Saral Pension Plan

What this product is

A single-premium immediate annuity that converts a lump sum into guaranteed income for life, with the option to get your capital back to your family later.

You might need this if…

• You might need this if you have a retirement lump sum (PF, gratuity, NPS corpus) and want it converted into a predictable income stream you can't outlive.
• You might need this if you want simplicity over choice — it offers just two annuity structures rather than a dozen options to compare.
• You might need this if you want your family to eventually get the original purchase price back rather than the insurer keeping it after your death.
• You might need this if you're comfortable locking in today's annuity rate for the rest of your life, in exchange for certainty.

How it actually works

• You pay a one-time Purchase Price and choose Single Life or Joint Life annuity, both with 100% Return of Purchase Price (ROP) to your nominee on death.
• Entry age is 40 to 80 years; annuity can be paid monthly, quarterly, half-yearly or yearly, subject to a minimum of ₹12,000/year (₹1,000/month).
• Larger purchase prices get better rates: six purchase-price bands from under ₹3 lakh up to ₹50 lakh+ each unlock progressively higher annuity rates.
• You can add one booster — Online (1% more), Loyalty (for existing ICICI Pru customers), or an NPS price discount — but only one at a time.
• Surrender is allowed after 6 months only if diagnosed with one of 20 listed critical illnesses, paying 95% of the purchase price minus any loan.
• A policy loan is available after 6 months (rate ~8.58% p.a. as of April 2025), capped so yearly interest doesn't exceed 50% of the annual annuity.

Worked example

The tiers

Purchase Price Band	Annuity Rate Impact
Below ₹3 Lakh	Base rates
₹3L – <₹5L	Higher rates
₹5L – <₹10L	Higher rates
₹10L – <₹25L	Higher rates
₹25L – <₹50L	Higher rates
₹50L and above	Highest rates

Worth knowing before you decide

• The annuity rate is locked at purchase — if interest rates rise later, you can't switch to a better rate on the same policy.
• No changes to annuity option or payout frequency are allowed once the 30-day free-look period ends.
• NPS-sourced policies generally cannot be surrendered except under specific regulatory circumstances.
• Tax treatment of annuity income depends on prevailing income tax law — the brochure recommends professional tax advice.

Official source

⌟ Official product brochure

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