Smart Future Income Plan

Insurance policy is definitely required for your lives. Because we might not know what might happen the next minute. Any emergency might occur the next minute for example sudden accident or demise, travel expense or educational needs. These would definitely require more money and we might have not much money during that time. An insurance policy would be definitely useful during the crucial period of our lives. They have various options to choose with and are comprehensive which cover a wide range of areas. These plans are responsive and the issues can be solved by the branch nearby. Let us briefly discuss about smart future income plan in this article

Smart Future Income Plan

Canara Bank, HSBC Bank and Oriental Bank of commerce have joined together and formulated this policy. This plan is an Individual non linked plan which is very useful for long term savings to meet your lifestyle and retirement requirements. This plan is used for educational needs, upgrading property which enhances lifestyle and monetary benefits during retirement period.  More over these plans provide lump sum benefit through bonuses. The loans provided by this are flexible that is the customer can choose between many options.


Moving up in life is the dream come true for many of us. But we might know the process of how to come up in life. Let us the functions of “GALLOP”

G- Guaranteed Monthly Income – Ensures that the customer receives regular income which can be yearly or monthly for a period of 15 years. The amount which the customer receives will be pre- determined.

A- Accumulate Lump sum amount can be received by bonus which is received at the end of the year that is annual bonus and bonus which is received at the end of the policy period.

L- Legacy – Legacy is defined as the path we leave behind after we demise. This plan provides life cover for 25 years for our loved ones

L- Lifestyle Upgrades your lifestyle through bonuses

O- Opt – The type of loan which we choose should be flexible enough to meet our needs

P – Premium Payment – Premium payment is paid by the customer to his insurer to safeguard him from any risk which occurs. The premium payment is for 10 years under this policy. And moreover once can avail tax benefits under this policy. These are the main key features of the plan.

Eligibility Details

Entry Age18-55 Years
Maturity Age43-80 Years
Policy Term25 Years
Premium Payment Term10 Years
Premium ModeAnnual and monthly payment mode
Annual = 0.9x monthly premium
Monthly= 0.9x yearly premium
Minimum Monthly IncomeRs.5000 which completely depends upon on entry age which is given in multiples of 100 and above
Maximum Monthly IncomeThere is no limit for maximum monthly income
Sum AssuredSum Assured= 100x Monthly Income

Maturity Benefit

Maturity period is the period of completion after the completion of this maturity period ends you will receive a lump sum amount which is guaranteed sum.  During the policy anniversary the compound revisionary bonus and will be declared annually. We can be aware of what amount we will receive in future by knowing the maturity value. It is also known as face value. During the maturity period is you can receive fund value which is received by multiplying the balance and unit price. In case if the customer is not dead he cannot receive the guaranteed sum and the company shall pay the bonus both annual and final if there are any.

Death Benefit

 A death benefits is a sum of money paid out to the beneficiary, This benefit is given to the Nominee of the investor, when the policy holder dies the sum is paid 10 times higher than their monthly income. The death benefit is great that 1.5 than the sum assured which is very beneficial during the emergency period.  This Smart future income policy is flexible compared to any other policies. The nominee receives equal amount as the rider receives. A grace period 30 days is given after the maturity period is over. During this period your policy is considered to be in a risk situation. Your policy might lapse if it remains unpaid after the grace period is completed. During any period of the policy your policy can be surrendered. Smart future income death benefit plan offers 14% more amount, and also gives financial assistance for a long period of time. This policy is essential and plays a significant role for every customer because it is very beneficial for the customers during the crucial period. The death benefit which is received is 10 times the annual salary; it is calculated by decreasing 100% of the deceased workers income. The death benefit which the insurer receives will be five times the pension that he receives. The child, the spouse of the deceased can claim for funeral claim this deals with funeral expenses of the deceased. Along with death benefit you will also receive the annual bonus and final bonus. We need to pay 105% of the premium after the grace period is completed. This includes all the premiums received excluding the additional riders of the policy. This is received irrespective of the income benefit.

Smart Future Income Policy Bonus

Annual Bonus – Annual Bonus is also called simple revisionary bonus.  This bonus is provided at end of each year along with profits along with the profits of the company. The annual bonus can be paid after Death or during maturity period we must remember that interim bonus must also be paid
(Annual Bonus= SUM Assured/100)

Final Bonus – Final Bonus is also known as terminal bonus. It is the bonus which is received when the policy period terminates.  The date at which the policy period stops may occur during the last six months of the financial year of the organization

How the Policy Works?

Let’s consider a Case Study; Shankar who is 50 years old has two small kids who are aged 10 and 5. Shankar is employed in a private company but his monthly income is insufficient to manage the entire requirements of the family. He requires a supplemental income of Rs.20000 to meet his financial requirements. This supplemental income will provide

  1. Financial aid for the Children’s Future Education
  2. The household assets can be well developed by upgrading lifestyle
  3. Monetary benefits during Retirement and after Retirement
  4. Provide legacy for his family after his demise

How to Apply for this Policy?

  1. Initially we must chose the guaranteed monthly income along the SUM Assured which should be 10 times the guaranteed income
  2. We need to select the payment of premiums either Annually, Half Years or Monthly
  3. We are now protected with life cover, which will protect our family after demise, the Death Benefit is 10 times the Annual Premium
  4. We can be eligible for final bonus only if our premiums are paid on time before due date. If we pay the premiums regularly before due date, we can receive the guaranteed income every month

Flexibility Through Loans

During any emergency or unforeseen situation which is completely unexpected we would require loans. But these loans should flexible that is the loans should easily available to the customer. In smart future income plan we can avail a minimum of ₹. 20000 up to 80% of our surrender value. We can claim for loans only after we start receiving our guaranteed monthly income we cannot claim for loans before that period. If we are not able to repay the loan, the guaranteed monthly income which we receive will be adjusted to repay the loan. There is also another option to foreclose the loan

What Would Happen if We Fail to Pay Premiums?

  1.  If the premium is not paid during first 2 years:

    If the premium is not paid during first two years after the expiry of the grace period your policy would lapse and your policy would be ceased immediately
  2. If the premium has been paid at least for the first two years:

    A. After the grace period the premium will be considered paid up, which will continue up to the maturity period
    B. We cannot be eligible for future bonus
    C. Under this situation, he can receive loans

Exclusions of this Policy

  • This policy is available only within the geographical limits of India if the accident occurs outside India, then death benefit cannot be availed
  • If any damage is caused during war the death benefit cannot be availed
  • If the customer due to suicide, this cannot be eligible because it is against law
  • If damage is caused due to nuclear radiation this is not possible
  • If damage occurs during vehicle testing
  • If damage occurs during car racing or any sport
  • If accident occurs due to alcohol consumption
  • If accident occurs due to intake of drugs


The above article briefly describes about the key features, benefits, and application process of smart future income plan. And hence we are able to more about the impact of this policy. This plan has a wide range of scope for long term savings and also enhances our lifestyle. This plan will have various benefits for each one of us