What is the Saral Pension Plan?

The Saral Pension Plan is a standard individual immediate annuity plan introduced by the Insurance Regulatory Development Authority of India (IRDAI). This plan is offered by all the life insurance companies and has been made available from April 1, 2022. The term ‘Saral Pension’ represents the simplicity and ease of this annuity plan that is aimed at bringing more convenience and financial safety for buyers.

Features of the Saral Pension Plan

Here are some features of the plan:

Guaranteed pension for life
Two annuity options
Higher purchase price benefit
Return of purchase price
Access to liquidity during medical conditions
Flexible payout options
Loan3  against policy
Tax5  benefits

Guaranteed pension for life

The Saral Pension Plan offers a lifelong guaranteed regular income1 that can secure you for as long as you live. In fact, the pension can start as early as the month after buying the plan.

Two annuity options

The plan offers two annuity options:

  • Life annuity with return of 100% of purchase price
  • Joint life2 last survivor annuity with return of 100% of the purchase price on death of the last survivor

Higher purchase price benefit

You can invest more in the annuity plan and receive a higher income. An increased annuity is paid for higher purchase prices.

Return of purchase price

In the unfortunate event of the death of the policy holder, the insurance company gives 100% of the purchase price back to the nominee. (In case of single life option, the Purchase price is paid back to the nominee and in case of Joint life option, the nominee receives the purchase price after both the annuitants pass away). This can help you secure your loved ones and leave behind a legacy for them.

Access to liquidity during medical conditions

You can surrender the policy and get 95% of your purchase price on diagnosis of any of the specified critical illnesses.

Flexible payout options

The plan offers multiple payout options that you can choose based on your convenience such as monthly, quarterly, half-yearly, and yearly.

Loan3  against policy

The plan is helpful in catering to financial emergencies. You can avail of a loan against your plan six months after buying the plan.

Tax5  benefits

The Saral Pension Plan offers tax5 benefits under Section 80C of the Income Tax Act, 1961. The premium paid towards the plan can be claimed as a tax deduction5 of up to ₹ 1.5 lakh per annum. In addition to this, the claim received by the nominee of the plan is entirely exempt from tax under Section 10(10D)5.

Options available under the Saral Pension Plan

The Saral Pension Plan offers two annuity options based on your needs:

Life annuity with a return of 100% of purchase price (ROP)

Joint life last survivor annuity with return of 100% of the purchase price (ROP) on death of the last survivor

Under this option, the primary annuitant receives regular annuity payments for life. On the death of the annuitant, 100% of the purchase price is given to the nominee, after which the policy is terminated.
Under this option, the primary annuitant receives annuity payments for life. On the death of the primary annuitant, the annuity payments are given to the secondary annuitant till death. After the demise of both annuitants, 100% of the purchase price is given to the nominee. Post this, the policy is terminated.

Benefits available under the Saral Pension Plan

Here are some benefits of the plan:

  • Income benefit

    The annuitant receives a guaranteed regular income1 for life in the form of annuities as per their chosen payout mode.
  • Death benefit

    In the unfortunate case of the death of the annuitant, 100% of the purchase price is paid back to the nominee of the plan.
  • Additional Benefits

    • Online benefit:

      The plan gives an extra 1% annuity when you buy the annuity online.
    • Loyalty boosters:

      The annuity is increased by 1% for policies purchased by an existing ICICI Prudential Life customer.
    • NPS benefit:

      The annuity is increased by 1% for policies purchased using the proceeds of the Nation Pension Scheme.

Customer can opt for only one of the three additional benefits.

Boundary Conditions to buy the Saral Pension Plan

Here are the eligibility criteria to buy the plan:

  • The minimum age at entry for the annuitants is as follows:
    Annuity Options Minimum Age At Entry Maximum Age At Entry
    Life Annuity with Return of 100% of Purchase Price (ROP) 40 80
    Joint life Last Survivor Annuity with Return of 100% of Purchase Price (ROP) on death of the last survivor 40 80

    In case of Joint life annuity, age restrictions apply to both lives.

  • The minimum annuity per annum is ₹ 12,000, (₹ 1,000 per month) but there are no maximum limits

Simple steps to buy the Saral Pension Plan online

1. Pay Once

You can buy the plan with just one lump-sum payment.

2. Select Annuity Option

Choose the annuity option that best suits your requirements.

3. Choose Annuity Frequency

You choose the frequency of the annuity payout.

Get Lifelong Income

Why buy Saral Pension Plan online with ICICI Prudential Life Insurance?

An annuity plan is your ticket to a financially secure and comfortable retirement. Hence, selecting an insurer that is reliable, trustworthy, and above all, financially stable is critical. ICICI Prudential Life offers a simplified and transparent purchase process, quick settlements, and continued customer support to make your retirement as blissful as possible. Moreover, the additional benefits offered by ICICI Prudential Life Insurance like the higher purchase price benefit, online benefits apart from the critical illness benefit4, facility to take a loan3, and multiple annuity options of the plan offer enough room to cater to unexpected events.

 

 

Frequently Asked Questions

1. What is the Saral Pension Plan?

The Saral Pension Plan is an immediate individual annuity plan introduced by the IRDAI. It is offered by different insurance companies with their prefix. However, the basic plan is the same.

2. How much is the premium for Saral Pension Plan?

The minimum annuity for the Saral Pension Plan is ₹ 12,000. There is no maximum limit.

3. Are there tax5 benefits under the Saral Pension Plan?

The premium paid towards the Saral Pension Plan can be used as a tax deduction5 of up to ₹ 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961. Additionally, the death benefit given to the nominee is exempt from tax under Section 10(10D)5.

4. Are the returns taxable under the Saral Pension Plan?

Yes, the annuity income is taxed as per the income tax5 slab you fall into for the concerned financial year.

5. When does the income start in the Saral Pension Plan?

The income can start as early as the following month from the date of purchase.

6. How long do you get the income under the Saral Pension Plan?

Under the plan, you can receive regular income for as long as you live.

7. Why should you invest in the Saral Pension Plan?

The Saral Pension Plan is an excellent low-risk way to plan for your retirement. It can secure you financially and your loved ones after you. Moreover, it offers tax5 savings and a loan facility for increased financial well-being.

W/II/0844/2022-23

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1 Your annuity is informed to you when you buy the plan and is guaranteed and unchanged for life.

2 Joint Life will be the spouse of the Primary Annuitant.

3 Loan can be availed any time after six months from the date of commencement of the policy. Maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount payable under the policy. For further details, please refer to the policy document.

4 The policy can be surrendered any time after six months from the date of commencement, if the annuitant/ primary annuitant/ secondary annuitant or the spouse or any of the children of the annuitant is diagnosed as suffering from any of the specified critical illnesses. For more details on the risk factors, term and conditions please read the product brochure carefully before concluding the sale.

5 Tax benefits under the policy are subject to conditions & provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

ICICI Pru Saral Pension UIN 105N184V05

 

Advt no: W/II/1081/2022-23

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