SUD Life Saral Pension Plan

What is the SUD Life Saral Pension Plan?

SUD Life Saral Pension is a retirement plan designed to provide a steady income stream for life. It's a simple and straightforward plan with no complex features or terms. You can invest a one-time lump sum (Purchase Price) and choose how you want the annuity payments to be structured (Annuity Options). The amount of your annuity payments will depend on your age, the amount you invest, the annuity option you select, and how often you want to receive the payments. If you pass away before receiving all of your annuity payments, your nominee will receive 100% of the original investment.

Features of SUD Life Saral Pension Plan 

Below are the features of SUD Life Saral 

• Life Annuity with 100% Return of Purchase Price: One of the most attractive aspects of this plan is the guarantee of a life annuity, ensuring a regular income for as long as you live. Additionally, the plan provides a 100% return of the purchase price, offering a safety net in case you do not live long enough to recoup your investment.

• No Medicals Required: Unlike many other insurance plans, SUD Life Saral Pension Plan does not require any medical tests or examinations. This makes it accessible to a wider range of individuals, regardless of their health status.

• Loan Facility Available: The plan offers a loan facility, allowing you to access a portion of your accumulated fund in case of an emergency or financial need. This feature provides flexibility and peace of mind.

• Joint Life Option: For couples, the plan offers a joint life option. In this case, the secondary annuitant (spouse) will continue to receive 100% of the annuity throughout their lifetime, even after the primary annuitant passes away. This ensures financial security for both partners.

• Surrender Benefit: The plan includes a surrender benefit, which provides a payout in case of the diagnosis of any of the 20 critical illnesses specified in the policy. This feature offers a financial cushion during a time of medical need.

Eligibility Criteria for SUD Life Saral Pension Plan 

Benefits of SUD Life Saral Pension Plan

Below are the benefits of the SUD Life Saral Pension Plan: 

1. Annuity Options:

   • Single-Life Annuity: This option provides a regular income for the life of the annuitant.

   • Joint Life Annuity: This option ensures a continuous income stream for both the annuitant and their spouse. In case of the annuitant's death, the spouse continues to receive the same annuity amount.

2. Death Benefit:

   • Single Life Annuity: Upon the annuitant's death, 100% of the Purchase Price (excluding taxes) is paid to the nominee or beneficiary.

   • Joint Life Annuity:

     • If the spouse is surviving, they continue to receive the same annuity for life. Upon their death, 100% of the Purchase Price is paid to the nominee or legal heirs.

     • If the spouse has pre-deceased the annuitant, the Purchase Price is paid to the nominee or legal heirs upon the annuitant's death.

3. Survival Benefit:

   • The annuity is paid as per the chosen annuity option for as long as the annuitant(s) are alive.

4. Maturity Benefits:

   • Not applicable.

5. Surrender Benefit:

   • The policy can be surrendered after six months from the date of commencement if the annuitant, spouse, or any of the children is diagnosed with one of the 20 specified critical illnesses.

   • Upon surrender approval, 95% of the Purchase Price is paid to the annuitant, subject to deductions for outstanding loans and interest. The policy is terminated upon surrender value payment.

Policy Details of SUD Life Saral Pension Plan

1. Policy Loan

   Eligibility:

   • You can avail a loan after six months from the policy's start date.

   • The loan amount is capped to ensure the annual interest doesn't exceed 50% of your annual annuity.

   • In joint life options, both primary and secondary annuitants can avail the loan.

   Interest Rate:

   • The interest rate is calculated based on the 10-year G-sec benchmark interest rate as of April 1st of the relevant financial year, plus 200 basis points.

   • The rate is compounded half-yearly.

   • For FY 2021-22, the interest rate was 8.12%.

   Loan Recovery:

   • Loan interest is deducted from your annuity payments.

   • The outstanding loan is recovered from the claim proceeds upon your death.

   • You can also repay the loan principal at any time during the annuity period.

2. Termination of Policy

   The policy will terminate when the earliest of the following events occurs:

   • Joint Life (Annuity Option 2): Death of both annuitants.

   • Single Life (Annuity Option 1): Death of the annuitant.

   • Surrender: Policy surrender after receiving surrender benefits.

   • Free Look Cancellation: Cancellation within the free look period.

Exclusions Under SUD Life Saral Pension Plan (Suicide Clause)

Since this is an annuity product, the treatment of death by suicide is the same as for a natural death. Therefore, for all annuity options, the benefits payable in the event of a suicidal death will be identical to those payable for a normal death.