Canara HSBC was launched on 16th June 2008 and it’s a joint venture between Canara Bank (51%) and HSBC (28%) and Oriental Bank of Commerce (23%).It offers a combined experience of over 300 years in the financial business territory of our country.The business strategy followed by them testifies their understanding of the market especially when it comes to looking for a bank partner or scaling up their bancassurance channels.
Peaceful Post-Retirement Life
Tax Free Regular Income
Wealth Generation to beat Inflation
These plans come in two versions and provide a source of income to people in their older ages when they have retired from active employment. Immediate Annuity plans are where the policyholder pays a bulk amount to the company to buy the plan and then annuity payouts start from the next frequency without any delay. No money is payable if the policyholder dies during the annuity phase. Deferred annuity plans are those where the annuity payments are delayed. The policyholder buys the plan for a specific term, called the deferment period, makes payments for the premium required during this period and when the period expires is eligible to receive annuity. If he dies during this period, a specific benefit is paid as death benefit. The policyholder can only withdraw 1/3rd of the accumulated amount in cash while the remainder has to be used to avail annuity.
Canara HSBC Life Insurance Company has two variants in the pension plan category which require a detailed discussion as done below.
It is a traditional immediate annuity plan which promises annuity payouts for the complete lifetime of the policyholder. Other aspects of the plan include:
The annuity will be paid either starting from the next year or half-year or quarter or month after paying off the lump sum premium
The annuity payouts are guaranteed to be paid till the lifetime of then annuitant
No medical tests are required to be undertaken to buy the plan
Premiums paid will be tax free under the provisions of Section 80CCC
Eligibility Details
Minimum | Maximum | |
Entry Age | 45 years | 70 years |
Annual Annuity amount | Rs.3000 | No limit |
Purchase Price | Depending on the minimum annuity amount and age | No limit |
Annuity Payout Frequency | Yearly, half-yearly, quarterly or monthly |
A traditional immediate annuity plan where guaranteed payouts are available on a single as well as joint life basis. The features and benefits of the plan are as follows:
Under the plan, the annuity payments will start immediately from the next chosen frequency (monthly, quarterly, half-yearly or annually) after the payment of the single premium
The annuity payouts can be availed on a single life which will be guaranteed for the annuitant’s life or on a joint life basis which will be guaranteed for the annuitant’s life till he is alive and post his death, for the secondary annuitant’s life
The secondary annuitant can be either the spouse, child, parent or parent-in-law
There are two annuity options available under the plan and both options return the Purchase Price paid to avail annuity on death.
Under the first annuity option, lifetime annuity is paid to annuitant and post his death the entire Purchase Price is returned.
Under the second option of Joint Life, Last Survivor Annuity, annuity payouts are guaranteed for the lifetime of the annuitant and on his death the payouts continue till the secondary annuitant is alive. In case of the second death, i.e. of the secondary annuitant, the total Purchase Price is returned.
The plan promises higher annuity payouts for higher levels of Purchase Price
The annuity can also be utilized to meet the Reverse Mortgage Scheme.
The premium paid to buy the plan is exempt from taxation under Section 80CCC of the Income Tax Act.
Eligibility Details
Minimum | Maximum | |
Entry Age | 30 years | No limit |
Annual Annuity amount | Single Life – Rs.12, 300 Joint Life – 13, 494 | No limit |
Purchase Price | Rs.2 lakhs | No limit |
Annuity Payout Frequency | Yearly, half-yearly, quarterly or monthly |
Online
The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued
Intermediaries
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
On the PolicyBazaar homepage, click on Retirement under the Personal tab.
Click New Quotes to compare and choose from top insurance providers.
Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.
Fill in your name, email address, city, country code, and mobile number. Click Continue.
You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.
After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.
This will take you to the insurer’s website. You will have to fill in the necessary details to buy the plan.
An annuity plan, also known as a retirement plan, as the name suggests is best suited for retired people. However, though the plan benefits the retired folk, it is very important to note here that the plan should be bought by the individual well before his retirement. So in essence, an annuity plan should be taken by a person who is planning ahead for his retirement years as such a plan would provide the person with all the financial assistance needed in that phase of his life.
If you are 45 and still have not taken an annuity plan, you most definitely need to do so at the earliest! An annuity plan substitutes the policyholder’s regular income after his retirement by paying out regular ‘salaries’. But where does this salary come from? The policyholder, known as an annuitant here, builds up a fund while he still can afford it by paying regular premiums. This is known as the accumulation phase of an annuity plan. The annuity phase begins when he retires. Therefore, the earlier the accumulation phase begins, the easier it is for the policyholder to build up a healthy corpus that is large enough to help him pay his bills during the annuity phase.
Read Also: Annuity Meaning| Types of Annuity
Step1: Enter your Client ID and Date of Birth to login into e-portal
Step2: Choose the policy for which you want to pay
Step3: Select the payment option – Debit/Credit Card or Net Banking to pay
Step 4: Upon successful payment completion print/save the premium deposit receipt
You may also like read about National Pension Scheme
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Please note that the quotes shown will be from our partners
*Tax benefit is subject to changes in tax laws
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
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