Aviva Life Insurance recently launched Aviva Saral Pension Plan with the intention of simplifying retirement planning. With simple features, standard terms, guaranteed lifetime income, and easy conditions, the plan allows for a secure retirement, adapting well to the policyholder’s requirements with the objective of providing an adequate financial cushion and protection in the twilight years of life.
It has been designed as a non-linked, non-participating, single premium, individual immediate annuity plan, which means that the policyholder will neither receive any bonuses/add-ons as declared by the insurer during the tenure of the policy (non-linked) nor will the policy be affected by market movements or underlying asset performances (non-participating). Also, since this is also an immediate annuity plan, a single lump-sum contribution by the individual will be streamlined into a regular income stream for the mentioned duration of the scheme. Commenting on the product, Mr. Vinit Kapahi, who heads the marketing function at Aviva, said “In line with IRDAI's vision to offer standard immediate annuity products with simple features, we have launched Aviva Saral Pension Plan. We understand the need for regular income in the later years of life and the importance of securing the financial future of loved ones even in one’s absence, making Aviva Saral Pension a helpful instrument for retirement planning.”Take a look at some of the key features for both single and joint plans:| Characteristics | Single | Joint |
| Minimum entry age | 40 years | 40 years |
| Maximum entry age | 80 years | 80 years |
| Premium Paying Term | Single-Premium | Single-Premium |
| Maximum single premium /Minimum annuity | Rs 2,64,959/ Rs 12,000 | Rs 2,60,813 /Rs 12,000 |
The plan also provides the policyholder the flexibility to receive the annuity either on a monthly, quarterly, half-yearly, or yearly basis. Along with tax benefits and loan availing facility, 6 months post the commencement of the policy, the joint-life option also gives you a chance to safeguard your partner’s income.
Additionally, there’s also an option to surrender the policy any time after six months from the onset of the annuitant in case their spouse or any of the children of the annuitant is diagnosed with critical illnesses as specified in the policy. The entire purchase price premium amount is paid to the nominee(s) in case of the annuitant’s demise.
This policy also factors in India’s constantly increasing life expectancy age, given that in 2014, the figure stood at 66 years in 2010, inching up to almost 69 years in 2019, per World Bank data.Kapahi further added, “Keeping in mind that the life expectancy is increasing because of improved healthcare facilities, nuclear families becoming a norm, retirement planning has become a necessity. So, many people imagine themselves sitting comfortably, free of responsibilities, enjoying life in their golden years, and we want to help our customers live this dream with the launch of this product.”
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