Who wouldn’t love to get a supplemental source of income even after they stopped working? This money would not only help cater to the essential needs of an individual, it would also enable one to enhance his/her lifestyle. The Future Income Plan from Canara HSBC Oriental Bank of Commerce Life Insurance Co. is a traditional plan designed to provide monthly income to policyholders post their retirement. In addition to the financial assistance, the policy also provides life cover. Income is paid for a period of 15 years, with life cover accorded for 25 years. For those approaching retirement this plan is an ideal ally during their retired phase of life.
|Parameters||Criteria for eligibility|
|Plan type||Traditional savings life insurance policy with monthly returns|
|Minimum age at entry||18 years|
|Maximum age at entry||55 years|
|Minimum age at maturity||43 years|
|Maximum age at maturity||80 years|
Sum Assured – It is imperative that one choose a sum assured which suits the requirements of his/her family. Opting for a lower sum assured could result in a compromise in the lifestyle one is accustomed to. Being a monthly income plan, the policyholder is entitled to an income each month for a specified period of time. The sum assured is computed based on the monthly income opted by a policyholder. The premium plays a key role in determining the sum assured.
|Sum Assured||100 x monthly income|
|Minimum income (paid to policyholder)||Rs.5,000/month|
|Maximum income (paid to policyholder)||No upper limit|
Premium* - The premium is the amount paid by the policyholder to maintain the policy. One should ensure that the premium payment doesn’t become a financial strain on them, for failure to pay it on time could result in the lapse of a policy. The premium is computed based on the sum assured one chooses, with it varying based on a number of factors.
|Term of the policy||25 years|
|Premium Payment Term||10 years|
|Premium Payment Mode||
|Minimum Yearly Premium Amount||Rs.133.52 for Rs.1,000 sum assured (entry age of policyholder being 18 years)|
|Maximum Yearly Premium Amount||Based on entry age of policyholder and sum assured chosen|
*The premium varies based on the age of policyholder, sum assured, location, etc. With the implementation of GST the price of purchasing a policy has increased. Please check all rates at the time of purchase.
|Death Benefit||This plan covers the life of a policyholder throughout the policy term. In the event of his/her demise during this period, the nominee is entitled to a death sum assured. This amount is the highest of:
|Guaranteed Income Benefit||On completion of the PPT, the policyholder is entitled to a regular source of income for 15 years. This is termed the guaranteed income benefit. It is paid monthly for the remaining duration of the policy.|
|Maturity Benefit||On survival of the policyholder until maturity, he/she will be paid only the bonuses. There is no other maturity benefit payable.|
Note: The benefits are payable only if all premiums have been paid and the policy is active.
There are no rider options provided with this plan.
There is a suicide exclusion under the Smart Future Income Plan wherein limited benefits are payable. The insurer will refund 80% of premiums paid if the policyholder commits suicide within one year of policy commencement date. Similarly, if the policyholder commits suicide within one year of reviving a lapsed policy, the nominee is entitled to an amount which is higher of the surrender value or 80% of premiums paid till the time of death.
|Grace period||30 days|
|Free-look period||30 days for policies purchased through distance marketing modes. 15 days for policies purchased through other modes.|
|Revival||Revival is possible if the policyholder pays all dues and interest (if applicable) within two years of first missed premium payment.|
|Surrender value||A policy can be surrendered if premiums for a minimum of three full years are paid. The surrender value is computed by taking all premiums paid into account.|
|Loan||There is a provision to avail loan using this policy. The amount availed as loan should be repaid before the policy starts paying the regular monthly income.|
|Bonuses||The policy accrues an annual bonus which is a certain percentage of the profit earned by the fund. In addition, a Final Bonus could be added to the policy. The bonus is provided at the discretion of the insurer and is not guaranteed.|
|Rebate||Policyholders who opt for a high sum assured (more than Rs.7 lakh) are eligible for a rebate on the premium.|
|Nomination||Nomination facility available as per Section 39 of the Insurance Act of 1938.|
|Assignment||Applicable as per Section 38 of the Insurance Act of 1938.|
A policyholder can save money on tax by availing benefits under Section 80C of the Income Tax Act. According to this act, the premium paid towards the Smart Future Income Plan is eligible for deductions as per the tax slab currently in place.
With the cost of living rising each year it is imperative that we plan our future. This becomes even more important as we approach retirement, for we are not assured of a guaranteed income during this phase. Investing in the Smart Future Income Plan helps offset this to a certain extent, for we can be rest assured that there will be a regular source of cash flow each month.
The insurer, Canara HSBC Oriental OBC is one of the fastest growing insurance companies in India, serving over 60 million customers. With a network of over 8,000 branches of the partner banks, the company has been able to offer products and services to every region of the country. This ensures that a policyholder is not too far from a branch in case of queries/issues.
A key factor which most individuals look at before purchasing a policy is the claim settlement ratio. A low ratio could indicate hassles in claim clearances. Canara HSBC OBC has one of the highest claim settlement ratios in India, with this being 92.99% for the FY 2015-16. This is a reflection of the dedication and attention to customer needs, something which makes owning this policy extremely simple.