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Invest capital for a lifetime pension with the Saral pension plan. Details inside

Invest capital for a lifetime pension with the Saral pension plan. Details inside

New Delhi: The Insurance Regulatory and Development Authority of India (Irdai) has asked life insurers to offer a standard immediate annuity plan called Saral Pension. The product offers a life annuity with a return of the purchase price of 100%; and a reversible life annuity with a provision of 100% annuity to the secondary annuitant upon the death of the primary annuitant and a reimbursement of 100% of the purchase price upon the death of the last survivor. Note that this is a single premium, untied, non-participating immediate annuity plan.

In its circular, IRDAI said: “The Indian life insurance market currently has several individual immediate annuity products marketed by life insurers, each product having its own characteristics, conditions and annuity options. In order to have uniformity between insurers, and to make a product available by all life insurers that will largely meet the needs of an average client, it has become necessary to introduce a standard individual immediate annuity product. , with simple characteristics and standard conditions. for customers to make an informed choice, improve trust between insurers and policyholders, and reduce abuse sales and potential litigation. “

Here is everything you need to know about the Saral pension plan “

Premium payment option: Single premium, being the purchase price of the annuity.

Type of annuity options

  • Life annuity with reimbursement of 100% of the purchase price (ROP): Under this option, the annuity is paid for the life of the annuitant. In addition, 100% of the purchase price will be returned to the agent / legal heirs upon the death of the annuitant.
  • Joint last survivor pension with reimbursement of 100% of the ROP on the death of the last survivor: 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 until their death. Thereafter, on the death of the spouse, the purchase price will be payable to the legal representative / heirs. However, if the Spouse died before the Annuitant, then on the death of the Annuitant, the Purchase Price will be payable to the Nominee / Legal Heirs.

Method of payment of the pension: Monthly, quarterly, semi-annually and annually. Payments will only be in arrears, which means that the first annuity payment will start after the modal period; for example after three months in the case of quarterly mode.

Services payable on:

Saral Jeevan Beema

To lend: The loan can be used anytime after six months from the start date of the policy. The maximum loan amount that may be granted under the policy must 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 used by the primary annuitant and upon the death of the primary annuitant, it can be used by the secondary annuitant.

The interest on the loan will be at the 10-year G-Sec rate per year on April 1 of the financial year concerned, as published by the FBIL, increased by a maximum of 200 bps and will be applicable for all loans granted during the twelve-month period from May 1 of the financial year concerned.

Interest on the loan will be recovered on the annuity amount payable under the policy. Interest on the loan will accrue based on the frequency of annuity payments under the policy and will be payable on the annuity date. The outstanding loan will be recovered from the proceeds of the claim under the policy. However, the annuitant has the option of repaying the principal of the loan at any time during the currency of the annuity payments.

Each time the purchase price is paid by check, the Insurer must ensure that before beginning the payment of the annuity or allowing the payment of the loan or the buy-back, the check is made.


  • Minimum pension: Rs 1,000 per month, Rs 3,000 per quarter, Rs 6,000 per semester and Rs 12,000 per year.
  • Maximum pension: Without limits

Minimum and maximum purchase price: It depends on the amount of the annuity.

Entry age:

  • Minimum: 40 years last anniversary
  • Maximum: 80 years last anniversary

Policy term: This is a product of the whole life

Restrictions: No restrictions; not including any travel or future occupancy restrictions.

Commission: According to the standards in force

Distribution channel: All types of distribution channels. This is left to the insurers.

Product pricing: Pricing is left to insurers. However, annuity rates should be calculated on the basis of actuarial principles and ensure that these annuity rates are fair and reasonable to clients. The annuity rates by bracket must be calculated according to the following brackets:

Saral Jeevan Beema Prize
In the case of a joint and survivor annuity, insurers can calculate annuity rates based on the actual age difference between the primary annuitant and his or her spouse.

All life insurers authorized to transact new business must offer the standard product as of April 1, 2021. The product can be deposited by insurers no later than February 28, 2021.