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  • Canara HSBC Smart Immediate Income Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    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.

    Eligibility – Who is the Canara HSBC Smart Immediate Income Plan for?

    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
    Plan options
    • Single annuity – annuity is paid throughout life of policyholder
    • Joint annuity – the second annuitant continues to receive annuity even after demise of primary annuitant

    Sum Assured and Premium Range – What you get and what it costs

    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
    • Throughout life of primary annuitant in case of Single Annuity Option
    • Throughout life of primary and secondary annuitant in case of Joint Annuity Option
    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.

    Plan Coverage – What the Canara HSBC Smart Immediate Income Plan covers

    Annuity This plan provides a regular source of income throughout the life of an annuitant(s).
    • In case of Single Life Option, the annuity will be paid till the demise of the annuitant. The annuitant can choose the frequency of annuity payments based on his/her requirements. On his/her demise the policy will cease to exist.
    • In case of Joint Life Option, the annuity will be paid until the demise of last survivor. The policy will cease to exist on demise of both annuitants.
    Death Benefit 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.
    • In case of Single Life Option the death benefit will be paid to the nominee after the annuitant passes away.
    • In case of Joint Life Option, the amount is payable after demise of both annuitants. In this case the money is paid after the last survivor passes away.
    Maturity Benefit There is no maturity benefit under this plan.

    Riders/Add-on plans – Additional coverage under the Canara HSBC Smart Immediate Income Plan

    The Smart Immediate Income Plan cannot be enhanced with a rider.

    Exclusions – What the Canara HSBC Smart Immediate Income Plan does not cover

    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.

    Other Key Features

    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.
    Revival NA
    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.

     

    Tax Benefits – How you can save with the Canara HSBC Smart Immediate Income Plan

    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.

    Why you should buy the Canara HSBC Smart Immediate Income Plan

    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.