Investment Plans 112 views September 2, 2021

Canara HSBC OBC Pension4Life Plan helps individuals get guaranteed lifetime income throughout their retirement years. With this plan, you can ensure a regular stream of income after your retirement. It is an annuity product with which you can get a defined level of annuity installments in exchange for a purchase price.

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Let’s check out the key features of this Canara HSBC OBC Life Insurance plan mentioned below.

  • Multiple Annuity Options to Choose from
  • Guaranteed Lifetime Income to Sustain Your Lifestyle
  • Option to Get Regular Payments Until Your Partner is Alive
  • Return of Purchase in case of your Death
  • Different Annuity Installment Frequencies
  • High Purchase Price Incentive
  • A 15 or 30-day Free Look Period
  • Loan Facility Against the Surrender Value
  • Tax Benefits Under Income Tax Act, 1961

Read through this page to have detailed information about these features so that you can understand them better. Let’s start without any further delay.

Features and Benefits of Canara HSBC OBC Pension4Life Plan in Detail

We have discussed the features and benefits of the Canara HSBC OBC Pension4Life Plan below. Please check.

Multiple Annuity Options to Choose From

Canara HSBC OBC Pension4Life Plan allows you to choose from the following annuity options at policy inception.

Option 1– Immediate Life Annuity (Single Life)
Option 2– Immediate Life Annuity with Return of Purchase Price (Single Life)
Option 3– Immediate Life Annuity with Return of Balance Purchase Price (Single Life)
Option 4– Immediate Life Annuity with Return of Purchase Price on Critical Illness (CI) or Accidental Total & Permanent Disability (ATPD) or Death(Single Life)
Option 5– Immediate Joint Life Annuity with Return of Purchase Price
Option 6– Deferred Life Annuity with Return of Purchase Price (Single Life)
Option 7– National Pension System (NPS) – Family Income (option available only for NPS subscribers)

Note: An annuity option chosen at policy inception cannot be changed at a later stage.

Annuity and Premium Payment Terms

The annuity term will be different for single and joint life. To know more, check the below table.

Issued on Single LifeUntil the death of the annuitant or the diagnosis of covered critical illnesses or accidental total & permanent disability, whichever is earlier
Issued on Joint LifeUntil the death of the last survivor

Note: You will need to pay the purchase price as a single premium only.

Death Benefit

Under the Canara HSBC OBC Pension4Life Plan, the death benefit will be according to the annuity option chosen at inception. You can understand them in detail in the below table.

Annuity OptionsDeath Benefit
Immediate Life Annuity (Single Life)The annuity is payable through the annuitant's life.

On the death of the annuitant, all future annuity payouts will cease immediately.
Immediate Life Annuity with Return of Purchase Price (Single Life)The annuity is payable through the annuitant's life.

On death, all future annuity payouts will cease immediately and the plan will provide the purchase price.
Immediate Life Annuity with Return of Balance Purchase Price (Single Life)The annuity is payable through the annuitant's life.

On the death of the annuitant, the plan will pay the balance of the purchase price (equal to the purchase price minus total annuity installments paid till the date of death).
Immediate Life Annuity with Return of Purchase Price on Critical Illness (CI) or Accidental Total & Permanent Disability (ATPD) or Death(Single Life)The annuity is payable through the annuitant's life.

In case an annuitant is diagnosed with any of the 7 covered critical illnesses or accidental total permanent disability before the age of 85 or on his/her death, the policy will provide the purchase price.
Immediate Joint Life Annuity with Return of Purchase PriceThe annuity will be payable as long as at least one of the two annuitants is alive. If the primary annuitant dies, the secondary annuitant will get 100% of the original annuity throughout his/her life.

On the death of the last survivor, all future annuity payouts will cease immediately and the purchase price will be payable.
Deferred Life Annuity with Return of Purchase Price (Single Life)The annuity will be payable post the deferment period (as long as the annuitant is alive). The deferment period ranges from 1 to 10 years.

On the death of the annuitant, the death benefit will be higher of the following amounts.

Purchase Price plus Guaranteed Additions (GAs) less Total Annuity Payouts till the date of death
105% of the Purchase Price

Here, GA is equal to purchase price/1000 * applicable annuity rate
National Pension System (NPS) – Family Income (option available only for NPS subscribers)The annuity option will be paid as per the regulations of PFRDA.

In case the subscriber chooses this annuity option and has a spouse, benefits will be according to the annuity option 5. In case of not having a spouse, the benefits will be payable as per the annuity option 2.

What is the Minimum Purchase Price and Annuity Installment?

Under the Canara HSBC OBC Pension4Life Plan, the minimum purchase price stands at INR 2,00,000. For the minimum annuity installments, check the below table.

Payment ModesMinimum Annuity Installment (In INR)
Yearly12000
Half-yearly6000
Quarterly3000
Monthly1000

High Purchase Price Incentive

The annuity rates depend on the purchase price band. If a policyholder chooses higher annuity rates, the plan will provide an incentive accordingly. To know more, check the below table.

Purchase Price BandHigh Purchase Price Incentive (Per INR 1,000 of the purchase price)
2 to less than 5 lakhNil
5 to less than 10 lakh1
10 to less than 25 lakh2
25 to less than 50 lakh2.25
50 lakh or above2.5

Loan Facility

Under annuity option 6 ( Deferred Life Annuity with Return of Purchase Price), you can opt for a loan during the deferment period if your policy has acquired a special surrender value. The minimum loan amount stands at INR 50,000 and can go up to 80% of the surrender value.

Canara HSBC OBC Pension4Life Plan Eligibility Criteria

Please check the important conditions related to the plan below.

  • The minimum entry age stands at 45 years.
  • For options 4 and 6, the maximum entry age stands at 80 years. For option 7, the Pension Fund Regulatory and Development Authority (PFRDA) will decide the maximum age.
  • There is no maximum entry age For all other options.

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