Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd has a new traditional insurance-cum-investment policy, called Smart Junior Plan, designed for child investment needs. It is a participating plan, so the policy returns are pegged to the performance of the participating fund and are declared every year as bonus.
What you get
Start by choosing the sum assured, which is a guaranteed payout. The annual premium will be calculated on the basis of: policy term, premium payment term and factors such as your age.
You pay premiums throughout the premium payment period. “The premium payment term options are such that it stops at least 5 years before the policy term. Although the policyholder has to choose the policy term and the premium payment term, it’s recommended that she chooses a term such that the payout begins when the child is 18-years-old and the policy matures when the child is 22-years-old, so that the policy is able to pay for higher education,” said Rishi Mathur, head, products and strategy, Canara HSBC OBC Life.
