Investment Plans 319 views October 21, 2021

Canara HSBC OBC Guaranteed Income Advantage Plan is a non-linked, non-participating, limited premium endowment life insurance policy that pays you a lump sum amount at the end of the term. The key features of this Canara HSBC OBC Life Insurance Plan are shown below.

  • Life Cover
  • Limited Premium Payment Period
  • Guaranteed Annual Income
  • Guaranteed Maturity Benefit

Investment

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Let’s check how these and other benefits of the Canara HSBC OBC Guaranteed Income Advantage Plan help you in your investment journey.

Canara HSBC OBC Guaranteed Income Advantage Plan Base Benefits

You or your nominee shall get the following benefits with this Canara HSBC OBC Life Insurance Plan-

Death Benefit

In case of your death during the policy term, the death benefit shall be payable to your nominee or legal heir, as the case may be. The Sum Assured on Death is the highest of:

  • 11X Annualised Premium
  • 105% of all paid premiums as on date of death
  • Guaranteed Sum Assured on Maturity
  • Absolute amount assured to be paid on death

On payment of the above benefit, the policy shall terminate and no further benefit is payable.

Maturity Benefit

On survival till the end of the policy term, you will receive a Guaranteed Sum Assured on Maturity equal to the sum assured. On payment of the above, the policy terminates and no further benefit shall be payable.

Survival Benefit

You will get a guaranteed annual income at the end of each year after the completion of the premium payment term till the maturity date. This benefit is equal to the basic guaranteed annual income plus the applicable boosters (if any).

Basic Guaranteed Annual Income = (Income Payout Percentage) X (Annualized Premium)

Check out the table below and see when you’ll receive your annual income –

Premium Payment Term (In Years)Policy Term (In Years)Total Number of Income PayoutsIncome Payout Percentage
7125140%
10155200%

Note – You’ll receive both the annual income last payout and guaranteed maturity benefit at the end of the term.

Canara HSBC OBC Guaranteed Income Advantage Plan Policy Term and Premium Payment Options

The insurance company shall provide you option of two policy terms –

  • 12 years
  • 15 years

And the premium payment term (PPT) is limited pay, so you need to pay the premium for a specific period only. For a 12 -year policy term, the PPT is 7 years and 10 years for a 15-year policy term. You can choose your premium payment mode from the following options –

  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly

The minimum premium amount is as follows based on your chosen mode of premium payment –

  • INR 1 Lakh yearly
  • INR 51,000 half-yearly
  • INR 26,000 quarterly
  • INR 9,000 monthly

Whereas, the maximum premium amount is subject to the board-approved underwriting policy of the company. The basic guaranteed annual income available shall be increased by the high premium booster as shown below –

Annualized Premium (In INR) High Premium Booster (as % of Basic
Guaranteed Annual Income)
< 2 LakhNIL
>= 2 Lakh to < 5 Lakh1
>= 5 Lakh to < 10 Lakh1.75
>= 10 Lakh2

Eligibility Criteria for Canara HSBC OBC Guaranteed Income Advantage Plan

You can get the benefit of the Canara HSBC OBC Guaranteed Income Advantage Plan if you meet the following criteria –

  • Minimum Entry Age – 3 years for a policy term of 15 years and 6 years for a policy term of 12 years
  • Maximum Entry Age – 60 years
  • Minimum Age allowed at Maturity – 18 years
  • Maximum Age allowed at Maturity – 75 years

Loan Facility

The insurer provides you with a loan facility by which you can meet any financial need. You can avail of the loan facility once the policy acquires a surrender value. The policy shall acquire a surrender value after payment of two consecutive years’ premiums. The minimum loan amount is INR 20,000 and the maximum is 80% of the prevailing surrender value.

Suicide Exclusion

If you commit suicide within 12 months from the date of inception or revival of the policy, the nominee won’t get the policy benefits. The company shall refund 80% of the paid premiums if you commit suicide within 12 months from the date of inception. In case of death due to suicide within 12 months from the date of revival, the insurer shall pay a higher of –

  • 80% of the paid premiums till the date of death
  • Surrender value as on the date of death

to the nominee.

Free Look Period

A free look period of 15 days and 30 days, in case the policy is sourced through electronic mode or distance marketing, starts from the date of receipt of this policy document. In case you disagree with the terms and conditions, you can return the policy stating the reason for it. Upon cancellation, the insurer shall refund the paid premium after the deduction of the proportionate risk premium for the period on cover, stamp duty and medical expenses (if any).

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