Future Generali India Life launches Saral Pension Plan; check details

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Following IRDAI’s directive to offer standard immediate annuity plans, Future Generali India Life Insurance has launched its Saral Pension Plan for creating a regular stream of income for people after retirement. The plan offers a life-long guaranteed rate right at the time of buying the policy without any worry of a change in interest rates in the future. The product is a single premium non-linked non-participating individual immediate annuity plan with the following features:

Plan Options

Option 1: Single life annuity with Return of 100% of Purchase Price (ROP)

Option 2: Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP) on the death of the last survivor.

Eligibility

Annuity Rates

If a 60-year old male invests Rs 5 lakh in the plan, he will get a monthly pension of Rs1998.96. Similarly, in the case of a joint life for a 60-year old male and 55-year female, the monthly annuity works out to Rs2,002.24.

Comparison

For similar parameters, HDFC Life Saral Pension Plan gives a monthly pension of Rs2,210 for a single life annuity. In the case of a joint life, the monthly annuity works out to Rs2,174. Similarly, If an individual invests Rs 10 lakh in LIC Saral Pension Plan he or she will earn Rs 4,304 per month. In the case of joint life, the monthly pension works out to Rs 4262.

Loan/Surrender

The loan can be taken against the policy after 6 months of buying the plan. In case of contracting any of the specified critical illnesses by the annuitant or spouse or any of the children of the annuitant, the policy can be surrendered for cash. This facility is available after six months from the date of commencement of the policy.

Taxability

Pension is taxable income and hence will be chargeable as per your income tax slab.

Maturity benefit

There is no maturity benefit under this scheme