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Canara HSBC OBC Life Insurance Smart Immediate Income Plan
This plan has been withdrawn by the insurance company and is no longer available for sale.
Canara HSBC OBC Life Insurance Smart Immediate Income Plan Review
Canara HSBC OBC Life Insurance Smart Immediate Income Plan is a traditional Immediate Annuity plan which provides a stream of regular annuities immediately after the plan is purchased. This plan is designed to provide a source of income post retirement.
Highlights of the 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 purchase price is returned on death of the annuitant.
The plan can be purchased for meeting the commitments of a Reverse Mortgage schemes for providing guaranteed annuities to home owners.
There are two types of payout options to select from.
Higher payouts are available for higher purchase price levels.
Working of the Canara HSBC OBC Life Insurance Smart Immediate Income Plan
The policyholder chooses the Single Premium he wants to pay, the annuity frequency and the annuity payout option. Based on the above parameters, the amount of annuity payable is calculated.
The annuity is paid as per the chosen frequency and the payout option immediately after the plan is purchased.
There is no maturity under the plan. On death, the purchase price which is the single premium paid to buy the policy is returned.
COMPARE THIS PLAN WITH OTHER PENSION PLANS
Benefits and Features of Canara HSBC OBC Life Insurance Smart Immediate Income Plan
Annuity Payouts – 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.
Bonus – This is a non-participating plan and as such, bonuses are not declared.
Loan –Loans are not available under the plan.
Tax benefit – 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.
Eligibility Criteria of Canara HSBC OBC Life Insurance Smart Immediate Income Plan
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
Additional Benefits of Canara HSBC OBC Life Insurance Smart Immediate Income Plan
Riders – Riders are not available with the plan.
Higher annuity options – If the Purchase Price is Rs.2 lakhs and above, an annuitant can avail higher annuity payouts as per the following table:
Additional annualized annuity rate
Up to Rs.2 lakhs
Rs.2 lakhs to less than Rs.3 lakhs
Rs.1.10 per Rs.1000 of the purchase price
Rs.3 lakhs to less than Rs.5 lakhs
Rs.1.50 per Rs.1000 of the purchase price
Rs.5 lakhs to less than Rs.10 lakhs
Rs.1.80 per Rs.1000 of the purchase price
Rs.10 lakhs and above
Rs.2.00 per Rs.1000 of the purchase price
Grace Period – Since it is a single premium plan, grace period clause is not applicable.
Free Look Period – 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.
The following graph shows the annuity rates payable for single life annuity at different purchase price and age combinations.
Exclusions in Canara HSBC OBC Life Insurance Smart Immediate Income Plan
There are no mentionable exclusions under the plan.
Surrendering the policy
Surrendering the policy is not allowed and annuity payouts would continue till the annuitant and/or his spouse’s lifetime.