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Smart Junior Plan

Smart Junior Plan

UIN: 136N043V02

Canara HSBC Oriental Bank of Commerce Life Insurance Smart Junior Plan is a non-linked participating savings-cum-protection endowment life insurance 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.

Smart Junior Plan Product Parameters Product Parameters

Smart Junior Plan Age Criteria

Age Criteria

  • Entry Age

    Minimum

    18 years

    Maximum

    50 years(In case of monthly mode,
    maximum entry age is 40 years)
  • Maximum Maturity Age
    70years
Premium Mode & Modal Factors

Policy Term


12 to 25 years
Smart Junior Plan Sum Assured

Sum Assured


  • 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)

Minimum & Maximum Premium

  • Minimum Premium:
    Depends on factors such as age, sum assured, etc
  • Maximum Premium:
    No limit, will be subject to BAUP of the company

Premium Payment

  • 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)
CLICK HERE for reversionary bonus rates in participating plans.

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 Protection

Life 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 education

Annual payouts aligned closely to your child's educational milestones

Customize to your savings horizon and key milestones for education

Multiple 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 options

Choice of flexible premium payment terms which can closely align to your savings horizon

Building up a fund for education needs

Addition 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 premiums

High 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.

Survival and Maturity Benefit

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

Scenario 2: Death Benefits

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 all 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 12years 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

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

Canara HSBC Oriental Bank of Commerce Life Insurance Smart Junior Plan Individual Non-linked participating limited premium payment endowment life insurance plan.