Canara HSBC Saral Pension Plan

What is Canara HSBC Saral Pension Plan?

The Canara HSBC Life Insurance Saral Pension is a Single Premium Non-Linked Non-Participating Individual Immediate Annuity Plan. It offers both Single and Joint Life annuity options. The plan provides various Annuity options to cater to different needs. One of the key features is the return of 100% of the purchase price. Additionally, the plan includes a Surrender option on 20 covered Critical Illnesses. It is a Single pay plan, meaning the entire premium is paid upfront.

Features of Canara HSBC Saral Pension Plan

Below are the features of Canara HSBC Saral Pension Plan: 

• Two Annuity Options:

  • Option 1 - Single Life Annuity with Return of 100% of Purchase Price: This option guarantees you a regular income for the rest of your life. Even if you don't outlive your expected lifespan, your family will receive 100% of the purchase price.

  • Option 2 - Joint Life Last Survivor Annuity with Return of 100% of Purchase Price: This option ensures that you and your spouse will receive a regular income for as long as either of you is alive. Upon the death of the last survivor, your family will receive 100% of the purchase price.

• Safety Net for Family: 100% return of purchase price on death. Critical Illness Surrender Option: Get a portion of your purchase price back if diagnosed with a critical illness.

• Flexible Annuity Installment Frequency: Choose the annuity installment frequency that best suits your needs. You can opt for monthly, quarterly, half-yearly, or yearly payments.

• Higher Purchase Price Incentive: The more you invest, the higher the annuity amount you can receive. This incentive allows you to customize your retirement income based on your specific financial goals.

Eligibility Criteria for Canara HSBC Saral Pension Plan

Benefits of Canara HSBC Saral Pension Plan

Below are the benefits of the Canara HSBC Saral Pension Plan: 

• Annuity Options

  • Life Annuity with Return of 100% of Purchase Price:

    • Annuity Payouts: You will receive a regular annuity income for the rest of your life.

    • Death Benefit: Upon your death, the policy will terminate, and your nominee will receive 100% of the purchase price.

  • Joint Life Last Survivor Annuity with Return of 100% of Purchase Price:

    • Annuity Payouts: The annuity will be paid as long as either of the two annuitants is alive.

    • Death Benefit: If one annuitant dies, the surviving annuitant will continue to receive the full annuity. Upon the death of the second annuitant, the policy will terminate, and your nominee will receive 100% of the purchase price.

• No Maturity Benefit: There is no fixed maturity date for this plan, and therefore, no maturity benefit is available.

• Loan Facility: You can avail a loan against your policy after six months from its commencement date to meet any financial needs.

• Higher Purchase Price, Better Annuity Rates: The higher the purchase price, the better the annuity rates you will receive.

Policy Details of Canara HSBC Saral Pension Plan

1. Loan Facility:

   • You can avail a loan up to 75% of the Purchase Price, with a minimum loan amount of ₹50,000.

   • The maximum loan is limited so that the annual interest payable on the loan does not exceed 50% of the annual annuity amount under the policy.

   • The interest rate on the loan is linked to the 10-year G-Sec rate as of 1st April each year, plus 200 basis points. For the Financial Year 2024-25, the applicable rate is 9.06% per annum.

   • Loan interest is calculated on a simple interest basis and will be deducted from the annuity payments.

   • Interest accrues based on the frequency of annuity payments, and the loan principal, including outstanding interest, can be repaid partially or fully during the annuity payment term.

   • In the event of death, under Annuity Option 2, the loan can be availed by the Annuitant’s spouse.

2. Free Look Period:

   In the free look period if  you are not satisfied with the policy’s terms and conditions, you have the right to cancel the policy within 30 days from the receipt of the policy document (physically or electronically). Upon cancellation, the insurer will refund the purchase price after deducting stamp duty charges and any paid annuity installments.

3. Special Conditions:

   • If the policy was purchased using proceeds from a pension product where an Open Market Option is available, the refund will be transferred to the chosen insurer.

   • For policies issued to NPS subscribers, refunds will be transferred as per PFRDA regulations.

   • Policies purchased from the company’s pension products, where the Open Market Option is unavailable, do not have a free look option. However, policyholders can change their annuity option within 30 days from receiving the policy document.