What is the Saral Pension plan?
The Saral Pension Plan is a standard individual immediate annuity plan introduced by the Insurance Regulatory Development Authority of India (IRDAI). All the life insurance companies offer this plan, and have been made available from April 1, 2022. The term ‘Saral Pension’ represents the simplicity and ease of this annuity plan aimed at bringing buyers more convenience and financial safety.
Feature of Saral Pension plan
Annuity Option: There are two types of annuity available under the Saral pension plan
- Single Life Immediate Annuity for Life: Under this option, Annuity is paid for the life of the annuitant. In addition, 100% Purchase Price will be returned to the nominee / legal heirs on the annuitant’s death.
- Joint Life Immediate Annuity for Life: In this case, the annuity is first paid to the annuitant for life. After the death of the annuitant, if the spouse is surviving, the spouse continues to receive the same amount of annuity for life till his/her death. Subsequently, on the spouse’s death, Purchase Price shall be payable to the nominee / legal heirs. However, if the spouse has pre-deceased the annuitant, then on the annuitant’s death, the Purchase price shall be payable to the nominee / legal heirs.
Surrender value: The policy can be surrendered any time after six months from the date of a commencement if the annuitant or the spouse or any of the annuitant’s children are diagnosed as suffering from any of the critical illnesses specified in the Policy Document, based on the documents produced to the satisfaction of the medical examiner of the Insurer. The list of critical illnesses may be revised from time to time by the Authority as needed. On surrender approval, 95% of the Purchase Price shall be paid to the annuitant.
Loan Facility: loan can be available anytime after six months from the policy’s commencement date.The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on the loan does not exceed 50% of the annual annuity amount payable under the policy. Under the joint-life option, the loan can be availed by the primary annuitant, and on the death of the primary annuitant, it can be available by the secondary annuitant.
Return of Premium on Death: Under this plan, the single premium of the policy is returned to the nominee or the legal heir upon the demise of the primary annuitant in case of single life and the last survivor in case of joint life.
Payout Methods: When purchasing the policy, you can choose the payout mode for Saral Pension. The payout options available are monthly, quarterly, half-yearly, or annually.
Benefits of Saral Pension plan
Death Benefits: In the case of a single life annuity, 100% of the Purchase price shall be payable to the nominee or legal heirs. For a joint life annuity, after the annuitant’s death, If the spouse survives, the spouse continues to receive the same amount of annuity for life until his/her death. Subsequently, on the spouse’s death, 100% Purchase Price shall be payable to the nominee / legal heirs. However, if the spouse has pre-deceased the annuitant, then on the annuitant’s death, the Purchase price shall be payable to the nominee /legal heirs.
Maturity Benefits: There is no Maturity Benefit under the product.
Survival Benefits: Annuity is payable during the survival of the annuitant.
Loan facility: Loan can be available any time after six month from the date of commencement of the policy. The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on the loan does not exceed 50% of the annual annuity amount payable under the policy.
Surrender value: The policy can be surrendered any time after six months from the date of commencement of the policy.
Tax Benefits: Tax benefits may be available on premiums paid and benefits receivable as per prevailing Income Tax Laws. These are subject to change from time to time as per the Government Tax laws.
Eligibility Criteria for Saral Pension
| Criteria | Minimum | Maximum |
| Entry Age | 40 years | 80 years |
| Purchase Price | This depends on Annuity Amount | |
| Policy Term | This is a whole Life Product | |
| Annuity | Rs. 1000 per Month, Rs. 3000 per Quarter, Rs. 6000 Per half year and Rs. 12000 per annum. | No Limit |
What is the Saral Pension plan? The Saral Pension Plan is a standard individual immediate annuity plan introduced by the Insurance Regulatory Development Authority of India (IRDAI). All the life insurance companies offer this plan, and have been made available from April 1, 2022. The term ‘Saral Pension’ represents the simplicity and ease of this…
Documents Required for Saral Pension
Following are the documents required for purchasing the Saral Pension policy.
Duly Filled and Signed Proposal Form
Date of Birth Proofs (Anyone of the below)
- Aadhar Card
- Pan Card
- Passport
- Election ID Card
- School Certificate
Identity Proofs (Any one of the below)
- Driving Licence
- Aadhar Card
- Pan Card
- Election ID Card
- Passport
Address Proofs (Any one of the below)
- Driving License
- Aadhar Card
- Election ID Card
- Passport
- Bank Statements for the last three months
- Electricity Bill
- Landline Bill
- Lease Agreement
For Self-employed (Any one of the below)
- 2 Year of COI(Computation of income) and ITR
- Form 26AS
For Salaried persons (Any one of the below)
- Salary Slip for last 3 month
- Last 3 month Bank Statements
- Form 16
Passport Size Photographs
Recent Medical Examination/Reports
Term and Condition of Saral Pension
Grace Period: The plan offers a grace period of 30 days from the premium due date where the premium payment mode is half-yearly or yearly and 15 days for monthly payments for each renewal premium amount. The plan shall lapse if the premium amount is not paid before the grace period.
Free look Period: Free look period is also called the Cooling off period. A free look period of 15 days from the receipt date of policy documents shall be offered to the policyholder in case the insured person is not satisfied with the plan’s Terms and conditions. The policyholder can return the policy to the insurance company within the free look period.
Revival of Lapse Policy: Revival of the Lapse policy should be done within 5 years from the first unpaid Premium. The policy can be Revived at any time during the revival period but not before the policy’s maturity. If the assured fails to revive the plan within the offered revival time, the plan shall be instantly terminated.
Policy Loan: Loan Facility Not available under Saral Pension because this plan provides only pure protection.
Maturity Benefits: There shall be no maturity benefit under the policy.
Surrender: Surrender value is applicable under the Saral Pension policy.
Nomination and assignment: Under the Saral pension policy, Nomination and assignment are allowed under sections 38 and 39 of the Insurance Act 1938, as revised from time to time.
Suicide Exclusion: If the life assured passes away due to committing suicide, the policy should be considered void.
Things to Remember While Buying Saral Pension
Make sure you go through the below-mentioned list of the few Things to Remember Before Buying Saral Pension Policy
- People may perceive an Individual Immediate Annuity plan as a better choice for people with higher salaries. However, the Saral Pension plan is an Individual Immediate Annuity plan designed in such a way that it does not create a hassle for people who belong to the low-income group. Anyone, irrespective of their gender, job profile, academic qualification and other details, can buy the plan and ensure the financial security of their loved ones.
- An individual between 40 to 80 years old can easily buy the Saral Pension policy.
- Anyone looking for a short-term or long-term policy that’s simple and reliable can buy a Saral Pension policy for a period of 5 years up to 40 years of coverage.
- The maximum annuity is Rs. 1000 per Month, Rs. 3000 per Quarter, Rs. 6000 Per half year and Rs. 12000 per annum.
- Under this plan, policyholders can choose Premium payment options, including single premium payment terms for Wholelife.
- Under Saral Pension, the policyholder can pay their premium by paying a single premium in a lump sum.
- In the death of the policyholder, the beneficiary under the Saral Pension policy will receive the higher of 10 times the annualized premium, 100% of all premiums paid or the absolute sum assured. If it is a single premium Saral Pension policy, the higher of either 100% of all premiums paid or the absolute sum assured is paid to the beneficiary.
- Loan can be availed any time after six months from the policy’s commencement date. Maximum, The amount of loan that can be granted under the policy, shall be such that the effective annual. The interest amount payable on the loan does not exceed 50% of the annual annuity amount payable under the policy.
- The Saral Pension policy does not provide any maturity benefit.
What Is the Registration Process for Saral Pension?
There are two types of registration processes.
Online Process:
- To apply online, you have to visit the official website of the insurance company
- Then go to the home page, select the pension plan under the life insurance section and click on the Saral Pension plan.
- Choose a plan or insurer which is suitable for you.
- After that, the application form will open in front of you on the next page
- In this form, you have to fill in your data like mobile number, name, gender, age etc. details
- Along with this, you will upload all related documents to the insurer’s portal
- Finally, you have to click on Submit button and select the payment option.
- After paying the first premium, your policy will be started.
Offline Process:
- To apply offline, you must go to your nearest insurance company branch
- Where you have to take the application form for Saral Pension Yojana.
- You must fill in all the details correctly in the application form.
- Along with the details, you will also have to attach documents.
- After filling out the form, you must submit it to the insurance company’s office.
- In this way, you can easily apply for it offline.
Why Should You Buy Saral Pension?
- Easy and Simple to understand
- Makes it easy for customers to make an informed choice as all life insurance companies offer the same product.
- Standardized wordings.
- Benefits payable on the death of the annuitant
- Survival Benefits: Annuity is payable during the survival of the annuitant.
FAQ
Q. What is the Saral Pension plan?
A: The Saral Pension Plan is a standard individual immediate annuity plan introduced by the Insurance Regulatory Development Authority of India (IRDAI). All the life insurance companies offer this plan, and have been made available from April 1, 2022. The term ‘Saral Pension’ represents the simplicity and ease of this annuity plan aimed at bringing buyers more convenience and financial safety.
Q: What are the annuity options available under this plan?
A: There are two types of annuity available under the Saral pension plan
Single Life Immediate Annuity for Life: Under this option, Annuity is paid for the life of the annuitant. In addition, 100% Purchase Price will be returned to the nominee / legal heirs on the death of the annuitant.
Joint Life Immediate Annuity for Life: In this case, the annuity is first paid to the annuitant for life. After the death of the annuitant, if the spouse is surviving, the spouse continues to receive same amount of annuity for life till his/her death. Subsequently, on death of the spouse, Purchase Price shall be payable to nominee / legal heirs. However, if the spouse has pre-deceased the annuitant, then on the death of the annuitant, the Purchase price shall be payable to the nominee / legal heirs.
Q: Can i change my annuity option after purchase annuity plan?
A: No, you can’t change the annuity option after purchase annuity plan.
Q: is Maturity benefits available under this policy?
A: There is no Maturity Benefit under the policy.
Q: Are surrender benefits available under this policy?
A: Surrender benefits may be availed on the diagnosis of critical illness of the annuitant, the spouse, or any of the children of the annuitant. For more details, please refer to the product brochure
Q: Who is the primary and secondary Annuitant?
A: Primary Annuitant refers to the individual, whose life events are of primary importance in affecting the timing or amount of the payout under the contract. Secondary Annuitants for the purpose of joint life contracts will refer to the Spouse.
Q: What is the entry age for this plan?
A: Minimum 40 years and maximum 80 years.
Q: What is the minimum annuity option?
A: Minimum annuity options are Rs. 1000 per Month, Rs. 3000 per Quarter, Rs. 6000 Per half year and Rs. 12000 per annum.
Q: What are the Tax Benefits under Saral pension?
A: Tax benefits may be available on premiums paid and benefits receivable as per prevailing Income Tax Laws. These are subject to change from time to time as per the Government Tax laws.
Q: What is the Return of Premium on Death in the Saral pension plan?
A: Under this plan, the single premium of the policy is returned to the nominee or the legal heir upon the demise of the primary annuitant in case of single life and the last survivor in case of joint life.