The individual life insurance savings plan is designed to provide multiple saving options and protection cover.
Canara HSBC Oriental Bank of Commerce Life Insurance has launched a new Unit Linked insurance plan (Ulip) titled ‘Invest 4G’. It is an individual life insurance savings plan which can be customized as per the goals and changing requirements of the individual.
This Unit Linked Individual Life Insurance cum Savings Plan provides a combination of Portfolio Management Options and flexibilities which gives choice to opt for protection suiting the demand for every individual as well as provide an opportunity to save for future goals.
New “Invest4G” offers three options to the individuals: Life Option, Care Option and Century Option. Life option ensures financial protection to a family in case of the customer’s unfortunate demise. Care Option provides life coverage along with Premium Funding Benefit and Century Option is a whole life option available for the policyholder till the age of 100 years.
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Death Benefits
1. Life Option and Century Option
Higher of Sum Assured ( less applicable Partial Withdrawal/ Systematic Withdrawal/ Milestone Withdrawal) or Fund Value will be paid as on date of intimation of death claim and policy will terminate
2. Care Option
On the death of the Life Assured, a lump sum is paid immediately and remaining future premiums are funded by the Company as & when due and Fund Value is paid at maturity.
Maturity Benefits
On maturity, You will receive the Fund Value based on the prevailing NAVs.You also have the option to take Fund Value on maturity in periodic installments as per Settlement Option.
Fund Options
This Plan gives you the flexibility to manage & control the savings in your own way. Here you can choose from a range of 8 Unit Linked Funds. You can choose to allocate your Premiums to any, all or a combination of the Unit Linked Funds as per your risk preference.
Emerging Leaders Equity Fund
India Multi-Cap Equity Fund
Equity II Fund
Growth Plus Fund
Balanced Plus Fund
Large Cap Advantage Fund
Debt Fund
Liquid Fund
Alternatively, one may select one among the following 4 different Portfolio Management Options to manage and build on wealth.
1. Systematic Transfer Option (STO)
If you want to invest in equity-oriented fund but worry about market volatility and risk associated with lump sum investment, then you can opt for STO which enables you to enter the equity market in a systematic manner.
Through this option, your entire premium will be first allocated to the Liquid Fund and then systematically transferred on a monthly basis into any one of the Unit Linked Funds – India Multi-Cap Equity Fund or Equity II Fund or Emerging Leaders Equity Fund as chosen by you.
2. Return Protector Option (RPO)
This option enables you to take advantage of the equity market by protecting your gains from the future equity market volatility. Through RPO, starting from the 2nd policy year onwards, your gains made from an equity fund basis your chosen ‘Target Appreciation’ are automatically transferred to a lower risk Debt Fund. This way, your gains are protected from further market volatility.
3. Auto Funds Rebalancing (AFR)
If you wish to maintain the allocation of your investments in a specific proportion across different Unit Linked Funds, irrespective of market movements, you can do so through Auto Funds Rebalancing. Once opted, after every 3 months, it automatically rebalances the allocation of your investments in various Unit Linked Funds to the allocation proportions chosen by you.
4. Safety Switch Option (SSO):
As your policy nears maturity, you may want to avoid market movements and safeguard your funds. The Safety Switch Option enables you to move your funds systematically to a relatively low-risk Liquid Fund at the beginning of each of the last four policy years.
Loyalty Additions
This plan offers fund value related Loyalty Additions from the end of 5th policy year and every 5th year till the end of the Premium Payment Term provided all the due premiums are received till that time. The Loyalty Additions for each Unit Linked Fund will be equal to a percentage of the average fund value of last 60 monthly policy anniversaries for the respective Unit Linked Fund.
Wealth Boosters
This plan also offers the additional allocation of units which will be added to the Unit Linked Fund(s) at specific policy intervals provided all due premiums till date have been paid. These wealth boosters will be a percentage of the average fund value of last 60 monthly policy anniversaries
Some of the key features of the plan:
Return on Mortality Charge: An amount equal to the total of all the Mortality Charges deducted during the Policy Term (excluding charges due to extra mortality risk) will be added to the Fund Value at the maturity date
Flexibility of Single Pay: Single Premium Payment Option added. Includes both 10x cover multiple and 1.25x cover multiple
Systematic withdrawal Option: A pre-decided percentage ranging from 1% to 12% of the Fund Value will be paid to the Policyholder at a chosen frequency for the remainder of the Policy Term. PPT has to be greater than or equal to 10 years
Milestone Withdrawal Option: For enhanced liquidity at regular milestones
Premium Reduction: After payment of premiums for the first five Policy Years, option to decrease the premium up to 50% of the original Annualized Premium
Anuj Mathur, MD & CEO, Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited says, “Canara HSBC Oriental Bank of Commerce Life Insurance has always been on the forefront in innovating new policies with benefits that are best in the given segment and suit the needs of customers. The new Invest 4G plan is a product suited for new-age digital buyers and has been overhauled to provide life insurance as well as multiple saving options fulfilling the financial needs of individuals. We are confident that this product, which comes with 3 options namely Life Option, Care Option and Century Option, will cater to the new needs and life goals of our customers.”
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