Saral Pension Scheme is scheduled to start from April 1. Insurance regulator IRDA has asked life insurance companies to introduce the Saral Pension Scheme from April 1, 2021. Under the Saral Pension Plan, insurance companies will have the option of giving only two annuities (annuities). According to the guidelines issued by IRDA, it will not get maturity benefits under Saral Pension Plan. However, it will have an option to refund 100% of the purchase price.
The regulator has said in the guidelines that the policy can be surrendered at any time after six months from the date of commencement of the policy. According to the guidelines, the minimum annuity amount will be one thousand rupees per month, three thousand rupees per quarter, six thousand rupees per half year or 12 thousand rupees annually. IRDA has stated that it will meet the needs of an average customer to maintain uniformity in the plans of insurance companies and provide products on behalf of all life insurance companies. IRDA has stated that it is necessary to introduce individual immediate annuity products with common features and standard terms and conditions. Experts say that this initiative of IRDA will make it easier for consumers to choose the plan.
What is annuity
The annual amount that companies promise to pay in exchange for your deposit in a pension plan is called an annuity (annuity). There is an option to choose the period on a monthly, quarterly, half-yearly or yearly basis. It is available under the pension plan for regular income after retirement.
More convenient and beneficial
According to IRDA, the simple pension plan will come with a life annuity with a 100 percent withdrawal of the purchase price. This means that the annuity will be paid to the customer for life and after his / her death, the spouse will continue to receive the annuity till his / her death. After this, on the death of the spouse, the legal heir will get 100% of the purchase price back.
Benefits of Saral Pension Plan
On January 1, on the instructions of the insurance regulator IRDA, the insurance companies have started offering a simple insurance policy. In this, the name and condition are one so that consumers do not have trouble in elections. Insurance companies sell pension plans under different names like insurance policies and claim to be the best. It is very difficult for consumers to choose among them and such products are also sold by pretending to have similar names. In view of this, Irda has asked to introduce a simple pension plan with one-of-a-kind conditions and facilities.
