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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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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 Term Insurance

This being a term plan doesn't offer any payout after maturity or expiration date.

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 70 years of age.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly.

If your key purpose is to give your Family financial protection, go for the term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, a term plan pays a part of the sum insured to treat your disease.

Term insurance riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term policy remains active until the expiration date.
  • Income Rider: The rider ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while buying Term Insurance?

  1. 1. Amount of premium you have to pay based on your age, habits, education, and monthly income
  2. 2. The total number of benefits covered in the term plan. Do they include benefits that you care about the most?
  3. 3. How to save money on tax if you pay for the term plan?
  4. 4. Do they offer regular income options?
  5. 5. Can you change the coverage and premium in the future?
  6. 6. Does the claim consider valid if death occurs outside India?
  7. 7. Which kind of death is not covered by insurance?
  8. 8. Can NRIs take term insurance? If yes, what are the conditions?
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