Tata AIA Saral Pension Plan

What is Tata AIA Saral Pension Plan?

Tata AIA Saral Pension is a retirement plan designed to provide you with financial security during your golden years. It's a single premium, non-linked, and non-participating individual annuity plan that offers a guaranteed income stream for your entire lifetime. By investing a lump sum amount, you can enjoy the freedom to travel, pursue hobbies, spend quality time with loved ones, and fulfill your dreams without worrying about finances. This plan ensures that you have a steady income to manage your expenses post-retirement, allowing you to truly enjoy your retirement. 

Features of Tata AIA Saral Pension Plan

Below are the features of Saral Pension Tata AIA plan:

• Flexible Annuity Options: Choose the annuity option that best suits your needs:

  • Life Annuity with Return of Purchase Price (ROP): Receive a regular income for life, and on your demise, 100% of the purchase price is returned to your nominee.

  • Joint Life Last Survivor Annuity with Return of Purchase Price (ROP): Enjoy a regular income as long as either you or your spouse is alive. On the death of the last surviving spouse, 100% of the purchase price is returned to the nominee.

• Single or Joint Life Annuity: Opt for a pension plan that covers you alone or one that extends to your spouse.

• Flexible Annuity Payout Modes: Choose how frequently you want to receive your pension, whether it's monthly, quarterly, half-yearly, or yearly.

Eligibility Criteria for Tata AIA Saral Pension Plan

Below is the eligibility criteria for the Saral Pension Tata AIA plan: 

Benefits of Tata AIA Saral Pension Plan

Below are the benefits of the Saral Pension Tata AIA plan:

1. Survival Benefit

   • Single Life Annuity: Receive a regular income for as long as you live. You can choose the payment frequency to suit your needs.

   • Joint Life Annuity: Ensure a steady income for both you and your spouse. The annuity continues as long as either of you is alive.

2. Maturity Benefit:

   There is no maturity benefit in this plan. The focus is on providing a lifelong income.

3. Death Benefit

   • Single Life Annuity: Upon your death, a lump sum equal to 100% of your initial investment is paid to your nominee.

   • Joint Life Annuity:

     • If your spouse survives you, they continue to receive the same annuity amount. Upon their death, a lump sum equal to 100% of your initial investment is paid to the nominee/legal heirs.

     • If your spouse predeceases you, a lump sum equal to 100% of your initial investment is paid to the nominee/legal heirs upon your death.

   • Surrender Benefit: You can surrender the policy after six months if you, your spouse, or any of your children are diagnosed with a serious illness.

Policy Details of Tata AIA Saral Pension Plan

1. Free Look Period

   The Tata AIA Saral Pension Plan offers policyholders a Free Look period, which allows them to review the policy's terms and conditions after receiving the policy document. The duration of this period is:

   • 15 days for standard policies.

   • 30 days for electronic policies and those obtained through distance mode.

   During this period, if the policyholder finds any of the terms or conditions unsatisfactory, they have the option to return the policy to Tata AIA Life Insurance Company Ltd. for cancellation. To do so, the policyholder must provide reasons for their objection. Upon cancellation, the policyholder is entitled to a refund of the premium or purchase price paid without any interest. However, certain deductions will be made, including:

   • Stamp duty charges.

   • Any annuity payments made, if applicable.

   The handling of the policy upon cancellation varies depending on how the policy was purchased:

   • Standalone Immediate Annuity Policies: The proceeds from the cancellation will be returned directly to the policyholder.

   • Policies Purchased with Proceeds from Deferred Pension Plans of Other Insurers: The proceeds from the cancellation will be transferred back to the original insurance company.

   • Policies Purchased with Subscribers' NPS Funds: The cancellation proceeds will be transferred back to the Central Record Keeping Agency from where the funds were received.

   • Policies Purchased as QROPS: The cancellation proceeds will be transferred back to the fund house from where the money was initially received.

   Upon receiving a request for Free Look cancellation, Tata AIA will process the request and refund the premium within 15 days. Once the refund is issued, the policy will be terminated, and all rights, benefits, and interests under the policy will cease.

2. Policy Loan:

   Policyholders of the Tata AIA Saral Pension Plan have the option to avail of a loan against their policy. This loan facility is available anytime after six months from the date of commencement of the policy.