In this day and age, where new financial burdens crop up on a daily basis, every single decision we make will have an impact on the future of our family. With rising inflation rates, increasing costs for education, and the absurd levels of unemployment amongst India's educated youth, securing the future in a foolproof manner with nothing left is something we cannot leave up to chance.
Along with these new waves of problems, insurance companies and banks have also adapted their plans to fit a modern citizen's needs. Gone are the days when we had limited options and had to make the hard choice between either insurance or savings. In India, several hybrid investment plans offer high returns and additional advantages like death benefits covering various coverages for unprecedented deaths. These also allow you to submit a higher tax deduction rate. These hybrid investment plans are called ULIPS or Unit Linked Insurance Plans.
What are Unit Linked Insurance Plans?
ULIPS are hybrid investment plans that have characteristics of both life insurance and investment plans. Like most insurance plans available in India right now, Unit Linked Insurance Plans offer life coverage with the added benefit of the investment. However, as the bank would tell you beforehand, the choice of investing in available fund options is entirely up to the policyholder - this implies that the risk of investment is completely on the person in whose name the policy is taken, not on the bank.
ULIPS are inherently more profitable than an ordinary insurance policy, and these higher returns come with the risk. Most people prefer to keep their insurance and investment separate. Still, anyone who has experienced the advantages of ULIP can tell you that they are infinitely better than the myriad of investment plans in India.
Here are some features of a ULIP:
1. Capital Protection
Whatever sum is assured as you sign up for the policy is guaranteed according to the terms and conditions, provided that you pay the premiums regularly without the termination of the policy. This is a significant capital protection. Once you outlive the policy's maturity date, you will receive the entire assured sum without being affected by inflation rates. Life insurance is a fixed-cover product and will not give you profits, but the policy's investment element will. Therefore, the equity fund has the potential to help you beat inflation and accrue a good amount of wealth while having your life insured.
profits, but the policy's investment element will. Therefore, the equity fund has the potential to help you beat inflation and accrue a good amount of wealth while having your life insured.
The death benefit or the sum assured is a fixed sum of money that will be returned to you no matter what, provided you meet all the terms and conditions and no premiums have been missed. However, the investment portion does not guarantee complete returns since it is market-linked - but it may also give you higher returns than you initially thought.
In the case of ULIPS, you will have to wait for a lock-in period of five years (usually) before you achieve liquidity, which implies that you will be eligible for redeeming units in which the premiums are invested in, premature withdrawal, or even a surrendering of the policy at a loss. You have the option to go for a loan at special rates, especially if the ULIP you go for is a plan like the Invest 4G Plan, offered by the Canara HSBC Oriental Bank Of Commerce.
Invest 4G Plan
Canara HSBC Oriental Bank of Commerce Life Insurance Invest 4G Plan is arguably one of India's best investment plans today. The high customizability and innovation behind the Invest 4G plan's design make it perfect for the modern citizen who wants extra protection in today's age of uncertainty. With an unbeatable combination of portfolio management options, savings, and insurance, this plan takes care of all your financial concerns for the future in one go.
Let us look at the benefits that set the Invest 4G Plan apart from India's other investment plans.
Advantages of the Canara HSBC Oriental Bank of Commerce Life Insurance Invest 4G Plan:
- You can choose to pay for the entire policy term, a limited number of years, or even just once. This makes the plan suitable for customers from all financial backgrounds and with varying levels of urgency to take a savings/insurance/investment plan.
- Whatever mortality charges are deducted during the tenure of Regular and Limited Premium paying options will be added to the fund value when the policy matures.
- You have three cover options suited for different life stages - the Life Option, the Care option, and the Century Option.
This simple option gives you live coverage and higher sum assured or the fund value, depending on the partial/systematic/milestone withdrawals that have been completed, and subject to 105% of all premiums that have been paid. This is payable on the death of the person who has been Life Assured. If the person survives till maturity, the insurer will pay the fund value, and the policy will terminate.
Ideal for families, this allows you to save up and provide your family with the Premium Funding benefit, along with life coverage. The lump-sum is paid after the Life Assured death, and the remaining future premiums, if and when due, will be completely paid by the company.
This is a classic 99-year term policy that will cover you until the age of a hundred, as well as help you leave a legacy for your family. You have the option to claim the higher of the sum assured or the fund value, subject to 105% of all premiums paid, upon the death of the life-assured. If the assured survives till the age of 100, the fund value will be paid in full, and the policy will terminate.
- The Premium Funding Benefit is available under the Care Option.
- The plan also offers Loyalty Additions and Wealth Boosters during the policy term. This will provide a boost in your investments through the additional allocation of units.
|Unit Linked Fund||Loyalty Addition Percentage|
|Emerging Leaders Equity Fund, India Multi Cap Equity Fund, Equity II Fund, Growth Plus Fund, Debt Fund & Liquid Fund||0.50%|
|Large Cap Advantage Fund, Debt Fund & Liquid Fund||0.25%|
- The option for systematic withdrawal through which you can create additional income streams during the policy tenure - implying that once a certain limit of premium payment has been reached, you can systematically withdraw specific amounts of money before the term is completed, allowing you to reap the benefits of the plan before its completion.
- There is also the option for Milestone Withdrawal, which provides for enhanced liquidity at regular milestones, about which you can enquire with the bank.
- There are multiple portfolio management options from which you can choose, which helps you optimise your policy's returns based on your preferred investment manner. The following are the portfolio management options available to all policyholders:
1. Systematic Transfer Option
2. Return Protector Option
3. Auto Funds Rebalancing
4. Safety Switch Option
- There are also eight different Unit Linked Funds with varying risk appetites that you can go for - along with the portfolio management options; the right combination can help you maximise your profits:
1. Emerging Leaders Equity Fund
2. India Multi-Cap Equity Fund
3. Growth Plus Fund
4. Equity II Fund
5. Balanced Plus Fund
6. Large Cap Advantage Fund
7. Debt Fund
8. Liquid Fund
- In addition to all these benefits, you will also be able to save up on tax up to Rs. 1.5 Lakhs. The partial withdrawals made as a part of this plan is completely tax-free as well.
One of India's best investment plans available right now is the Guaranteed Savings Plan offered by the Canara HSBC Oriental Bank of Commerce Life Insurance. It offers a complete guarantee of benefits as well as the flexibility to choose your savings horizons. These plans are designed to combat every disadvantage that a Unit Linked Insurance Plan does.
Advantages of the Canara HSBC Oriental Bank of Commerce Life Insurance Guaranteed Savings Plan:
- Guaranteed benefits on maturity - provided no premiums have been missed.
- Pay premiums for a limited period, but enjoy life coverage for the entire term.
- Extra protection for your family
Even in the case of an unprecedented death, there will be a life insurance protection provided to your family through a lump sum benefit. This is available under the option of Guaranteed Savings with Premium Protection and can be availed even if there are unpaid premiums at the time of your demise.
High flexibility and customisation
The Canara HSBC Oriental Bank of Commerce Life Insurance offers a guaranteed savings plan tailored to fit your every need - primarily because you can tailor them yourself. Customise the policy term with multiple options available for premium amount and coverage, so that you can make a custom plan that suits your financial capacity at the moment.
High Premium Booster
The added benefit of a high premium booster allows you to enjoy extra returns if you make a higher premium commitment.
Tax Deductions on the premium paid and the benefits received (Under Section 80C and Section 10 (10D).
For further details about the plan, please check below: