Established in the year 2008, Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited offers a wide range of retirement solutions. Recently, they introduced Canara HSBC Secure Bhavishya Plan, a scheme that gives the freedom to plan their retirement. This pension plan comes with the benefit of equity participation to potentially enhance your retirement corpus. It also offers capital protection to your retirement corpus.
|Type of the plan||Regular retirement plan|
Eligibility Conditions for the Canara HSBC Secure Bhavishya Plan:
|Minimum Entry Age||25 years|
|Maximum Entry Age||70 years|
|Minimum Vesting Age||40 years|
|Maximum Vesting age||80 years|
Premium Payments Offered by the Canara HSBC Secure Bhavishya Plan:
|Premium Payment Term||For Single pay one time premium only
|Premium Payment Frequency||Regular, Limited, Annual, or monthly payment modes|
|Minimum Premium||Single pay is Rs.3,00,000. For Regular or Limited pay:
|Policy Term||Maximum policy term is 80 years minus entry age
- That it is mandatory to pay first 3 months premium in advance if you have chosen monthly mode of premium payment.
- At any time during the term of the policy, the policyholder can be extended by giving a written notice of at least 3 months prior to the Vesting Date provided you are less than 55 years of age as on that date.
- For Regular pay variant, there will be an additional option to extend the accumulation period along with vesting age (wherein the customer shall pay the premiums as well).
Key Features of Canara HSBC Secure Bhavishya Plan:
|Guaranteed Maturity Vesting Benefit||Available|
|Investments Fund Plans||Available|
|Switching from Pension Balanced Fund to Pension Debt Fund||Available|
|Partial Withdrawals||Not available|
|Revival Option||Not available for single pay option.|
What you should know about Canara HSBC Secure Bhavishya Plan:
- Top-ups premiums can be made under this plan.
- Except the first and the last policy year, top-up premiums can be made throughout the policy term.
- The minimum top-up premium is Rs.10,000.
- The policyholder can pay top-up premiums only of all the premiums are paid.
- The policyholder can opt to switch investments from Pension Balanced Fund to Pension Debt Fund during the last five years of the policy term. You can switch the entire amount or a percentage of a percentage.
- The minimum amount that a policyholder can switch is Rs.10,000.
Advantages and Benefits of Canara HSBC Secure Bhavishya Plan:
Canara HSBC Secure Bhavishya Plan comes with the following features:
This benefit is extended to policies of Higher Fund Value or 105% of the cumulative premiums paid (including top-up premiums, if any). The nominee will be given the following options on death of the insured.
- Utilize the entire proceed of the policy or avail part proceeds for purchasing an immediate annuity at the then prevailing rate which shall be guaranteed for life at the then prevailing annuity or pension rates.
- Withdraw the entire proceeds of the policy.
Maturity (Vesting) Benefit:
Upon maturity, the policyholder is eligible for Higher of Fund Value or guaranteed maturity benefit. This maturity benefit is 101% of total premiums paid (including top-up premiums). Please note that all the premiums must be paid to avail this benefit.
Options available on Vesting (Maturity):
- Commute up to the extent allowed under applicable prevailing laws and make use of the balance amount to purchase immediate annuity only from Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited , which shall be guaranteed for life, at the current annuity/pension rates.
- Purchase the single premium pension plan from the company using the entire proceeds.
- You also have an option to extend the accumulation period or defer the retirement date (subject to maximum vesting age) with the same conditions and terms. This can be done only if you are less than 55 years of age as on that date.
- For the above option, for single pay or limited pay variant, only deferment of retirement or vesting date is allowed subject to maximum maturity age of 80 years. No premiums are to be paid for the extended period.
As per the Income Tax Act, 1961, you may be eligible to receive tax benefits for the premiums paid towards Canara HSBC Secure Bhavishya Plan and any benefits obtained thereof.
If the policy is lapsed, the policyholder can reinstate the policy within 2 consecutive years by paying all the outstanding dues with interest. Please note that this option is not available for single pay option.
Investment Funds and Investment strategy:
The following three investment funds are available in the plan.
|Fund Name||Fund Philosophy||Asset Allocation||Risk Profile|
|Pension Growth Fund||To achieve capital appreciation through a mix of investments in equities and fixed income securities.||Equity||10%-60%||Medium to high|
|Money Market Instrument & Others*||0%-80%|
|Pension Balanced Fund||To achieve a balance between capital protection and returns through a judicious mix of investments in equities and fixed income securities.||Equity||0%-30%||Medium|
|Money Market Instrument & Others||0%-80%|
|Pension Debt Fund||To provide capital protection and accumulation of income through investment in fixed income securities.||Equity||0%||Low|
|Money Market Instrument & Others||0%-80%|
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017