Saral Pension Scheme will start from April 1, know what benefits will be available in it

Saral Pension Scheme

Insurance regulator IRDA has asked life insurance companies to introduce the Saral Pension Scheme from April 1 this year. Under the Saral Pension Plan, insurance companies will have the option of giving only two annuities (annuity). 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 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 in order to maintain uniformity in 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.

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What is an annuity?

The companies that promise to pay an annual amount in lieu of your deposit in a pension plan are called annuity (annuity). There is an option to choose the period on a monthly, quarterly, half-yearly, or yearly basis. This is available under the pension plan for regular income after retirement.

According to the more convenient and beneficial IRDA, the simple pension plan will come with a life annuity with a 100 percent refund of the purchase price. This means that the annuity will be paid to the customer for a lifetime and after his or her death, the spouse will continue to receive the annuity until his or her death. After this, on the death of the spouse, the legal heir will get 100% of the purchase price back.

Why the need for a simple pension plan

On the instructions of the insurance regulator IRDA, insurance companies have started offering a simple insurance policy from January 1. In this, the name and condition are one so that consumers do not have trouble in the election. 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.