Canara HSBC Oriental Bank of Commerce Life Unit Linked Pension Plan

Finance your future today, to make sure you enjoy life tomorrow.  Our retirement solutions have been created to ensure that you lead your life tension free.

The Canara HSBC Oriental Bank of Commerce Life Unit Linked Pension Plan gives you the freedom to plan your retirement so that you can enjoy it just the way you want. 

Key Features of the Canara HSBC Oriental Bank of Commerce Life Unit Linked Pension Plan

• Flexibility to choose your Plan - Option I- Pure Pension Plan  or Option II- Pension With Life Cover
• Flexibility to choose between Single or Regular Premium payment options depending on  your investment preference
• Choose between 5 Investment Funds depending on your attitude to market risks and returns.
• Hassle free -  No Medical tests
• Maturity Switch Option  As you grow older, and your Plan nears your Vesting Date, change your type of investment by moving from a more market influenced Equity Fund to a less market influenced Liquid Fund
• Unlimited Top ups - Increase your Retirement Corpus by adding unlimited top ups over and above your regular contribution(s)
• Flexibility of Switching/Redirection between the Investment Funds to take advantage of market movements
• Loyalty Additions:  Additional Units will be allocated every 5th year starting from end of the 10th Policy year ,at no extra charge  up to end of  Policy Term (if your Policy Term is 15 years or more)thus increasing the value of investment.
• Save tax while investing under Sec 80C and Section 10(10A)(iii) of the Income Tax Act, 1961¹

We provide you a wide range of flexibilities to avail various plan options and combinations that suit your needs!!

Eligiblity Criteria

Particular	Minimum	Maximum
Entry Age²	18 years	65 years ( for Single Premium-under Option I) 60 years (for Regular Premium-under Option I) 60 years (under Option II)
Policy Term	Single Premium-5  years Regular Premium- 10 years	52  years (subject to maximum Vesting Age)
Vesting Age	45  years	70  years
Premium	Rs 12,000 p.a. (Regular) Rs 50,000 p.a. (Single)	No Limit
Top Ups	Rs 2000	Unlimited

 

Life Cover	Only under Option II: Pension with Life Cover
	For Regular Premium payment:
	Age² Life Cover 18 to 35 years 5 or 10 times of the AP, with maximum SA of Rs. 10 lakhs 36 to 45 years 5 or 10 times of the AP, with maximum SA of Rs. 5 Lakhs 46 to 55 years Fixed Rs. 1.5 lakhs 56 to 60 years Fixed Rs. 1.0 lakh
	For Single Premium (SP) payment:
	Age² Life Cover 18 to 35 years 125% of SP subject to maximum SA of Rs. 10 lakhs 36 to 45 years 125% of SP subject to maximum SA of Rs. 5 lakhs 46 to 55 years 125% of SP subject to maximum SA  of Rs. 1.5 lakhs 56 to 60 years Fixed Rs. 1.0 lakh

¹The tax benefits are as per the prevailing law and are subject to changes

²Age is based on last birthday

AP-Annualized Premium; SA- Sum Assured

How Does The Plan Work?

PHASE I- Accumulation of your savings for your retirement needs

• Choose your Premium
• Choose your Plan Option, Option I- Pure Pension(without Life cover)  or Option II- Pension with Life Cover,
• Choose your Payment Mode- Single or Regular
• Choose your Vesting Age
• Your Policy Term shall be equal to : Vesting Age – Current Age
• Choose your investment strategy by allocating your premiums into Funds that suit your risk appetite or take advantage of the Maturity Switch Option
• Fill the form and submit it with your initial premium and the necessary documents.
• You have the option to pay your Premium annually/semi-annually/ quarterly or monthly under Regular Premium mode.
• On a periodic basis, the Company will provide you, your Unit Account summary.
• No medical tests are required

PHASE II- Payout of your Corpus on reaching your Vesting Date

On the date your Policy matures (Vesting Date), you will have the following options  available to you:

• Taking 1/3rd of your Investments in a lump sum amount  and
• Opting for any of the Annuity options available with us at the time of Vesting Or
• Opting for an Annuity option available with any other Annuity provider through the Open Market option

Protect and Safeguard your returns, earned during the policy term through Unit Linked Funds, at Vesting Date

We have an attractive solution for you in the form of the Maturity Switch Option.

Maturity Switch Option

When you are younger, you expect higher returns from your investments, so that they grow to a substantial amount of money at the time your Policy matures. However, as you grow older and get ready to retire (or your Policy nears its vesting date), you want to safeguard your savings. Recognizing this, we have created the Maturity Switch Option. In this option, your money is initially invested in our Equity Fund (providing potentially higher returns) and then moved progressively to our Liquid Fund (lower risk fund) starting 5 years before your vesting date. The way this option works is as follows:

• If you opt for the Maturity Switch Option, 100% of your premiums will be invested in the Equity Fund till the 5th  year preceding vesting date

From the 5th year preceding vesting date, your funds will be moved to the Liquid Fund as per the following table:

Years Left to Vesting*	Equity Fund Allocation	Liquid Fund Allocation
More than 5 years	100%	0%
4 - 5 years	80%	20%
3 - 4 years	60%	40%
2 - 3 years	40%	60%
1 - 2 years	20%	80%
0 - 1 year	0%	100%

*Allocation percentages are as on Beginning of Year

• If you have opted for Maturity Switch Option you cannot opt for any other fund other than those provided in this Option. Your right to change allocation proportions from the pre-defined grid is suspended (cannot exercise redirection of premium option)
• You can exit or opt to choose Maturity Switch Option at anytime during the Policy Term. The allocations will change immediately as desired by you if you exit or as per the table given above if you opt in to Maturity Switch Option.
• Every entry into or exit from the Maturity Switch Option, will be treated as a switch. Rules and charges for switches will be applied as per the terms governing the same.

Prepone or Postpone your Vesting Date – You can choose to prepone or postpone your Vesting Date within the boundary limits set for you up to two times through your Policy Term as per your changing Retirement Needs. You can prepone or postpone your Vesting Date, subject to the following conditions:

• It should be within the maximum and minimum limit prescribed.
• This can be done at any time from the 5th policy year onwards. This option is not available for Single Premium policies with Policy Term of 5 years.
• This option is available only 2 times during the Policy Term and both options cannot be exercised together.
• There will be no change in the regular premium as a result of change in Vesting Date.
• Life Cover will cease at the earliest Vesting Date.

For details of this option please refer to the detailed product brochure.

Tax Benefit*:

The contributions towards investments in your policy will be eligible for Tax Deduction under Section 80C of the Income Tax Act, 1961¹ upto Rs. 1 Lakh

For specific details, please contact your tax consultant. The tax benefits are as per the prevailing law and are subject to changes 

For detailed description of the product features, benefits, flexibilities and boundaries, kindly refer to the brochure by clicking on the hyperlink below