Life insurance firms in India offer a variety of individual immediate annuity packages. The features, annuity options, and terms and conditions of these products vary. The IRDAI has established a standard individual immediate annuity product in order to maintain consistency across all insurers and provide a product available at all life insurance companies that will most suit the needs of the ordinary client. The regular Saral Pension Yojana instant annuity product will have straightforward features and conventional terms and conditions. Beginning on April 1, 2022, every life insurance will offer the Saral Pension Yojana. With the help of the IndiaFirst Life Saral Pension Yojana, face your future with confidence. In this article we cover all the essential points regarding Saral Pension Yojana such as- It’s objective, benefits, eligibility criteria, application process and much more.
About LIC Saral Pension Yojana
The IndiaFirst Life Saral Pension Yojana is an individual, instant annuity plan with a single premium that is non-linked and non-participating. There are two different annuity options available in this Saral pension plan. What kind of recurring income you will receive under the Saral Pension Yojana will depend on your chosen plan. The Saral Pension Yojana from IndiaFirst Life ensures a lifetime income to the policyholder as a whole-life product. Your spouse may also be eligible to receive annuity payments for the rest of their lives, depending on the annuity option you choose in this individual instant annuity plan. With the aim of facilitating consumers’ decision-making, the IRDAI has requested that all life insurance companies offer Saral Pension a standard immediate annuity product. Additionally, by making this a normal offering, the insurer and insured will have greater trust in one another, and policy mis-selling will be avoided.
Also Check: Varishtha Pension Yojana
Key Highlights of Saral Pension Yojana
| Launched By | Life Insurance Company |
| Name of Scheme | Saral Pension Yojana |
| Objective | To provide the life assured with a regular annuity, after their retirement |
| Benefits | In the case of a single life annuity, the nominee is offered 100% of the purchase amount. |
| Eligibility Criteria | The age of the candidate should be 40 years |
| Beneficiaries | Citizens of India |
| Official Website | Click Here |
Objective of Saral Pension Yojana
After an employee retires, their pension is referred to as a crucial source of financial support. After leaving work, getting a pension in India helps people become independent. If they receive a pension, they feel stress-free as they age. The facility to offer the policyholder an annuity on their investment has been made available under this Saral Pension Yojana plan. The insurance firms’ return on investment for the client is referred to as an annuity. Since Saral Pension offers a common intermediate annuity product for individuals. Therefore, you just need to pay one premium. Your pension will soon begin to take effect.
Benefits of Saral Pension Yojana
The IndiaFirst Saral Pension Plan is easy to understand and beneficial. To accommodate each person’s unique financial demands, the Saral Pension Yojana is kept simple and devoid of unnecessary frills. Anyone can benefit from the IndiaFirst Saral Pension Yojana due to its feature-rich power-package.
Benefits from survival and available annuities
You can select from two annuity choices with the IndiaFirst Saral Pension Plan based on your needs. For both annuity options, the annuity rate is flat and unconditionally guaranteed for life at the moment of purchase.
Life Annuity with 100% of Purchase Price Refunded (ROP)
The annuity will be paid in arrears for the rest of the annuitant’s life immediately upon the start of the insurance, according to the annuitant’s specified annuity payment frequency. The annuity payments will stop upon the annuitant’s passing, and the nominee will be entitled to a full refund of the purchase amount. After the death benefit is paid, the IndiaFirst Saral Pension Plan comes to an end.
Joint Life Last Survivor Annuity for Life with 100% Purchase Price Return
The annuity will be paid in arrears for the rest of the annuitant’s life immediately upon the start of the insurance, according to the annuitant’s specified annuity payment frequency. The annuity payment continues for the other annuitant upon the passing of either annuitant, and it is paid in arrears for the duration of the life of the final survivor. Annuity payments will stop upon the passing of the last remaining annuitant, and the annuitant’s nominee will receive 100% of the purchase amount. When the death benefit is paid, the IndiaFirst Saral Pension Plan comes to an end.
Death Reward
In both annuity plans, the death benefit is paid after the annuitant passes away. According to the Life Annuity with ROP saral pension plan, after the death benefit is paid, the insurance terminates, the annuity payments halt, and 100% ROP is due.
Loans Available
After the policy’s initial six months, you can apply for a loan at any time. After the primary annuitant’s passing, the secondary annuitant may request a loan under the Joint Life annuity option.
Tax Advantage
According to current income tax laws, tax benefits may be obtained on premiums paid and benefits received. These could alter occasionally in accordance with government tax legislation. However, in the Joint Life option, the other annuitant continues to receive annuity payments even after one annuitant passes away. The annuity payments stop, 100% ROP becomes due, and the insurance expires when the death benefit has been paid upon the passing of the final annuitant.
Features of Saral Pension Yojana
Guaranteed income
The IndiaFirst Life Saral Pension Plan offers you the security of a lifetime income even after retirement because it is a full-life product.
Retirement choices
The Life Annuity with a Return of 100% of the Purchase Price and the Joint Life Last Survivor Annuity for Life with a Return of 100% of the Purchase Price are the two annuity choices available to you under the IndiaFirst Life Saral Pension Plan. For individuals who want to enjoy a steady lifetime income while safeguarding the financial future of their loved ones in the terrible event of the policyholder’s passing, the Life Annuity with a Return of 100% of the Purchase Price is a great Saral Pension Plan annuity alternative. For as long as your spouse is alive, the Joint Life Last Survivor Annuity for Life with Return of 100% of Purchase Price is a Saral Pension Yojana choice that continues to provide regular income support for your spouse.
Critical illness saral pension policy surrender
When a critical disease diagnosis occurs, you can use this provision of the IndiaFirst Saral Pension Plan to surrender the Saral Pension Plan and receive 95% of the purchase price returned. Only six months after the policy’s start date can you use this function.
A Variable Annuity Payment Plan
Your individual immediate annuity plan’s single premium payment will initiate your annuity payments, which will begin right away. You have the freedom to select the frequency of the annuity payments. Depending on your preference, receive a consistent monthly, quarterly, half-yearly, or annual income during retirement.
Tax Advantages
According to the country’s current tax legislation, tax benefits may be obtained on the premiums paid and benefits received.
Why is Saral Pension Yojana Need?
The one thing that is certain about the journey of life is that there will be many uncertainties to face. When all of your efforts are focused on making ends meet today, it is difficult to think about and make plans for the far future. You should purchase the IndiaFirst Life Saral Pension Plan for a variety of reasons:
Retirement Preparation
The truth is that most people do not prioritise retirement planning early in life, even if it may be wiser to save in a methodical and disciplined manner over a lengthy period of time. The IndiaFirst Life Saral Pension Yojana enables you to start where you are and with what you have, even if you missed the bus in early preparation.
You can take advantage of a guaranteed lifetime income by making a single lump sum premium payment at the beginning. The Saral Pension Plan allows those who will no longer get a pension to establish their own source of income for their later years.
Safe and Risk-Free
High gains are possible when investing in market-linked items. However, there is a considerable risk involved with market-link instruments because it is always possible that your investments would take the worst hit from a market slump. For people who are risk-averse, the IndiaFirst Life Saral Pension Plan offers a secure and low-risk investment. This Saral Pension programme is an easy and straightforward plan that enables you to save money without taking any risks while still receiving annuity payments.
Value-for-money
When it comes to satisfying basic needs, simpler solutions could be more effective than more complicated ones. One such basic pension plan choice is the IndiaFirst individual instant annuity saral pension programme. There are two basic annuity options available, and both of them are well-round.
Give up when necessary
With the majority of policies, you are either forced to stay locked in for a set period of time or surrender the policy early and lose a sizable portion of your funds. In accordance with the IndiaFirst Saral Pension Yojana, the policyholder may opt out of the Saral pension plan at any point after the policy’s initial six months have passed in the event of a critical disease diagnosis.
Consider a scenario where the policyholder, their spouse, or one of their children is identified as having one of the catastrophic illnesses detailed in the insurance paperwork. If so, you can surrender the coverage and get paid 95% of what you pay for it.
The cost of the Saral Pension Yojana
The pricing will determine by the insurance providers. To ensure that the annuity rates are acceptable and equitable to all consumers, the annuity rates should, nevertheless, be determined based on the actuarial concept. The following bands will use to determine the band-wise annuity rates:
| Band | Purchase Price Range |
| Band-1 | Less than Rs- 2,00,000 |
| Band-2 | Rs- 2,00,000 to less than Rs- 5,00,000 |
| Band-3 | Rs- 5,00,000 to less than Rs 10,00,000 |
| Band-4 | Rs- 10,00,000 to less than Rs- 25,00,000 |
| Band-5 | Rs- 25,00,000 and above |
Eligibility Criteria
- The IndiaFirst Life Saral Pension Yojana requires applicants to be at least 40 years old.
- The IndiaFirst Saral Pension Plan has an upper age limit of 80 years, and 70 years for plans obtained through the POSP-LI and CPSC-SPV channels.
- The plan’s single-pay purchase price minimum is Rs. 1,000,000, while the plan’s maximum premium amount is unlimited.
- There is no maximum annuity sum; the minimum annuity amounts are Rs. 1,000 monthly, Rs. 3,000 quarterly, Rs. 6,000 half-yearly, and Rs. 12,000 annually.
Documents Required
- Age Proof
- Bank Details
- Passport Size Photo
- Contact Details
- Permanent Residence Proof
- Aadhar Card Identity Proof (Voter Card/ PAN Card etc)
- Income Proof
Also Check: Saral Jeevan Bima Yojana
Application Procedure for LIC Saral Pension Yojana
- The applicant must first go to the LIC firm’s Saral Pension link on the website.
- The Hompage will appear on your screen.
- On the homepage, you need to go to the Saral Pension Scheme tab.
- You can now see that the application form has appeared before you.
- Complete the fields there and enclose any required documentation.
- To submit an application, click the submit button in the final section.
- By following these easy steps you can easily enrol yourself under the scheme.
Contact Details
The interested candidate can get all the information about the schemes on the official website. To make the terms and conditions of the programme understandable to the average person.