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Coming from April, IRDAI's standard Pension plan: Should you invest in it?

The insurance regulator has mandated yet another standard product, this time in the pension space. Find out if it deserves a place in your retirement portfolio.

January 29, 2021 / 10:01 AM IST

A standard immediate annuity policy with uniform features is all set to be rolled from April 1. To be named Saral Pension, preceded by the company’s name, all life insurers will have to mandatorily offer this product.

It is the latest in the string of policies with uniform features across insurers that the Insurance Regulatory and Development Authority of India (IRDAI) has mandated. “Such a standard product will make it easier for the customers to make an informed choice, enhance the trust between Insurers and the insured, and reduce mis-selling as well as potential disputes,” the insurance regulator said.

What’s on offer

Immediately annuity plans are primarily targeted at retirees looking to invest their accumulated corpus. To buy such plans, you have to invest a lump-sum – termed purchase price – from the life insurer who will in turn offer regular pension payouts throughout your lifetime.