ABSLI Saral Pension Plan

What is ABSLI Saral Pension Plan?

ABSLI Saral Pension is a retirement plan designed to provide financial security during your golden years. It's a non-linked, non-participating, single premium plan, meaning you invest a lump sum amount upfront and receive a guaranteed income for life. With options for both single and joint life annuities, as well as flexible payout frequencies, ABSLI Saral Pension aims to help you and your family enjoy a worry-free retirement without the uncertainties of market fluctuations.

Features of ABSLI Saral Pension Plan

Below are the features of ABSLI Saral Pension Plan:

• Guaranteed Regular Income: Enjoy a dependable income stream throughout your retirement, shielding you from uncertainties.

• Lifetime Income: Choose to receive annuity payments for as long as you or your partner lives, ensuring financial stability for both of you.

• Flexible Payout Options: Tailor your plan to suit your needs by selecting from various annuity payout options.

• Hassle-Free Process: No medical tests are required, making it convenient to enroll in this plan.

Eligibility Criteria for ABSLI Saral Pension Plan

Benefits of ABSLI Saral Pension Plan

Below are the benefits of ABSLI Saral Pension Plan:

Choose Your Plan: You have two options to suit your needs:

Option 1: Life Annuity with Return of 100% of Purchase Price (ROP)

• Guaranteed Income: Receive a fixed annuity for life.

• Death Benefit: In case of your demise, 100% of the purchase price is paid as a lump sum to your nominee or legal heirs.

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

• Joint Coverage: Enjoy a guaranteed income for as long as either you or your spouse is alive.

• Death Benefit: On the death of the second spouse, 100% of the purchase price is paid as a lump sum to your nominee or legal heirs.

Other Benefits

• Regular Income: Receive a fixed annuity as per your chosen frequency (yearly, half-yearly, quarterly, or monthly).

• Death Benefit: Ensures financial protection for your family in case of unforeseen circumstances.

• Simplicity: No complex terms or conditions to worry about.

• Flexibility: Choose the annuity option that best suits your retirement goals.

Policy Details of ABSLI Saral Pension Plan

1. Policy Loan:

   You can avail of a loan against your policy after six months from the commencement date. Under the joint-life option, the primary annuitant can avail of the loan, and upon their death, the secondary annuitant can do so. The maximum loan amount is capped such that the annual interest payable does not exceed 50% of the annual annuity amount. The interest rate on the loan is based on the 10-year G-Sec rate plus 200 bps, applicable for 12 months starting May 1st each year. The loan interest will be deducted from the annuity payments, and you can repay the principal anytime during the annuity period.

2. Surrender:

   You can surrender the policy after six months if diagnosed with any of the 20 specified critical illnesses, based on approval from the company’s Medical Examiner. Upon surrender, 95% of the purchase price, after deducting any outstanding loan and interest, will be paid. The policy will terminate upon payment of the surrender value.

3. Termination of Policy:

   The policy will terminate upon the earliest of the following:

   • Free look cancellation request,

   • Settlement of death,

   • Payment of the surrender value.

4. Free-Look Period:

   In free look period, you can return the policy within 15 days (30 days for electronic policies or those issued under Distance Marketing Guidelines) if unsatisfied with the terms. The purchase price will be refunded after deducting stamp duty and any annuity paid. For standalone immediate annuity policies, the refund is returned to the policyholder, while for policies purchased from a deferred pension plan, the refund is transferred back to the originating insurance company.