Why choose a Smart Immediate Income Plan?

Canara HSBC Oriental Bank of Commerce Life Insurance Smart Immediate Income Plan is a single premium immediate annuity plan (non-unit linked) that ensures a guaranteed regular income for your lifetime. It provides you annuity installments throughout your lifetime, thereby ensuring that you maintain your lifestyle in the post retirement years and offers a death benefit through return of purchase price. The plan neither offers an option to surrender nor provides any surrender value during the entire term.

Plan UIN number

136N034V02

Features & Benefits

Product at a Glance

  • Entry Age: Minimum: 45 years, Maximum: No limit
  • Premium Options: Premium payment term: Single Premium 
  • Policy Term: Continued till the lifespan of annuitant (s)
  • Purchase Price (Single Premium): Minimum Purchase Price: ₹2,00,000 (excluding taxes), Maximum Purchase Price: No limit
  • Annuity Installment Frequency / Mode: Annual, Semi-Annual, Quarterly or Monthly 
Below is illustrations of how the modal factors will work for an annual annuity of ₹100,000
Frequency
Modal Factor
Annualised Amount (₹)
Number of Installments
Installment Amount (₹)
Annual
1.000 100,000
1
100,000
Half-yearly
0.969
96,900
2 48,450
Quarterly
0.954
95,400
4 23,850
Monthly
0.945
94,500
12 7,875
Below is illustrations of how the modal factors will work for an annual annuity of ₹100,000
Frequency
Annual
Modal Factor
1.000
Annualised Amount (₹)
100,000
Number of Installments
1
Installment Amount (₹)
100,000
Frequency
Half-yearly
Modal Factor
0.969
Annualised Amount (₹)
96,900
Number of Installments
2
Installment Amount (₹)
48,450
Frequency
Quarterly
Modal Factor
0.954
Annualised Amount (₹)
95,400
Number of Installments
4
Installment Amount (₹)
23,850
Frequency
Monthly
Modal Factor
0.945
Annualised Amount (₹)
94,500
Number of Installments
12
Installment Amount (₹)
7,875

Benefits

Annuity options: You can choose one of the following annuity options at an inception stage:

Single Life Annuity: Lifetime annuity with return of 100% of purchase price (excluding Goods and Services Tax & applicable cess (es)/levy, if any) on death of the annuitant

  • The annuity installments will be payable at uniform rate in arrears for the life of the annuitant
  • On the death of the annuitant, the payment of annuity installments will cease and 100% of the purchase price (excluding Goods and Services Tax & applicable cess (es)/levy, if any) shall be payable by the Company to the designated nominee

 

Joint Life Annuity: Annuity throughout the lifetime of the last surviving annuitant and return of 100% of purchase price (excluding Goods and Services Tax & applicable cess (es)/levy, if any) on the death of the last survivor

  • The annuity installments will be payable at uniform rate in arrears so long as at least one of the two annuitants is alive
  • On the death of the primary annuitant, secondary annuitant will continue to receive the annuity installment throughout life. On death of the last survivor, 100% of the purchase price (excluding Goods and Services Tax & applicable cess (es)/levy, if any) shall be payable by the Company to the designated nominee.

Please note that an Annuity option once chosen at policy inception cannot be changed at a later stage

 

Death Benefit: In case of death of the annuitant (for Single Life) or last survivor (for Joint Life), the purchase price (excluding Goods and Services Tax & applicable cess (es)/levy, if any) shall be payable as Death Benefit. Any outstanding annuity installments till the date of death shall also be payable along with the Death Benefit. However, all the Annuity installments paid from Date of Death to Date of Intimation of Death to the Company shall be reduced from the Death Benefit payable.

 

Survival Benefits: Guaranteed annuity installment for lifetime

 

Maturity Benefits: There are no maturity benefits under this plan

 

Higher annuity installment for high purchase price: The annuity rates vary by purchase price band and therefore you would benefit from higher annuity rates if the purchase price (excluding taxes) is ₹2,00,000 or above. The purchase price bands and additional annualized annuity rate are specified below:
Purchase Price Band (excluding Goods and Services Tax & applicable cess (es)/levy, if any)
Additional annualized annuity rate (per 1000 of purchase price)
<2,00,000
Nil
>2,00,000 to <3,00,000
1.10
>3,00,000 to <5,00,000
1.50
>5,00,000 to <10,00,000
1.80
>1,000,000
2.00
Higher annuity installment for high purchase price: The annuity rates vary by purchase price band and therefore you would benefit from higher annuity rates if the purchase price (excluding taxes) is ₹2,00,000 or above. The purchase price bands and additional annualized annuity rate are specified below:
Purchase Price Band (excluding Goods and Services Tax & applicable cess (es)/levy, if any)
<2,00,000
Additional annualized annuity rate (per 1000 of purchase price)
Nil
Purchase Price Band (excluding Goods and Services Tax & applicable cess (es)/levy, if any)
>2,00,000 to <3,00,000
Additional annualized annuity rate (per 1000 of purchase price)
1.10
Purchase Price Band (excluding Goods and Services Tax & applicable cess (es)/levy, if any)
>3,00,000 to <5,00,000
Additional annualized annuity rate (per 1000 of purchase price)
1.50
Purchase Price Band (excluding Goods and Services Tax & applicable cess (es)/levy, if any)
>5,00,000 to <10,00,000
Additional annualized annuity rate (per 1000 of purchase price)
1.80
Purchase Price Band (excluding Goods and Services Tax & applicable cess (es)/levy, if any)
>1,000,000
Additional annualized annuity rate (per 1000 of purchase price)
2.00

The Survivorship Certificate for the annuitant in receipt of the annuity, shall be submitted every year to the Company at least 15 days prior to the policy anniversary date but not before 60 days prior to the policy anniversary date. In case the survivorship certificate is not received by the Company, the payment of Annuity Installments shall cease immediately. However, upon receipt of the survivorship certificate, the payment of Annuity installments shall resume and all the arrears without any interest on the same will be settled.

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