Canara HSBC SecureInvest plan
Can the Canara HSBC SecureInvest Plan truly help you grow your wealth while protecting your family’s financial future, or is it just another ULIP with limited long-term value?
Does the Canara HSBC SecureInvest Plan offer the ideal balance between market-linked returns and life insurance, or are there better investment alternatives available?
Is the Canara HSBC SecureInvest Plan a smart choice for long-term wealth creation, or could its features and charges reduce your overall returns?
In this article, we take an in-depth look at the plan’s features, benefits, drawbacks, and overall suitability to help you make an informed decision.
What is the Canara HSBC SecureInvest?
What are the features of the Canara HSBC SecureInvest?
Who is eligible for the Canara HSBC SecureInvest?
What are the benefits of the Canara HSBC SecureInvest?
What are the investment strategies and fund options of the Canara HSBC SecureInvest?
What are the charges of the Canara HSBC SecureInvest?
Grace Period, Discontinuance and Revival of the Canara HSBC SecureInvest
Free Look Period of the Canara HSBC SecureInvest
Surrendering the Canara HSBC SecureInvest
What are the advantages of the Canara HSBC SecureInvest?
What are the disadvantages of the Canara HSBC SecureInvest?
Research Methodology of Canara HSBC SecureInvest
Benefit Illustration – IRR Analysis of Canara HSB SecureInvest
Canara HSBC SecureInvest Vs. Other Investments
Canara HSBC SecureInvest Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on the Canara HSBC SecureInvest
Canara HSBC SecureInvest is a Non – Participating, Unit-Linked Individual Life Insurance Savings Plan. It can be customised to suit your goals and evolving needs.
With a combination of higher life cover, multiple fund options, and flexible portfolio management features, this plan gives you complete control over your savings and insurance requirements.
| Parameters | SecureInvest Choice | SecureInvest Forever |
| Entry age | 18-60 years | |
| Maturity age | 38-80 years | 85 years |
| Policy term | 20-40 years | 85 minus Entry age |
| Premium payment term | Limited Pay (LP): 10/12/15 years | |
| Sum assured | Minimum Limited Pay/Regular Pay- 7 times of AP for ages below 50 years and 5 times for age 50 and above Single Premium- 1.25 times | Maximum Limited Pay/Regular Pay- 100 times of AP Single Premium- 1.25 times |
| Minimum/Maximum Premium | Premium Payment Mode | Minimum Premium |
| Minimum Annualised premium | Single – ₹ 50,000 Annual – ₹ 50,000 Half Yearly – ₹ 25,000 Quarterly – ₹ 12,500 Monthly – ₹ 4,167 | |
| Maximum Annualised premium | No Limit, Subject to Board-Approved Underwriting Policy (BAUP) | |
| Premium paying mode | Annual, Half-Yearly, Quarterly & Monthly modes | |
In case of the unfortunate demise of the Life Assured, the Death Benefit will be paid to the Claimant. The death benefit will be as follows:
Higher of:
The Policy shall terminate after the payment of any of the above benefits.
In case the Life Assured survives till the end of the policy term, the Fund Value as on the date of maturity is payable, and the Canara HSBC SecureInvest Plan Policy will terminate upon payment of such benefit.
You also have the option to receive the Maturity Benefit using the Settlement Option.
Enjoy Loyalty Additions—boosting your fund value as long as your policy stays active.
Get Back Twice the Mortality Charges and Get 2X the Premium Allocation Charges Back at Maturity
This plan offers Maturity Boosters at policy maturity, which will be added to the fund as a percentage of the Average Fund Value of the last 60 monthly policy anniversaries
Choose from a range of expertly managed fund options tailored to match your financial goals and risk appetite. Here you can choose from a range of 13 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.
The investment and risk profile of each Unit Linked Fund is described below:
|
| Asset Allocation | ||||
| S no | Fund Name | Equity | Debt Securities | Money Market | Risk Profile |
| 1 | NextGen Consumption Fund | 70-100% | _ | 0-30% | High |
| 2 | Large-cap Advantages fund | 90-100% | _ | 0-10% | High |
| 3 | Midcap Momentum Growth Index Fund | 70-100% | _ | 0-30% | High |
| 4 | Emerging Leaders Equity Fund | 60-100% | _ | 0-40% | High |
| 5 | India Multi-cap Equity fund | 60-100% | _ | 0-40% | High |
| 6 | Equity II fund | 60-100% | _ | 0-40% | High |
| 7 | Growth Plus fund | 50-90% | 10-50% | 0-40% | Medium to High |
| 8 | Balanced Plus fund | 30-70% | 30-70% | 0-40% | Medium |
| 9 | Debt fund | _ | 60-100% | 0-40% | Low to Medium |
| 10 | Liquid fund | _ | 0-60% | 40-100% | Low |
| 11 | India Manufacturing Fund | 60-100% | _ | 0-40% | High |
| 12 | Multicap Momentum Quality Index Fund | 70-100% | _ | 0-30% | High |
| 13 | Nifty Alpha 50 Index Fund | 70-100% | _ | 0-30% | High |
i. Safety Switch Option (SSO)
The Safety Switch Option will be available only under Invest Plus and Premium Plus.
As the Canara HSBC SecureInvest Plan 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 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% |
ii. 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 table below.
STO can be opted / re-opted only when Premiums are paid in annual mode.
| Source STO Fund | Target STO Fund |
| Liquid Fund | Equity II Fund, India Multi-Cap Equity Fund, Large Cap Advantage Fund, India Manufacturing Fund, Multicap Momentum Quality Index Fund, Emerging Leaders Equity Fund, Midcap Momentum Growth Index Fund or Nifty Alpha 50 Index Fund |
iii. Return Protector Option (RPO)
This option enables you to take advantage of the market by protecting your gains from future market volatility.
Through this option, gains made from selected funds are automatically transferred to the lower-risk Debt Fund so as to create a more stable sequencing of investment returns during the Canara HSBC SecureInvest Plan Policy Term.
You can choose any fixed flat target appreciation percentage in multiple of 1 within a range of 5% to 15%.
iv. 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.
v. Loss Protector Strategy (LPS)
This investment strategy is well-suited for risk-averse customers who would want to minimise the losses in case of a downturn in the market by transferring the units from high-risk to low-risk funds.
This will enable the Policyholder to protect their money from market volatility. It will help them reduce the damage to the fund in case the market dips.
A. Premium Allocation Charges:
For single-premium policies – 2%
For Regular and Limited pay policies, Premium Allocation Charges under this product are as follows:
| Policy Year | Premium Band 1 | Premium Band 2 | Premium Band 3 | Premium Band 4 |
| 1st year | 10.00% | 9.00% | 8.00% | 7.00% |
| 2nd-5th year | 6.00% | 6.00% | 6.00% | 6.00% |
| 6th-10th year | 1.00% | 1.00% | 1.00% | 1.00% |
| 11th year onwards | 0.00% | 0.00% | 0.00% | 0.00% |
B. Policy Administration Charges:
For Regular/Limited Premium payment policies: 5% of the Annualised Premium will be charged per year from the 6th policy year till the end of the Canara HSBC SecureInvest Plan Policy Term.
For Single Premium payment policies: 1% of the Single Premium will be charged per year from the 6th policy year till the end of the Policy Term.
However, there will be an absolute cap of ₹ 500 per month on the Policy Administration Charges.
C. Fund Management Charges:
| Fund | FMC (p.a) |
| Emerging Leaders Equity Fund | 1.35% |
| India Multi Cap Equity Fund | 1.35% |
| NextGen Consumption Fund | 1.35% |
| Midcap Momentum Growth Index Fund | 1.35% |
| Equity II Fund | 1.35% |
| Growth Plus Fund | 1.35% |
| Balanced Plus Fund | 1.35% |
| India Manufacturing Fund | 1.35% |
| Nifty Alpha 50 Index Fund | 1.35% |
| Multicap Momentum Quality Index Fund | 1.35% |
| Large Cap Advantage Fund | 1.00% |
| Debt Fund | 1.00% |
| Liquid Fund | 0.80% |
| Discontinued Policy Fund (DPF) | 0.50% |
D. Surrender/Discontinuance Charge
It is levied on the Fund Value on account of Surrender/Discontinuance of the Policy. It depends on the year of discontinuance, premium amount and 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/Female | 0.92 | 0.98 | 1.68 | 4.44 |
F. Partial Withdrawal Charges: No Charge.
G. Switches Charges: No Charge.
H. Miscellaneous Charges: No Charge
Inference from the charges: These charges add to an investor’s overhead costs, as they are not applicable to other market-linked products. Over time, these substantial charges can significantly reduce your returns.
Grace Period
You have a period of 30 days for Annual, Half Yearly and Quarterly Mode 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 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 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 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 policy can be revived within a period of three consecutive years from the date of the first unpaid premium
If the Policyholder does not agree with the terms and conditions of the Canara HSBC SecureInvest Plan 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 (if issued physically upon request) within the free-look period of 30 days from the date of receipt of the Policy Document, whether received electronically or otherwise (whichever is earlier).
Surrender of Policy during Lock-in Period (during first five years): The Fund Value after deduction of applicable Surrender Charges is transferred to the DPF and the proceeds of discontinued policy shall be refunded to the Policyholder only after completion of Lock-in Period.
Surrender of Policy after the Lock-in Period (after the first five years): The Canara HSBC SecureInvest Plan Policyholder has the option to surrender the Policy anytime and Fund Value shall be payable.
Estimating the Internal Rate of Return (IRR) is essential when evaluating a market-linked insurance product, as it enables meaningful comparisons with alternative investment options and supports informed decision-making.
Let us analyse the Canara HSBC SecureInvest Plan using the benefit illustration provided in the policy brochure.
Consider a 30-year-old male who opts for a sum assured of ₹30 lakhs, a policy term of 20 years, and a premium payment term of 10 years, paying an annual premium of ₹1,00,000.
At the end of the Canara HSBC SecureInvest Plan policy term, the accumulated fund value is payable as the maturity benefit.
| Male | 30 years |
| Sum Assured | ₹ 30,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
The insurer’s benefit illustration is based on assumed gross investment returns of 4% and 8%.
These are only illustrative assumptions and are neither guaranteed nor indicative of the actual returns that the policy may generate.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 40 | 1 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 41 | 2 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 42 | 3 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 43 | 4 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 44 | 5 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 45 | 6 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 46 | 7 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 47 | 8 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 48 | 9 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 49 | 10 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 50 | 11 | 0 | 30,00,000 | 0 | 30,00,000 |
| 51 | 12 | 0 | 30,00,000 | 0 | 30,00,000 |
| 52 | 13 | 0 | 30,00,000 | 0 | 30,00,000 |
| 53 | 14 | 0 | 30,00,000 | 0 | 30,00,000 |
| 54 | 15 | 0 | 30,00,000 | 0 | 30,00,000 |
| 55 | 16 | 0 | 30,00,000 | 0 | 30,00,000 |
| 56 | 17 | 0 | 30,00,000 | 0 | 30,00,000 |
| 57 | 18 | 0 | 30,00,000 | 0 | 30,00,000 |
| 58 | 19 | 0 | 30,00,000 | 0 | 30,00,000 |
| 59 | 20 | 0 | 30,00,000 | 0 | 30,00,000 |
| 60 | 15,13,819 | 27,40,628 | |||
| IRR | 2.69% | 6.60% | |||
For a product with a 20-year investment horizon, these returns are relatively modest. Over such a long period, inflation is likely to significantly increase the cost of future financial goals.
Consequently, the returns generated by the Canara HSBC SecureInvest Plan may not be sufficient to build the corpus required to meet those goals.
The plan also falls short on the protection front. A sum assured of ₹30 lakhs is unlikely to provide adequate financial security for a family’s future needs.
When both the investment performance and insurance coverage are considered together, the Canara HSBC SecureInvest Plan appears to be an inefficient solution for achieving long-term financial goals.
Considering the unfavourable risk-return trade-off in the previous illustration, it is worth exploring alternative strategies that offer superior risk-adjusted returns.
Although ULIPs combine insurance and investment into a single product, separating these two objectives is often a more efficient and cost-effective approach.
Using the same assumptions as in the previous example, let us compare two alternative strategies.
To obtain the same life cover of ₹30 lakhs, a pure-term insurance policy costs approximately ₹12,000 per year for a 20-year term.
Since the annual premium in the previous illustration was ₹1,00,000, choosing a pure-term policy leaves ₹88,000 available each year for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 30,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 12,000 |
| Investment | ₹ 88,000 |
The investment avenue can be selected based on the investor’s risk profile.
Conservative investors may prefer debt-oriented options such as the Public Provident Fund (PPF), while investors with a higher risk tolerance may consider equity mutual funds for long-term wealth creation.
|
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 40 | 1 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 41 | 2 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 42 | 3 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 43 | 4 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 44 | 5 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 45 | 6 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 46 | 7 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 47 | 8 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 48 | 9 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 49 | 10 | -97,500 | 30,00,000 | -1,00,000 | 30,00,000 |
| 50 | 11 | -500 | 30,00,000 | 0 | 30,00,000 |
| 51 | 12 | -500 | 30,00,000 | 0 | 30,00,000 |
| 52 | 13 | -500 | 30,00,000 | 0 | 30,00,000 |
| 53 | 14 | -500 | 30,00,000 | 0 | 30,00,000 |
| 54 | 15 | -500 | 30,00,000 | 0 | 30,00,000 |
| 55 | 16 | 0 | 30,00,000 | 0 | 30,00,000 |
| 56 | 17 | 0 | 30,00,000 | 0 | 30,00,000 |
| 57 | 18 | 0 | 30,00,000 | 0 | 30,00,000 |
| 58 | 19 | 0 | 30,00,000 | 0 | 30,00,000 |
| 59 | 20 | 0 | 30,00,000 | 0 | 30,00,000 |
| 60 | 25,96,888 | 48,26,025 | |||
| IRR | 6.25% | 10.40% | |||
PPF Investment:
Investing the remaining ₹88,000 annually in PPF is estimated to accumulate ₹25.96 lakhs at maturity, resulting in an Internal Rate of Return (IRR) of 6.25%.
Despite being a debt-oriented investment, PPF delivers returns that are comparable to the ULIP’s illustration based on an assumed 8% market return.
Equity Mutual Fund Investment:
Investing the same amount in an equity mutual fund is estimated to generate a pre-tax maturity value of ₹53.71 lakhs.
After considering capital gains tax, the net maturity value is approximately ₹48.26 lakhs, translating to a post-tax IRR of 10.40%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 53,71,885 |
| Purchase price | 8,80,000 |
| Long-Term Capital Gains | 44,91,885 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 43,66,885 |
| Tax paid on LTCG | 5,45,861 |
| Maturity value after tax | 48,26,025 |
The comparison clearly demonstrates that separating insurance from investment can lead to significantly better outcomes.
A pure-term insurance policy provides the required financial protection at a much lower cost, while investing the balance in suitable investment products has the potential to generate substantially higher long-term wealth than the Canara HSBC SecureInvest Plan.
The Canara HSBC SecureInvest Plan combines life insurance with market-linked investments. However, multiple policy charges reduce the amount available for investment, which, in turn, affects the overall returns.
Our analysis indicates that the plan generates relatively modest long-term returns that do not adequately compensate for the risks associated with investing in market-linked assets.
The insurance component is also less compelling. The sum assured offered under the plan may be insufficient to meet a family’s long-term financial needs, leaving a potential protection gap in the event of the policyholder’s demise.
Consequently, the plan falls short of delivering an effective solution for either comprehensive life insurance or long-term wealth creation and it also has a high agent commission.
A more efficient strategy is to separate insurance from investment.
A pure-term insurance policy can provide adequate financial protection at a substantially lower cost, while the remaining savings can be invested in a well-diversified portfolio across suitable asset classes based on your risk appetite and financial goals.
This approach offers greater flexibility, transparency, and the potential for superior long-term wealth creation.
Before purchasing any insurance or investment product, evaluate its costs, benefits, risks, and suitability in the context of your financial objectives.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
If required, seek guidance from a Certified Financial Planner (CFP), who can help you design a strategy that aligns with your goals and long-term financial needs.
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