Retirement Investment Plan | Pension4Life Plan

HSBC IN
Insurance
Pension4life

Why choose the Pension4life plan?

As you approach your retirement, the most important thought on your mind is to lead a secure and comfortable life as you always have, without any dependence on others. Everyone loves to be financially independent, and to live a worry free and comfortable life. This is even more important in your golden years post retirement as after so many years of hard work, money should not be a concern for you to decide how you would spend these years.

Canara HSBC Life Insurance Pension4Life Plan is a smart way to ensure a regular guaranteed income stream as per your needs post retirement, where you will receive defined level of annuity instalments in exchange for a Purchase Price.

Plan UIN Number:

136N071V07

Ways to open:

Branch, Online

Features & benefits

Options under the plan

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)

Please note that after your policy begins you cannot change your annuity option.

Key parameters:

Entry age (age as of last birthday)

Minimum: 30 years

Maximum entry age details:
Options	Age
Option 4 - Immediate Life Annuity with Return of Purchase Price on Critical Illness (CI) or Accidental Total & Permanent Disability (ATPD) or Death Option 6 - Deferred Life Annuity with Return of Purchase Price	80 years
Other options	No limit

Maximum entry age details:
Options	Option 4 - Immediate Life Annuity with Return of Purchase Price on Critical Illness (CI) or Accidental Total & Permanent Disability (ATPD) or Death Option 6 - Deferred Life Annuity with Return of Purchase Price
Age	80 years

Options	Other options
Age	No limit

For Entry Age exceeding 99 years, the Annuity Rate for the Entry Age 99 years shall be applicable.

Note: For a Policy purchased from the proceeds arising out of the Company's or any other insurer's Pension Products, the Minimum Entry Age shall be 0 years

Purchase price (Single Premium) & Annuity Instalment

Minimum purchase price: INR200,000 (excluding Goods and Services Tax & applicable cess (es) / levy, if any)
Minimum annuity instalments are INR12,000, INR6,000, INR3,000 and INR1,000 respectively for yearly, half-yearly, quarterly and monthly mode
Maximum purchase price: no limit
Maximum annuity instalment: no limit
Please note that the purchase price will be received as single premium only. Your annuity instalment depends on your entry age, purchase price, annuity option, and deferment period

Annuity instalment frequency / mode

Annuities can be payable in yearly, half-yearly, quarterly or monthly modes.

The modal factors are:

Yearly: 1.00
Half-yearly: 0.98
Quarterly: 0.97
Monthly: 0.96

Example: a monthly annuity rate will be calculated as (applicable annuity rate x 0.96 / 12). So a purchase price which yields an annual annuity instalment of INR100,000 would yield 12 monthly instalments of INR8,000 each.

Benefits:

The benefits under the plan vary as per the plan option chosen.

The details below will help you understand the benefits of the plan better:

Death, survival benefit

Immediate Life Annuity (Single Life)
1. Annuity is payable throughout the life of the Annuitant.
2. On death of the Annuitant, all future annuity payouts cease immediately.
Immediate Life Annuity with Return of Purchase Price (Single Life)
1. Annuity is payable throughout the life of the Annuitant.
2. On death of the Annuitant, all future annuity payouts cease immediately and Purchase Price shall be payable.
Immediate Life Annuity with Return of Balance Purchase Price (Single Life)
1. Annuity is payable throughout the life of the Annuitant.
2. On death of the Annuitant, the balance of Purchase Price, which will be equal to the Purchase Price less sum total of annuity Instalments paid till the date of death, shall be payable and all future annuity payouts cease immediately.
  
  Note : If the balance of Purchase Price is negative, no benefit is payable on death.
Immediate Life Annuity with Return of Purchase Price on Critical Illness (CI)¹ or Accidental Total & Permanent Disability (ATPD) or Death (Single Life)
1. Annuity is payable throughout the life of the Annuitant.
2. Upon the Annuitant being diagnosed with any of the 7 covered Critical Illnesses (CIs) or Accidental Total & Permanent Disability (ATPD) before the Annuitant attains 85 years of age (as on last birthday) or on death of the Annuitant, whichever occurs earlier, the annuity payments will cease and Purchase Price shall be payable. Post annuitant attaining 85 years of age (as on last birthday), CIs or ATPD benefits won't be applicable and Annuity payouts will continue with Return of Purchase Price being payable only on death.
  
  ¹Note: Waiting Period of 90 days will be applicable from the risk commencement date.
Immediate Joint Life Annuity with Return of Purchase Price
1. The annuity will be payable, so long as at least one of the two Annuitants is alive. On the death of the Primary Annuitant, Secondary Annuitant will receive 100% of original annuity throughout his / her life.
2. On death of the last survivor, all future annuity payouts cease immediately and Purchase Price shall be payable.
Deferred Life Annuity with Return of Purchase Price (Single Life)
1. The annuity will be payable post Deferment Period, for as long as the Annuitant is alive. The customer can opt for Deferment Period from 1 to 10 Years (Integer values) at inception of the Policy.
2. On death of the Annuitant, all future annuity payouts cease immediately and the following benefit shall be payable:

Higher of:

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

Where GA = Purchase Price / 1000 * Applicable Annuity Rate and is accrued at the end of every Policy Year during the Deferment Period. GAs stop accruing after the end of the Deferment Period.

Maturity Benefit

No maturity benefit applicable

Surrender Benefit

Surrender Value is defined as the higher of {Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV)} subject to a minimum of zero.

(Please refer to the sales brochure for calculation of GSV and SSV)

For Annuity Option 6, Policy acquires a Guaranteed Surrender Value (GSV) from the beginning of the first Policy Year.

For Annuity Options 2, 4, 5 and 6, Policy acquires a Special Surrender Value (SSV) from the beginning of the second Policy Year.

Surrender is not allowed in case the annuity is purchased from the proceeds or part of the proceeds arising out of the Company's or any other insurer's pension plans,

On the payment of the surrender value, the policy shall terminate and all other benefits shall cease.

Surrender benefit is not available for Annuity Options 1 and 3.

Loan Facility

Loan facility is available in this product under the Annuity Option 6 - 'Deferred Life Annuity with Return of Purchase Price' during the Deferment Period provided that the Policy has acquired the Surrender Value.

Higher annuity instalment 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 Goods and Services Tax & applicable cess (es)/levy, if any) is INR500,000 or above. The purchase price bands and additional annuity rate are specified below:
Purchase Price Band (excluding Goods and Services Tax & applicable cess (es) / levy, if any)	High Purchase Price Incentive (per 1000 of purchase price)
200,000 to less than 500,000	Nil
500,000 to less than 1,000,000	1.0
1,000,000 to less than 2,500,000	2.0
2,500,000 to less than 5,000,000	2.25
Greater than or equal to 5,000,000	2.5

The annuity rates vary by purchase price band and therefore you would benefit from higher annuity rates if the purchase price (excluding Goods and Services Tax & applicable cess (es)/levy, if any) is INR500,000 or above. The purchase price bands and additional annuity rate are specified below:
Purchase Price Band (excluding Goods and Services Tax & applicable cess (es) / levy, if any)	200,000 to less than 500,000
High Purchase Price Incentive (per 1000 of purchase price)	Nil

Purchase Price Band (excluding Goods and Services Tax & applicable cess (es) / levy, if any)	500,000 to less than 1,000,000
High Purchase Price Incentive (per 1000 of purchase price)	1.0

Purchase Price Band (excluding Goods and Services Tax & applicable cess (es) / levy, if any)	1,000,000 to less than 2,500,000
High Purchase Price Incentive (per 1000 of purchase price)	2.0

Purchase Price Band (excluding Goods and Services Tax & applicable cess (es) / levy, if any)	2,500,000 to less than 5,000,000
High Purchase Price Incentive (per 1000 of purchase price)	2.25

Purchase Price Band (excluding Goods and Services Tax & applicable cess (es) / levy, if any)	Greater than or equal to 5,000,000
High Purchase Price Incentive (per 1000 of purchase price)	2.5

Loyalty Booster

In case the Policy is sourced to the existing customers of Canara HSBC Life Insurance Company Limited (the Insurance Company), the annuity rates shall be increased by 1%.

Existing customers refers to the customers having an individual policy of the Insurance Company which is in-force at the time of Proposal. It also includes customers who are proposing to utilise the proceeds from the Insurance Company's Individual Products to buy a Policy under this product, subject to such a request is made within 6 months from the date of receiving such proceeds.

How it works:

You can customise your policy to suit your financial goals and requirements in just 5 steps:

Step 1: Choose the purchase price (single premium) that you wish to pay to buy the annuity or choose the annuity instalment you wish to receive.

Step 2: Choose your annuity option (If annuity option 6 (Deferred Life Annuity with Return of Purchase Price) is chosen, choose the deferment period).

Step 3: Choose your annuity instalment frequency – Yearly, Half-Yearly, Quarterly or Monthly.

Step 4: Provide your and your partner's details (if applicable).

Step 5: Pay purchase price and receive the annuity instalments through direct credit in your bank account.

Important information

This is a single premium payment plan where the payment needs to made only once along with the applicable taxes.
The plan once issued, offers guaranteed annuity rates throughout the term of the plan
Annuity instalments as and when payable will get directly credited to your nominated bank account
Non-resident customers should buy this product taking into consideration the statutory and regulatory requirements of their respective jurisdictions and shall ensure compliance with the same. By facilitating purchase of this product, The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India) makes no representation that the product is suitable for any particular customer or is appropriate in accordance with the legal or regulatory regime of any other country.
You must disclose all your details completely and correctly in the proposal form.
You need to submit a Survivorship Certificate to the Insurance Company every year, at least 15 days in advance of 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 Insurer, the payment of Annuity Instalments shall cease immediately.
Taxation:

All annuity payouts are subject to the provisions contained in the Income-tax Act, 1961.

Goods and Services Tax & applicable cess (es) / levy will be charged on the Purchase price as per applicable laws and at rate declared by the Government, subject to amendment from time to time

Tax Deduction at Source (Non-Residents): As per Section 195 of Income Tax Act 1961, TDS is deducted at applicable rate on the payments made to Non-Resident which is not exempted under the Act. If the Double Taxation Avoidance Agreement (DTAA) between India and the country in which recipient resides so provides, then relief in TDS can be availed provided below mentioned documents have been submitted with the Insurance Company on an annual basis.

Completely filled and signed Form 10F
Tax Residency Certificate for relevant Financial Year

Canara HSBC Life shall deduct taxes² as applicable from time to time.

²Please note that basis Goods and Services Tax (GST) regulations and notified GST rates, Central GST, State/Union Territory GST, or Inter-State GST, as applicable, and Cess as applicable would apply on the fees and charges.

Taxation under the plan will be as per the prevailing Income Tax laws and are subject to amendments by the Government of India from time to time. Please consult your independent tax advisor for tax related queries, including your personal tax liabilities under the Income Tax Act, 1961.

You should go through the entire sales brochure of this product to have a complete understanding of the policy you are purchasing
Please note that the annuity option 7 "NPS – Family Income (option available only for National Pension System (NPS) subscribers)", described in the Pension4Life Brochure is not being offered by HSBC India.
Purchase of insurance product is purely voluntary and is not linked to availment of any other facility from the bank

Apply for Pension4Life Plan

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Terms & Conditions

Insurance is the subject matter of the solicitation.

The Insurance product is offered and underwritten by the insurer Canara HSBC Life Insurance Company Limited (CHL) (IRDA Regn. No. 136), 139 P, Sector 44, Gurugram – 122003, Haryana, India.

The Hongkong and Shanghai Banking Corporation Limited, India {The Insurance Regulatory and Development Authority of India (IRDAI) Regn. No. CA0016} whose India corporate office is at 52/60, M. G. Road, Fort, Mumbai 400 001, (HSBC India) is the Corporate Agent of Canara HSBC Life Insurance Company Limited and does not underwrite the risk or act as an insurer. The contract of insurance is between the insurer and the insured and not between HSBC India and the insured.

HSBC India will be entitled to a total commission of 20% on the single premium paid for this product.

For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale. You may also reach out to the insurer, Canara HSBC Life Insurance Company Limited at the contact details given below:

Website: www.canarahsbclife.com.

Call: 1800-103-0003/1800-180-0003 Mahanagar Telephone Nigam Limited (MTNL) / Bharat Sanchar Nigam Limited (BSNL)

E-mail: customerservice@canarahsbclife.in

SMS your query to: 9779030003 to get a call back within 48 hours

Beware of spurious or fraudulent phone calls!

• IRDAI is not involved in activities like selling Insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

Pension4life Plan