Canara HSBC Promise4Growth Plus Plan: Good or Bad? An Insightful ULIP Review
Is the Canara HSBC Promise4Growth Plus Plan the smart investor’s dream, or just another market-linked gamble?
Is Canara HSBC Promise4Growth Plus the key to long-term wealth creation, or are there better ULIP options out there?
Will Canara HSBC Promise4Growth Plus align with your evolving goals, or leave you adjusting your expectations?
In this article, we’ll take a closer look at the plan’s features, benefits, and potential drawbacks to help you make an informed decision.
What is the Canara HSBC Promise4Growth Plus?
What are the features of the Canara HSBC Promise4Growth Plus?
Who is eligible for the Canara HSBC Promise4Growth Plus?
What are the benefits of the Canara HSBC Promise4Growth Plus?
What are the investment strategies and fund options in the Canara HSBC Promise4Growth Plus?
What are the charges in the Canara HSBC Promise4Growth Plus?
Grace Period, Discontinuance and Revival of the Canara HSBC Promise4Growth Plus
Free Look Period for the Canara HSBC Promise4Growth Plus
Surrendering the Canara HSBC Promise4Growth Plus
What are the advantages of the Canara HSBC Promise4Growth Plus?
What are the disadvantages of the Canara HSBC Promise4Growth Plus?
Research Methodology of Canara HSBC Promise4Growth Plus
Benefit Illustration – IRR Analysis of Canara HSBC Promise4Growth Plus
Canara HSBC Promise4Wealth Plus Vs. Other Investments
Canara HSBC Promise4Wealth Plus Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on Canara HSBC Promise4Growth Plus
Canara HSBC Promise4Growth Plus is a Linked Individual Savings Life Insurance Plan. You can customise as per your goals and changing requirements.
With an unmatched combination of Portfolio Management Options and flexibility, this plan gives you complete control over your savings and insurance needs.
| Eligibility Conditions | Promise4 Wealth Plus | Promise4 Care Plus | Promise4 Life Plus |
| Entry age | 0-65 years | For PPT < 10: 18 – 45 yearsFor PPT >= 10: 18 – 50 years | For PPT < 10: 18 – 55 yearsFor PPT >= 10: 18 – 65 years |
| Maturity age | 18-80 years | For PPT < 10: 28 – 70 yearsFor PPT >= 10: 28 – 75 years | up to age 100 years |
| Policy term | 10-30 years | 10-25 years | 100 minus (Age at entry) |
| Premium paying term | Limited Pay: 5 to Policy Term-1 Years | Limited Pay: 10 to Policy Term-1 Years | |
| Regular Pay: Same as Policy Term | Regular Pay: Same as Policy Term | ||
| Sum assured | 10*Annualised premium | ||
| Annualised premium | ₹ 12,000 – No limit | ||
| Premium payment mode | Annual, Semi-Annual, Quarterly and Monthly | ||
Promise4 Wealth Plus
Higher of:
Promise4 Care Plus
The higher of the following will be payable as a lump sum:
Premium Funding Benefit – The Canara HSBC Promise4Growth Plus Plan policy continues as the company pays the premium. At maturity, Fund Value is payable as a lump sum or as per the Settlement Option chosen by the Policyholder before death.
Promise4 Life Plus
Higher of:
Promise4Wealth Plus and Promise4Life Plus options:
In case the Life Assured survives till the maturity of the Policy, the Fund Value as on the date of maturity is payable, and the Canara HSBC Promise4Growth Plus Plan Policy will terminate upon payment of such benefit.
Promise4Care Plus option:
Fund Value as on the date of maturity is payable to the Life Assured if the Life Assured is alive or to the Claimant if the Life Assured is not alive
Option to receive Maturity Benefit as a structured payout using the Settlement Option under the Promise4Wealth Plus Option and Promise4Care Plus Option.
Loyalty Additions from the end of the 5th Policy Year from the date of commencement and every 5th Policy Year thereafter, i.e. 10th, 15th, 20th Policy Year, etc., till the end of the Premium Paying Term
In addition to the Loyalty Additions, this Plan offers Wealth Booster, which is calculated as a percentage of the average fund value. The percentage depends on the annualised premium, policy year and chosen fund option.
An amount equal to the total of all the Mortality Charges deducted during the Canara HSBC Promise4Growth Plus Plan Policy Term will be added to the Fund Value at maturity.
This Plan gives you the flexibility to manage and control the savings in your own way. Here you can choose from a range of 12 Unit Linked Funds. You can choose to allocate your Premiums to any, all or a combination of the Unit Linked Funds as per your risk preference.
| Asset Allocation | |||||
| S no | Fund Name | Equity | Debt Securities | Money Market | Risk Profile |
| 1 | Large-cap Advantages fund | 90-100% | _ | 0-10% | High |
| 2 | Midcap Momentum Growth Index fund | 70-100% | _ | 0-30% | High |
| 3 | Emerging Leaders Equity Fund | 60-100% | _ | 0-40% | High |
| 4 | India Multi-cap Equity fund | 60-100% | _ | 0-40% | High |
| 5 | Equity II fund | 60-100% | _ | 0-40% | High |
| 6 | Growth Plus fund | 50-90% | 10-50% | 0-40% | Medium to High |
| 7 | Balanced Plus fund | 30-70% | 30-70% | 0-40% | Medium |
| 8 | Debt fund | _ | 60-100% | 0-40% | Low to Medium |
| 9 | Liquid fund | _ | 0-60% | 40-100% | Low |
| 10 | India Manufacturing Fund | 60-100% | _ | 0-40% | High |
| 11 | Multicap Momentum Quality Index Fund | 70-100% | _ | 0-30% | High |
| 12 | Nifty Alpha 50 Index Fund | 70-100% | _ | 0-30% | High |
A).Systematic Transfer Plan (STO)
Through STO, your entire annual/single allocable Premium (after deduction of applicable charges) will be first allocated to the Liquid Fund (‘Source STO Fund’) and then systematically transferred on a monthly basis into any one of the Unit Linked Funds (‘Target STO Fund’) as chosen by you as per the below Table.
STO can be opted / re-opted only when Premiums are paid in an annual mode.
| Source STO Fund | Target STO Fund |
| Liquid Fund | Equity II fund |
| India Multi-cap Equity fund | |
| Emerging Leaders Equity Fund | |
| Large-cap Advantages fund |
B).Return Protector Option (RPO)
Through RPO, your entire Premium net of applicable charges is invested into any one of either Large Cap Advantage Fund or India Multi-Cap Equity Fund or Equity II Fund or Emerging Leaders Equity Fund, as opted by You (‘RPO Fund) and gains made from RPO Fund are automatically transferred to a lower risk Debt Fund so as to create a more stable sequencing of investment returns during the Canara HSBC Promise4Growth Plus Plan Policy Term.
You can choose any fixed flat target appreciation percentage in multiples of 1 within a range of 5% to 15%.
C).Auto Funds Rebalancing (AFR)
Once opted, after every 3 months, it automatically rebalances the allocation of your savings in various Unit Linked Funds to the allocation proportions chosen by you.
D).Safety Switch Option (SSO)
The Safety Switch Option will be available only under Invest Plus and Premium Plus.
As the Policy nears maturity, your funds will get shifted systematically to the relatively low-risk Liquid Fund at the beginning of each of the last 4 years of the Canara HSBC Promise4Growth Plus Plan Policy as per the following schedule:
| At the start of the Policy year (T refers to Policy term) | Fund Allocation in Other than Liquid funds | Liquid fund allocation |
| T-3 | 70% | 30% |
| T-2 | 40% | 60% |
| T-1 | 10% | 90% |
| T | 0% | 100% |
a).Premium Allocation Charges
No Charge.
b).Policy Administration Charges
No Charge.
c).Fund Management Charges
| S no | Fund Name | |
| 1 | Emerging Leaders Equity Fund | 1.35% |
| 2 | India Multi-cap Equity fund | 1.35% |
| 3 | Equity II fund | 1.35% |
| 4 | Midcap Momentum Growth Index fund | 1.35% |
| 5 | Growth Plus fund | 1.35% |
| 6 | Balanced Plus fund | 1.35% |
| 7 | India Manufacturing Fund | 1.35% |
| 8 | Multicap Momentum Quality Index Fund | 1.35% |
| 9 | Nifty Alpha 50 Index Fund | 1.35% |
| 10 | Large-cap Advantages fund | 1.00% |
| 11 | Debt fund | 1.00% |
| 12 | Liquid fund | 0.80% |
| Discontinued Policy Fund | 0.50% |
d).Surrender/Discontinuance Charge
It is levied on the Fund Value on account of Surrender/Discontinuance of the Canara HSBC Promise4Growth Plus Plan Policy. It depends on the year of discontinuance, the premium amount and the premium paying term.
e).Mortality Charge
This charge is the cost of life insurance. It will be deducted at the beginning of each Policy month by cancellation of units. The amount of the charge taken each month depends on the Life Assured’s age and Sum at Risk.
| Age | 20 | 30 | 40 | 50 |
| Male | 0.878 | 0.928 | 1596 | 4.214 |
| Female | 0.788 | 0.887 | 1.29 | 3.01 |
f).Premium Funding Benefit (PFB) Charges
This charge is only applicable for Premium Plus. The Premium Funding Benefit Charge will apply on the Present Value of Future Premiums payable by the Life Assured for an in-force Policy.
g).Partial Withdrawal Charges
No Charge.
h).Switches Charges
No Charge.
i).Miscellaneous Charges
No Charge
j).Impact of Charges: Although this plan doesn’t carry higher charges compared to other ULIPs, some fees persist throughout the Canara HSBC Promise4Growth Plus Plan policy term. These continuous deductions can gradually erode returns, ultimately affecting the overall profitability for investors.
Grace Period
You have a period of 30 days for Annual, Half Yearly and Quarterly modes of Premium payment and 15 days for Monthly Mode of Premium payment from the due date to pay your Premiums, during which life insurance cover will continue.
Discontinuance
Discontinuance of Policy during Lock-in Period (during the first five years): the Fund Value less applicable Discontinuance Charge will be transferred to the DPF, and the risk cover, if any, under the Policy will cease.
The proceeds of the DPF shall be paid to the Canara HSBC Promise4Growth Plus Plan Policyholder at the end of the Revival Period or Lock-in Period, whichever is later.
Discontinuance of Policy after the Lock-in Period (after the first five years): The Canara HSBC Promise4Growth Plus Plan Policy shall be converted into a Reduced Paid-up Policy, with the Paid-up Sum Assured.
The Policy shall continue to be in Reduced Paid-up status. The Fund Value shall be paid to the Policyholder at the end of the Revival Period or at the end of the Policy Term, whichever is earlier.
Revival
The Canara HSBC Promise4Growth Plus Plan policy can be revived within a period of three consecutive years from the date of the first unpaid premium
If the Canara HSBC Promise4Growth Plus Plan Policyholder does not agree with the terms and conditions of the Policy or otherwise and has not made any claim, they shall have the option to request for cancellation of the Policy by returning the Policy Document within 15 days (30 days in case the Policy is sourced through Distance Marketing Mode) from the date of receipt of the Policy Document.
Surrender of Policy during Lock-in Period (during the first five years): the Fund Value after deduction of applicable Surrender Charges is transferred to the DPF, and the proceeds of the discontinued policy shall be refunded to the Canara HSBC Promise4Growth Plus Plan Policyholder only after completion of the Lock-in Period.
Surrender of Policy after the Lock-in Period (after the first five years): The Canara HSBC Promise4Growth Plus Plan Policyholder has the option to surrender the Policy anytime, and the Fund Value shall be payable.
Before investing, it’s important to evaluate the potential returns of any financial product to ensure it aligns with your goals.
One effective way to do this is by calculating the Internal Rate of Return (IRR), which helps compare the plan’s efficiency against other investment options. The following analysis is based on data from the official policy brochure of the Canara HSBC Promise4Growth Plus Plan.
Let’s consider a scenario: A 21-year-old male chooses the Promise4Wealth Plus variant with a sum assured of ₹12 lakhs. The Canara HSBC Promise4Growth Plus Plan policy term and premium payment term are both 15 years, and he commits to paying an annual premium of ₹1.20 lakh.
Under this option, the fund value is payable at the end of the policy term, assuming all premiums are paid as scheduled.
| Male | 21 years |
| Sum Assured | ₹ 12,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 1,20,000 |
The Canara HSBC Promise4Growth Plus Plan policy brochure presents projected returns based on assumed annual investment growth rates of 4% and 8%. These projections are illustrative and not guaranteed; actual returns will vary based on fund performance and market conditions.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 21 | 1 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 22 | 2 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 23 | 3 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 24 | 4 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 25 | 5 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 26 | 6 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 27 | 7 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 28 | 8 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 29 | 9 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 30 | 10 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 31 | 11 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 32 | 12 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 33 | 13 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 34 | 14 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 35 | 15 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 36 | 22,54,337 | 30,80,493 | |||
| IRR | 2.76% | 6.46% | |||
At a 4% return, the projected maturity value is ₹22.54 lakhs, translating to an IRR of just 2.76% as per the Canara HSBC Promise4Growth Plus Plan maturity calculator,— even lower than what most savings accounts offer.
At an 8% return, the projected fund value is ₹30.80 lakhs, resulting in an IRR of 6.46% as per the Canara HSBC Promise4Growth Plus Plan maturity calculator,, which is on par with or possibly lower than bank fixed deposit rates.
Although this plan is positioned as a long-term wealth-building tool, the projected returns indicate limited growth potential. Over a 15-year horizon, the corpus generated is unlikely to be sufficient for meaningful financial goals.
Moreover, the life cover of ₹12 lakhs is inadequate, especially for someone starting early with future responsibilities in mind.
The Canara HSBC Promise4Growth Plus Plan falls short in two critical areas: it does not generate inflation-beating returns, and the sum assured is insufficient.
The plan combines insurance and investment into a single product, which compromises its overall effectiveness and limits its potential for wealth creation. A more efficient approach is to separate insurance from investment, allowing each component to serve its purpose more effectively.
Instead of investing in the Promise4Growth Plus Plan, consider buying a pure term insurance policy with a sum assured of ₹12 lakhs, which would cost approximately ₹3,800 annually for a 15-year term. This leaves ₹1,16,200 each year to be invested based on your risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 12,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 3,800 |
| Investment | ₹ 1,16,200 |
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 21 | 1 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 22 | 2 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 23 | 3 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 24 | 4 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 25 | 5 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 26 | 6 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 27 | 7 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 28 | 8 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 29 | 9 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 30 | 10 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 31 | 11 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 32 | 12 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 33 | 13 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 34 | 14 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 35 | 15 | -1,20,000 | 12,00,000 | -1,20,000 | 12,00,000 |
| 36 | 31,51,506 | 44,78,765 | |||
| IRR | 6.73% | 10.74% | |||
For Conservative Investors, allocate ₹1,16,200 annually to the Public Provident Fund (PPF), a low-risk government-backed debt instrument.
Over 15 years, the PPF corpus grows to ₹31.51 lakhs, delivering an IRR of 6.73% — slightly better than the 8% scenario projected in the Promise4Growth Plus Plan, despite being a safer investment.
For Aggressive Investors, invest the same amount in an Equity Mutual fund scheme. Over 15 years, the pre-tax corpus grows to ₹48.51 lakhs.
After adjusting for capital gains tax, the net maturity amount is ₹44.78 lakhs, resulting in a post-tax IRR of 10.74%. Equity Mutual funds offer higher risk-adjusted returns and greater liquidity, with no restrictions on withdrawals.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 48,51,731 |
| Purchase price | 17,43,000 |
| Long-Term Capital Gains | 31,08,731 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 29,83,731 |
| Tax paid on LTCG | 3,72,966 |
| Maturity value after tax | 44,78,765 |
Unlike the Canara HSBC Promise4Growth Plus Plan, this alternative approach delivers better returns, greater flexibility, and adequate insurance coverage.
The ability to customise your investments and access funds freely gives you an edge in meeting your long-term financial goals — something that bundled insurance-investment products often fail to deliver.
The Canara HSBC Promise4Growth Plus Plan offers three variants — one focused on wealth accumulation, another that waives future premiums in case of eventualities, and a third providing life cover up to the age of 100.
Based on individual preferences and cash flow capacity, investors can choose a suitable variant and invest in market-linked funds.
However, a closer examination reveals that the plan does not truly deliver on its promise of growth, despite what the name suggests. Beyond the option to choose among the three variants, the plan lacks any distinct features that set it apart.
Moreover, the high charges and lack of transparency in fund management significantly drag down performance, leading to suboptimal returns.
The low sum assured further reduces the appeal of this plan, making it an inefficient choice for long-term financial planning and it also has a high agent commission.
A smarter strategy is to separate insurance from investment. A pure term life insurance policy offers adequate protection for your family at a low cost. Investing the remaining funds independently allows you to choose products that better match your financial goals, risk appetite, and investment horizon.
Before committing to any financial product, it’s essential to conduct a thorough analysis to ensure it fits within your overall plan. Remember, a well-structured financial strategy is key to achieving your life goals with confidence.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
If you’re uncertain about how to proceed, consider consulting a Certified Financial Planner (CFP). They can help you evaluate various options and build a personalised plan aligned with your needs and aspirations.
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