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Death Benefit
Higher of Fund Value or 105% of the all premiums paid (including top-up premiums, if any)
The nominee/claimant shall have the option to utilize the death benefit in one of the following ways:
- Utilize the entire proceeds of the policy or part thereof for purchasing an immediate/deferred annuity at the then prevailing rate from us, which shall be guaranteed for life at the then prevailing annuity/pension rates. However, you will have an option of purchasing an immediate/deferred annuity at the then prevailing rate from any other insurer to the extent of the percentage, stipulated by the Authority, currently 50%, of the entire proceeds of the policy net of commutation.
- Withdraw the entire proceeds of the policy
Maturity (Vesting) Benefit
Higher of Fund Value or assured maturity benefit, where the assured maturity benefit is 101% of all due premiums paid (including top-up premiums)
Options available on Vesting (Maturity)
1. Commute up to 60% and utilize the balance amount to purchase immediate/deferred annuity from us, which shall be guaranteed for life, at the then prevailing annuity/pension rates. However, you will have an option of purchasing an immediate/deferred annuity at the then prevailing rate from any other insurer to the extent of the percentage, stipulated by the Authority, currently 50%, of the entire proceeds of the policy net of commutation.
2. Utilize the entire proceeds of the policy for purchasing an immediate/deferred annuity at the then prevailing annuity rate of the Company. However, you will have the option to purchase immediate/deferred annuity from any other insurer at the then prevailing annuity rate to the extent of the percentage, stipulated by the Authority, currently 50%, of the entire proceeds of the policy net of commutation.
3. Extend the accumulation period or defer the Vesting date (subject to maximum Vesting age) within the same policy, with same terms and conditions, provided you are less than 60 years of age as on that date.
For option 3 above, for single pay or limited pay variant, only deferment of vesting date is allowed subject to maximum maturity age of 80 years. No premiums are to be paid for the extended period.
For regular premium policies, there will be an option to extend the accumulation period i.e. premium payment period along with deferment of vesting Date.
Investment Funds and Investment strategy:
There are three investment funds in the plan. The investment and risk profile of each fund is described below:
Fund Name
Pension Growth Fund
Fund Philosophy
To achieve capital appreciation through a judicious mix of investments in equities and fixed income securities.
Asset Allocation
Equity
10%-60%
Debt Securities
20%-100%
Money Market Instrument & Others*
0%-80%
Risk Profile
Medium to high
Fund Name
Pension Balanced Fund
Fund Philosophy
To achieve a balance between capital protection and returns through a judicious mix of investments in equities and fixed income securities.
Asset Allocation
Equity
0%-30%
Debt Securities
20%-100%
Money Market Instrument & Others*
0%-80%
Risk Profile
Medium
Fund Name
Pension Debt Fund
Fund Philosophy
To provide capital protection and accumulation of income through investment in fixed income securities.
Asset Allocation
Equity
0%
Debt Securities
20%-100%
Money Market Instrument & Others*
0%-80%
Risk Profile
Low
*Others will include investments in Liquid Mutual Funds, FDs and other short term investments
Pension Growth Fund
- 100% of the premiums (including top-ups) are invested in this fund for the first 15 policy years.
- Gradual shifting in 5 quarterly tranches will happen during 15th policy year.
- Any premium / top-ups in 15th policy year shall also be invested in Pension Growth Fund
Pension Balanced Fund
- All available Units under the Pension Growth Fund are switched out and moved to Pension Balanced by the beginning of 16th policy year
- 100% of the renewal premiums (including top-up's) are invested in this fund after first 15 policy years are over, which means for the last five years
- Option for switching and premium re-direction to Pension Debt Fund in last five policy years
Pension Debt Fund
- Any proportion of Funds can be switched from Pension Balanced Fund to Pension Debt Fund in last five policy years
- Switching is not allowed from Pension Debt Fund to any other Fund
- Renewal premium / Top-ups can be re-directed to Pension Debt Fund in last five policy years
Tax Benefit
You may be entitled to certain tax benefits as per the Income Tax Act, 1961. Tax benefits under the policy will be as per the prevailing Income Tax laws and are subject to amendments from time to time. For tax related queries, contact your independent tax advisor.
Step 1: Choose your vesting age (retirement age)
- Choose any vesting age between 40 to 80 years, subject to minimum policy term of 10 years and maximum policy term of 35 years (for Regular/Limited pay) or 30 years (for single pay)
- If the policy is sourced under QROPS (Qualifying Recognized Overseas Pension Scheme), the Age of the Life Assured on the Vesting date should be between 55 (Fifty Five) years and 75 (Seventy Five) as per the prevailing Her Majesty Revenue & Customs (HMRC) requirements
Step 2: Choose your premium payment term
- Choose any premium payment term from 5 years up to the vesting age
- You can also choose single premium option in this plan
- For policy sourced under QROPS, only Single pay option is available
Step 3: Choose the premium payment mode and amount
- Choose the premium payment mode as Annual or Monthly, depending upon your needs
- Choose the premium amount you want to invest for the chosen premium payment term
Notes:
The assumed Total Vesting Benefits (at 4% p.a. and 8% p.a. investment return scenario) shown in the above illustrative example are not guaranteed, and they are not the upper or lower limits of what you might get back, as the value of your policy depends on a number of factors including performance of investment funds. The Total Vesting Benefits (Fund Value) shown in the above illustrative example are after deduction of all charges including applicable taxes and cess (es), if any.
The annuity amounts above would be payable annually in arrears from the vesting date, as long as the Life Assured is still alive. No other benefit would be payable. The above assumes that 100% of the Total Vesting Benefit is used to buy an annuity. The annuity amounts shown have been calculated using prevailing rates for Smart Immediate Income Plan (UIN: 136N034V04), which may change from time to time. The annuity amounts are shown above only to give an indication of the amount of annuity you may be able to purchase. Please refer to the Company's website for prevailing annuity rates. In practice this amount will depend on the annuity rate available at that time, which will in turn depend on the company's assessment of factors such as long term interest rates and mortality rates. To that extent there is a risk that targeted annuity rate will not be the same as illustrated above. The amount of annuity available to you will also depend on the type of annuity you select and the proportion of your Total Vesting Benefit used to buy the annuity.
On Vesting (Maturity of your policy), you may be required by applicable prevailing laws to use all or part of your Total Vesting Benefit to purchase an annuity.
The annuity at the time of Vesting will be provided by Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited or any other insurer, as stipulated by the Authority, subject to the terms and conditions of the product.
Entry Age
Minimum
25 years
Maximum
70 years
Vesting Age
Minimum
40 years
Maximum
80 years
If the policy is sourced under QROPS, the Age of the Life Assured on the Vesting date should be between 55 (Fifty Five) years and 75 (Seventy Five) as per the prevailing Her Majesty Revenue & Customs (HMRC) requirements.
Vesting age less entry age, subject to following conditions:
- Maximum policy term is 80 years less entry age
- Minimum policy term is 10 years
- For Regular / Limited pay, maximum policy term is limited to 35 years
- For Single pay, maximum policy term is limited to 30 years
Option to increase the Policy Term / accumulation period:
At any time, Vesting age (Policy Term) can be extended (within the maximum limits prescribed above) by giving a written notice of at least 3 (Three) months prior to the Vesting Date provided you are less than 60 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). If the policy is sourced under QROPS, the Age of the Life Assured on the Vesting date should be between 55 (Fifty Five) years and 75 (Seventy Five) as per the prevailing Her Majesty Revenue & Customs (HMRC) requirements.
Minimum
Maximum
Single Pay
One time premium only
-
Limited Pay
5 Years
34 Years
Regular Pay
10 years
Equal to the Policy Term
For Single Pay
₹ 3,00,000
For Regular/Limited pay
Annual Premium (for premium payment term to 9 years): ₹ 50,000
Annual Premium (for premium payment term years and above): ₹ 25,000
Monthly Premium (for premium payment term to 9 years): ₹ 5,000
Monthly Premium (for premium payment term years and above): ₹ 3,000
For Top-ups
₹ 10,000
Regular/Limited pay: Annual & Monthly modes are available
Please note that it is mandatory to pay first 3 months premium in advance1 if you have chosen monthly mode of premium payment For policy sourced under QROPS, only Single pay option is available
1 Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year. However, where the premium due in a financial year is being collected in previous financial year, the premium may be collected for a maximum period of three months in advance of the due date of the premium. The premium so collected in advance shall only be adjusted on the due date of the premium. Such advance premium, if any, paid by the policyholder shall not carry any interest.
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