Saral Pension Yojana

In India, life insurance companies offer various immediate annuity products. These products have different features, annuity options, and terms and conditions. To have uniformity across all insurers and to make a product available through all life insurance companies, which aim to meet the average customers' needs broadly, the IRDAI has introduced a standard individual immediate annuity product.

Read more
  • Peaceful Post-Retirement Life

  • Tax Free Regular Income

  • Wealth Generation to beat Inflation

We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000

Get the best returns & make the most of your Golden years

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

Pension Calculator
Pension Calculator
How much do you need to save for retirement?
₹ 20,000
₹ 25,000
₹ 30,000
Monthly Expenses in 2024
Edit Done
Your expense go up every year by
Today 2024 Your expenses today in 2023, at the age of 34 Yrs
Your expenses in 2043, at the age of 55 Yrs
For a monthly pension of ₹77,300
you need to invest
₹14,300/month
Calculated as per past performance of 15%
View Plan Recalculate?

The standard immediate annuity product, Saral Pension Yojana, has simple features and standard terms and conditions. The plan (Saral Pension Yojana) is available on all life insurance products from April 1st, 2022.

The Insurance Regulatory and Development Authority of India (IRDAI) has mandated all life insurance companies to offer Saral Pension Yojana, a standard immediate annuity product, to make it easier for customers in order to make an informed choice. Moreover, this standard product will also enhance the trust between the insured and the insurer and prevent mis-selling of policies.

What is Saral Pension Yojana?

 It is a standard individual immediate annuity product known as 'Saral Pension Yojana' prefixed by the insurer's name, offering regular annuity to the life assured after retirement.

Why Should you Buy Saral Pension Yojana?

  • The Saral Pension Yojana is easy to understand.

  • The Saral Pension Yojana makes it easy for customers to make an informed choice, as all life insurance companies offer the same product.

  • Standardized wordings.

People Also Read: best pension plan in india

Features of Saral Pension Yojana

  • The Saral Pension Yojana is a single premium, non-participating, non-linked immediate annuity plan.

  • The Saral Pension Yojana offers two annuity options, i.e., Life annuity with a 100% return on the purchase price and Joint life annuity with a 100% annuity to the secondary annuitant in case of demise of the primary annuitant and return of 100% purchase price in case of death of the last survivor.

  • The plan (Saral Pension Yojana) offers a single premium payment option as it is considered an immediate annuity policy.

  • The mode of annuity payment in the Saral Pension Yojana is monthly, quarterly, half-yearly, and yearly.

Invest More Get More
Invest ₹10K/Month YOU GET ₹1.5 LAKHS* MONTHLY PENSION View Plans
Invest ₹7K/Month YOU GET ₹1 LAKHS* MONTHLY PENSION View Plans
Invest ₹5K/Month YOU GET ₹75 THOUSAND* MONTHLY PENSION View Plans
standard T&C Apply *

Eligibility Criteria for Saral Pension Yojana

Criteria Minimum Maximum
Entry Age 40 years from the last birthday 80 years from the last birthday
Purchase Price Depends on the annuity amount
Policy Term The policyholder is eligible to get a pension for the complete lifetime
Annuity Amount Yearly- Rs.12,000 Half-yearly- Rs. 6, 000 Quarterly-Rs. 3,000 Monthly- Rs. 1,000 No limit

People also read: NPS

Saral Pension Yojana Calculator

  • As per the norms of the Saral Pension Yojana calculator, one may calculate the returns by having the policyholder choose a plan according to their needs. For example, the policyholder may choose a pension plan of receiving a monthly income of INR 1,000 per month or annually of INR 12,000. In addition, the policyholder is mandated to pay a one-time minimum premium of INR 2,50,000 to avail of this minimal pension. 

  • An investment of INR 10 lakh can also be made by the policyholder in order to receive an INR 50,250 pension annually under Saral Pension Yojana.  

  • Further, an investor also has an alternative to choose to pay a single premium of INR 20,00,000 to receive INR 1,00,000 annually.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Saral Pension Yojana Benefits

  1. Death Benefit

    In the case of a single life annuity under the Saral Pension Yojana, 100% of the purchase price is offered to the nominee or legal heirs on the annuitant's death.

    In the case of a joint-life annuity under the Saral Pension Yojana, after the demise of the annuitant:

    • If the spouse survives, the spouse will continue receiving the annuity (exact amount) until their demise. Subsequently, on the spouse's demise, 100% of the purchase price will be given to the legal heir or nominee of the policy.

    • In case of the spouse's demise before the annuitant, the annuitant will continue receiving the annuity until their demise. Subsequently, on the annuitant's death, 100% of the purchase price will be given to the beneficiary or legal heir of the policy.

  2. Survival Benefit

    An annuity is payable during the survival of the annuitant.

  3. Maturity Benefit

    There is no maturity benefit under the Saral Pension Yojana since the pension is available till the policyholder is alive.

    People also calculate: NPS Calculator

  4. Loan

    • The policyholder can avail of a loan that can be assured any time after the completion of 6 months from the date of policy commencement. However, the maximum loan amount granted under the policy should be that the adequate 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 availed by the primary annuitant, and in case of the demise of the primary annuitant, the secondary annuitant can help with the loan.

    • The insurer will recover the loan interest from the annuity amount payable under the policy. The interest applicable to the loan amount will accrue based on the annuity payment frequency under the policy and will be due on the annuity date. However, the annuitant will be given the flexibility to repay the loan amount anytime during the timeline of the annuity payments.

  5. Policy Surrender In case of Diagnosis of Critical Illness of the Annuitant

    In case the annuitant or the spouse or children of the annuitant is diagnosed with any critical illness as specified in the policy document, the annuitant can surrender the policy anytime after six months from the date of policy commencement. The authority can revise the essential conditions from time to time as needed. On surrendering the policy, 95% of the purchase price will be paid to the annuitant, subject to the deduction of the outstanding loan amount and interest on the loan, if any. Once the surrender value is paid, the policy will be terminated.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

The Bottom Line

Saral Pension Yojana is an Immediate Annuity Plan that has been explicitly introduced to secure the financial future of individuals after retirement. The plan targets the Indian population who wants to purchase an annuity to ensure a regular flow of income after retirement. Under this standard policy, all types of life will be covered, including male, female, and transgender people.

All life insurance companies permitted to transact new business should compulsorily offer the standard immediate annuity product from April 1, 2022. The product may be filed by insurers latest by February 28, 2022.

FAQ's

  • What is a Saral Pension Yojana?

    A Saral Pension Yojana is an immediate annuity plan that offers a significant return to the policyholder based on their investments. 
  • How to calculate returns on Saral Pension Yojana?

    The calculation of the Saral Pension Yojana is pretty simple. It is an immediate annuity plan; hence the policyholder starts receiving a pension after investing a lump sum amount. 
    • A policyholder is mandated to pay INR 2.5 lakh in order to receive INR 1,000 per month.
    • Further, the investor may consider investing INR 10 lakh in order to receive a pension of INR 50,250 annually under Saral Pension Yojana.
    • A policyholder can invest INR20 lakh in order to receive INR 1 lakh annually.
  • What are the eligibility criteria for Saral Pension Yojana?

    An investor should be at least 40 years old to subscribe to Saral Pension Yojana.
  • Are there any maturity benefits available in Saral Pension Yojana?

    No, there are no maturity benefits involved in Saral Pension Yojana, as the subscriber receives a pension till his survival.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

Secure Your Retirement Today
Start Investing ₹6,000/month
Get Pension ₹60,000/month+
Including Life Cover
View Plan
Pension Plans
+Standard T&C Applied
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Secure your Retirement today!
START INVESTING
₹6,000/month
GET PENSION
₹60,000/month+
Heart
INCLUDING LIFE COVER
+ Standard T & C Apply*
Pension Calculator
Pension Calculator
How much do you need to save for retirement?
₹ 20,000
₹ 25,000
₹ 30,000
Monthly Expenses in 2024
Edit Done
Your expense go up every year by
Today 2024 Your expenses today in 2023, at the age of 34 Yrs
Your expenses in 2043, at the age of 55 Yrs
For a monthly pension of ₹77,300
you need to invest
₹14,300/month
Calculated as per past performance of 15%
View Plan Recalculate?

Pension plans articles

Recent Articles
Popular Articles
Tata Pension Plan Calculator

19 Jun 2024

As you approach retirement, it is crucial to have a clear
Read more
Social Security Pension Scheme

19 Jun 2024

The Social Security Pension Scheme in India is a government
Read more
How Can I Get a 3000 Pension?

01 May 2024

Securing a monthly pension of 3000 rupees is a goal that many
Read more
Pension Calculator

13 Feb 2024

Pension calculator helps you calculate the amount you could
Read more
NPS vs ULIP - Which One Is Better?

10 Oct 2023

NPS (National Pension System) and ULIP (Unit Linked Insurance
Read more
SBI Annuity Deposit Scheme Calculator 2024
SBI Annuity Deposit Scheme Calculator 2024 is an online tool that helps you figure out your fixed annuity
Read more
Top 15 Pension Plans in India
The Pension Plan, also known as a Retirement Plan is the best investment instrument allowing individuals to build
Read more
Sevarth Mahakosh
Sevarth Mahakosh Portal is a one-stop solution for all state government employees' financial transactions and
Read more
NPS Calculator 2024
NPS Pension Calculator is a financial tool that calculates potential returns on the National Pension Scheme, by
Read more
NPS Calculator for Government Employees
National Pension Scheme or National Pension System (NPS) is launched by the Government of India for all its
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL