If you are looking to invest in a retirement fund for an assured regular return, you may consider this new Saral Pension Plan. The regulator has asked the insurers to offer a single premium, non-linked, non-participating immediate annuity plan, starting from April 1. The pension plan offers a guaranteed return that does not depend on market’s volatility or the insurers’ performance.
Ageas Federal Life Insurance is the latest insurance company to roll out Saral Pension Plan. “Retirement is when one chooses to leave the workforce behind permanently. However, the house still needs to be run and it is also a time when medical expenses are on the rise, hence a steady income post-retirement becomes a necessity. Our newly launched Ageas Federal Life Insurance Saral Pension Plan is an apt solution designed to address this need…,” Karthik Raman, chief marketing officer and Head – Products, Ageas Federal Life Insurance said.
Under Saral Pension, the insurer offers an option of single life and joint life immediate annuity with return of premium. Policyholders can get life annuity with 100% return of purchase price where the pension is paid for life. On the death of the investor, the nominee becomes eligible to get the return.
Another option is joint life annuity with return of 100% purchase price on death of the last survivor. The investor gets the annuity first for life. After the death of the initial policyholder, the partner or spouse (if the spouse is surviving) receives the same pension for life till his/her death. On death of the spouse, the purchase price is payable to the nominee.
The minimum entry age to buy this plan will be 40 years and the maximum will be 80 years. The annuity amount will be paid by the insurer on quarterly, half-yearly and yearly basis. The minimum annuity amount limit is set ₹1,000 per month, ₹3,000 per quarter, ₹6,000 per half-year and ₹12,000 per year. An investor can avail loans against Saral Pension plans.
A policyholder can surrender the policy after six months, on diagnosis of critical illness. On that occasion, the insurance company will return 95% of the purchase price to the annuitant. It must be noted that the pension amount will be taxed like income under Income Tax Act.
“We are happy to launch our Saral Pension Plan in line with the guidance provided by the regulator. The plan helps us offer our customers a much-needed product for their retirement readiness,” Karthik Raman added.