Canara HSBC Pension Plans

What are Pension Plans?

These plans come in two versions and provide a source of income to people in their older ages when they have retired from active employment. Immediate Annuity plans are where the policyholder pays a bulk amount to the company to buy the plan and then annuity payouts start from the next frequency without any delay. No money is payable if the policyholder dies during the annuity phase. Deferred annuity plans are those where the annuity payments are delayed. The policyholder buys the plan for a specific term, called the deferment period, makes payments for the premium required during this period and when the period expires is eligible to receive annuity. If he dies during this period, a specific benefit is paid as death benefit. The policyholder can only withdraw 1/3^rd of the accumulated amount in cash while the remainder has to be used to avail annuity.

Canara HSBC Pension Plans

Canara HSBC Life Insurance Company has two variants in the pension plan category which require a detailed discussion as done below.

Canara HSBC Immediate Pension Plan

It is a traditional immediate annuity plan which promises annuity payouts for the complete lifetime of the policyholder. Other aspects of the plan include:

• The annuity will be paid either starting from the next year or half-year or quarter or month after paying off the lump sum premium

• The annuity payouts are guaranteed to be paid till the lifetime of then annuitant

• No medical tests are required to be undertaken to buy the plan

• Premiums paid will be tax free under the provisions of Section 80CCC

Eligibility Details

Canara HSBC Smart Immediate Income Plan

A traditional immediate annuity plan where guaranteed payouts are available on a single as well as joint life basis. The features and benefits of the plan are as follows:

• Under the plan, the annuity payments will start immediately from the next chosen frequency (monthly, quarterly, half-yearly or annually) after the payment of the single premium

• The annuity payouts can be availed on a single life which will be guaranteed for the annuitant’s life or on a joint life basis which will be guaranteed for the annuitant’s life till he is alive and post his death, for the secondary annuitant’s life

• The secondary annuitant can be either the spouse, child, parent or parent-in-law

• There are two annuity options available under the plan and both options return the Purchase Price paid to avail annuity on death.

• Under the first annuity option, lifetime annuity is paid to annuitant and post his death the entire Purchase Price is returned.

• Under the second option of Joint Life, Last Survivor Annuity, annuity payouts are guaranteed for the lifetime of the annuitant and on his death the payouts continue till the secondary annuitant is alive. In case of the second death, i.e. of the secondary annuitant, the total Purchase Price is returned.

• The plan promises higher annuity payouts for higher levels of Purchase Price

• The annuity can also be utilized to meet the Reverse Mortgage Scheme.

• The premium paid to buy the plan is exempt from taxation under Section 80CCC of the Income Tax Act.

Eligibility Details

Applying for a Pension Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Applying For Pension Plans through PolicyBazaar

• On the PolicyBazaar homepage, click on Retirement under the Personal tab.

• Click New Quotes to compare and choose from top insurance providers.

• Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.

• Fill in your name, email address, city, country code, and mobile number. Click Continue.

• You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.

• After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.

• You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.

• This will take you to the insurer’s website. You will have to fill in the necessary details to buy the plan.

Who needs an Annuity Plan?

An annuity plan, also known as a retirement plan, as the name suggests is best suited for retired people. However, though the plan benefits the retired folk, it is very important to note here that the plan should be bought by the individual well before his retirement. So in essence, an annuity plan should be taken by a person who is planning ahead for his retirement years as such a plan would provide the person with all the financial assistance needed in that phase of his life.

I am a 45 year old person. Do I need an annuity plan?

If you are 45 and still have not taken an annuity plan, you most definitely need to do so at the earliest! An annuity plan substitutes the policyholder’s regular income after his retirement by paying out regular ‘salaries’. But where does this salary come from? The policyholder, known as an annuitant here, builds up a fund while he still can afford it by paying regular premiums. This is known as the accumulation phase of an annuity plan. The annuity phase begins when he retires. Therefore, the earlier the accumulation phase begins, the easier it is for the policyholder to build up a healthy corpus that is large enough to help him pay his bills during the annuity phase.

Read Also: Annuity Meaning| Types of Annuity

Canara HSBC Pension Plans - FAQs