The BuyT Desk
Saral Pension Yojna is a step towards simplifying insurance for consumers. The Insurance Regulatory and Authority of India (IRDAI) has issued guidelines to all the insurance companies asking them to implement Saral Pension Plan from 1st April 2021. The idea is that people can make an investment that could support them in their retirement.
Key Features of Saral Pension Plan
This will be a standard insurance plan with an immediate annuity benefit. The policyholders will be able to choose 2 types of annuity plans. An annuity is an annual sum promised by the insurance company against your deposit in a pension plan. After retirement, the investor gets this money as his/her regular income in the form of a pension. This scheme can prove to be very important for non-government employees. Since its an immediate pension plan the pension will start as soon as one takes the policy. The consumer will have the option to choose a payout on a monthly, quarterly or on annual basis.
Premium Of Pension Plan
The pension plan of companies may have different offering and price may differ due to that but the premium could range into 5 bands. The 5 bands would be –
Band 1- less than Rs 2 lakh premium
Band- 2 – Rs 2 lakh to Rs 5lakh premium
Band-3- Rs 5 lakh to Rs 10 lakh premium
Band-4- Rs 10 lakh to 25 lakh premium
Band-5- Above Rs 25 lakh premium
Two options in the pension plan
The entire premium will have to be paid as soon as the policy is taken. After this, the amount of a fixed pension will continue to be received throughout life. Two options will be available in the pension plan. First, a life annuity with a 100 % return on the purchase price. This pension will be for single life. Meaning as long as the policyholder is alive, he will continue to receive the pension. After that, the policy holder’s nominee will get the base premium money. The second option is given to joint holders. In this, both the husband and wife will be eligible for the pension. The person who survives for a long period will continue to get a pension. Both holders will get the pension amount equally. When both are not alive, then the nominee will get the base price money.
Who can take the policy?
Any person of 40 years (female or male) age can buy the policy.The upper limit of age is up to 80 years old. The minimum investment amount will be decided on the basis of the minimum pension in the scheme. If you want to take the benefit of a monthly pension, then you have to invest at least 1000 Rs in a month. Similarly, for a quarterly pension, an investment of at least 3 months will have to be done. If you have a serious illness and need money for treatment, then you can withdraw the money deposited in the Saral Pension Scheme. Under this, a list of serious diseases has been given, for which you can withdraw money by surrendering the policy.
