Canara HSBC Life Insurance Company Limited has launched the Global Wealth Plan through GIFT City in Gujarat in October 2026. The plan is a dollar denominated, unit-linked insurance plan (ULIP) aimed mainly at Non-Resident Indians (NRIs). It allows policyholders to invest in global funds in US dollars while holding life insurance protection in the same policy.
What Is the Global Wealth Plan?
The Global Wealth Plan (UIN: 2026L002V01) is an individual, unit-linked, non-participating life insurance-cum-savings plan issued through GIFT City. Canara HSBC Life Insurance offers the plan from its IFSC Insurance Office in GIFT City and currently distributes it through Policybazaar to NRI customers. Non-participating means the policy does not share in the insurer’s profits and does not receive annual bonuses. All premiums, investments and payouts under the plan are in US dollars.
The plan allows single, limited or regular premium payment. After charges, the insurer invests the remaining premium in unit-linked funds chosen by the policyholder. The value of those units moves up or down with market performance, and the investment risk stays with the policyholder. The policy also provides life cover throughout the term and pays a lump sum at maturity or to the nominee on death, as per the chosen option.
Canara HSBC Life Insurance states that the plan levies zero premium allocation charge and zero policy administration charge. Premium allocation charge is the part of the premium an insurer deducts before investing the balance. Policy administration charge is the fee for managing the policy. With these two charges at zero, a larger share of the premium stays invested. The plan adds a Maturity Booster of 0.75% to 1.60% of the average fund value under select options and a Loyalty Addition under the whole life option. Mortality charges deducted during the term are added back to the fund value at maturity under specified conditions. Mortality charge is the cost of providing life cover.
Three Plan Options Under the Global Wealth Plan
Canara HSBC Life Insurance offers the Global Wealth Plan in three variants. Each variant links market investment with life cover but serves a different goal.
| Plan Option | Purpose | Key Benefit Structure |
|---|---|---|
| Wealth | Long term wealth creation | Life cover through the term plus lump sum fund value at maturity |
| Wealth Plus | Protection for dependents and child needs | Immediate sum assured on death plus Premium Funding Benefit where the insurer pays future premiums so the policy continues till maturity |
| Wealth Forever | Legacy and wealth transfer across generations | Whole life cover till age 100 with long term global market exposure and periodic loyalty additions |
Under Wealth Plus, the Premium Funding Benefit keeps the investment intact for the family even after the death of the life assured. The nominee receives the sum assured at once, and the insurer funds the remaining premiums. The fund value is then paid at maturity as per terms. Under Wealth Forever, the insurer adds a Loyalty Addition of 4.5% of the average fund value every 15 policy years to reward long holding.
Policyholders can spread premiums across six unit-linked funds in any proportion they choose. The fund menu covers global innovation themes, precious metals, global equities, India focused equities and debt.
| Fund Name | Asset Focus |
|---|---|
| Global Innovation Fund | International innovation led equities |
| Global Precious Metals Fund | Gold, silver and related instruments |
| Global Equity Fund | Diversified international equities |
| India Focused Equity Fund | Indian equities with dollar denomination at policy level |
| Equity II Fund | Equity oriented investment |
| Debt II Fund | Fixed income and debt instruments |
Fund value depends on the net asset value of chosen funds. Past performance does not assure future returns.
What Is a ULIP and How Does It Work?
A Unit Linked Insurance Plan (ULIP) is a life insurance product that combines life cover with market linked investment. A ULIP splits each premium into two parts. One part pays for life insurance protection. The balance buys units in funds selected by the policyholder. Those units are pooled with units of other policyholders to form a unit fund, and the price of each unit changes daily with market movements.
ULIPs differ from traditional savings insurance because returns are not guaranteed. The policyholder bears the investment risk and may gain or lose with fund performance. ULIPs also differ from mutual funds because they bundle insurance protection, a lock in period and insurance related charges along with investment. A mutual fund offers only investment without life cover.
| Common ULIP Charge | What It Means |
|---|---|
| Premium allocation charge | Deduction for expenses and commission before units are allotted |
| Mortality charge | Cost of life cover, based on age, cover amount and health |
| Fund management charge | Fee for managing the fund, adjusted in net asset value |
| Policy administration charge | Fee for administering the policy through cancellation of units |
| Fund switching charge | Fee for shifting money between funds beyond free switches |
| Surrender charge | Deduction on early exit, as per policy terms |
Tax treatment depends on premium size and policy date. Under Section 10(10D) of the Income Tax Act, maturity proceeds of ULIPs with annual premium up to ₹2.5 lakh can be exempt when conditions on sum assured are met. For ULIPs issued after 1 February 2021 where annual premium exceeds ₹2.5 lakh, the exemption does not apply. The Budget 2025 clarification treats the proceeds of such non-exempt ULIPs as capital gains. GIFT City dollar policies follow the law applicable to IFSC insurance products, so policyholders need to check residential status and current tax rules before investing.
What Is GIFT City and How Does Insurance Work There?
GIFT City stands for Gujarat International Finance Tec-City. It is a planned financial district located between Ahmedabad and Gandhinagar in Gujarat. It houses India’s first operational International Financial Services Centre (IFSC). An IFSC is a zone where financial transactions in foreign currency are carried out under a separate regulatory framework, even though the zone is located within India.
The International Financial Services Centres Authority (IFSCA) regulates GIFT IFSC. IFSCA was established on 27 April 2020 under the IFSCA Act, 2019 and is headquartered at GIFT City in Gandhinagar. It acts as a unified regulator for banking, capital markets, insurance, pensions and funds inside the IFSC. It combines powers that RBI, SEBI, IRDAI and PFRDA exercise in the domestic market. Insurance sold from GIFT City is therefore governed by IFSCA rules, not by domestic IRDAI rules. Insurers operate there through an IFSC Insurance Office (IIO).
GIFT City insurance follows a dollar based model. Policyholders pay premiums in an approved foreign currency, usually US dollars, and receive maturity or claim amounts in the same currency. IFSCA permits policies and settlements in 13 specified foreign currencies, including the US dollar, euro and British pound. Funds invest in international equities, overseas exchange traded funds, debt and commodity linked assets such as gold and silver. Resident Indians can invest through the Liberalised Remittance Scheme (LRS) limit of $250,000 per year, while NRIs, Overseas Citizens of India and Persons of Indian Origin can use their foreign earnings directly. IFSCA data shows a steady rise in insurers, intermediaries and fund commitments in GIFT IFSC through 2025 and 2026, with dollar ULIPs forming a major part of retail insurance offerings.
Why the Plan Matters for NRIs
Canara HSBC Life Insurance has positioned the Global Wealth Plan for NRIs with financial goals spread across countries. Many NRIs earn in dollars and spend in dollars on goals such as foreign education, overseas retirement or support for family abroad. A dollar denominated policy allows them to save in the same currency in which the future expense will arise. This removes the need to convert savings from rupees at the time of payment.
Currency movement adds force to this logic. The rupee has weakened from around 67 to the dollar a decade ago to around 95 to 96 in 2026. A rupee corpus must therefore grow faster just to hold its dollar value. A dollar policy avoids that drag because premium, sum assured and payout all stay in dollars. The plan also gives regulated access to global equities and precious metals through an Indian framework, without opening an offshore account. For families, the life cover and the Premium Funding Benefit under Wealth Plus provide continuity of investment even after the death of the earning member. Market risk remains, and fund value can fall, so returns are not assured.
The launch also reflects competition inside GIFT City. HDFC Life International, ICICI Prudential Life, IndiaFirst Life, Bajaj Life and Star Union Dai-ichi Life already offer dollar ULIPs from GIFT City. Ageas Federal Life launched its multi currency Aurum Advantage Plan on 8 October 2026. Canara HSBC Life Insurance adds a purely dollar focused option to this growing shelf through a digital distribution tie up with Policybazaar.
Canara HSBC Life Insurance: Company Background
Canara HSBC Life Insurance Company Limited was incorporated on 25 September 2007 as Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited. The name was changed to Canara HSBC Life Insurance Company Limited on 15 June 2022 after Oriental Bank of Commerce merged with Punjab National Bank. The company is a joint venture promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited. Its registered office is in New Delhi and its corporate office is in Gurugram, Haryana. It holds IRDAI registration number 136.
The shareholding reflects its bancassurance roots. Canara Bank holds 36.5% and HSBC Insurance (Asia-Pacific) Holdings holds 25.5% (as of September 2026). Punjab National Bank holds 13% as a public shareholder. The company became a listed company on 17 October 2025, with shares listed on the NSE and BSE after an offer for sale of about ₹2,517 crore at a price of ₹106 per share. The NSE symbol is CANHLIFE.
The insurer follows a bancassurance led model through Canara Bank, HSBC India and regional rural banks, along with digital and agency channels. It operates 107 branch offices across India (as of September 2026) and manages assets of over ₹46,000 crore (as of March 2026). It reported a claims settlement ratio of 99.52% for 2025-26 and a solvency ratio well above the regulatory requirement. Its product shelf includes term plans, savings plans, retirement solutions and group insurance, with GIFT City products such as the Future Dollar Investment plan and the new Global Wealth Plan forming the foreign currency segment.
Key Takeaways
- The Global Wealth Plan (UIN: 2026L002V01) is a dollar denominated, unit-linked, non-participating insurance-cum-savings plan offered via GIFT City.
- The plan offers three variants, Wealth, Wealth Plus and Wealth Forever, with Wealth Forever providing cover till age 100.
- The plan levies zero premium allocation charge and zero policy administration charge and offers six global funds including equities, precious metals and debt.
- GIFT City in Gujarat houses India’s first IFSC, regulated by IFSCA, which was established on 27 April 2020 under the IFSCA Act, 2019.
- Canara HSBC Life Insurance, incorporated in 2007 with IRDAI registration 136, is promoted by Canara Bank (36.5%) and HSBC Insurance (Asia-Pacific) Holdings (25.5%) and listed on NSE and BSE on 17 October 2025.
