Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan

Recommendations :No

Name of the policy :
Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan

A brief desciption :

Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan is a whole life ULIP plan providing higher of sum assured or fund value or 105% of premiums paid as death benefit. There are no maturity benefits provided as it's a pure whole life plan. However returns are restricted due to high charges levied. Moreover Sum assured is miniscule which is not sufficient to cover an earning member of the family having dependents. So it is advisable to to go for a simple term plan and invest the extra money elsewhere and earn higher returns.

Started date :
30/8/2010

Type of policy :
Insurance cum Investment

Category :
ULIP

Insurance :
For Age less than 45- 0.5 x Term x Annual Premium For Age above 45 years- 7 x Annual Premium Max- No limit

Returns expected :
8%-10% (The performance would be less than a performing equity diversified mutual fund)

Entry age :
7-65 Years

Surrender :
If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.

Minimum amount :
Min- Rs 25,000 Max- No limit

Mortality Charges :
Mortality Charge will be deducted at each monthly anniversary by cancellation of units. Sample mortality charges per annum per thousand of sum at risk for a healthy male life is shown below: For Age 30- Rs1.170 , For Age 40- Rs 2.053 , For Age 50- Rs 5.2

Unique features :
Being a whole life plan ir does not provide any maturity benefit.


Premium Allocation Charge Year 1 :0.08%
Premium Allocation Charge Year 2 :0.06%
Premium Allocation Charge Year 3 :0.06%
Premium Allocation Charge Year 4 :0.05%
Premium Allocation Charge Year 5 :0.05%
Premium Allocation Charge Year 6 :0.05%
Premium Allocation Charge Year 7 :0.05%
Premium Allocation Charge Year 8 :0.05%
Fund Management Charge :1.35% p.a. will be charged on all funds except Liquid Fund where the FMC will be 0.80% p.a. and Discontinued Policy Fund where the FMC will be 0.50% p.a.
Surrender/ Premium Discontinuance Charge Year 1 :For Annual Premium upto 25,000- Lower of 20% * (Annual Premium or Fund Value) but not exceeding Rs 3000, For Annual Premium more than 25,000- Lower of 6% * (Annual premium or Fund Value) but not exceeding 6000
Surrender/ Premium Discontinuance Charge Year 2 :For Annual Premium upto 25,000- Lower of 15% * (Annual Premium or Fund Value) but not exceeding Rs 2000, For Annual Premium more than 25,000- Lower of 4% * (Annual premium or Fund Value) but not exceeding 5000
Surrender/ Premium Discontinuance Charge Year 3 :For Annual Premium upto 25,000- Lower of 10% * (Annual Premium or Fund Value) but not exceeding Rs 1500, For Annual Premium more than 25,000- Lower of 3% * (Annual premium or Fund Value) but not exceeding 4000
Surrender/ Premium Discontinuance Charge Year 4 :For Annual Premium upto 25,000- Lower of 5% * (Annual Premium or Fund Value) but not exceeding Rs 1000, For Annual Premium more than 25,000- Lower of 2% * (Annual premium or Fund Value) but not exceeding 2000
Surrender/ Premium Discontinuance Charge Year 5 and above :Nil

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Table of Contents

Table of Contents