Investment Plans October 16, 2021

Canara HSBC OBC Jeevan Nivesh Plan is a non-linked, participating life insurance policy that provides you the benefit of savings along with a life cover. The key features of this Canara HSBC OBC Plan include –

  • Lifelong cover up to the age of 100 years
  • Guaranteed maturity benefit equal to 100% of the sum assured
  • Option to get maturity payouts in annual installments for 15 years with a 5% increase each year
  • Flexible policy and premium payment terms

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Read this page further and learn about these and other features and benefits of the Canara HSBC OBC Jeevan Nivesh Plan.

Canara HSBC OBC Jeevan Nivesh Plan Coverage Options

The insurance company provides you with the following life cover options under this plan.

Endowment with Whole Life Cover

Are you planning to get a lump sum on policy maturity with whole life coverage? This option is for you. Here, you’ll get the following benefits –

Maturity Benefit – Upon survival till the end of the policy term, the company shall pay you a Guaranteed Sum Assured on Maturity along with the accrued annual bonuses and final bonus, if any. After the payment of maturity benefit, the policy shall not terminate and continue till you attain the age of 100 years or the date of death, whichever is earlier.

Survival Benefit – If you survive till the age of 100 years, the company shall pay you a Guaranteed Sum Assured on Maturity. This benefit is in addition to the above Maturity Benefit.

Note – You can avail of the survival and maturity benefit if all premiums are paid in full.

Death During the Policy Term – In case of your death during the policy term, the nominee will receive a higher of –

Sum Assured on Death + Annual bonuses, Interim and Final bonus (if any)
105% of paid premiums less underwriting extra premium (if any)

Death Before Attaining the Age of 100 Years – If you die after the policy term but before attaining the age of 100 years, a Guaranteed Sum Assured on Maturity will be payable to your nominee. This benefit is in addition to the Maturity Benefit.

Only Endowment

If you only need a life cover during the policy term, choose this option. Here, the company provides you the following benefits –

Maturity Benefit

If you survive till the end of the policy term, you will receive a Guaranteed Sum Assured on Maturity along with accrued annual bonuses and final bonus, if any. After the payment of this, the policy will terminate and no further benefit shall be payable. Here, you’ll get the Settlement option which allows you to convert your Guaranteed Sum Assured on Maturity into annual payouts. These annual payouts shall increase at 5% compounded interest every year and you’ll receive the same for up to 15 years.

Under the Settlement option, the Maturity Benefit is payable in the following manner –

  • Accrued Annual bonuses and Final bonus, in a lump sum on the maturity of the policy
  • Guaranteed Sum Assured on Maturity in a pre-defined period (15 years)

Note – After 15 years, the policy shall terminate.

Important Notes on the Settlement Option

Before you opt for the settlement option, you should know the following –

  • You need to intimate the insurer about the settlement option at least 3 months before the maturity date.
  • The first annual payout shall be made to you after one year from the maturity date
  • The annual payout is a percentage of the Guaranteed Sum Assured on Maturity based upon the prevailing 10-Year G-Sec yield as on the maturity date.
  • You also have the option to completely withdraw the guaranteed maturity benefit. For this, you need to notify the insurer at least three months before the next annual payout due date. Upon receiving the withdrawal request, the discounted value of the remaining annual payouts shall be paid in a lump sum and the policy will terminate.
  • In case of your death during the settlement period, the nominee either can receive the annual payouts in installments or lump-sum.
  • No life cover is available during the settlement period
  • The settlement option is not available if the due premiums are outstanding
  • The settlement option is not available if the prevailing 10-year G-sec yield is below 4%

Death Benefit

In case of your death during the policy term, your nominee shall receive a higher of –

  • Sum Assured on Death + Annual bonus, Interim and Final bonus (if any)
  • 105% of the total paid premiums less underwriting extra premium (if any)

Canara HSBC OBC Jeevan Nivesh Plan Bonuses

The company shall declare the following bonuses during the policy term –

Annual Bonus

The company shall declare the annual bonus, provided all premiums are paid for that year. These bonuses are accrued from the profits emerging from the with-profit fund managed by the company. Once it is declared, it shall be payable at the end of the policy term or along with the death payout.

Final Bonus

If there is any final bonus based on the profits emerging from the with-profit fund, it shall be payable.

Note – There is no guarantee on the number of future bonuses declared by the company. Hence, it may vary from time to time.

Premium Payment Term (PPT) and Policy Term

You’ll have the following policy and premium payment options under the Canara HSBC OBC Jeevan Nivesh Plan.

Policy Term (In Years)PPT (In Years)
10, 15, 20Limited Pay for 5 years
15, 20, 25Limited Pay for 7 or 10 years
15, 20, 25, 30Regular Pay

In limited pay, you need to pay the premium for a specific period as shown in the table above. Whereas, in regular pay, your PPT remains the same as the chosen policy term. The minimum sum assured for this Canara HSBC OBC Life Insurance Plan is INR 3 Lakh for annual mode and INR 5 Lakh for monthly mode.

Eligibility Criteria for Canara HSBC OBC Jeevan Nivesh Plan

You can purchase Canara HSBC OBC Jeevan Nivesh Plan if you meet the following age criteria –

  • Minimum Entry Age – 18 years
  • Maximum Entry Age – 55 years for annual mode and 45 years for monthly mode
  • Maximum Maturity Age Allowed – 80 years for annual mode and 75 years for monthly mode

Free Look Period

A free look period of 15 and 30 days (if you buy this plan through distance marketing) starts from the date of receipt of the policy to review the terms and conditions. If you have any objection, return the policy stating the reason for it. Upon cancellation, the company refunds the paid premiums after deducting a proportionate risk premium for the period on cover, stamp duty charges and medical expenses, if any.

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