
Intending to reduce the complications concerning insurance product choice for lay investors, the Insurance Regulatory Development Authority of India is coming up with standard products with uniform features in the domains of life & non-life insurance. In recent time, a new product has been included in the list — Saral Pension Yojana, the immediate annuity plan all life insurers would have to offer from April 1, 2021.
The product Saral Pension Yojana has been announced to smoothen the insurance product choice for lay investors; the Insurance Regulatory and Development Authority (IRDAI) will be launching uniform features-based products in both life insurance and non-life insurance. If in case the annuitant, the spouse, or the child of the annuitant is diagnosed with some serious health issue or illness, this yojana can be waived-off any time after six months from its commencement period.
Numerous immediate annuity products are offered by various insurance companies. These products come with different terms and conditions, annuity options, and variant features. To meet all the needs of the customers, IRDAI has introduced a standard individual immediate annuity product which is the Saral Pension. The target of the Saral Pension Yojana is to create uniformity across all the insurers as well as make a product that should be available at all the life insurance companies. The standard immediate annuity product Saral Pension will be having simple standards and features with easy to accept terms and conditions.
Guide to the Article |
1. Saral Pension Yojana- Boon for the Nation |
2. Background |
3. Introduction |
4. Highlights of Saral Pension Yojana |
5. Reasons to Buy the Saral Pension Plan |
6. Key Features of this Plan |
7. Pension Granted under the Saral Pension Yojana |
Only two annuity options are there:-
Listed below are a few reasons to buy this plan:-
Stated below are the features of this plan:-
The below-given table shows the granted pension along with its duration-
PENSION |
DURATION |
₹1,000 |
Per month |
₹3,000 |
Quarterly |
₹6,000 |
Half-yearly |
₹12,000 |
Annually |
People planning to secure their retirement should invest in this scheme as it will be a beneficial choice for them. The major advantage of the Saral pension yojana is that it will be giving two annuities.
This means that the amount which a company promises to pay annually in exchange for the deposit in the respective pension plan.
The table given below exhibits the eligibility criteria of the Saral Pension Plan:-
CRITERIA |
MINIMUM |
MAXIMUM |
Entry Age |
40 years (from the last birthday) |
80 years (from the last birthday)
|
The Purchase Price |
The purchase price depends on the annuity amount. |
|
Policy Term Period |
Saral Pension Plan is a lifetime policy. |
|
Annuity Amount |
Monthly- ₹1,000 Quarterly- ₹3,000 Half-yearly- ₹6,000 Annually- ₹12,000 |
There is no limit. |
The pricing will be chosen by the insurance companies themselves. Nevertheless, the annuity rates should be based upon the actuarial principle and should ensure that the annuity rates are nominal, fair, and reasonable to all the customers.
The band wise annuity rates should be attained in the respect to the following bands:-
BAND |
PURCHASE PRICE RANGE |
Band- 1 |
Less than ₹2,00,000 |
Band- 2 |
Between ₹2,00,000 & ₹5,00,000 |
Band- 3 |
Between ₹5,00,000 & ₹10,00,000 |
Band- 4 |
Between ₹10,00,000 & ₹25,00,000 |
Band- 5 |
₹25,00,000 & above |
The Saral Pension Plan comes with a bunch of benefits, and these benefits are as mentioned below:-
Aatmnirbhar Sena is working for the welfare and development of the country. We are a unit of people who work tirelessly to support the children, youth and women of our country. Our volunteers work to create and spread awareness amongst the youth and grant them support to be able to earn a better livelihood. We also promote government schemes and work in accordance with them.
While the standard immediate product, Saral Pension Yojana, is useful and simple, you will be able to decide its worth only after its successful implementation. This plan has been formed to target the people who want to purchase the annuity and also to ensure a regular flow of income after their retirement.