The Canara HSBC OBC Life Smart Monthly Income Plan is a life insurance plan that is savings oriented and has bonus facility. This policy helps policyholders to create a legacy for their children with a life cover of twenty-five years. With this policy, the policyholders enjoy a supplemented monthly income, which they can use for realizing their loved ones dreams and aspirations.
If the policyholder survives until the policy matures, he or she receives a Maturity Benefit, which is the sum of all annual Simple Reversionary Bonuses and Terminal Bonus (if any).
In the unfortunate event of the demise of the policyholder, the nominee receives a Death Benefit. The Death Sum Assured is the higher of the Sum Assured or ten times the Annualized Premium. The Death Benefit that is paid to the nominee is the Death Sum Assured plus any added annual bonus provided in the year of death and final bonus, subject to a minimum of 105% of the premiums paid by the policyholder.
The policy gives a Guaranteed Income Benefit in which the company pays a monthly income for fifteen years, starting from the end of the 121st policy month and continues till the end of the policy term.
Tax benefits are available on the premium paid and Death Benefit as per sections 80(C) and 10 (10D) of the Income Tax Act.
The policy offers rebates on high Sum Assured amounts.
Bonuses (Simple Reversionary Bonus and Terminal Bonus) are added to the policy at the end of every financial year provided all premiums have been paid.
Additional Features or Riders
If the premiums for three policy years are not paid within the Grace Period, the policy will lapse.
If policyholders pay the premiums for the first three policy years but subsequently no further premiums are paid, the policy acquires Paid- up Value at the end of the Grace Period.
The revival of a lapsed or discontinued policy is possible if the policyholder submits a request for reinstatement within a timeframe of two years from the date of the first unpaid premium and pays all due premium
The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover. The company will refund 80% of the premiums paid. If the suicide takes place within one year of policy reinstatement, the company will refund the higher of 80% of the premiums paid or the Surrender Value.