Pramerica Annuity Deposit Scheme - Feature, Benefits & Eligibility

Pramerica Life Saral Pension

The Pramerica Life Saral Pension helps you maintain financial stability by offering guaranteed payouts at your preferred frequency, which can be monthly, quarterly, half-yearly, or annually. It is an Immediate Annuity plan that begins providing income soon after purchase, as per the payout frequency chosen. The plan is available to individuals between 40 and 80 years of age, with a minimum annuity of ₹1,000 per month and no upper limit on the purchase price.

What is Pramerica Life Saral Pension?

The Pramerica Life Saral Pension is a Non-Linked, Non-Participating, Individual General Annuity Savings Plan (Immediate Annuity). It helps you convert your one-time premium payment into a regular source of income after retirement.

The plan offers a guaranteed lifelong income, and in the Return of Purchase Price option, 100% of the purchase price is refunded to your nominee in case of your demise. Also, the frequency of receiving your annuity can be determined either monthly, quarterly, half-yearly, or annually. The plan offers two options:

Single Life: Life Annuity with Return of Purchase Price (ROP) 100%.

Joint Life: Joint Life Last Survivor Annuity with 100 % Purchase Price (ROP) on the death of the last survivor.

Parameter

Details

Plan Type

Non-Linked, Non-Participating, Individual General Annuity Savings Plan

Entry Age (last birthday)

Minimum: 40 years
Maximum: 80 years

Annuity Payment Modes

Monthly, Quarterly, Half-Yearly, or Yearly

Minimum Annuity Amount

Monthly: ₹1,000
Quarterly: ₹3,000
Half-yearly: ₹6,000
Yearly: ₹12,000

Maximum Annuity Amount

No limit

Annuity Options

1. Life Annuity with Return of 100% Purchase Price (ROP)
2. Joint Life Last Survivor Annuity with Return of 100% Purchase Price (ROP)

Modal Factors (for payout frequency)

Yearly: 1.000
Half-Yearly: 0.495
Quarterly: 0.245
Monthly: 0.081

Loan Facility

Loan facility is available any time after six months from the date of commencement of the policy. The current applicable loan interest rate is 9.23% per annum (10-year G-Sec rate plus 200 basis points).

Surrender Facility

Allowed after 6 months on diagnosis of a listed critical illness; 95% of the Purchase Price (less any loan/interest) is payable

Maturity Benefit

Not applicable

Note: Surrender is permitted only if the annuitant or spouse (or their child) is diagnosed with a critical illness specified in the policy document.

Sample Illustration - Pramerica Life Saral Pension (Annual Payout)

The table below shows the indicative annual annuity payout for a 60-year-old under the Single Life, Life Annuity with Return of 100% of Purchase Price (ROP) option:

Purchase Price Band

Annual Annuity (₹ per ₹1,000 of purchase price)

Band 1: Less than ₹2,00,000

57.1195

Band 2: ₹2,00,000 to less than ₹5,00,000

57.4458

Band 3: ₹5,00,000 to less than ₹10,00,000

57.9624

Band 4: ₹10,00,000 to less than ₹25,00,000

58.2207

Band 5: ₹25,00,000 and above

59.0870

Note: The annuity rates shown above are per ₹1,000 of purchase price across different investment bands. Applicable GST and cess will be charged over and above the purchase price. The above rates apply to the Single Life option.

Key Takeaways

Pramerica Life Saral Pension is a basic and reliable pension scheme that assists you in generating a lifetime income following your retirement. It provides secure payments over specified timeframes, which provides you with a stable flow of money during later years. The pension plan is open to persons aged between 40-80 years with a minimum monthly payment of 1000 rupees, and no maximum is fixed on the price of purchase. This plan is an immediate annuity plan with two options: Single Life and Joint Life ROP. With flexible payout frequencies such as monthly, quarterly, half-yearly, or yearly, the Pramerica Life Saral Pension helps you manage your retirement income with ease and confidence.

FAQs

What is Pramerica Life Saral Pension?

The Pramerica Life Saral Pension scheme is basic, personal, non-linked, non-participating annuity plan which offers guaranteed lifetime income. It enables you to make a one-time purchase and get paid regularly throughout your life and have a stable flow of income after retirement.

Does Pramerica Life Saral Pension offer a lifetime income option?

Yes, Pramerica Life Saral Pension provides a lifetime income facility in which you are paid guaranteed income throughout the rest of your life. The plan guarantees a constant flow of income during your retirement, and in case you opt to take joint life, the income will also flow to your spouse during his or her lifetime and this would secure both of you financially.

Is it possible to combine annuities and life insurance?

Yes, life insurance and annuities may be blended. Although life insurance secures your family against possible financial loss in case of your death, annuity secures a consistent income throughout your life. The combination benefits with a full financial safety net of both life and retirement requirements.

What is the Pramerica Life Saral Pension installment's duration?

Instalment of an annuity is paid over the life of the annuitant or, in case of the joint life plan, until the death of the last survivor. Payments under lifetime annuity plans last as long as you live, and in versions that provide the nominee with the amount invested when you die, your nominee gets the amount that you invested.

How do you pay on the Pramerica Life Saral Pension?

In an annuity plan, payments can be made by a single lump-sum payment called the purchase price. The payouts are as soon as they are purchased or according to the frequency mode chosen (monthly, quarterly, half-yearly or yearly). You may make payment through cheque, NEFT or online transfer to the insurer.