All About Saral Pension Yojna

What Is Saral Pension Yojana?

Saral Pension Yojana, 2021 is an initiative of the Indian govt. that has been implemented and is regulated by the IRDA or Insurance Regulatory and Development Authority of India. This has come under action and existence from April 1st 2021. Under the Saral Pension Yojana, all the insurance companies will have to keep simple and clear terms and conditions which will be uniform throughout the insurance industry in India. 

The market is full of insurance companies trying to create profit out of illegal terms and conditions which has recently created a lot of irregularities in the same. In order to regularize and standardize the insurance market for pension.

Keeping this in mind, the Insurance Regulatory and Development Authority of India (IRDAI) has instructed all the insurance companies to start the Saral Pension Scheme under which all the terms and conditions will be the same for all companies which will bring transparency in the insurance industry and increase people's trust in the same. 

Eligibility Criteria For Saral Pension Yojana

1. The individual should be an Indian resident

2. He/She should be of not less than 40 years of age and not more than 80 years of age. 

Special Features of Saral Pension Yojana

1. This is a single premium annuity plan.

2. It offers two annuity plans:

a) Life Annuity- It gives a 100% return on the purchase price.
b) Joint Life Annuity- 100% sum to the nominee in case of death and 100% return of purchase price in case the last survivor dies. 

Benefits of Saral Pension Yojana

One should invest in the Saral Pension Yojana because of these lucrative benefits- 

1. It Is Free Of Complications 

Since the terms and conditions are set by the government itself and are uniform throughout the country and any policy, this makes it free of hassles and complications.

2. It Helps You Make An Informed Choice

Now that all the insurance companies will have the same set of regulations, there would be a tough competition amongst the top companies. It is good for the customer since they can choose the best according to the extra benefits they're getting with the plan. 

3. Death Benefit 

Upon the demise of the annuitant, the nominee or legal heirs receive 100 per cent of the purchase price in the event of a single life annuity. In the event of a joint-life annuity, if the annuitant's spouse survives, the spouse will continue to receive the annuity (at the same rate) until his or her death. Following that, if the spouse dies, the purchase amount will be returned in full.

4. Survival and Maturity Benefit

The annuitant is entitled to receive an annuity during his life period/survival. However No maturity benefits as such as provided under this scheme.

5. Loan Benefit

The Saral Pension Yojana has the benefit of a loan as well which can be availed by the beneficiaries of the same. A loan can be obtained by the sum assured at any period after the insurance has been active for six months. The amount of loan under the insurance shall not exceed 50% of the yearly annuity amount payable under the plan. 

6. Option Of Policy Surrender

The Saral Pension Yojana comes with an option of surrendering your policy as well. When the policyholder surrenders the policy, the annuitant will get 95% of the purchase price, less any outstanding loan balance and interest, if any. The policy will be cancelled and held terminated once the surrender value is paid. When the annuitant surrenders the policy, he will get 95% of the purchase price, less any outstanding loan balance and interest. 

Take Away

The Saral Pension Yojana has made retirement a little easier and secure as now insurance companies won't be able to bluff the customers and with the uniformity and transparency that the scheme aims to bring into the system, people will get to choose the best plan for them and have a secure retirement. If you're also someone who's about to reach the threshold of 40, do consider checking the Saral Pension Yojana.

Also Read: 

The Importance of Retirement Planning

The Stages of Retirement Planning

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.