Canara HSBC OBC Life Insurance Smart Immediate Income Plan

This is a traditional annuity plan wherein the annuity payments start immediately after the plan is purchased.

The premium is payable at once on plan inception after which the annuity payouts commence.

Policyholder’s spouse, child, parent or parent-in-law can also be covered to receive annuity by choosing the Joint Life Annuity Option available under the plan.

The plan can be purchased for meeting the commitments of a Reverse Mortgage schemes for providing guaranteed annuities to home owners.

The plan has 2 types of annuity payout options. One is for Single Life and the other is for Joint Life Annuity. The options and their respective payouts are as follows:

• Lifetime annuity for the annuitant and return of purchase price on death of the annuitant
• Lifetime annuity for the annuitant. After his death, lifetime annuity is payable to the secondary annuitant. On death of the last survivor, the purchase price is returned to the nominee.
  The secondary annuitant can be the spouse, child, parent or parent-in-law.

This is a non-participating plan and as such, bonuses are not declared.

Loans are not available under the plan.

Premiums paid under the plan would be exempt from tax under Section 80CCC. The annuity payments received, however, would be taxable under Section 10(10A) of the Income Tax provisions.

Riders are not available with the plan.

If the Purchase Price is Rs.2 lakhs and above, an annuitant can avail higher annuity payouts as per the following table:

Since it is a single premium plan, grace period clause is not applicable.

A cooling off period or a free look period of 15 days (30 days for distance marketing channels) is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the policyholder can cancel the policy and get the premium refunded after adjustment of the applicable costs.