family needs, such as building an asset, ensure a bright future for your child, or the marriage of your daughter. It provides a comprehensive life insurance cover that includes sum assured on death and premium funding benefit on death or disability. Thus, in case of any unexpected or unfortunate event, the plan continues and remains unchanged.

Features of Smart Value Income Plan

  • It helps to develop leaders' equity funds.

    With the help of investments, especially in mid-cap stocks, you can produce long-term capital appreciation.

  • You can switch funds.

    This plan allows you to switch some or all of your investment from one fund to another. However, the minimum sum that you are required to switch is Rs 10,000.

  • Premium redirection

    This plan allows you to change the allocation of future premiums once in a policy year. In such cases, the revised allocated proportion will be applied to subsequent premiums.

  • You can change the sum assured

    You can modify your Sum Assured from the 6th policy year. This is available for three times during the policy term. However, then you cannot change your annual premium.

  • Partial Withdrawal

    This policy allows you to withdraw the amount for the six the policy year partially.

  • Auto fund rebalancing

    Auto funds rebalancing allows you to maintain the allocation of your investments in a specific proportion across funds, irrespective of market movements.

  • Safety Switch Option

    With this option, you can shift your funds systematically to a considerably low-risk Liquid Fund in the last four policy years.

Benefits of the Plan

It provides various benefits, such as:

  • Death Benefit

    The sum assured is paid on death, future premiums funded by the company, fund value on maturity, and the death benefit will never be less than 105% of the total premiums paid by you.

  • Maturity Benefit

    At the end of the term, you will get the fund value.

  • Premium Funding Benefit

    In case of death, future premiums will be funded by the company, and your child gets funded value on maturity.

  • Investment Funds

    It allows you to choose to invest in 7 investment funds with equity exposure ranging from 0% to100% according to your preferences.

  • Policy Term

    There are various policy terms offered such as 10, 15, 20, and 25 years and you can choose any of them based on your preferences and requirements.

  • Tax Benefits

    In this policy, you will also get a tax benefit according to Section 80C of the Income Tax Act, 1961.

Age Criteria

Minimum 18 years
Maximum Policy term Age at entry Age at Maturity
10 years 51 years 61 years

Maturity age

Minimum 28 years
Maximum Policy term Age at entry Age at maturity
15 years 51 years 66 years
20 years 49 years 69 years
25 years 45 years 70 years

Policy Term

There are various policy terms offered such as 10, 15, 20, and 25 years and you can choose any of them based on your preferences and requirements.

Premium Payment Details

a. Premium Mode

You can either choose monthly or annually based on your preferences and requirements.

b. Premium payment term

You can choose any premium term from 10 years to 20 years based on your preferences and requirements. However, it would be best if you chose in whole years only, and the premium payment term should always be lower than or equal to the policy term.

Sum Assured

a. Minimum

For ages less than 45: Higher (0.5 x policy term x Annualized Premium) OR 10 x Annualized Premium. For ages 45 & more: 7 x Annualized Premium

b. Maximum

The maximum Sum Assured varies based on age and selected policy term and is subject to underwriting acceptance. You can refer to the product brochure for exact details on the maximum Sum Assured multiply accessible under this product.

Wrap up

We have been taught about savings since our childhood. Savings are an essential part of life that can help you to have a better and secure future. This can help to reduce your worries, and you can be more assured in life. This is what the Smart Monthly Income Plan of Canara HSBC Oriental Bank Of Commerce Life Insurance does. It is a savings plan that helps to provide you and your family financial security in the future.

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Annual Income (In Lacs)

Our Products

TERM Insurance PLAN

TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

Avail tax benefits on premiums paid as per tax laws

ULIP PLAN

Unit Linked Insurance Plan

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Pos Easy Bima Plan

Top Benefits

Hassle free

Get double life cover in case of accidental death

Choice of flexible premium payment and policy term

Avail tax benefit on premium paid

Frequently Asked Questions (FAQs) for Life Insurance

The premium is one of the most important factors to consider before buying a policy. Many people buy a life insurance policy with a high sum assured but are unable to process the premiums for the entire premium payment tenure. You can get a better idea of the premium outgo with the premium calculator available in the 'Tools and Calculator' section of www.canarahsbclife.com.

Life insurance plans come with several riders which increase the efficiency of the policy for the buyer. For instance, if you have a history of terminal illness in your family it would be advisable to opt for terminal illness rider with your term insurance. Riders or add-ons help in customising the standard policy benefits for the requirement of different families. The iSelect term insurance plan comes with a built-in cover for terminal illness, and option for protection against accidental death or disability. You can also opt to cover your spouse's life under the same policy by paying an additional premium.

Insurance companies calculate the premiums based on several factors such as age, gender and occupation.

Age:It is one of the biggest factors that influence life insurance premiums. Premiums tend to be low when the life insured is younger as the chances of contracting diseases is low. Young people also opt for policies with longer tenures and pay premiums for a longer duration, which makes the policy cheaper for young people.

Gender:The insurance premium for women is generally lower when it comes to life insurance plans. Women live longer and pose a lesser risk of a claim leading to lower premiums for them.

Lifestyle habits:The premiums for people who smoke or drink is always higher due to higher health risks.

Policy term:Policy terms are also taken into consideration by insurers while deciding the premium amount. Policies with longer tenure are cheaper as compared to short-duration policies.

Mode of purchase: The platform that you use to buy the policy also determines how much you will have to pay for the plan. People who buy life insurance policies online have to pay lower premiums as compared to offline policies.

Occupation:The nature of your work is an important factor that influences the premium amount. Certain occupations like shipping and mining are considered more dangerous as compared to jobs in services industries. The insurance premium rises with the risk profile.

Processing life insurance claim is a transparent and smooth process with Canara HSBC Oriental Bank of Commerce Life Insurance.

In case of the death of the life insured, the nominee will have to intimate the company by filling a Death Claim Form and sending it to the nearest branch office.

Once the form is received, the claim is registered by the insurer.

After the registration of the claim, the company will send the claims pack along with the related forms such as physicianâ s statement form and employer certificate that need to be filled.

Along with the duly filled forms a few documents such as original [policy document, death certificate, copy of bank passbook, hospital or treatment records, photo identification and address proof have to be provided.

The claim is processed on the submission of relevant documents. Once the documents are verified, the claim amount is released post all due diligence.

Household expenses rise with age. The cost of children's education increases along with other lifestyle expenses. The iSelect term plan offers an option to increase the cover according to the life stage. If opted, the insurance cover increases by 25% at every 5-year terminal till the 20th policy year.

Even though a life insurance policy is bought to protect your family in your absence. There are chances of the claim being rejected due to several factors.

False information: If the policyholder provides false information or conceals important information while buying the policy, the insurer has the right to reject the claim after his/her death.

Type of death: Deaths due to suicide in first policy year, intoxication or pre-existing disease is not covered under life insurance.

Premium payment: The payment of premiums on time is of utmost important to avail the benefits of life insurance. Life insurance policy may lapse on the failure to pay the premiums

Nominee details: An insurance company can put the claim on hold if the nominee details have not been filled or not been updated by the policyholder.

Suicide: If the life insured commits suicide within 12 months of buying the policy, the insurance companies generally pay 80% of the total premiums paid.

Buying life insurance online is not only safe but a better option. Online life insurance policies have lower premiums and the individual is not required to visit the insurer's branch or a bank. Online insurance policies also offer higher benefits. Customers should, however, buy online policies only from credible insurers and should check for SSL certificate on the website to ensure that the website is legitimate.

The cost of life insurance policies varies depending on factors like age, gender and occupation. The average cost of life insurance plans, especially term plans, is very low compared to the amount of coverage offered.

An individual is allowed to have multiple life insurance policies. People opt for more than one policy to increase the cover or avoid claim rejection. In case of multiple policies, even if the claim is rejected by one insurer, the beneficiaries may receive the benefit from a different insurer.

Life insurance policies are of different types. In the case of unit-linked or endowment policies the policyholder receives the maturity benefit at the end of the policy term. However, in the case of term insurance plans, there are no maturity benefits. The death benefit is only paid out after the death of the life insured.

When you buy life insurance, the insurance company asks for the nominee details. Only the person named as the nominee in the policy can cash out a life insurance policy in case of death of life insured.

A life insurance policy is generally taken for a specified period. After the policy duration of a term plan gets over, the policy simply terminates and ceases to exist. However, in the case of unit-linked plans or endowment, you can use the policy as a tool for retirement planning and the accumulated corpus is used by the insurer to pay you monthly amounts for your entire life.

If a policyholder purchases a term plan for 25 years and dies during the policy term. The family receives the death benefit. In the case of iSelect term plan, the policy provides four payment options to the beneficiaries. If the regular payment options are chosen the policy works as a source of regular income.

It is a popular misconception that life insurance is only for accidental deaths. A term life insurance plan like iSelect also covers terminal disease along with death. A terminal illness cover is important as health insurance pays only for the cost of treatment and hospitalization, but a terminal illness cover pays you a lump-sum amount which takes care of other expenses. On the other hand, unit-linked policies such as Invest 4G cover death and also provide decent returns for other financial goals such as buying a house of child's education.

It is ideal to buy life insurance in your early 20s because it’s is the time when people have just started with their professional life and so there are lesser responsibilities and financial liabilities to take care of. Also, if you buy life insurance at this age, you will be paying relatively lower insurance premiums since it’s a due fact that mortality rate in case of young people is low. And that is why insurance companies offer lesser premium rates to younger people as they think that they are most likely to be fit and healthier with less chances of filing a claim in future.

Once you have cancelled your life insurance policy, you will instantly lose your life insurance cover. Afterwards, your insurance company will get in touch with you and ask for valid reasons regarding the cancellation of your policy. In case you cancel your life insurance policy within the grace period, i.e. 15 to 30 days, depending on your insurer, then insurance company will reimburse the premium amount paid by you. But, no refunds will be paid to you if the policy is cancelled after the grace period.

Yes, you can take life insurance under Married Women’s Property (MWP) Act, 1984 only if you are a married man and a resident of India. Buying a life insurance plan under MWP Act would be helpful in saving your family’s financial well-being when you are not around. As per this policy, only wife and children would be eligible to receive the death benefits. You can also buy a policy if you are a widower or a divorcee. However, in that case, you can give your child’s name as your beneficiary. It is very simple to buy a life plan under MWP Act. All you need to do is to fill up an MWP addendum while purchasing an insurance policy.

Yes, there are different payment options for you to pay premiums. Here’re some of them

    1. Regular premium payment option – This premium payment option allows you to pay premiums equal to your policy term either monthly, quarterly, half yearly or annually.

    2. Single payment option – Through this premium payment option, you can pay the lump-sum amount in one single payment.

    3. Limited payment option -In this premium payment option, you can pay premiums for a specific period of time less than policy term either monthly, quarterly, half yearly or annually, but benefits of insurance can be enjoyed for a longer period of time.

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