Saral Pension Plan Benefits Coming for You: IRDAI's standard annuity plan likely to be launched from April 1 - check key features and benefits

Those planning for an investment that secures their retirement, Saral Pension Plan could be their answer. Insurance Regulatory and Development Authority of India (IRDAI) has reportedly directed insurance companies to start Saral Pension Plan from April 1, reported Zee News. This is a Standard Individual Immediate Annuity Product. As per Saral Pension Plan, Only two annuity options - single life annuity, joint life annuity will be available to insurer.  

As per IRDAI guidelines, minimum annuity amount contribution for Saral Pension Yojana is Rs 1,000 per month, Rs 3,000 every three months, 6,000 every six months and Rs 12,000 in a year. IRDAI has said it is important to launch personal immediate annuity with basic facilities and set protocols. Experts are of the opinion that this initiative of IRDAI will make it easy for consumers to select insurance plans. As per IRDAI guidelines, the Saral Pension policy can be surrendered any time after six months from the date of commencement.

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The annual amount that is guaranteed by an insurance company against the deposited amount by consumers is called annuity. Annuity is given to investors as per pension plan after retirement for their daily needs. Investments in annuities grow tax-free until they are withdrawn or taken as income, typically during retirement.

This scheme could prove to be boon for employees of non-government offices.   As per IRDAI,  an investor is assured of the amount invested, besides it will also provide benefits of annuity. A customer will continue to get benefits of annuity for his/her lifetime. This benefit is transferred to the spouse in case of death of the policy holders.