The Canara HSBC Life Insurance Company has launched a ‘Smart Guaranteed Pension’ plan offering flexibility in premium paying terms and guaranteed regular income.
Benefits Of Smart Guaranteed Pension
The Single Life Annuity plan under this scheme offers a fixed amount of money for the rest of your life. Customers can choose the premium amount and frequency based on their financial goals at the time of purchase. The premium payment tenure ranges from four to 10 years.
The customer also has the option to choose the deferment period, the period from the commencement of the policy till they get the first annuity payment. The subscribers can also choose the frequency of their annuity payouts, i.e., monthly, quarterly, half-yearly or annually.
On paying a premium of Rs. 1,00,000 to Rs. 2,50,000 in a year, an annuitant gets a 1.50 per cent high premium incentive. It is 3 per cent if the premium payment is above Rs. 5,00,000.
Monthly guaranteed additions equal to 1/12th of six per cent of total premiums paid or accrued in the corpus at the end of every month till the end of the deferment period.
A loan facility is available under all annuity options during the deferment period, provided the policy has acquired the Special Surrender Value. The policy acquires a special surrender value after payment of at least two full years’ premium. The policyholder can avail of a loan up to 80 per cent of the surrender value subject to a minimum loan amount of Rs. 50,000.
Points To Note
On the death of annuitant, all future annuity payouts cease immediately. If the death occurs during the deferment period, i.e., before first annuity payment, the total premiums paid along with guaranteed additions will be paid to the nominee. If this amount is higher than 105 per cent of total premium paid, then the nominee will only be entitled to the latter amount. But if death occurs after the deferment period nominee gets no payments.
However, if an annuitant chooses the option of ‘Single Life Annuity with Return of Premiums’, he/ she will get total premiums paid plus guaranteed additions (GAs), less total annuity payouts till the date of death.
There is also a ‘Joint life Annuity’ option that extends the plan benefits to your spouse. Note that an annuity option, once chosen at policy inception, cannot be changed at a later stage.
The policy allows for a grace period of 15 days if you have opted for a monthly payment of premium. For any other mode, the grace period is 30 days.
The policy can be revived anytime during the policy term within five years from the date of the first unpaid premium. To revive it, the annuitant should pay all unpaid premiums along with interest.
Akshay Dhand, appointed actuary of Canara HSBC Life Insurance, said the product is designed to ensure that retirement needs are secured with a regular flow of income in golden years.
Canara HSBC Life Insurance Company Ltd. is a joint venture promoted by Canara Bank and HSBC Insurance (Asia Pacific) Holdings Limited. Punjab National Bank holds 23 per cent of the company holdings.
