We all know the importance of a regular source of income, with most of us doing multiple jobs throughout our life to keep the money flow going. Our typical life cycle revolves around work, with retirement being one phase wherein we aren’t expected to run after money. But lack of regular income could result in us heading back to work, which is where a good annuity plan comes in handy. The Smart Immediate Income Plan from Canara HSBC Oriental Bank of Commerce Insurance Company is designed to meet any financial commitment after retirement, helping one lead a lifestyle which meets their standard of living.
The eligibility criteria regarding the different age expectations are mentioned below:
|Parameters||Criteria for eligibility|
|Minimum age at entry||30 years|
|Maximum age at entry||NA|
|Maximum age at maturity||Annuity paid throughout life of policyholder(s)|
|Plan type||Traditional non-linked, non-participating immediate annuity policy|
Sum Assured/Annuity – The Smart Immediate Income Plan provides a regular annuity payout, with this amount depending on the plan option chosen. The annuitant(s) are entitled to payments throughout their life(s). This amount is paid at regular intervals chosen by the annuitant, with the purchase price determining the amount payable.
|Minimum annual annuity||Single Life – Rs.12,300 Joint Life – Rs.13,494|
|Maximum annual annuity||Based on purchase price (premium)|
|Minimum quarterly annuity||Single Life – Rs.2,934 Joint Life – Rs.3,218|
|Maximum quarterly annuity||Based on purchase price (premium)|
|Minimum half-yearly annuity||Single Life – Rs.5,959 Joint Life – Rs.6,538|
|Maximum half-yearly annuity||Based on purchase price (premium)|
|Minimum monthly annuity||Single Life – Rs.969 Joint Life – Rs.1,063|
|Maximum monthly annuity||Based on purchase price (premium)|
Premium/Purchase Price* - This is the amount an individual is expected to pay to buy this policy. The actual purchase price depends on the annuity option chosen, and the income one expects post retirement. The table below highlights the various aspects related to the premium/purchase price.
|Term of the policy||
|Premium payment mode||Single|
|Minimum purchase price||Rs.2 lakh If the policyholder pays for this policy through the earnings of a pension accumulation plan offered by the company this amount can be reduced.|
|Maximum purchase price||No upper limit|
*The purchase price is computed by taking the annuity amount into consideration. The type of cover opted (Single/Joint) also plays a role in determining the amount payable.
|Annuity||This plan provides a regular source of income throughout the life of an annuitant(s).
A death benefit is payable, with this amount depending on the purchase price paid by an annuitant. The insurer pays the purchase price on death of annuitant.
|Maturity Benefit||There is no maturity benefit under this plan.|
The Smart Immediate Income Plan cannot be enhanced with a rider.
There is no exclusion under this policy. This is primarily because the annuity is paid until the death of annuitant, with no difference between natural death and death by suicide.
|Grace period||Being a single payment plan there is no provision for grace period.|
|Free look period||Policyholders who have purchased the policy through any distance marketing mode can choose to return it within 30 days of date of purchase if they disagree with the terms and conditions of the scheme. This period is reduced to 15 days in case the policy was purchased through any other mode.|
|Surrender value||There is no option of surrender under this plan.|
|Loan||No loan facility under this plan.|
|High purchase price increased annuity||Individuals who pay a higher purchase price are eligible to get an increased annuity amount based on the money paid.|
The Income Tax Act of 1961 provides tax benefits on the premium paid (purchase price) and the amount received as death benefit. The quantum of eligible deductions/exemptions depends on current rules and is subject to change. It is recommended that one consult a tax expert to make the best use of the provisions under this act.
This plan takes into account different contingencies which can arise after retirement, providing income throughout the life of a policyholder. Buying this enables one to protect not only his/her lifestyle, but also the future of his/her loved ones. The plan not only pays a regular income, but also provides a death benefit to the nominee.
Canara HSBC Oriental Bank of Commerce Life Insurance Co. is viewed as one of the better insurance providers in India, with it having a presence across the country. The insurer pays close attention to customer satisfaction, with it having won innumerable awards since its inception. The claim settlement ratio of Canara HSBC is one of the highest in India, with it being 92.99% during the FY 2015-16. It has adopted new techniques which make the entire process of buying a policy hassle-free. All these simple facts make the Smart Immediate Income Plan a good investment option.