This is a traditional life insurance cum investment policy by Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd, which offers the option to be insured for life or tailor your investment benefits as periodic pay-outs.
The offering
You can choose a maximum policy term of 30 years. Depending on your age, sum assured and premium payment term, the policy will calculate the annual premium that you need to pay. The sum assured under this policy is the guaranteed amount that you get on maturity or death. Over and above this, you also get the accumulated bonus accrued over the years. Being a participating plan, the investment benefits in the plan are pegged to the performance of the participating fund. This comes to you in the form of annual bonuses and is declared as a percentage of the sum assured. On maturity you get the sum assured plus all the accrued bonuses as a lump sum under the endowment option. Or, if you choose (at least 3 months before maturity), the insurer can also offer periodic pay-outs. Under this structure the accrued bonuses are given as lump sum and the guaranteed sum assured is paid over 15 years. “Periodic annual income over 15 years will depend on the 10-year g-sec rates at the time of maturity. The first income will be described as a percentage of the sum assured and will increase by 5%, compounded every year, to take care of your growing needs. The sum of payments will never be less than the sum assured,” said Rishi Mathur, head - products and strategy , Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
In terms of insurance, under the endowment option, the plan terminates with the end of the policy term.
