Smart Junior Plan

About Smart Junior Plan
Canara HSBC Oriental Bank of Commerce Life Insurance Smart Junior Plan an Individual Non-linked Par Life Insurance Savings cum Protection Plan designed to fulfill your child`s future education needs, whether you are around or not.
Smart Junior plan provides Guaranteed* payouts during the last 5 years of policy which can be aligned to child's educational milestones. Further, the plan also provides Annual bonuses and Final bonus, if any, on maturity.
This plan provides comprehensive protection - in case of unfortunate demise of Life Assured - a lump sum amount is paid immediately and the remaining due premiums, if any, are not payable. The policy continues to be in-force & policy benefits are paid as scheduled.
*Guaranteed payouts will be paid during the last 5 years of the policy provided premiums are paid as and when due.

Why Buy
As we encourage our little ones to be ambitious and never settle for the ordinary, we as parents do our best to make our children dreams and aspirations a reality. Their goals today are bigger than ever and achievement requires far more focus, especially on education. Meeting their ever increasing cost however requires substantial financial planning. Since life is full of uncertainties, as responsible parents we need to ensure our child's need is always met, whether we are around or not. Hence as parents, we need to plan ahead, and also take care of the increasing cost of education.



Key Feature Of This Plan:

Enhanced Triple Protection
Life insurance protection through payment of lump sum benefit on death, all remaining premiums need not be paid and Guaranteed Annual Payouts as planned to meet child`s education needs.

Guaranteed payouts for child`s education
Annual payouts aligned closely to your child's educational milestones

Customize to your savings horizon and key milestones for education
Multiple policy term options will ensure that you are able to choose the best suited policy term closely aligned to your child's age and future milestones for education

Premium payment options
Choice of flexible premium payment terms which can closely align to your savings horizon

Building up a fund for education needs
Addition of regular Annual bonuses along with Final bonus (if any) on maturity, to ensure that the fund for your child's education gets built up smoothly

Better Value for higher premiums
High sum assured rebate to ensure that you get the extra benefit for making a higher premium commitment for the chosen policy term

Tax benefits#
Tax benefits are available on the premiums paid and on the benefits received during the policy term under Section 80C and Section 10(10D), as per the Income Tax Act, 1961.

Benefits

Survival Benefit
You will receive the Guaranteed Annual payouts at the end of each of the last 4 policy years before the maturity year provided that all due premiums are paid. You can utilize these guaranteed payouts to fund the future education needs of your child. The amount of annual payouts will be as per below table.



Maturity Benefit
On your survival till maturity, You will receive Guaranteed Sum Assured on maturity equal to 20% of Sum Assured along with Annual bonuses and Final bonus, if any.

Death Benefit
In case of unfortunate demise of Life Assured during the policy term, provided the policy is in-force, following benefits will be payable:

Immediate lump sum benefit, higher of :
Sum Assured
10 times the Annualized Premium,
105% of {the Total Premiums Paid till the date of death less underwriting extra premium, if any}.
In addition to the above, all future premiums (if any) need not be paid and the policy shall continue to be in force for the remaining Policy Term. The policy will also continue to accrue Annual bonuses.

Guaranteed Annual Payouts
All Guaranteed Annual Payouts as scheduled will continue to be payable at the end of each of the last 4 policy years before the maturity year.

Guaranteed Sum Assured on maturity
This benefit will be equal to 20% & will be paid on maturity.

Bonuses
Accrued Annual bonuses along with Final bonus, if any, will also be payable on maturity.

Other Benefits
Rebate: This plan offers rebate on the premium payable, if Sum Assured is higher than or equal to Rs 4,00,000.
Loans: You can avail of the loan facility to meet your liquidity needs, once the policy acquires a surrender value.

Tax Benefits#
You can avail tax benefit on the premium paid subject to current applicable provisions of Section 80C of income Tax Act, 1961.
#Tax benefits under the policy will be as per the prevailing Income Tax laws and are subject to amendments from time to time. For tax related queries, contact your independent tax advisor.

How it works
Mr. Gupta is a 35 year old businessman with a 4 year old son named Yash. He wants to secure his son's future through planned savings for his education milestones. He also wants to ensure that his plans (funding for education) are not impacted even if he is not there tomorrow. Mr. Gupta therefore takes a wise decision to save through our Smart Junior Plan.
To fulfill future education milestone, Mr. Gupta estimates that he requires a guaranteed benefit of at least 200,000 every year for four years when Yash turns 18 and additional lump sum amount at age 22 to plan for Yash's higher education/ professional course. Therefore he opts for a policy term of 18 years and takes a Sum Assured of 1,000,000 with premium paying term of 10 years and yearly premium payment mode. The premium he has to pay annually for 10 years is 101,400 (before applicable taxes and cess(es)).
Below are two scenarios illustrating benefits which will be payable under each of them.

Scenario 1: Survival and Maturity Benefit
Mr. Gupta will get a guaranteed payout of 200,000 every year in last four policy years before the maturity year (subject to all premiums being paid as and when due) which is from end of policy year 14 till policy year 17. On maturity , Mr. Gupta will receive an amount of 200,000 as Guaranteed Sum Assured on maturity along with accrued Annual bonuses and Final bonus, if any, as illustrated below.



Premium rates for tobacco users will vary. Under this Plan, women enjoy better rates as compared to men of the same age. Women will get a 3 year age setback in premium rates as compared to the men. Your actual premium will depend on the Company's assessment of risks on your health, lifestyle, occupation, etc. Annualized premium may vary for monthly mode. For a personalized quote please refer to the premium calculator.

Scenario 2: Death Benefits
Case of unfortunate death of Mr. Gupta in 3rd policy year after payment of 3 years premiums, his family will receive the following benefits:
Mr. Gupta's family will immediately get lump sum amount of 1,014,000 which is higher of {Sum Assured or 10 times the Annualized Premium or 105% of Total Premiums Paid till date of death less underwriting extra premium paid, if any}
In addition, all future premiums, if any, need not be paid and Guaranteed Annual Payouts of 200,000 will be payable as scheduled in the last 4 policy years before the maturity year. Annual bonuses will continue to accrue for the rest of policy term, as applicable.
Guaranteed Sum Assured on maturity equal to 200,000 along with accrued Annual bonuses and Final bonus, if any, will be payable on maturity.



Age Criteria

Entry Age
Minimum-18 years
Maximum-50 years(In case of monthly mode, maximum entry age is 40 years)

Maximum Maturity Age
70 years

Policy Term
12 to 25 years

Sum Assured

Minimum Sum Assured
Annual Mode: 3,00,000
Monthly Mode: 5,00,000

Maximum Sum Assured
No limit (Subject to Board Approved Underwriting Policy (BAUP) of the Company

Premium Payment Term

Premium Payment Mode & Modal Factors
Annual and Monthly mode
For monthly mode, the annual premium needs to be multiplied with a factor of 0.09 to arrive at the monthly installment premium payable

Premium Payment Term
The premium payment term will depend upon the chosen policy term & will be as per following table.


Minimum & Maximum Premium

Minimum Premium
Depends on factors such as age, sum assured, etc

Maximum Premium
No limit, will be subject to BAUP of the company