Canara HSBC Oriental Bank of Commerce Life Unit Linked Child Plan

 

At Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited, we believe that when it comes to your child's future, you should not settle for anything else but the best. Our Unit Linked Child Plan, with its thoughtfully designed features and options is just another way towards ensuring a safe and happy life for your child in the future. This product will not only help you fulfill your promise to your child, but more importantly help you take the first step towards ensuring a secure future for him/her.

Key Features/ Benefits of the Unit Linked Child Plan

• Comprehensive Insurance Benefit: Safeguard the immediate and future needs of your child in
  case of your unfortunate death with the following features:
  * Immediate payment of the Sum Assured
  * Funding of all future premiums, as and when due
  * Payment of the Fund Value at maturity
• Loyalty Additions at milestones in your child's life: Boost your investments through Loyalty Additions, twice during the policy term – at ages 18 and 25 of your child
• Indexation: Protect the real value of your investments and policy benefits against inflation by opting for Indexation at inception, whereby your regular premium and sum assured will increase by 5% p.a.
• Premium Holiday: Avail the option of a premium holiday up to 3 years and enjoy all the policy benefits without having to pay any premium for the holiday duration
• Systematic Partial Withdrawal: Meet the planned needs of your child, such as his/her higher education, through structured payouts in the last 5 policy years. This apart, the Partial Withdrawal option is also available after the completion of 5 policy years for unplanned contingencies
• Investment Funds: Choose from 5 investment funds – Equity, Growth, Balanced, Debt and Liquid, ranging from 0% to 100% equity exposure, to match your appetite towards investment risks and returns
• Maturity Switch Option: Get the upside of high growth through the term of the plan while protecting your savings when your plan is closer to maturity by opting for Maturity Switch Option.
• Tax benefits¹: Enjoy tax benefits under Section 80C and Section 10(10D), as per the Income Tax Act, 1961

Eligibility Criteria

Entry Age (Last birthday)	Life Assured (Parent): 18 – 60 years Beneficiary (Child): 0 – 15 years
Policy term	25 years – entry age of the beneficiary (i.e. 10 – 25 years, subject to maximum maturity age of 75 years)
Annual Premium	Minimum Rs 12,000; No maximum limit
Sum Assured	5 to 15 times Annualized Premium Equivalent for age 18 to 50 years 5 times Annualized Premium Equivalent for age 51 to 60 years
In-built Premium Funding Benefit	Funding of all future premiums, as and when due by the Company in case of the death of the Life Assured during the policy term
Death Benefit	Sum Assured is paid immediately & Inbuilt Premium Funding Benefit gets activated
Maturity Benefit	Fund Value
Fund Options	Equity Fund	Growth Fund	Balanced Fund	Debt Fund	Liquid Fund

How the Plan Works?

• Choose the regular premium as per the amount you would like to invest for your child's future. Also, choose an adequate life cover
• Your policy term will be 25 years minus your child's current age. E.g. if your child's current age is 3 years, the term of the plan will be 25-3=22 years. This is designed so that the policy matures when your child is 25 years old
• You can choose to pay your premiums annually, half yearly, quarterly or monthly. You can opt to pay your premiums through cheque, demand draft, ECS, direct debit or standing instruction to your bank account.
• You need to complete your proposal form and submit it with the initial premium and the necessary documents.
• Once your proposal is accepted as per our underwriting requirements, the policy will be issued and sent to you
• You can avail the flexibilities provided in the plan as per your need, after issuance of your Policy
• You will be required to pay premiums regularly for the entire policy term

No one covers you the way we do!

Providing Customized Solutions for your Child's benefit through this plan! 

♦ Indexation Option

At inception, you can opt for Indexation, wherein your regular premium as well as the sum assured will increase by 5% p.a. of the then existing Premium and Sum Assured at each policy anniversary. Indexation helps you effectively beat inflation eating into the value of your funds and make disciplined increased savings towards it. Also, in case of your unfortunate death, the benefits paid to your child are substantially insulated from inflation erosion.

♦ Partial Withdrawal/ Systematic Partial Withdrawal

In order to meet any sudden financial requirements for your child, you can make partial withdrawals from your policy without having to surrender it. Subject to all due premiums being paid, Partial withdrawals are allowed after the completion of 5 policy years. The first four partial withdrawals in a year are free of charge.
You also have the option of Systematic Partial Withdrawal, wherein 20% of the fund value (as on the beginning of each respective policy year) will be disbursed to you in the 5 policy years immediately preceding policy maturity. This will give you access to your investments, helping you take care of large expenses of your child such as his/her higher education.

♦ Loyalty Additions

Enjoy Loyalty Additions twice during the term of your policy, linked to two key milestone ages of your child i.e. a) when he/she attains age 18, and b) when he/she attains age 25.  The Loyalty Additions are given in the form of free extra allocation of units. The Loyalty Additions are given as a percentage of the total fund value, built-up on regular premiums only as illustrated below:
- Loyalty Addition at the age of 18 = 0.2%* Fund Value* Total number of completed policy years
- Loyalty Additions at the age of 25 = 0.2%* Fund Value* Total number of completed policy years

♦ Premium Holiday

You can avail the Premium Holiday facility; provided the policy is in force and at least the first 8 policy years' premiums have been paid. You can opt not to pay your regular premiums for periods ranging from 1 to 3 years during which the policy will continue with all the benefits. Once the holiday period is over, you can resume premium payment without having to pay the premiums pertaining to the Premium Holiday period. This feature is available multiple times during the policy term and can be availed in case you face any financial constraints during the policy term. We will require a notice of at least 15 days, prior to the premium due date from which you wish to avail the premium holiday.

TAX BENEFIT¹:

• Premiums paid under this policy will be eligible for tax benefit under Section 80C and
• Any benefit amount paid to you will be eligible for tax benefits under Section 10(10D), as per prevailing Income Tax laws.

For specific details, please contact your tax consultant.
¹The tax benefits are as per the law prevailing on the date of issuance of this plan, and are subject to changes
For detailed description of the product features, benefits, flexibilities & boundaries, kindly refer to the brochure by clicking on the hyperlink below