Shriram Life Pension Plans

The company is more focused in meeting the insurance requirements of the lower segment of the society to benefit them. The products designed and offered by the company are of high quality at affordable rates to meet the pocket and the requirement of the common man. Today, the range of products offered by Shriram Life Insurance include Protection plans in the form of term plans, Child Plans, Savings and Investment Plans which are available in both conventional or ULIPs form and pension plans. With a wide range of products, the company strives to meet every individual’s insurance related requirement at a single source.

What are Pension Plans?

Pension Plans or annuity plans are plans which are designed to take care of the income flow for the individual after retirement. Post retirement when the income of the individual dries up, the lifestyle expenses continue and there must be a provision to meet such expenses. Retirement plans help in providing a regular cash flow to individuals so that they can enjoy their retirement peacefully.

Some unique features of pension plan which are listed below:

• There is a concept of vesting which is the date at which the plan terminates or matures

• Pension plans can be taken as Immediate Annuity Plans or Deferred Annuity Plans. Under Immediate Annuity Plans, a lump sum is paid by the policyholder and the annuity payments start immediately from the next period chosen. Under deferred annuity, premiums are first paid by the policyholder which accumulate into a corpus and thereafter annuity payments start from the vesting date

• There is no life cover. Annuity payments stop when the annuitant (or his spouse in case of joint life annuity) dies. However, under deferred annuity, death benefit is applicable if the annuitant dies in the deferment period

• On vesting, either the entire corpus can be used to avail annuity or 1/3^rd of it can be withdrawn in cash and the rest 2/3^rd can be used to avail annuity. The withdrawn part is called commuted pension.

Why Pension Plans

Being dependent on others, especially financially is a curse. It is always better to provide for one’s finances even when there is no income. Retirement is a period where the expenses remain the same or maybe increase but income either decreases or diminishes completely. Having an insurance plan is prudent in such a scenario as the plan will provide an individual with the necessary finance required in the old age. Pension plans offered by life insurance companies provide a regular stream of income and come in many variants. They can be taken to cover the life of the policyholder’s spouse as well under the joint annuity plans. So, buying a pension plan is a prudent step towards an individual’s retirement planning.

Shriram Life Pension Plans

Shriram Life Insurance Company offers one plan in the category of retirement plans which is an immediate annuity plan where annuity payouts are payable immediately after paying the single premium. Let us take a look at the plan in details and its various features and benefits.

Read More: What is Annuity | Annuity Calculator

Shriram Immediate Annuity Plan

Traditional pension plan which takes care of the expenses incurred during retirement by providing regular cash flows. The features and benefits of the plan are as follows:

• Under the plan, the annuity payments will start immediately from the next chosen frequency (quarterly, half-yearly or annually) after the payment of the single premium

• Loan is not available under the plan

• If the annuitant commits suicide, no benefit will be payable but if the Return of Purchase Price Option is chosen by the policyholder, then, on suicide, the Purchase Price is paid back to the nominee

• The premium paid to buy the plan is exempt from taxation under Section 80CCC of the Income Tax Act.

Eligibility Details

Applying for a Pension Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Applying For Pension Plans through PolicyBazaar

• On the PolicyBazaar homepage, click on Retirement under the Personal tab.

• Click New Quotes to compare and choose from top insurance providers.

• Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.

• Fill in your name, email address, city, country code, and mobile number. Click Continue.

• You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.

• After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.

• You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.

This will take you to the insurer’s website. You will have to fill in the necessary details to buy the plan.

Other Plans :

Shriram Term Insurance

Shriram Investment Plans

Shriram Life Pension Plans - FAQ