It is always the dream of people to work hard for as long as they can and enjoy the remaining life post-retirement without any difficulties. Saral Pension Yojana qualifies for the need of a hassle-free life after retirement. It is a very straightforward policy for the smooth and stress-free innings of your life after retirement. You can purchase the policy for yourself individually or you can even opt for a joint annuity with your spouse. The Saral pension plan is quite simple and comes with a lot of features and benefits.
Benefits of Saral Pension Yojana
The major benefits you get while being covered by the Saral Pension Yojana are as follows:
Survival Benefit
Under the survival benefit of the Saral Pension Yojana, the policyholder continues to receive annuity payments monthly, quarterly, semi-yearly and yearly depending upon what the annuitant chooses. You will receive the payments continuously for as long as you and/or your spouse lives.
Death Benefit
The death benefit of the Saral Pension Plan is offered under two options. If a single life annuity is purchased by the policyholder, the nominee or the beneficiary or the spouse is paid 100% amount of the purchase price. However, if it’s a joint-annuity purchase, the spouse of the annuitant continues to receive the annuity and upon their death, 100% of the amount is paid to the nominee.
Easy Loans
The Saral Pension Yojana allows the policyholders to access easy loans from financial institutions. The policyholder can avail loan anytime after the insurance has been active for 6 months or more. Under joint annuity, the secondary annuitant also has the right to apply for loans after the death of the primary policyholder. However, the loan amount should not exceed 50% of the yearly annuity payment due under the plan.
Policy Surrender
Serious illness can occur to anybody anytime. If you are a policyholder under the Saral Pension Plan, you need to worry about funds for any such illness. If you are the annuitant and in case you, your spouse or your children fall under severe illness, you can opt-out of your coverage through the Saral Pension Yojana. Anytime after 6 months of the commencement of the policy, you are eligible to surrender the policy. When you surrender, you will receive 95% of the purchase price of the policy if there is no leftover loan balance or interest. As soon as the surrender amount is paid, your insurance with the company will be terminated, ending the holding period. The list of the critical illnesses for which you can surrender the Saral Pension Plan can be revised from time to time by the insurance company.
Safe & Low-Risk Plan
The policy is considered a safe retirement plan and free of difficulties with low risks. The main reason for the same is that the terms and conditions of the policy are specified by the government of India.
Saral Pension Yojana has made your retirement a little easier and more secure with the government’s involvement in it. The policy secures the golden years of the senior citizens and does not let them be dependent on anyone else. Saral Pension Plan guarantees pension payments until death combined with other benefits.
