Unsure About Which Pension Scheme To Choose? Here’s A Guidebook For You!

Retirement has always been a topic of concern for many working adults in India. Many of us fear that with the onset of retirement, we will lose our financial independence. Your well-deserved retirement does not have to commence with the death of your financial independence, instead, it could be a vacation that lasts a lifetime.

One of the best ways to ensure a regular stream of income as per your needs is to purchase the Canara HSBC Oriental Bank of Commerce Life Insurance’s Pension 4life Plan. With the purchase of an annuity product, you will receive a defined level of annuity installments. At Canara HSBC Oriental Bank of Commerce, you can choose your ideal retirement plan from their wide range of premium pension plans.

To help you decide which retirement plan is the best for you, we have listed the best types of pension plans in the market:

Immediate Life Annuity

One of the top plans centered around only the annuitant (person who purchases annuity) is the Immediate Life Annuity option. This pension plan involves the customer paying a lump sum of money to purchase the annuity. The annuity is then payable till they die. After the annuitant dies all future payouts cease.

Opting for this plan helps ensure a steady flow of money throughout one’s life and reduces the risk of running out of savings significantly. This plan is perfect for customers who do not have someone that depends on them financially.

Immediate Life Annuity with Return of Purchase Price

This option is not just centered around the annuitant, it also ensures further financial stability to their family or a nominee. This plan also involves the customer purchasing annuity. The annuity is paid throughout their life. On the death of the annuitant, all future payouts cease and the initial purchase price is payable to the nominee.

This pension plan is very helpful for those with families looking to retire. This can help ensure that your family gets 100 percent of the purchase price and is well kept for even after you pass away.

Immediate Life Annuity with Return of Balance Purchase Price

Similar to the previous option, the Immediate Life Annuity with Return of Balance Purchase Price option benefits the family. This option involves the customer purchasing annuity. The annuity is paid throughout their life. On the death of the annuitant, all future payouts cease and the balance of the purchase price will be returned. If the purchase price is lesser than the total of the annuity installments, no balance is payable to the nominee.

This option helps guarantee that your family or you get back the initial purchase price you used to buy the annuity with. The balance can help those you cared for when you are gone.

Immediate Life Annuity with Return of Purchase Price on Critical Illness (CI) or Accidental Total and Permanent Disability (ATPD) or Death

This option helps take care of you in case of any unfortunate scenarios. In this pension plan, the annuitant purchases annuity and the annuity is payable throughout their life. If the annuitant gets diagnosed with any of the seven covered critical Illnesses or Accidental Total and Permanent Disability (ATPD) before turning 85 the annuity payments will cease, and the purchase price shall be payable.

In this option, you can use 100 percent of the purchase price to take care of yourself if you are diagnosed with CI or ATPD. In case of death, the nominee gets the entire purchase price.

Immediate Joint Life Annuity with Return of Purchase Price

Unlike all the previous options, this option has two annuitants. This option involves the payment of a lump sum of money to purchase the annuity. The annuity is payable till the death of the primary annuitant. The secondary annuitant will get the entire original annuity throughout their life. On the death of the secondary annuitant, all future payouts cease and 100 percent of the purchase price is payable to a nominee.

Opting for this option is intelligent, as it ensures the people you care about are well kept for throughout their life even after you are gone. Furthermore, 100 percent of the purchase price will be payable. The second annuitant could be anyone including- spouse, child, parent, parent-in-law, or sibling of the primary annuitant. As long as there is an insurable interest between the annuitants, and other relationships can be considered too.

Deferred Life Annuity with Return of Purchase Price

This option involves the annuitant paying a lump sum of money to purchase an annuity, and they also opt for a deferment period of 1-10 years. The benefit of adding a deferment period is that guaranteed additions (GA)are acquired at the end of every policy year. The annuity is payable till the annuitant dies, and after this, all future payouts cease. The purchase price and the guaranteed additions are payable to the nominee.

This pension plan is great for many as you may not necessarily need a pension immediately after you retire. Having a deferment period helps increase the amount the nominee receives to 105 percent of the purchase price.

NPS (national pension system) – Family Income

This option is only applicable to national pension system subscribers. This pension plan India involves the annuitant paying a lump sum of money to purchase the annuity. The annuity is then payable till the annuitant dies. The purchase price is refunded and used by the parents to purchase a new annuity contract for living dependent parents. This would continue till the death of both parents. On the death of the last survivor, 100 percent of the purchase price is payable to the nominee or surviving children.

If the subscriber to the national pension system has a spouse, the benefits will be payable as per ‘Immediate Joint Life Annuity with Return of Purchase Price’. And if the subscriber does not have a spouse, the benefits will be payable as per’ Immediate Life Annuity with Return of Purchase Price’

Conclusion

At Canara HSBC OBC Life Insurance, you receive a wide range of options tailored to your pension requirements, flexibility to choose annuity installments, and guaranteed lifetime income directly credited to your bank account. Getting a pension plan from Canara HSBC OBC Life Insurance can help ensure that neither you nor the people you love ever face financial scarcity after you retire.