Canara HSBC Life Insurance Annuity Plan

What is Canara HSBC Life Insurance Annuity Plan?

A Canara HSBC Life Insurance Annuity Plan is a retirement solution that converts a lump-sum investment into a guaranteed stream of income for life. It is a long-term income product where you receive fixed payouts regularly, helping you maintain financial stability during retirement.

As an investor, you can choose to invest through either:

• Lump-sum payment (for immediate annuity income)
  
  
• Regular premium payments (for deferred annuity income)

In return, Canara HSBC Life Insurance provides guaranteed monthly, quarterly, half-yearly, or annual payouts for the rest of your life, depending on the selected plan. These annuity plans offer predictable post-retirement income, unaffected by market movements.

Types of Canara HSBC Life Insurance Annuity Plans

Canara HSBC Life Insurance offers three annuity plans for retirement income security and financial stability. Below is a concise overview of the annuity options currently available:

• Canara HSBC Life Insurance Saral Pension Plan: A simple, single-premium immediate annuity plan that offers lifelong guaranteed income. It provides two options: Life Annuity with Return of 100% Purchase Price and Joint Life Last Survivor Annuity with Return of 100% Purchase Price on the last survivor’s death.
• Canara HSBC Life Insurance Pension4Life Plan: A flexible annuity plan that provides lifelong income through seven payout options. It allows immediate or deferred annuity, single or joint life coverage, and return of purchase price under eligible options. The entry age is 30 to 80 years, and up to 70 years for a deferred annuity.
• Canara HSBC Life Insurance Smart Guaranteed Pension: A deferred annuity plan that ensures guaranteed lifelong income after a chosen deferment period. It offers a premium payment term of 4 to 10 years and provides guaranteed additions of 6% per annum on total premiums during deferment. Entry age is 30 to 80 years.

Canara HSBC Life Insurance Saral Pension Plan

Canara HSBC Life Insurance Saral Pension Plan is a single-premium, non-linked, non-participating immediate annuity plan that guarantees a regular income for life. It offers two options: Life Annuity with Return of 100% Purchase Price and Joint Life Last Survivor Annuity with Return of 100% Purchase Price on the last survivor’s death. The plan is available for individuals aged 40 to 80 years. Income can be received monthly, quarterly, half-yearly, or yearly. A loan of up to 75% of the purchase price is available after six months, and surrender is permitted for 20 specified critical illnesses.

Key Features of Canara HSBC Life Insurance Saral Pension Plan

Sample Illustration - Canara HSBC Life Insurance Saral Pension Plan

The purchase price, age, gender, chosen annuity option, and payment frequency determine the annuity amount.

For example, if a person aged 65 purchases the plan with a single premium of ₹10 lakh under the Life Annuity with Return of 100% Purchase Price option, the annuity will start after the first chosen payout interval, such as a month or a year from the commencement date.

Under the Joint Life option, the surviving spouse continues to receive the same annuity for life, and the purchase price is paid to the nominee after the last survivor’s death.

*Key Notes: The actual payout of annuity amounts may differ based on factors like annuity option chosen, age, and existing rates.

Disclaimer: Actual annuity rate depends on prevailing rates at purchase and may vary.

Canara HSBC Life Insurance Pension4Life Plan

Canara HSBC Life Insurance Pension4Life Plan is a non-linked, non-participating individual annuity plan that provides guaranteed lifelong income through seven annuity options. It offers both immediate and deferred annuity choices with single or joint life coverage. The plan is available for individuals ages 30 to 80 years and supports NPS subscribers as well as reverse mortgage payouts.

Key Features of Canara HSBC Life Insurance Pension4Life Plan

Sample Illustration - Canara HSBC Life Insurance Pension4Life Plan

The annuity amount under the Canara HSBC Life Insurance Pension4Life Plan is determined by the purchase price, annuitant’s age, gender, annuity option, and payment frequency. For example, if the policy commences on 1 January 2019 and the annuitant selects the monthly payout mode, the first annuity instalment becomes payable on 31 January 2019. If the annual payout mode is chosen, the first annuity instalment is payable on 31 December 2019.

Once fixed at purchase, the annuity rate remains constant throughout the lifetime of the policy. The actual payout will depend on the option chosen, deferment period (if applicable), and declared rates at the time of purchase.

Canara HSBC Life Insurance Smart Guaranteed Pension

Canara HSBC Life Insurance Smart Guaranteed Pension is a non-linked, non-participating, individual deferred annuity plan that ensures a guaranteed lifelong income after retirement. The plan allows you to lock in your annuity rate today and receive regular income post a chosen deferment period. Designed for individuals who wish to secure a predictable retirement income, it can be availed as a single-life or joint-life annuity plan.

Key Features of Canara HSBC Life Insurance Smart Guaranteed Pension

Sample Illustration – Canara HSBC Life Insurance Smart Guaranteed Pension (Monthly Payout)

Below is an example of potential monthly annuity payouts for a 60-year-old annuitant opting for a 10-year deferment period and 5-year PPT, based on purchase price and annuity type:

Note: Actual annuity values vary depending on age, gender, deferment period, premium band, and annuity option selected. Joint life scenarios assume both annuitants are of the same age.

Key Takeaways

Canara HSBC Life Insurance annuity plans, including Saral Pension, Pension4Life, and Smart Guaranteed Pension, provide guaranteed lifelong income through immediate or deferred payout options. The plans offer single and joint life coverage, return of purchase price benefits, and flexible payment frequencies. They include features such as surrender and loan facilities, high-purchase incentives, and no medical test requirements. These plans are structured to support long-term income continuity and financial stability during retirement for individuals and families.