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How to find the Best Savings Plan?

dateKnowledge Centre Team dateJanuary 18, 2021 views134 Views
How to find the Best Savings Plan?

Savings plans are a great idea to secure the future of your family. Throughout the years in which you earn, preferably at the peak of your career, you try putting aside a certain amount of money and pay premiums for a guaranteed savings plan so that you and your family can enjoy the benefits after the maturity period is reached.

With the rising rates of inflation and increasing costs of healthcare, education and lifestyle, this plan ensures your family receives a fixed amount of allowance after your death. Therefore, a guaranteed savings plan is essential for the breadwinner of any family so that they will be well-off in your absence.

But with the diversification of the demographic that goes for savings plans these days, insurance companies and banks have rolled a variety of options. It may be difficult for an average Indian to discern the differences between all of these savings plans and determine the best for you.

Canara HSBC Oriental Bank of Commerce Life Insurance offers various guaranteed savings plans from which you can pick and choose the best according to your economic circumstances. The ideal savings plan should help you grow your investment through regular investments through disciplined premiums paid throughout a specific period. You will be eligible for certain benefits and allowances until the policy’s termination.

Let us take a look at the variety of guaranteed savings plans offered by Canara HSBC Oriental Bank of Commerce:

The Invest 4G Plan

This unit-linked individual life insurance savings plan is highly customizable, non-participating and provides complete control over all your savings and insurance needs. You can choose from three cover options – Life Option, Care Option and Century Option, which all cater to different needs. The century option will provide you with coverage for a hundred years. Additional benefits include:

  • Loyalty Additions
  • Wealth Boosters
  • Return of Mortality Charges on policy maturity

The Titanium Plus Plan

Designed to boost savings, this plan combines investment and protection. There is also higher customizability, allowing you to modify the asset investment based on the current market conditions and your economic status. There is a choice between single, limited and regular premium payment options. To effectively manage risk, there are a variety of strategies for portfolio management.

Guaranteed Savings Plan

The guaranteed savings plan allows you to save up for the future, especially for additional costs that may occur in your family’s posterity. This will allow you to pay off the premiums in a traditional, affordable payment set-up, ensuring an excellent assured sum at the end of your policy term.

Smart Lifelong Plan

This unit-linked insurance plan was created with the idea that wealth creation should go hand in hand with whole life coverage. Combining the idea of a century plan (as seen in the Invest 4G Plan) with a wealth-oriented savings plan will allow you to fulfil financial needs at various points of your life so that there is a stable income source after the policy period is over. Also, the premium paying mode can be changed anytime during the policy term. You can choose to invest in multiple investment funds whose equity exposure ranges from 0% to 100%:

  • Emerging Leaders Equity Fund
  • India Multi-Cap Equity Fund
  • Equity II Fund
  • Growth Plus Fund
  • Balanced Plus Fund
  • Debt Plus Fund
  • Liquid Fund

Smart Future Income Plan

The smart future income plan offers a life coverage with an assured sum that is a hundred times the chosen monthly income, an income benefit that will be paid to the policyholder on a chosen monthly basis for the last fifteen years of the plan till the end of the policy term.

It also provides a maturity benefit, added with annual bonuses and a final bonus if the policyholder survives till maturity. Added benefits include a premium benefit to which you are entitled to if your sum assured is seven lakhs or more, as well as a loan facility that can help you with your liquidity needs, provided the policy has acquired a surrender value.

Insert Smart Plan

This unit-linked insurance plan helps you save with the flexibility of paying investments for five years after which you will get a life cover for ten years. You will also have the additional facility to choose from six funds where you can invest based on your specific needs:

Future Smart Plan

This unit-linked plan is for parents who want to secure a bright future for your child. With the increasing costs of education and possibilities of education in international universities, you may want to save up quite a large amount for your child’s future. This plan offers a comprehensive insurance cover that includes a sum assured on death and a premium funding in disability or untimely death.

Grow Smart Plan

This premium retirement plan allows parents to secure a death benefit for their descendants, where they will be paid the higher of the following:

  • Sum Assured less applicable toward partial withdrawals
  • Fund value as on date of intimation of death claim
  • 105% of all premiums paid

There is also the additional option of choosing between five different investment funds based on your specific needs.

Guaranteed Income Plan

This plan comes with various benefits for your nominee based on your plan option. The death benefit/sum assured will be the higher of:

  • 11 times the Annualized Premium, or
  • 105% of Total Premiums Paid as on date of death, or
  • Guaranteed Sum Assured Maturity, which is equal to Sum Assured, or
  • Absolute amount assured to be paid on death, which is also equal to Sum Assured
  • For Death Cover Option A under Guaranteed Single Pay Advantage Option (Plan Option 4) Sum Assured on Death is the amount which is higher of: -
  • Ten times the Single Premium, or The guaranteed sum Assured on Maturity, which is equal to Sum Assured, or
  • Absolute amount assured to be paid on death, which is also equal to Sum Assured
  • For Death Cover Option B under Guaranteed Single Pay Advantage Option (Plan Option 4) Sum Assured on Death is the amount which is higher of: -
  • 1.25 times of Single Premium, or
  • Guaranteed sum Assured on Maturity, which is equal to Sum Assured, or
  • Absolute amount assured to be paid on death, which is also equal to Sum Assured

Easy Bachat Plan

This plan provides a maturity benefit that will be 100% of sum assured for an endowment option or 70% of sum assured if you go for the money-back option. There will be a death benefit which will be the higher of either the 11 times the annualized premium, 105% of total premiums paid as on death date, the guaranteed sum assured on maturity or the absolute sum assured. There will also be an annualized premium payable in a year of your choice, exclusive of taxes, rider premiums of modal premium loadings (if any). This plan allows you to save large amounts of money quickly, hence the name.

Jeevan Nivesh Plan

This plan involves a one-time investment that will ensure a lifetime of regular income for your loved ones. The sum assured on death will be the higher of ten times the annualized premium, the guaranteed sum assured on maturity or the absolute amount assured to be paid to death (which will be equal to sum assured). This plan is perfect for those who earn sporadically and want to secure an income for your child’s future – especially if you do not have a stable income in which case you can pay for disciplined premiums. The plan also offers a rebate on the payable premium if the assured sum is four lakhs or above, as well as a loan facility to meet your liquidity needs if you have reached the surrender value for your policy.

Money-Back Advantage Plan

This plan offers a guarantee money back pay out at regular intervals as specified below, provided all premiums have been paid, along with a maturity benefit and a death benefit:

Guaranteed Money Back payouts payable at the end of the Policy Year Guaranteed Money Back payouts payable(as a Percentage of the Sum Assured)
5th 15%
9th 15%
13th 15%

Once the payment of benefits has been concluded, the policy will be terminated. Additional advantages include a simple reversionary bonus that will be declared at the end of every financial year and is usually a percentage of the sum assured and a terminal bonus depending on the profits emerging from the company’s profit fund, paid at the maturity of the plan.

The Canara HSBC Oriental Bank of Commerce Life Insurance offers many more plans and combinations of savings plans, allowing you to secure a future for your family. Signing up for a guaranteed savings plan is usually a lifelong commitment that will pay off towards the end, but you must choose one that will not add on to your family’s financial burdens if any.

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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

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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

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Choice of flexible premium payment and policy term

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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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