IndiaFirst Life Saral Pension Plan

IndiaFirst Life Saral Pension Plan

As you begin to earn a regular income, your first goal is to meet the needs of today. Any savings that you put aside are earmarked for financial goals in the next few years. As you grow older, the prospect of retirement and the end of professional income rears its scary head. Retirement is a crucial milestone in one's life. Without adequate planning, your retired years might end up being full of strife because even though your income has ended, your expenses have not.

IndiaFirst Life Saral Pension Plan is an individual immediate annuity plan designed with straightforward features and rich benefits. Embrace your future fearlessly with the IndiaFirst Life Saral Pension Yojana.

What is the IndiaFirst Life Saral Pension Plan

There are many retirement insurance products in India offering a variety of features, benefits, annuity options, and flexible facilities. The sheer variety of immediate annuity products is likely to leave you spoilt for choice. With a head full of terms and conditions, choosing a sound pension plan may be a confusing process.

To ensure uniformity across insurance products offered by life insurers in India, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced 'Saral' plans which have straightforward features and standard terms for everyone. After introducing the Saral Jeevan Bima, the IRDAI has asked life insurers to provide a Saral pension product made available from the 1st of April 2021 onwards.

Approved by the regulating authority, the IndiaFirst Life Saral Pension Yojana is IndiaFirst's standard individual immediate annuity plan. The IndiaFirst Life Saral Pension Plan is a single premium, non-linked, non-participating, individual immediate annuity plan. This Saral pension scheme offers two different annuity options to choose from. Your preferred option will define what kind of a regular income you will receive under the Saral Pension Yojana. As a whole life product, the saral pension yojna by IndiaFirst Life assures a lifetime income to the policyholder. Depending on the chosen annuity in this individual immediate annuity plan, your spouse may also receive annuity payments for as long as they live.

The IndiaFirst Saral Pension Plan is your way to a guaranteed regular income for your lifetime. Plan the best start for your second innings with the IndiaFirst Saral Pension Yojana.

What are the Key Features of IndiaFirst Life Saral Pension Plan?

The goal of 'saral' plans is to make the process of insuring yourself and planning for your retirement simple and straightforward—saral.

Let's break down the industry jargon for the IndiaFirst Life Saral Pension Plan:

Non-linked

The IndiaFirst Life Saral Pension Yojana is not linked to the capital market, and so it is called a non-linked saral pension plan. Since this saral pension yojna is not connected to the market, it is not subject to the volatility of the market—making it the perfect bet for any first-time or risk-averse investor.

Non-participating

A non-participating plan is also known as a without-profit plan. Participating plans may receive additional bonuses in case the insurer announces any. A non-participating plan such as the IndiaFirst Life Saral Pension Yojana offers you guaranteed benefits that are intimated to you at the very start of the plan.

Individual immediate annuity plan

The word 'annuity' stands for a fixed amount of money paid to an individual every year. When it comes to insurance products, there are two types of annuity plans—deferred and immediate. A deferred annuity plan requires you to make premium payments during the policy tenure so you can receive yearly annuity payments from the time of your choosing. This means you can defer the receipt of annuity payments to a later date.

On the other hand, an immediate annuity plan requires the policyholder to make a single premium payment to start the policy and your annuity payments immediately. The IndiaFirst Saral Pension Plan is an individual immediate annuity plan that requires you to pay the premium or purchase price in a lump sum amount and begin earning annuity payments immediately after that.

Whole life saral pension plan

Most insurance plans have a fixed policy term. For instance, a pure protection term plan will protect for a set number of years (typically up to 40 years). Suppose you survive the policy tenure; then, a term plan will pay you no survival benefits, and your life cover will cease after the term is over. With a whole life plan, the policy term continues for as long as you live. The IndiaFirst Life Saral Pension Plan is a whole life product.

Features of the IndiaFirst Life Saral Pension Yojana

Assured income

Since the IndiaFirst Life Saral Pension Plan is a whole life product, this saral pension scheme offers you the assurance of a lifetime income even post your retirement years.

Annuity options

Under the IndiaFirst Life Saral Pension Plan, you can choose from two different annuity options as per your convenience—the Life Annuity with Return of 100% of Purchase Price and the Joint Life Last Survivor Annuity for Life with Return of 100% of Purchase Price.

• The Life Annuity with Return of 100% of Purchase Price is an excellent saral pension scheme annuity option for those who would like to receive a regular lifetime income while protecting the financial future of their loved ones in case of the unfortunate demise of the policyholder.
• The Joint Life Last Survivor Annuity for Life with Return of 100% of Purchase Price is a saral pension yojna option that continues to support your spouse with regular income even in your absence for as long as your spouse lives.

Critical illness saral pension policy surrender

With help from this feature in the IndiaFirst Saral Pension Plan, you can surrender the saral pension plan and get 95% of the purchase price back if you surrender in case of critical illness diagnosis. This feature is applicable only after six months from the date of policy commencement.

Flexible annuity payments

Once you make the single premium payment to kickstart this individual immediate annuity plan, your annuity payments start with immediate effect. You have the flexibility to choose the annuity frequency. Receive a regular monthly, quarterly, half-yearly, or yearly income through your retirement as per your choice.

Tax benefits

Tax benefits may be available on the premiums paid and benefits received as per prevailing tax laws in the country.

What are the eligibility criteria for IndiaFirst Life Saral Pension Plan?

• The minimum age at entry into the IndiaFirst Life Saral Pension Yojana is 40 years.
• The maximum age for applying for the IndiaFirst Saral Pension Plan is 80 years, and 70 years for policies sourced through the POSP-LI and CPSC-SPV channels.
• The minimum premium amount or single pay purchase price in the plan is Rs. 1,00,000 with no limit on the maximum premium amount.
• The minimum annuity amount is Rs. 1,000 monthly, Rs. 3,000 quarterly, Rs. 6,000 half-yearly, and Rs. 12,000 yearly with no limit on the maximum annuity amount.

What is the need for IndiaFirst Life Saral Pension Plan?

The only thing sure about the journey of life is that there will be plenty of uncertainties to grapple with along the way. It isn't easy to think and plan for a distant future when all your resources are directed towards making ends meet today. There are many reasons why you need to buy the IndiaFirst Life Saral Pension Plan:

Retirement planning

While it may be better to save in a systematic and disciplined manner over a long period of time, the truth is that most people do not prioritise retirement planning early in life. Even if you have missed the bus on planning early, the IndiaFirst Life Saral Pension Yojana allows you to start where you are and with what you have.

By paying a single lump sum premium at the start, you can avail of an assured lifetime income. People who will not be getting any pension post-retirement can create their own income stream for their latter days with the Saral Pension Plan.

Safe and low-risk

Investing in market-linked products offers the opportunity to earn high returns. However, there is a high risk associated with market-linked instruments as there is always the possibility that your investments bear the brunt of a downturn in the market.

The IndiaFirst Life Saral Pension Plan is a safe and low-risk product that is perfect for those who are risk-averse. As a simple and straightforward plan, this saral pension scheme allows you to save your money in a risk-free environment while you continue to get annuity payments from it.

Value-for-money

When it comes to meeting fundamental needs, the simplest options could serve the primary purpose better than complex solutions. The IndiaFirst individual immediate annuity saral pension scheme is one such simple pension plan option. There are two basic annuity options to choose from, and these cover the bases well.

Surrender when needed

With most policies, you are either locked in for a specific number of years or surrender the policy early and lose significant amounts of your savings. Under the IndiaFirst Saral Pension Yojana, the policyholder can surrender the saral pension scheme anytime after six months from the commencement of the policy in case of a critical illness diagnosis.

Suppose the policyholder, their spouse, or their child is diagnosed with one of the critical illnesses listed in the policy document. In that case, the policy can be surrendered to receive 95% of the purchase price.

What are the Benefits of IndiaFirst Life Saral Pension Plan?

The IndiaFirst Saral Pension Plan is simple and valuable. The saral pension yojna is kept straightforward without too many bells and whistles to meet the specific financial needs of people. The power-packed nature of the features offered under the IndiaFirst Saral Pension Yojana makes it a good bet for anyone.

Survival benefits and annuity options

With the IndiaFirst Saral Pension Plan, you get to choose between two annuity options as per your requirements. The annuity rate is level and guaranteed for life in absolute terms at the time of purchasing for either annuity option.

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

The annuity will be payable in arrears for the life of the annuitant immediately after the commencement of the policy as per the annuity payment frequency chosen by the annuitant. On the death of the annuitant, the annuity payments will cease, and 100% of the purchase price will be payable to the nominee of the annuitant. The IndiaFirst Saral Pension Plan concludes on payment of the death benefit.

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

The annuity will be payable in arrears for the life of the annuitant immediately after the commencement of the policy as per the annuity payment frequency chosen by the annuitant. On the death of either annuitant, the annuity payment continues for the other annuitant and will be payable in arrears for the life of the last surviving annuitant. On the death of the last surviving annuitant, the annuity payments will cease, and 100% of the purchase price will be payable to the nominee of the annuitant. The IndiaFirst Saral Pension Plan ends on payment of the death benefit.

Death benefit

The death benefit is payable upon the death of the annuitant in both annuity options. Under the Life Annuity with ROP saral pension plan, the annuity payments stop, 100% ROP is payable, and the policy ceases after the payment of the death benefit.

However, in the Joint Life option, the death of one annuitant leads to continued annuity payments to the other annuitant. Upon the death of the last surviving annuitant, the annuity payments stop, 100% ROP is payable, and the policy ceases after the payment of the death benefit.

Loan facility

You can avail of a loan any time after six months from the commencement of the policy. Under the Joint Life annuity option, the secondary annuitant can apply for a loan after the primary annuitant's death.

Tax benefit

Tax benefits may be available on premiums paid and benefits receivable as per prevailing Income Tax Laws. These are subject to change from time to time as per the Government Tax laws.