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Following the insurance regulator’s directive for launching a standard annuity plan, Aviva Life Insurance has launched Aviva Saral Pension Plan. It is a single premium individual immediate annuity plan with standard terms and conditions. In return for a single premium, the plan offers guaranteed pension income to help people plan on their retirement. The plan offers flexibility to receive annuity monthly, quarterly, half-yearly and yearly, and loans against the policy.

Key features:

Guaranteed income for a whole life: It is a single premium plan where you pay only once and enjoy guaranteed regular income from the next month for the rest of your life.

Entry age: Minimum entry age is 40 years and the maximum age limit is 80 years. There is no maximum maturity age for this plan as it is a whole life policy.

Plan options: It offers two options. Single life annuity with return of 100% of purchase price (ROP) and joint life last survivor annuity with return of 100% of the purchase price on the death of the last survivor. The joint life option helps you to secure your spouse’s future income too.

Loan availability: The policy offers the option to avail loan against the policy after six months from the time of purchase of the policy.

Annuity payment: If a 60-year-old male pays a single premium of Rs 10 lakh, annual annuity amount of Rs 50,171 is payable. For joint life option an annuity amount of Rs 49,090 is paid, assuming the spouse is five years younger.

Comparison: If an individual invests Rs 10 lakh in LIC Saral Pension Plan he or she will earn Rs 51,650 yearly pension that works out to Rs 4,304 per month. In the case of joint life, the yearly pension works out to Rs 51,150.

“In line with IRDAI’s vision to offer standard immediate annuity product with simple features, we have launched Aviva Saral Pension Plan. We understand the need for regular income in the later years of life and the importance of securing the financial future of loved ones even in one’s absence, making Aviva Saral Pension a helpful instrument for retirement planning. Keeping in mind that the life expectancy is increasing because of improved healthcare facilities, nuclear families becoming a norm, retirement planning has become a necessity. So many people imagine themselves sitting comfortably, free of responsibilities, enjoying life in their golden years, and we want to help our customers live this dream with this launch of this product,” said Vinit Kapahi, Head, Marketing Function, Aviva Life Insurance.