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  SARAL PENSION YOJANA Â
​
No one should have to choose between medicine and other necessities. No one should have to use the emergency room every time a child gets sick. And no one should have to live in constant fear that a medical problem will become a financial crisis.
                                         -  Brad Henry |
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WHAT IS SARAL PENSION YOJANA ?
​A STANDARD PENSION SCHEMEÂ
26.01.2020 : Indian life insurance market currently has several individual immediate annuity products marketed by life insurers, with each product having its own features, terms and conditions and annuity options. With a view to having uniformity across Insurers, and to make available a product by all Life Insurers that will broadly meet the needs of an average customer, IRDAI felt necessary to introduce a standard, individual immediate annuity product, with simple features and standard terms and conditions.
Such a standard product will make it easier for the customers to make an informed choice, enhance the trust between the Insurers and the insured, and reduce mis-selling as well as potential disputes.Â
It can be noted here that in the last year , IRDAI had come with many standard policies  to be issued by all insurers like Arogya Sanjeevani plan , Saral Bima Yojana  etc . Issuance of standard policies will help the customers to compare the premiums demanded and come  to an informed decision .Â
The policy will be issued by 1st , April , 2021 by all the Life insurers .Â
26.01.2020 : Indian life insurance market currently has several individual immediate annuity products marketed by life insurers, with each product having its own features, terms and conditions and annuity options. With a view to having uniformity across Insurers, and to make available a product by all Life Insurers that will broadly meet the needs of an average customer, IRDAI felt necessary to introduce a standard, individual immediate annuity product, with simple features and standard terms and conditions.
Such a standard product will make it easier for the customers to make an informed choice, enhance the trust between the Insurers and the insured, and reduce mis-selling as well as potential disputes.Â
It can be noted here that in the last year , IRDAI had come with many standard policies  to be issued by all insurers like Arogya Sanjeevani plan , Saral Bima Yojana  etc . Issuance of standard policies will help the customers to compare the premiums demanded and come  to an informed decision .Â
The policy will be issued by 1st , April , 2021 by all the Life insurers .Â
SARAL PENSION SCHEME - IMMEDIATE ANNUITY PLAN
BASICÂ FEATURES :Â Â
  SARAL PENSION PLAN  is a Single Premium, Non-Linked Non-Participating Immediate Annuity Plan.
 It will be offered  to individuals without restrictions on gender, place of residence, travel, occupation or educational qualifications.
Â
1. Policies issued by all Life insurance companies will comply with IRDAI Notification .Â
2.  Type of Annuity :Â
Option 1 :   Life Annuity with Return of 100% of Purchase price  (ROP) : Under this option, Annuity is paid for life of the annuitant.
In addition, 100% Purchase Price will be returned to the  nominee / legal heirs on death of the annuitant.  Â
2. OPTION 2 : Joint Life Last Survivor Annuity with Return of 100%  of Purchase Price (ROP) on death of the last survivor.  In this case, the annuity is first paid to the annuitant for life. After death of the annuitant, if the spouse is surviving, the spouse continues to receive same amount of annuity  for life till his/her death. Subsequently, on death of the spouse, Purchase Price shall be payable to nominee /legal heirs. However, if the spouse has pre-deceased the annuitant, then on the death of the annuitant, the  Purchase price shall be payable to the nominee / legal heirs.
3. Â FREQUENCY OF ANNUITY PAYMENT :Â Â Monthly, Quarterly, Half-Yearly and Yearly.
Payments  shall be in arrears only, which means that the first annuity payment will start after the modal duration; for example after three months in case of quarterly mode. Modal factors to be derived with an interest rate consistent with pricing rate of interest
4. Maturity Benefit :  There is no Maturity Benefit under the product
5. Surrender of Policy : Only on diagnosis of  critical illness of the annuitant(s)
6 . Payment on Surrender : The policy can be surrendered any time after six months  from the date of commencement, if the annuitant or the
spouse or any of the children of the annuitant is diagnosed as suffering from any of the critical illnesses specified in the Policy Document, based on the documents produced to the satisfaction of the medical examiner of the Insurer.Â
The list of critical illnesses may be revised from time to time by the Authority as needed. On approval ofsurrender, 95% of the Purchase Price shall be paid to the annuitant, subject to deduction of outstanding loan amount and loan interest, if any. On payment of surrender value, the policy stands terminated.Â
7. LOAN :  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. Under joint life option, the loan  can be availed by the primary annuitant and on death of the primary annuitant, it can be availed by the secondary  annuitant.
8 . Interest on Loan  :  The interest on loan shall be at 10-year G-Sec rate per annum as at 1st April, of the relevant financial year, as published by M/s. FBIL, plus not more than 200 bps and shall be applicable for all loans granted during the period  .Â
9 . Recovery of Interest :  interest will be recovered from the annuity amount payable under the policy. The loan interest will accrue as per the frequency of annuity payment under the policy and it will be due on the date of annuity. The loan outstanding shall be recovered from the claim proceeds under the policy. However, the annuitant has the flexibility  to repay the loan principal at any time during the currency
of the annuity payments. Â
10. Minimum Annuity ( Pension ) :  Rs. 1000 per Month, Rs. 3000 per Quarter, Rs. 6000 Per half year and Rs. 12000 per annum. Â
11. Maximum Annuity ( Pension ) : No limit Â
12. Entry Age :  Minimum : 40 Years last birthday  . Maximum :  80 Years last birthdayÂ
13 . Policy Term : Whole LifeÂ
​To read  IRDAI  CIRCULAR , click here
  SARAL PENSION PLAN  is a Single Premium, Non-Linked Non-Participating Immediate Annuity Plan.
 It will be offered  to individuals without restrictions on gender, place of residence, travel, occupation or educational qualifications.
Â
1. Policies issued by all Life insurance companies will comply with IRDAI Notification .Â
2.  Type of Annuity :Â
Option 1 :   Life Annuity with Return of 100% of Purchase price  (ROP) : Under this option, Annuity is paid for life of the annuitant.
In addition, 100% Purchase Price will be returned to the  nominee / legal heirs on death of the annuitant.  Â
2. OPTION 2 : Joint Life Last Survivor Annuity with Return of 100%  of Purchase Price (ROP) on death of the last survivor.  In this case, the annuity is first paid to the annuitant for life. After death of the annuitant, if the spouse is surviving, the spouse continues to receive same amount of annuity  for life till his/her death. Subsequently, on death of the spouse, Purchase Price shall be payable to nominee /legal heirs. However, if the spouse has pre-deceased the annuitant, then on the death of the annuitant, the  Purchase price shall be payable to the nominee / legal heirs.
3. Â FREQUENCY OF ANNUITY PAYMENT :Â Â Monthly, Quarterly, Half-Yearly and Yearly.
Payments  shall be in arrears only, which means that the first annuity payment will start after the modal duration; for example after three months in case of quarterly mode. Modal factors to be derived with an interest rate consistent with pricing rate of interest
4. Maturity Benefit :  There is no Maturity Benefit under the product
5. Surrender of Policy : Only on diagnosis of  critical illness of the annuitant(s)
6 . Payment on Surrender : The policy can be surrendered any time after six months  from the date of commencement, if the annuitant or the
spouse or any of the children of the annuitant is diagnosed as suffering from any of the critical illnesses specified in the Policy Document, based on the documents produced to the satisfaction of the medical examiner of the Insurer.Â
The list of critical illnesses may be revised from time to time by the Authority as needed. On approval ofsurrender, 95% of the Purchase Price shall be paid to the annuitant, subject to deduction of outstanding loan amount and loan interest, if any. On payment of surrender value, the policy stands terminated.Â
7. LOAN :  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. Under joint life option, the loan  can be availed by the primary annuitant and on death of the primary annuitant, it can be availed by the secondary  annuitant.
8 . Interest on Loan  :  The interest on loan shall be at 10-year G-Sec rate per annum as at 1st April, of the relevant financial year, as published by M/s. FBIL, plus not more than 200 bps and shall be applicable for all loans granted during the period  .Â
9 . Recovery of Interest :  interest will be recovered from the annuity amount payable under the policy. The loan interest will accrue as per the frequency of annuity payment under the policy and it will be due on the date of annuity. The loan outstanding shall be recovered from the claim proceeds under the policy. However, the annuitant has the flexibility  to repay the loan principal at any time during the currency
of the annuity payments. Â
10. Minimum Annuity ( Pension ) :  Rs. 1000 per Month, Rs. 3000 per Quarter, Rs. 6000 Per half year and Rs. 12000 per annum. Â
11. Maximum Annuity ( Pension ) : No limit Â
12. Entry Age :  Minimum : 40 Years last birthday  . Maximum :  80 Years last birthdayÂ
13 . Policy Term : Whole LifeÂ
​To read  IRDAI  CIRCULAR , click here
 FOR THE LIST OF LIFE INSURANCE COMPANIES IN INDIA AND THEIR WEBSITES  , CLICK HEREÂ
PLAN N PROGRESS compares premiums quoted by various insurance companies on Arogya Sanjeevani plan : CLICK HERE FOR DETAILSÂ
NEW ARTICLEÂ Â Â Â Â
                             SECURING  HEALTH   FOR SENIOR CITIZENSÂ
Â
                                        WITH OR WITHOUT ENTRY AGE RESTRICTION Â
TOÂ READ THE ARTICLEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â CLICK HEREÂ
TO GET ANSWERS FOR FAQs on MANAGEMENT OF POLICIES ,  CLICK HEREÂ
​​
                             SECURING  HEALTH   FOR SENIOR CITIZENSÂ
Â
                                        WITH OR WITHOUT ENTRY AGE RESTRICTION Â
TOÂ READ THE ARTICLEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â CLICK HEREÂ
TO GET ANSWERS FOR FAQs on MANAGEMENT OF POLICIES ,  CLICK HEREÂ
​​
DO YOU KNOW ?Â
From  a report  of  Sample Survey Office ,  it is revealed that  80 percent of Indians , who mainly rely up on  private  health care ,  do not  have any medical insurance .  The government has brought  only about 12 %  of population under  health protection schemes like  Rashtriya Swasthya  Bima Yojana . In  the absence of health insurance  , 75 % of Indians  use their hard earned savings  while  18% have to borrow . In order to escape from financial gloom  in the events of  medical emergencies , one has to   definitely require some form of Health insurance .    Â
 KNOW  ABOUT  TAX ON RETIREMENT BENEFITS  , CLICK HEREÂ
FOR INCOME TAX NEWS   , CLICK HERE    NEWS ON INTEREST RATES  CLICK HERE Â
​ARTICLE ON INVESTMENT OPTIONS  FOR RETIREES  ,   CLICK HERE    WHAT IS SYSTEMATIC INVESTMENT PLAN  ?   CLICK HERE Â
​                               Â
                                    NEW  ARTICLES ON  Â
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 SMALL FINANCE BANKS                                     PAYMENT  BANKS   Â
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UNIFIED Â PAYMENT INTERFACEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â BHARAT BILL PAYMENT SYSTEMÂ Â Â
     BHIM APP                                                AADHAR  Â
                            e-INSURANCE  Account (  eIA  )  Â
WHAT IS NEW ON PLAN N PROGRESS ?    ​
FOR INCOME TAX NEWS   , CLICK HERE    NEWS ON INTEREST RATES  CLICK HERE Â
​ARTICLE ON INVESTMENT OPTIONS  FOR RETIREES  ,   CLICK HERE    WHAT IS SYSTEMATIC INVESTMENT PLAN  ?   CLICK HERE Â
​                               Â
                                    NEW  ARTICLES ON  Â
                                   Â
 SMALL FINANCE BANKS                                     PAYMENT  BANKS   Â
                                    Â
UNIFIED Â PAYMENT INTERFACEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â BHARAT BILL PAYMENT SYSTEMÂ Â Â
     BHIM APP                                                AADHAR  Â
                            e-INSURANCE  Account (  eIA  )  Â
WHAT IS NEW ON PLAN N PROGRESS ?    ​
  ARTICLES ON  Â
​INSURANCE           LIFE INSURANCE          HEALTH INSURANCE          VEHICLE INSURANCE      HOUSEHOLD INSURANCE
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 SMALL FINANCE BANKS      PAYMENT  BANKS      UNIFIED  PAYMENT INTERFACE             BHARAT BILL PAYMENT SYSTEM  Â
                         BHIM APP                                                AADHARÂ
​INSURANCE           LIFE INSURANCE          HEALTH INSURANCE          VEHICLE INSURANCE      HOUSEHOLD INSURANCE
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 SMALL FINANCE BANKS      PAYMENT  BANKS      UNIFIED  PAYMENT INTERFACE             BHARAT BILL PAYMENT SYSTEM  Â
                         BHIM APP                                                AADHARÂ