The Insurance Regulatory and Development Authority of India (IRDAI) has asked all the insurance companies to start Saral Pension Plan from April 1, 2021. This is a Standard Individual Immediate Annuity Product. As per Saral Pension Plan, there are only two annuity options – single life annuity, joint life annuity will be available to the insurer.
The biggest advantage of Saral Pension Yojana is that there will be an option of giving only two annuities or annuities which means the amount that companies promise to pay annually in exchange for deposits in any pension plan.
Now, there will be an option to choose the period on a monthly, quarterly, half-yearly, or yearly basis. After retirement, this facility is available under the pension plan as a regular income.
The IRDAI in its guidelines said that the minimum annuity amount contribution for Saral Pension Plan is Rs 1,000 per month, Rs 3,000 every three months, 6,000 every six months, and Rs 12,000 in a year.
As per IRDAI guidelines, the Saral Pension policy can be surrendered any time after six months from the date of commencement.
The specialty of Saral Pension Yojana is that there will be a life annuity with a 100 percent return on the purchase price. That is, the payment of the annuity will be done to the person taking Saral Pension Yojana. Not only this, after the death of the insurance holder, his spouse will continue to get an annuity. After the death of Jeevan Saath, his legal heir will get 100% of the purchase price back.
