What are the features of the Canara HSBC iSelect Guaranteed Future Plus?

Flexibility to choose from different Premium Payment Terms/ Policy Terms basis your life stage needs. Under the endowment option, get Guaranteed Maturity Benefits and Guaranteed Additions. Unger Regular income option, get Guaranteed Income payouts after Premium Payment Term, to take care of recurring expenses. Under the early income option, get Guaranteed Income from 2nd Policy year to take care of recurring expenses.

Canara HSBC iSelect Guaranteed Future Plus Plan Review

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Do you have a financial plan to achieve your goals?

Some goals require a steady income, whereas, others may need a lump sum amount or a mix of both in some cases. Canara HSBC claims to offer a life insurance policy where you have various plan options to cater to your personal needs. This article delves into Canara HSBC iSelect Guaranteed Future Plus and tries to pull out the real worthiness of the Plan. We will be discussing all the variants under this plan with its advantages and disadvantages.

Let’s begin!

Benefit illustration – IRR(Internal Rate of Return) Analysis of Canara HSBC iSelect Guaranteed Future Plus Plan

12.)Canara HSBC iSelect Guaranteed Future Plus Plan Vs Other Investment Products

Canara HSBC iSelect Guaranteed Future Plus Plan Vs Pure Term + ELSS
Canara HSBC iSelect Guaranteed Future Plus Plan Vs Canara HSBC Guaranteed Assured Income (GAIN) Plan
Canara HSBC iSelect Guaranteed Future Plus Plan Vs Canara HSBC iSelect Guaranteed Future Plan

13.)Final verdict on Canara HSBC iSelect Guaranteed Future Plus Plan – Good or Bad Investment Option?

1.)What is Canara HSBC iSelect Guaranteed Future Plus Plan?

Canara HSBC iSelect Guaranteed Future Plus Plan is a Non-Linked Non-Participating Individual Savings Life Insurance Plan. It provides you with life insurance and guaranteed benefits to secure your goals. You can choose your plan selection based on your income needs.

Read the Canara HSBC iSelect Guaranteed Future Plus Plan Policy Brochure for more details.

2.)What are the Features of Canara HSBC iSelect Guaranteed Future Plus Plan?

Flexibility to choose from different Premium Payment Terms/ Policy Terms basis your life stage needs.
Under the endowment option, get Guaranteed Maturity Benefits and Guaranteed Additions.
Unger Regular income option, get Guaranteed Income payouts after Premium Payment Term, to take care of recurring expenses.
Under the early income option, get Guaranteed Income from 2nd Policy year to take care of recurring expenses.
Under the long-term income option, get Guaranteed Income after the consolidation period to take care of day-to-day expenses
Choose any one optional benefit, Payor Premium Protection Cover or Accidental Death Benefit to secure your family’s future.

3.)What are the Plan options under the Canara HSBC iSelect Guaranteed Future Plus Plan?

There are four variants available under this product. Depending upon your income need, you can select your Canara HSBC iSelect Guaranteed Future Plusplan option.

Endowment Option

This Canara HSBC iSelect Guaranteed Future Plus plan option will enable to accumulation corpus for goals like marriage, retirement, education, etc. by giving guaranteed lump sum benefits at the end of the Policy term.

Regular Income Option

Secure a steady income for daily needs and guaranteed lump sums for future goals after the premium payment period.

Long-Term Income with Return of Premium Option

Get Guaranteed Income to create a parallel income stream for the longer term that helps in managing the day-to-day expenses along with the Return of Premiums at Maturity.

Early Income Option

With this Canara HSBC iSelect Guaranteed Future Plus plan option, you get Guaranteed Income from the 2nd Policy year itself to ensure your income competes with your expenses.

4.)Who is eligibile for the Canara HSBC iSelect Guaranteed Future Plus Plan?

5.)What are the Benefits of Canara HSBC iSelect Guaranteed Future Plus Plan – Review in Detail

Death benefit (All 4 options) – Review

On the death of the Life Assured, the following benefit will be paid:

Sum Assured on Death; PLUS Accrued Guaranteed Additions subject to the minimum surrender value.

Sum Assured on Death is the amount which is higher of

Sum Assured which is equal to 11 times the Annualized Premium
105% of Total Premiums Paid

Where Payor Premium Protection Cover has been chosen (Endowment and Regular Income)

On the death of the Life Assured, Sum Assured on Death will be paid. Further, all the future premiums payable shall be waived off and the Canara HSBC iSelect Guaranteed Future Plus Policy shall continue as in force till the end of the Canara HSBC iSelect Guaranteed Future Plus Policy Term with all the future benefits intact.

If the Accidental Death Benefit (ADB) has been chosen (All 4 plan options)
In case of accidental death, beneficiaries receive an additional payout equal to the ADB Sum Assured, after which the policy terminates, and all remaining benefits and coverage cease.

Maturity Benefit – Review

Endowment and Regular Income

Guaranteed Sum Assured on Maturity which is equal to 100% of total premiums payable under the Policy, excluding rider premiums, PLUS Accrued Guaranteed Additions

Early Income

There is no Maturity Benefit under the Early income option.

Long term Income

Guaranteed Sum Assured on maturity which will be equal to 100% of the total premiums paid.

Survival Benefit – Review

Endowment Plan

There is no Survival Benefit under the Canara HSBC iSelect Guaranteed Future Plus Endowment plan option.

Regular Income

You receive guaranteed income payments regularly throughout the income period, paid at the intervals you choose. The Income Period starts immediately after the end of the Premium Payment Term till the end of the Canara HSBC iSelect Guaranteed Future Plus Policy Term.

Early Income

Guaranteed Income in arrears as per the Income Frequency chosen from 2nd Canara HSBC iSelect Guaranteed Future Plus Policy year till the end of Income Period.

Life Long Income

Guaranteed Income in arrears as per the Income Frequency chosen post commencement of the Income Period till the end of the Canara HSBC iSelect Guaranteed Future Plus Policy Term.

For comparison purposes the benefits have been summarized in the following table.

	Death Benefit	Maturity Benefit	Survival Benefit
Endowment	Sum Assured on Death; PLUS Accrued Guaranteed Additions subject to the minimum surrender value. Sum Assured on Death is the amount which is higher of Sum Assured which is equal to 11 times the Annualized Premium 105% of Total Premiums Paid	Guaranteed Sum Assured on Maturity which is equal to 100% of total premiums payable under the Policy, excluding rider premiums, PLUS Accrued Guaranteed Additions	There is no Survival Benefit under the Endowment plan option.
Regular Income			Guaranteed Income starts immediately after the end of the Premium Payment Term till the end of the Policy Term.
Early Income		There is no Maturity Benefit under the Early income option.	Guaranteed income from 2nd Policy year till the end of the Income Period.
Lifelong income with return of premium		Guaranteed Sum Assured on maturity which will be equal to 100% of the total premiums paid.	Guaranteed income from post commencement of the Income Period till the end of the Policy Term

6.)The Grace period, Lapse and Paid-up, Revival of Canara HSBC iSelect Guaranteed Future Plus Plan

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.

Lapse and Paid-up

If the premiums have not been paid in full for the first two Canara HSBC iSelect Guaranteed Future Plus Policy years, before the end of the Grace Period your Canara HSBC iSelect Guaranteed Future Plus Policy will lapse at the end of the Grace Period and the insurance cover will cease immediately.

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

Revival

You can revive your Canara HSBC iSelect Guaranteed Future Plus Policy within the revival period i.e. 5 years from the due date of the first unpaid premium.

7.)Free look period of Canara HSBC iSelect Guaranteed Future Plus Plan

In case the Canara HSBC iSelect Guaranteed Future Plus Policy terms and conditions are not agreeable, you can opt for a cancellation of the Policy. You can cancel it within 15 days (30 days in the case of electronic policies and when the Policy is sourced through distance marketing mode) from the date of receipt of the Canara HSBC iSelect Guaranteed Future Plus Policy Document.

8.)Surrendering Canara HSBC iSelect Guaranteed Future Plus Plan

The Canara HSBC iSelect Guaranteed Future Plus Policy shall acquire a surrender value if the premiums have been paid in full for at least the first two consecutive Canara HSBC iSelect Guaranteed Future Plus Policy years. The Surrender Value payable is higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).

9.)What are the Advantages of Canara HSBC iSelect Guaranteed Future Plus Plan?

The Canara HSBC iSelect Guaranteed Future Plus Policyholder can avail of a loan for an amount of up to 80% of the Surrender Value.

One may choose the Canara HSBC iSelect Guaranteed Future Plus plan variant based on his personal requirements.

10.)What are the Disadvantages of Canara HSBC iSelect Guaranteed Future Plus Plan?

The Canara HSBC iSelect Guaranteed Future Plus plan option once chosen can’t be changed after inception.

Waiver of premium is not available for plan options.

11.)Research Methodology Canara HSBC iSelect Guaranteed Future Plus Plan

The benefits we receive under Canara HSBC iSelect Guaranteed Future Plus vary between different plan options. The investor has to thoroughly analyse the cash flow pattern under various plan options and choose the best-suited one. Otherwise, there could be a mismatch between the benefit and the requirement. Apart from the cash flow pattern, the estimation of the returns also helps in your decision. Let us estimate the returns under different plan options.

Benefit illustration – IRR(Internal Rate of Return) Analysis of Canara HSBC iSelect Guaranteed Future Plus Plan

A 35-year-old male is paying a premium of ₹ 1 Lakh for 10 years. The Sum assured is ₹ 11 Lakhs. Let us work out the Internal Rate of return.

Male	35 Years
Sum Assured	₹ 11,00,000
Annualised Premium	₹ 1,00,000
Premium Paying Term	10 years

Age	Year	Endowment	Regular Income	Early Income	Life Long Income
35	1	-1,00,000	-1,00,000	-1,00,000	-1,00,000
36	2	-1,00,000	-1,00,000	-1,00,000	-1,00,000
37	3	-1,00,000	-1,00,000	-34,500	-1,00,000
38	4	-1,00,000	-1,00,000	-34,500	-1,00,000
39	5	-1,00,000	-1,00,000	-34,500	-1,00,000
40	6	-1,00,000	-1,00,000	-34,500	-1,00,000
41	7	-1,00,000	-1,00,000	-34,500	-1,00,000
42	8	-1,00,000	-1,00,000	-34,500	-1,00,000
43	9	-1,00,000	-1,00,000	-34,500	-1,00,000
44	10	-1,00,000	-1,00,000	-34,500	-1,00,000
45	11	0	0	65,500	0
46	12	0	1,79,650	65,500	0
47	13	0	1,79,650	65,500	1,33,210
48	14	0	1,79,650	65,500	1,33,210
49	15	0	1,79,650	65,500	1,33,210
50	16	0	1,79,650	65,500	1,33,210
51	17	0	1,79,650	65,500	1,33,210
52	18	0	1,79,650	65,500	1,33,210
53	19	0	1,79,650	65,500	1,33,210
54	20	0	1,79,650	65,500	1,33,210
55		29,73,500	3,29,650	65,500	1,33,210
56					1,33,210
57		7.15%	6.06%	3.64%	1,33,210
58					1,33,210
59					1,33,210
60					1,33,210
61					1,33,210
62					1,33,210
63					1,33,210
64					1,33,210
65					1,33,210
66					1,33,210
67					1,33,210
68					1,33,210
69					1,33,210
70					1,33,210
71					1,33,210
72					1,33,210
73					1,33,210
74					1,33,210
75					1,33,210
76					11,33,210

					7.68%

Endowment option

A maturity benefit of ₹ 29.73 Lakhs is receivable at the end of 20 years. The IRR for this option is 7.15%. It seems a better return but to receive the maturity benefit, you have to wait till the end of 20 years. Till that time you get tied up with the investment. For such a long term, the return is not worth the wait.

Regular Income option

You start receiving a regular income of ₹ 1.79 Lakhs every year till the end of the policy. Along with the last payout, you receive a guaranteed addition of 1.5 lakhs. The IRR for this option is 6.06%. This rate is lower than the Endowment option because a lumpsum payout yields more than a regular income.

Early Income

You start receiving an annual income of ₹ 65,500 from the end of 2^nd policy year. Here, no other benefits are receivable. The IRR for this option is 3.64%. As we start receiving the benefit in the early stage of the policy, there is no compounding effect on the investment. That is the reason behind the lowest return among all the options

Life Long Income option

You receive 1.33 lakhs for 30 years and the premium paid is returned with the last pay-out. The IRR for this option is 7.68%. Though the returns look attractive, the income benefit is constant throughout the term. In the later years, the income benefit loses its purchasing power.

Overall analysis reveals that when compared to other endowment and money-back policies that are available in the market, Canara HSBC iSelect Guaranteed Future Plus yields a better return. Out of 4 options, almost 3 options yield on par with the inflation rate.

Nevertheless, this return will not suffice to meet any of your life goals. A long-term investment earning on par with the inflation rate will not be of any utility in your investment basket. Your long-term goals especially children’s education costs are soaring. In order to meet this expense or for wealth accumulation, Canara HSBC iSelect Guaranteed Future Plus will not be a perfect choice.

12.)Canara HSBC iSelect Guaranteed Future Plus Plan Vs Other Investment Products

We have chosen the Endowment option of Canara HSBC iSelect Guaranteed Future Plus for comparison purposes. We can utilize the premium of ₹ 1 Lakh for life cover and a long-term investment. The following scenario helps to understand, how a long-term investment works in your favor if it is not clubbed with an insurance policy.

Canara HSBC iSelect Guaranteed Future Plus Plan Vs Pure Term + ELSS

A pure term life insurance policy for a sum assured of ₹ 11 Lakhs would cost ₹ 9,600. The premium paying term is 10 years and the policy term is 20 years. So, you get a balance of ₹ 90,400 for investment. Here we have chosen the Equity asset class – ELSS fund.

Male	35 Years
Sum Assured	₹ 11,00,000
Annualised Premium	₹ 9,600
Premium Paying Term	10 years
Policy Term	20 years
ELSS Investment	₹ 90,400

		Term insurance + ELSS
Age	Year	Term Insurance premium + ELSS	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	11,00,000
46	12	0	11,00,000
47	13	0	11,00,000
48	14	0	11,00,000
49	15	0	11,00,000
50	16	0	11,00,000
51	17	0	11,00,000
52	18	0	11,00,000
53	19	0	11,00,000
54	20	0	11,00,000
55		50,66,952	11,00,000

IRR		10.73%

The fund value after 20 years is ₹ 55.18 Lakhs. This is the pre-tax value. As you need to pay capital gains tax at the time of redemption, the after-tax payment leaves you ₹ 50.66 Lakhs. The IRR calculation for Pure term life insurance along with ELSS investment results in 10.73%.

ELSS Tax Calculation
Maturity value after 20 years	55,18,391
Purchase price	9,04,000
Long-Term Capital Gains	46,14,391
Exemption limit	1,00,000
Taxable LTCG	45,14,391
Tax paid on LTCG	4,51,439
Maturity value after tax	50,66,952

This rate is considerably above the inflation rate. And you can easily achieve any of your life goals or accumulate wealth for the future. Also, you enjoy liquidity benefits under this investment strategy. Under Canara HSBC iSelect Guaranteed Future Plus, their returns are moderate and the liquidity is missing.

Canara HSBC iSelect Guaranteed Future Plus Plan Vs Canara HSBC Guaranteed Assured INcome (GAIN) Plan

Let’s look at some of the features of Canara HSBC Guaranteed Assured INcome (GAIN) Plan,

Choosing to Raise Annual Income
After the Policy Term, the plan reimburses the Total Premiums Paid.
Monthly, quarterly, semi-annual, or annual income payouts are all possible.

Read the complete review of the Canara HSBC Guaranteed Assured Income (GAIN) Plan.

Canara HSBC iSelect Guaranteed Future Plus Plan Vs Canara HSBC iSelect Guaranteed Future Plan

Let’s look at some of the features of Canara HSBC iSelect Guaranteed Future Plan,

Payouts from Guaranteed Income to cover ongoing costs in the near future.
Guaranteed additions accumulate will increase the value of your coverage.
Depending on the applicable tax laws, there may be tax benefits.

Read the complete review of the Canara HSBC iSelect Guaranteed Future Plan.

13.)Final verdict on Canara HSBC iSelect Guaranteed Future Plus Plan – Good or Bad Investment Option?

The benefit under Canara HSBC iSelect Guaranteed Future Plus is guaranteed. Based on cash flow requirements, you can choose one from the given four variants. Through the different plan options, they combine the features of an endowment plan and a money-back plan. The returns are moderate because of many reasons including High Agent Commission. A guaranteed return and moderate benefit may wrongly influence you to buy this plan.

However, the life cover is too low to cover the basic needs of the family in the future. Keep in mind, that you can’t liquidate the investment as you wish. Only when the benefit is due, you are supposed to receive it. Critically analysing the return reveals that they are moderate i.e. in line with inflation. Meaning – Can’t be part of your investment portfolio.

Investments should be strategically picked based on your life goals. Importantly, it shouldn’t be clubbed with Insurance. A diversified investment portfolio aids you in fulfilling the important milestones in life.

Based on your personal preference, i.e., taking into account your risk profile, life goal, and time horizon you can customise your portfolio. Consulting a financial planner will ease the process instead of surfing on social media sites like Quora, Facebook, Twitter, etc.

Canara HSBC iSelect Guaranteed Future Plus Plan Review – Good or Bad Investment Option?

TABLE OF Contents

1.)What is Canara HSBC iSelect Guaranteed Future Plus Plan?

2.)What are the Features of Canara HSBC iSelect Guaranteed Future Plus Plan?