Canara HSBC Smart Guaranteed Pension Plan: Good or Bad? An Insightful Review

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Will Canara HSBC Smart Guaranteed Pension Plan help you secure your retirement fund and future?

Should you invest in Canara HSBC Guaranteed Pension Plan to fulfill all your post-retirement financial goals?

During your retirement years, you aspire to enjoy your lifestyle without any financial worries. But with market fluctuations and uncertainties that currently exist around, no investment seems secure. So, how to tackle this situation?

How do you secure your retirement fund and future?

In this article, let us review Canara HSBC Life Insurance Smart Guaranteed Pension Plan’s Advantages (Pros), and Disadvantages(Cons), & find out Whether this plan helps to secure your future.

This Research Analysis study on Canara HSBC Smart Guaranteed Pension Plan will lead you to a happy and stress-free Post- Post-retired life.

Let’s get started

1.)What is the Canara HSBC Smart Guaranteed Pension Plan?

Canara HSBC is a Non-Linked Non-Par Individual Deferred Annuity Plan. It gives flexibility to pay the premium in installments and ensures a regular guaranteed income stream that will enable you to have a comfortable retirement.

2.)What are the Features of the Canara HSBC Smart Guaranteed Pension Plan?

Flexibility to choose from different Premium Payment Term (PPT) options
Annuity payouts can be chosen based on your need – Annually, Half-yearly, Quarterly, and Monthly.
Option to choose from multiple Annuity options basis your needs
Get guaranteed lifelong income by locking your annuity rate today
Option to choose a Deferment Period
Through Joint Life annuity, you can extend the plan benefits to your loved one
Enhanced Annuity with higher Annualised Premium

3.)Who is Eligible to invest in Canara HSBC Smart Guaranteed Pension Plan?

Entry Age	30 years to 80 years
Premium Payment Term (PPT)	4 to 10 years
Deferment Period	PPT, PPT+3, PPT+5 years
Premium Payment Frequency	Annual, Half-yearly, Quarterly and Monthly
Annuity Instalment Frequency	Annual, Half-yearly, Quarterly and Monthly

4.)Canara HSBC Smart Guaranteed Pension Plan Annuity Options

Option 1: Single Life Annuity with Return of Premiums

Option 2: Single Life Annuity with Return of Premiums on Critical Illness (CI) or Accidental Total & Permanent Disability (ATPD) or Death

Option 3: Single Life Annuity

Option 4: Joint Life Annuity with Return of Premiums

5.)Canara HSBC Smart Guaranteed Pension Plan Benefits in detail

	Annuity	Death during the Deferment Period	Death after Deferment Period
Single Life Annuity with Return of Premiums	Throughout the life of the Annuitant (post-deferment period)	Higher ofTotal Premiums Paid till the date of death plus Guaranteed Additions (GAs) or 105% of Total Premiums Paid till the date of death	Higher ofTotal Premiums Paid plus Guaranteed Additions (GAs), less total Annuity payouts till the date of death or Total Premiums Paid
Single Life Annuity with Return of Premiums on Critical Illness (CI) or Accidental Total & Permanent Disability (ATPD) or Death		Critical Illness & Accidental Total & Permanent Disability or Death whichever occurs earlier – Death benefit similar to Option 1	Critical Illness & Accidental Total & Permanent Disability or Death whichever occurs earlier – Death benefit similar to Option 1
Single Life Annuity		Death benefit similar to option 1	NIL
Joint Life Annuity with Return of Premiums	As long as at least one of the two Annuitants is alive (post deferment period)	On the death of the last survivor – Death benefits similar to Option 1	On the death of the last survivor – Death benefits similar to Option 1

6.)Canara HSBC Smart Guaranteed Pension Plan Grace period, Lapsed & Paid-up policy, Revival

Grace period

You are provided with a Grace Period of 30 days for Annual, Half-yearly, and Quarterly modes and 15 days for monthly mode from the Premium due date to pay the due premium.

Lapsed & Paid-up policy

If you fail to pay the due premium within the Grace Period for the first 2 consecutive policy years: Your Policy shall acquire Lapse status at the expiry of the grace period.

If you fail to pay the due premium within the Grace Period after paying premiums for the first 2 consecutive policy years: Your policy will become a Paid-up policy and will continue with reduced benefits.

Revival

The request for revival can be made anytime during the revival period of 5 years from the due date of the first unpaid premium.

7.)Canara HSBC Smart Guaranteed Pension Plan Free Look period

In case the Policyholder does not agree with the terms and conditions of the Policy, they shall have the option to request for cancellation of the Policy within the free look period of 15 days

(30 days in case the Policy is sourced through electronic mode or distance marketing mode) from the date of receipt of the Policy Document.

You can click on the Canara HSBC Smart Guaranteed Pension Plan Policy Brochure for further reference.

8.)Surrendering Canara HSBC Smart Guaranteed Pension Plan

The Policy shall acquire a surrender value after payment of at least 2 full years premium. The surrender value payable is higher than the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV) subject to a minimum of zero and maximum of Death Benefit applicable.
For Annuity Option 3, the Surrender Value is nil post-deferment Period.

9.)What are the Advantages of Canara HSBC Smart Guaranteed Pension Plan?

Guaranteed Additions (GAs) accrue during the Deferment Period
You can avail a loan for an amount of up to 80% of the Surrender Value

10.)What are the Disadvantages of the Canara HSBC Smart Guaranteed Pension Plan?

There is no step-up annuity option to beat inflation
Annuity is fully taxable.

11.)Final Verdict on Canara HSBC Smart Guaranteed Pension Plan

Canara HSBC Smart Guaranteed Pension plan offers individuals a way to save for retirement by allowing them to make periodic contributions over time. It provides a guaranteed income stream during retirement, typically starting at a predetermined age chosen by the investor.

The plan consists of two phases i.e., Accumulation Phase & Distribution Phase. So, this is a long-term investment. It’s essential to carefully consider the fees, surrender charges, and potential limitations associated with deferred annuities.

After the accumulation phase, you can’t enjoy the accumulated corpus (Lumpsum). You can’t liquidate the corpus for emergency purposes or any other goals. Only Annuity is receivable.

Also, the annuity is constant throughout your lifetime. The annuity will lose its purchasing power due to inflation & High Agent Commission. Especially medical inflation is soaring. Keeping all these points in mind, it is better to avoid the Canara HSBC Smart Guaranteed Pension Plan.

To enjoy inflation-adjusted income, diversify your investment corpus. Debt portion for regular income needs & equity portion for wealth accumulation (compound).

If you have any questions regarding the taxation part of Debt Mutual Funds feel free to read our article on:

Should you Invest in Debt Funds after 1st April 2023? New Taxation!

Always avoid read-made annuity/pension plans.

Making your own investment decision regarding retirement needs is wiser than seeking investment guidance from Social Media Platforms like Facebook, Quora, Twitter, etc. Consult a financial advisor who can provide personalized guidance and support in navigating retirement planning complexities.