Canara HSBC iSelect Guaranteed Future: A Complete & Comprehensive Review

You should be financially prepared to realize your dreams whether it’s child education, a family vacation, a car, or your dream house. You also want your family to be financially prepared and their needs and goals to be taken care of even if you are not around tomorrow.

Canara HSBC presents a plan called iSelect Guaranteed Future that provides you with life insurance coverage to achieve financial stability and security for your family. Is this HSBC iSelect Guaranteed Future plan a Good or Bad option for your Financial Security?

Let us do a detailed analysis to review and find out the Advantages(pros) and Disadvantages(cons) of the HSBC iSelect Guaranteed Future plan.

Let’s get started!

Table of Contents

1.)An Overview of Canara HSBC iSelect Guaranteed Future
2.)Features of Canara HSBC iSelect Guaranteed Future – Analysis
3.)Plan Options Of Canara HSBC iSelect Guaranteed Future – Analysis
4.)Eligibility Criteria Of Canara HSBC iSelect Guaranteed Future – Analysis With Illustration
5.)Canara HSBC iSelect Guaranteed Future – Review of Benefits with Illustration
6.)The Grace period, Discontinuance, Reduced paid-up, and Revival of Canara HSBC iSelect Guaranteed Future – Analysis
7.)Free Look period of Canara HSBC iSelect Guaranteed Future
8.)Surrendering Canara HSBC iSelect Guaranteed Future
9.)Advantages of Canara HSBC iSelect Guaranteed Future – Analysis
10.)Disadvantages of Canara HSBC iSelect Guaranteed Future – Analysis
11.)Research Methodology of Canara HSBC iSelect Guaranteed Future

• Benefit Illustration – IRR(Internal Rate of Return i.e. Interest Rate) Analysis of Canara HSBC iSelect Guaranteed Future

12.)HSBC iSelect Guaranteed Future vs. Other Investment Products – Review

• Canara HSBC iSelect Guaranteed Future Vs. Pure Term Insurance + ELSS / PPF
• Canara HSBC iSelect Guaranteed Future vs. LIC Dhan Vriddhi
• Canara HSBC iSelect Guaranteed Future vs. Tata AIA Guaranteed Monthly Income Plan

13.)Canara HSBC iSelect Guaranteed Future vs. Other Investment Products – Review Conclusion
14.)Final verdict on Canara HSBC iSelect Guaranteed Future – Good or Bad?

1. An Overview of Canara HSBC iSelect Guaranteed Future

It is a Non-Linked, Non-Participating Individual Savings Life Insurance Plan. It helps you with an alternate source of savings to take care of your financial goals and plan for a stress-free life along with the added benefit of protection against the uncertainties of tomorrow.

You can Click Here to refer to the official brochure of Canara HSBC iSelect Guaranteed Future for more policy details.

2. Features of Canara HSBC iSelect Guaranteed Future – Analysis

• Life cover throughout the Policy Term.
• Choose to pay a single premium or premiums for 5,7, or 10 years aligned to your financial goal
• Guaranteed Maturity Benefit to take care of your financial dreams and goals
• Guaranteed Income payouts to take care of recurring expenses in the near future
• Guaranteed additions accrue will enhance your policy’s benefit
• Tax benefits may be available as per prevailing Tax Laws.

3. Plan Options Of Canara HSBC iSelect Guaranteed Future – Analysis

Plan option 1: iAchieve and Flexi iAchieve

Pay for a limited period and get a guaranteed lump sum benefit at maturity to take care of your financial dreams and goals.

Plan option 2: iAssure and Flexi iAssure

Pay for a limited period and get a guaranteed income post your premium payment term for your immediate financial needs along with a guaranteed lump sum benefit at maturity to take care of your financial dreams and goals.

Plan option 3: Easy iAchieve

Pay once and get a guaranteed lump sum benefit at maturity to take care of your financial dreams and goals.

4. Eligibility Criteria Of Canara HSBC iSelect Guaranteed Future – Analysis With Illustration

Parameters	Minimum	Maximum
Entry Age of Life Assured as on Last Birthday (In years)	0 years	45/65 years
Maturity Age of Life Assured as on Last Birthday (In years)	18 years	65/80 years
Premium Payment Term and Policy Term (in years)	Premium Payment Term	Policy Term
	Single pay	10,12,14,15,20
	5	10, 15
	7	12, 14
	10	15, 20
Annualised Premium (in Rupees)	20,000	No limit
Guaranteed Sum Assured (in Rupees)	For Plan options 1 and 2: 2,20,000For Plan option 3: 62500/5,00,000	No limit
Premium Payment Mode	Annual, Half-Yearly, Quarterly and Monthly modes

5. Canara HSBC iSelect Guaranteed Future – Review of Benefits with Illustration 

Plan options	Death Benefit	Survival Benefit	Maturity Benefit
Plan option 1: iAchieve and Flexi iAchieve	For iAchieve/ iAssure Where Life Assured and HSBC iSelect Guaranteed Future Policyholder are the same: On the death of the Life Assured, the following benefit will be paid: Sum Assured on Death; PLUS HSBC iSelect Guaranteed Future, Accrued Guaranteed Additions of HSBC iSelect Guaranteed Future, if any; PLUS High Premium Addition of HSBC iSelect Guaranteed Future, if any If the optional Payor Premium Protection Cover has been chosen, the Sum Assured on Death will be paid. All HSBC iSelect Guaranteed Future future premiums payable thereafter will be waived off and the HSBC iSelect Guaranteed Future Policy continues till the end of the Policy Term with all future benefits intact. Where Life Assured and HSBC iSelect Guaranteed Future Policyholder are different: On the death of the Life Assured the Death Benefit payable will be equal to: Sum Assured on Death; PLUS Accrued Guaranteed Additions of HSBC iSelect Guaranteed Future, if any; PLUS High Premium Addition of HSBC iSelect Guaranteed Future, if any On the death of the Policyholder: If the optional Payor Premium Protection Cover has been chosen, all the future premiums payable shall be waived off and the HSBC iSelect Guaranteed Future policy shall continue as in force till the end of the Policy Term with all the future benefits intact. For Flexi iAchieve/Flexi iAssure On the death of the Life Assured, the following benefit will be paid: Sum Assured on Death; PLUS Accrued Guaranteed Additions of HSBC iSelect Guaranteed Future, if any; PLUS High Premium Addition of HSBC iSelect Guaranteed Future, if any	NIL	At the end of the Policy Term, you will get: Guaranteed Sum Assured on Maturity of HSBC iSelect Guaranteed Future; PLUS Accrued Guaranteed Additions of HSBC iSelect Guaranteed Future; if any; PLUS High Premium Addition of HSBC iSelect Guaranteed Future, if any
Plan option 2: iAssure and Flexi iAssure		At the end of the policy year post completion of the premium payment You will get HSBC iSelect Guaranteed Future, and Guaranteed Income.	At the end of  HSBC iSelect Guaranteed Future Policy Term, you will get: Accrued Guaranteed Additions of HSBC iSelect Guaranteed Future; if any PLUS High Premium Addition of HSBC iSelect Guaranteed Future, if any
Plan option 3: Easy iAchieve	On the death of the Life Assured during the Policy Term, the following benefit will be paid: Sum Assured on Death of HSBC iSelect Guaranteed Future; PLUS High Premium Addition of HSBC iSelect Guaranteed Future, if any	NIL	At the end of  HSBC iSelect Guaranteed Future Policy Term, you will get: Guaranteed Sum Assured on Maturity of HSBC iSelect Guaranteed Future; PLUS High Premium Addition of HSBC iSelect Guaranteed Future, if any

6. The Grace period, Discontinuance, Reduced paid-up, and Revival of Canara HSBC iSelect Guaranteed Future – Analysis

Grace Period

You are provided with a Grace Period of 30 days for annual, half-yearly, and quarterly modes and 15 days for monthly mode from the Premium due date to pay a due premium.

Discontinuance

If the premiums have not been paid in full for the first two policy years, before the end of the Grace Period. Your HSBC iSelect Guaranteed Future policy will lapse at the end of the Grace Period and the insurance cover will cease immediately, and no benefits will be paid when the HSBC iSelect Guaranteed Future policy is in lapsed status.

Reduced paid-up

If the premiums have been paid in full for the first two HSBC iSelect Guaranteed Future policy years but not subsequently within the Grace Period, your policy will be moved to paid-up status and the HSBC iSelect Guaranteed Future policy will continue with reduced benefits.

Revival

You can revive your HSBC iSelect Guaranteed Future policy within the revival period of 5 years from the due date of the first unpaid premium.

7. Free Look period of Canara HSBC iSelect Guaranteed Future

If you are not satisfied with the “Terms and Conditions” of the policy, the policy may be returned within 15 days (30 days for electronic policies sourced through distance marketing) from the date of receipt of the policy.

8. Surrendering Canara HSBC iSelect Guaranteed Future

For all options other than Easy iAchieve – The Policy shall acquire a surrender value if the premiums have been paid in full for at least the first two consecutive HSBC iSelect Guaranteed Future policy years.

For Easy iAchieve – The Policy shall acquire a surrender value from the first policy year.

9. Advantages of Canara HSBC iSelect Guaranteed Future – Analysis

• Premium paying frequency can be chosen as per convenience.
• You can opt for survival benefit or Maturity Benefit or both
• Higher premium additions expressed as a percentage of annualized premium / Single premium payable along with Death/Maturity/ surrender benefit.
• To meet any contingent need, you may avail of the loan facility in this plan, once the policy acquires a Surrender Value.
• You are entitled to tax benefits in accordance with the provision of the Income Tax Act, 1961.

10. Disadvantages of Canara HSBC iSelect Guaranteed Future – Analysis

• The plan option once chosen can’t be changed after the inception of the policy.
• The sum assured is too low.
• The Maturity Benefit of this policy will not aid you in fulfilling your goals.

11. Research Methodology of Canara HSBC iSelect Guaranteed Future

Canara HSBC iSelect Guaranteed Future offers guaranteed benefits. If you pay premium regularly, you get the benefit in the form of regular income or final lumpsum amount. With this given cash flow, we can easily calculate the Internal rate of return (IRR). This calculation will guide you in decision-making.

Benefit Illustration – IRR(Internal Rate of Return i.e. Interest Rate) Analysis of Canara HSBC iSelect Guaranteed Future

A 35-year-old male opts for Flexi iAchieve under the Canara HSBC iSelect Guaranteed Future plan. The sum assured is ₹ 11 lakhs and the annualised premium is ₹ 1 Lakh. The Policy Term is 15 years and the Premium Paying Term is 10 years. He will be receiving the Maturity Benefit along with the additions at the end of 15 years, provided all premiums are paid.

Male	35 years
Sum Assured	₹ 11 Lakhs
Policy Term	15 years
Premium Paying Term	10 years
Annualised premium	₹ 1 Lakh
Plan option	Flexi iAchieve

Here, in this illustration, if he pays an annualized premium of ₹ 1 lakh for 10 years, he would be receiving the Maturity Benefit of ₹17.71 lakhs at the end of 15 years. The IRR for this cash flow is 5.48%.

		Canara HSBC iSelect Guaranteed Future.
Age	Year	Annualised premium / Maturity Benefit	Death Benefit
35	1	-1,00,000	11,00,000
36	2	-1,00,000	11,00,000
37	3	-1,00,000	11,00,000
38	4	-1,00,000	11,00,000
39	5	-1,00,000	11,00,000
40	6	-1,00,000	11,00,000
41	7	-1,00,000	11,00,000
42	8	-1,00,000	11,00,000
43	9	-1,00,000	11,00,000
44	10	-1,00,000	11,00,000
45	11	0
46	12	0
47	13	0
48	14	0
49	15	0
50		17,71,800
	IRR	5.48%

In the above illustration, the IRR(Internal Rate of Return i.e. Interest Rate) of Canara HSBC iSelect Guaranteed Future is calculated at 5.48%.

The IRR of 5.48% will not aid you in achieving the goals as this rate is less than the inflation rate. For a long-term investment, this rate is not beneficial for an investor.

12. HSBC iSelect Guaranteed Future vs. Other Investment Products – Review

The benefits under Canara HSBC iSelect Guaranteed Future plan are guaranteed amount but the rate of return is not convincing for an investor, especially in the long run. So, let us do a comparison now. Let us analyse what will be the return on investment if we invest the same premium in other instruments. The premium is utilised for life cover and investment.

i) Canara HSBC iSelect Guaranteed Future Vs. Pure Term Insurance + ELSS / PPF

The premium for a Pure Term Policy for a sum assured of ₹ 11 lakhs would cost ₹ 7,200. The Policy Term is 15 years and the Premium Paying Term is 10 years (same as seen in the above illustration). Now, you are left with ₹ 92,800 for investment.

You can choose your instrument based on your risk profile. Here, equity (ELSS) and Debt (PPF) instruments are chosen for investment.

Pure Term Insurance plan
Sum Assured	₹ 11 Lakhs
Policy Term	15 years
Premium Paying Term	10 years
Annualised premium	₹ 7,200
Investment	₹ 92,800

PPF – It has a lock-in period of 15 years. Also, it requires a minimum contribution of ₹ 500 per financial year. In the earlier illustration, the Premium Paying Term is 10 years. So, in the last 5 years, a minimum contribution has been made to the PPF. Adjustments were made in the calculation accordingly.

ELSS – Investments are made in the initial 10 years and the final maturity is available at the end of 15 years. The proceeds are subject to capital gain tax. Tax calculation is given below.

		Term Insurance + PPF		Term insurance + ELSS
Age	Year	Term Insurance premium + PPF	Death Benefit	Term Insurance premium + ELSS	Death Benefit
35	1	-1,00,000	11,00,000	-1,00,000	11,00,000
36	2	-1,00,000	11,00,000	-1,00,000	11,00,000
37	3	-1,00,000	11,00,000	-1,00,000	11,00,000
38	4	-1,00,000	11,00,000	-1,00,000	11,00,000
39	5	-1,00,000	11,00,000	-1,00,000	11,00,000
40	6	-1,00,000	11,00,000	-1,00,000	11,00,000
41	7	-1,00,000	11,00,000	-1,00,000	11,00,000
42	8	-1,00,000	11,00,000	-1,00,000	11,00,000
43	9	-1,00,000	11,00,000	-1,00,000	11,00,000
44	10	-97,500	11,00,000	-1,00,000	11,00,000
45	11	-500		0
46	12	-500		0
47	13	-500		0
48	14	-500		0
49	15	-500		0
50		19,43,478		29,95,773
	IRR	6.38%		10.58%

In the above illustration, the IRR(Internal Rate of Return i.e. interest Rate) of Term Insurance + PPF is calculated at 6.38% and the IRR of Term Insurance + ELSS is calculated at 10.58%.

The final maturity amount available under PPF investment is ₹ 19.43 Lakhs. The IRR for Pure Term + PPF is 6.38%.

The final maturity amount available under ELSS investment is ₹ 32.14 Lakhs (pre-tax value) and the post-value is ₹ 29.95 Lakhs. The IRR for Pure Term + ELSS is 10.58% (post-tax return).

ELSS Tax Calculation

Maturity Value after 15 years	32,14,415
Less
Purchase price	9,28,000
Long-term capital gains	22,86,415
Exemption limit	1,00,000
Taxable LTCG	21,86,415
Tax paid on LTCG	2,18,641
Maturity value after tax	29,95,773

This analysis proves that these scenarios will provide an opportunity for wealth accumulation in the long run. The reason behind this is the rate of return under these scenarios is above the inflation rate.

ii) Canara HSBC iSelect Guaranteed Future vs. LIC Dhan Vriddhi

Please read the complete review of LIC Dhan Vriddhi Here! Dhan Vriddhi by LIC is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance plan that provides both protection and savings.

This plan promises to provide financial support to the family if the life assured dies unexpectedly during the policy term. It also provides a Guaranteed Lump Sum amount for the ensured living life on the maturity date.

iii) Canara HSBC iSelect Guaranteed Future vs. Tata AIA Guaranteed Monthly Income Plan

You can find the complete review of the Tata AIA Guaranteed Monthly Income Plan Here! This review is a comprehensive analysis of the Good and bad aspects of this plan.

13. Canara HSBC iSelect Guaranteed Future vs. Other Investment Products – Review Conclusion

We have compared and analyzed ‘Canara HSBC iSelect Guaranteed Future’ with all other alternate investment options. Term insurance + PPF or ELSS can give you both financial security as well as long-term returns because it keeps the insurance and investment components separate.

14. Final verdict on Canara HSBC iSelect Guaranteed Future – Good or Bad?

The Canara HSBC iSelect Guaranteed Future Plan is an insurance and savings plan that combines the benefits of life insurance coverage with the potential for savings and guaranteed returns. Policyholders may have options to customize the plan according to their financial needs and goals. They can customize the benefits either in the form of regular income or lump sum amount. All these benefits are guaranteed.

These Guaranteed Returns can provide a sense of security. But unfortunately, when we calculated the returns, the numbers were not satisfactory. For a long-term investment, the numbers should be higher than the inflation rate. The sum assured is also not adequate.

But the insurance agents will persuade you to buy these plans for the HSBC iSelect Guaranteed Future agent commission that they get. Please Beware!

You may consider Pure Term Policy for your life cover. There you can provide financial security to your family. At the same time, you may need to invest separately for your life goals.

Investment and life cover, both are different agendas and you cannot complete these two agendas with one action item.

If you have any doubts or queries on how to invest to fulfill your financial goals. Instead of searching for advice on social media platforms like Quora, Facebook, Twitter, etc. You can consult a professional financial planner for reliable advice.