Canara and HSBC are India’s leading banking organisations which have been satisfying people with their schemes. Their schemes are unique which help people in many ways. In this article let us learn about their pension plan. Pensions play a significant role in our lives after retirement. After working hard for more than 3 decades, we would definitely require monetary benefits for long term finances. Pensions provide money to retired individuals after their retirement. But there are many plans which provide pensions it’s very important to choose the right pension plan because these plans are for life time. In this article we will learn about Pension Plans, immediate pension plans, immediate income plan, annuity plan and the application process of this plan.
What are Pension Plans?
Initially we need to know what a pension plan is. Pension plan is a monthly amount which an employee receives after retirement. Pensions can be used for long term plans such as health, travel and children’s future. But everyone cannot receive pension only people who apply for pensions through schemes can receive pensions. And they need to sign every month to receive their pensions. When a policyholder pays a bulk amount to buy the plan and the next payment starts it is annuity payout this is called annuity payout. If the policy is brought for a certain period of time it is called as deferment period.
Canara HSBC Pension Plan
There are two types of plans under Canara HSBC pension plan, which are briefly discussed below
Canara HSBC Immediate Pension Plan
This type of plan is a traditional annuity plan which offer annuity payouts thought lifetime, the other features of this plan are
- The annuity which needs to paid will be paid from next year, half year or a month after paying the lump sum amount
- You will receive annuity payouts for your life time
- You need not take any medical tests for this plan
- According to section 800c the premiums which need to be paid are tax free
|Entry Age||45 years||70 years|
|Annual Annuity Amount||₹.3000||No limit|
|Purchase Price||Depends on Minimum Annuity||No limit|
|Annuity Payout Frequency||Yearly, Half Yearly, Quarterly and Monthly|
Canara HSBC Smart Immediate Income Plan
This type of plan is a traditional immediate annuity plan you can receive guaranteed payouts for single and joint life basis, the key features of this plan are
- The annuity payments will start from next month, after 6 months and next year
- This can be granted for single life or a joint life till your alive and after death
- The secondary annuity is for your spouse, child, parent and parent in law
- In first option the annuity is paid and after death the entire purchase power is returned
- In the second option which is the joint option, the last survivor annuity is provided and after death of the annuitant the payment is transferred to second annuitant that is their spouse and children
- For higher payouts of purchase price you will receive higher annuity
- To meet reverse mortgage scheme you can utilize the annuity
- The premiums which need to paid are exempted from taxation under section 800c
|Entry age||30 years||No limit|
|Annual annuity||Single life- ₹.12-Rs.300Joint life- ₹.13- Rs.494||No limit|
|Purchase price||₹. 2lakhs||No limit|
|Annuity payout frequency||Yearly, half yearly, quarterly or monthly|
Application for a Pension Plan
Though they provide various services certain plans are available only through online mode. Initially we must log into the company’s website fill in your details, in this step you must select the type of policy which you require. After filling in the details required you need to pay the premium through online mode. Certain policies which are not available online can be purchased through intermediaries such as brokers and agents this can also be purchased by visiting the nearby branch office and the details can be filled in the form. But compared to offline mode, online mode is better because it requires less paperwork and it is hassle free process and it can be completed within a short span of time.
Who Requires Annuity Plan?
The annuity plans are also called retirement plans these are suitable for retired individuals. But this plan should be purchased before retirement that is when the individual is planning for retirement. Such that it provides financial assistance thought life time. The annuity plan should be purchased before the age of 40. The period when you invest before working is called accumulated phase. As soon as the retirement period begins the annuity phase begins. The earlier you start investing you will receive more pension
Premium is the monthly payment which needs to be paid. There are two modes to pay premium they are offline mode and online mode
- Credit Card
- Debit Card
- National Electronic Fund Transfer
Online payments can be done only if the policy holder has a stable internet connection
For offline mode of payment he can visit the branch office and receive the challan and pay the amount in cash directly in the branch office.
How to Check the Policy Status?
To check the policy status, you need to check Canara HSBC Pension Plan website, and fill in your log in credentials
How to Renew My Policy?
You can renew your policy in 4 steps
Visit the website and fill in the login details
Choose your policy
Pay for your policy
After payment you will receive the receipt
What is the Company’s Procedure to Solve Claims?
The individual should visit the branch office along with policy document. The claim intimation for should be filled within 30 days
How to Cancel the Policy?
You should visit the nearby branch office with your policy document and dully filled surrender form. After acceptance your policy will be cancelled.