The Insurance Regulatory and Development Authority of India (IRDAI) has directed all life insurers to mandatorily offer from April 1, 2021 a standard, individual immediate annuity product it has developed.
- This will be a single premium, non-linked non-participating immediate annuity plan.
- The standard individual immediate annuity plan will be called ‘Saral Pension’ prefixed by the insurer’s name.
- In its simplest form, annuity means that you pay a lumpsum as purchase price and get a fixed payment at regular intervals for the rest of your life.
- This will be a standard immediate annuity plan for individuals; it will provide a minimum annuity of Rs 1,000 per month, Rs3,000 per quarter, Rs6,000 per half year and Rs12,000 per annum. There is no limit for taking the maximum annuity, as this will depend on the maximum purchase price.
- The minimum and maximum purchase price will depend on the annuity amount.
- The plan is targeted at those aged between 40 and 80 years.
- There is no maturity benefit under the policy.
- While leaving the pricing to the insurers, the regulator stipulated two annuity options that can be offered.
