Canara HSBC Qualifying Recognized Overseas Pension Scheme

Canara HSBC OBC Life Insurance Company Limited was formed by the coalition of two leading banks – Canara Bank and Oriental Bank of Commerce along with the insurance arm of HSBC. An array of life insurance plans that serve different purposes are offered by the company. QROPS is a special pension plan that is offered to NRIs who once resided in the UK. QROPSs are registered with the HMRC (Her Majesty Revenue and Customs) and administered outside the UK. An individual who wishes to transfer his/her pension funds from the UK to India can do so by transferring the funds to a QROPS plan.

Eligibility

The eligibility criteria for the policy has been laid out by the insurer.

Minimum entry age	25 years
Maximum entry age	70 years
Minimum vesting age	40 years
Maximum vesting age	80 years

 

Sum Assured and Premium

Sum Assured

The sum assured is the total amount received by the nominee when the life assured passes away.

Premium

The amount the policyholder pays regularly to cover his/her risk is called the premium.

Minimum premium	Single premium payment: Rs.3 lakh Regular/Limited premium payment: Annual premium payment mode: Rs.25,000 Monthly premium payment mode: Rs.3,000 Top-ups: Rs.10,000
Premium payment modes	Annual Monthly
Minimum premium payment term	Single premium payment: One-time payment Regular/Limited premium payment: 5 years
Maximum premium payment term	Regular/Limited premium payment: Equal to policy term
Minimum policy term	10 years
Maximum policy term	Varies according to the entry age of the policyholder

*Premiums vary based on age, location, plan term and other factors

Plan Coverage

Death benefit	On the death of the life insured, the higher amount- the fund value or 105% of the total premium paid is provided to the nominee.
Vesting benefit	The vesting benefit amount is equal to either the fund value or the guaranteed vesting benefit (101% of total premium paid), whichever is higher.

 

Exclusions

In case the insurer commits suicide within 1 year from the date of inception of the policy, the claimant will be provided the fund value of the policy as on the date of death of the life insured.

Other Key Features – Freelook Period, Surrender Values, Grace Period, loyalty addition

Free-look period	The policyholder is given the first 15 days of the policy term to review the terms of the policy. If unhappy, he/she can cancel and return the policy. On cancellation, the fund value is refunded to the policyholder.
Grace period	All policyholders are given a grace period of 30 days in case of the annual premium payment mode and 15 days in case of the monthly premium payment mode within which the premium can be paid.
Surrender value	If the policy is surrendered before the completion of the policy, the surrender value equal to the fund value is payable to the policyholder.
Loyalty addition	Every fifth year of the policy, after the completion of 10 policy years, additional units are added to the fund by the insurance company.
Revival	The insurer provides a 2-year period for the policyholder to revive the policy by paying the premiums due and interest, if any.
Top-up premium	Top-up premiums of a minimum Rs.10,000 can be paid during the policy term, except in the first policy year and the last policy year.
Investment funds	Policyholders are given three investment fund options to choose from. Pension Growth Fund Pension Balanced Fund Pension Debt Fund

 

Tax Benefits

Tax benefits may be availed as per the Income Tax Act, 1961.

Other Benefits

Online plans	The insurer has introduced 2 online plans for prospective policyholders.
Premium calculator	Individuals who wish to know the amount of premium payable for a policy can click on ‘Calculate Premium’ under ‘Tools and Calculator’ found on the insurer’s website.
Fund value calculator	An individual can also find the ‘Calculate Fund Value’ option in the same drop-down menu.
Online premium payment	Premiums payable towards the policy can be paid online by following a few simple steps on the official website of the insurer.
SMS feature	If an existing policyholder wants to receive a callback or has a query, he/she can simply send an SMS to the phone number provided by the insurer.

 

Why you should buy the QROPS from Canara HSBC OBC

The insurer is a popular private insurance company that has access to more than 115 million customers and has a reputation for providing excellent customer service. The company won an award for excellence in customer service in the year 2017. With options to access policies online, managing policies have been made easy and convenient. In the year 2016-17, 100% of all grievances were solved by the company.