Canara HSBC Life Insurance has introduced a new life insurance policy with a guaranteed maturity benefit and the option of a single premium payment facility.
Called the “Guaranteed One Pay Advantage (GOPA)” plan, it is an untied, non-participating plan centered on individual savings, the company announced in a press release. The term of the policy is five, seven and 10 years, respectively.
According to the insurer, this plan was designed to meet the needs of people who are looking for a single, hassle-free savings insurance plan that offers both life coverage and maturity benefits to the insured or his family.
The company said GOPA will provide two separate benefits, namely a death benefit during the term of the policy and maturity benefits after the term of the policy.
Buyers can also customize their policy to suit their financial needs, either through individual or joint coverage.
To get started, they will first have to choose the policy either on an individual basis or on a joint basis. Then they can choose how much they want to contribute to their goal. This will be their bounty. Then they can choose the duration of the policy. After that, they can choose life coverage. In case of individual life insurance, they can choose life insurance of 10 times or 1.25 times the single premium. In case of joint life insurance, they can skip this step as the life insurance coverage is fixed. Finally, the guaranteed capital insured at maturity in this plan will be determined according to the applicant’s age and the options chosen.
The death benefit during the term of the contract is also designed according to the chosen plan. In the case of single life insurance, the sum insured will be paid on the death of the insured and the policy will end.
In the case of joint life insurance, the policy will pay 1.25 times the single premium on the death of either of the insured persons, and the policy will continue. On the death of the surviving insured, the policy will pay out the sum insured, after which the policy will terminate.
Minimum ages to purchase are 13, 11 and 8 years old for policy terms of five, seven and 10 years, respectively. The maximum age is 50 years old.
The minimum amount to make the single premium is Rs 5 lakh.
The main benefits introduced under the insurance policy are:
Life cover for the entire duration of the contract
Short premium payment commitment in one installment
Flexibility to choose coverage option – either single or dual
Freedom to choose life insurance coverage – 1.25 times the single premium or equal to 10, depending on the client’s financial protection needs
Possibility of benefiting from tax advantages under the tax laws in force
The policy will also offer a loan facility after reaching its cash value.
“With the introduction of our new offering, we aim to provide our customers with a simplified and balanced life insurance product that will allow them to achieve their financial goals, regardless of market behavior. One Pay will allow customers to protect themselves and their families with one single premium payment,” said Anuj Mathur, Managing Director and CEO of Canara HSBC Life Insurance.