Saral Pension

What this product is

A standardized (IRDAI-mandated format), single-premium immediate annuity plan with just two simple options - individual or joint-life - both returning the full purchase price to your family on death.

You might need this if…

• You might need this if you want a simple, standardized annuity product that's easy to compare across insurers since its structure is regulator-mandated to be identical everywhere.
• You might need this if you want your family to get your original lump sum back no matter what - both available options return 100% of the purchase price.
• You might need this if you're older (40-80 entry age) and want an immediate, no-frills lifetime income from a single lump-sum payment.
• You might need this if you might need early access to funds - Saral Pension allows surrender after 6 months if diagnosed with a listed critical illness, which many annuity plans don't offer.

How it actually works

• Single premium only, entry age 40-80 years, no upper limit on purchase price.
• Only two annuity options: Life Annuity with 100% Return of Purchase Price (individual), or Joint Life Last Survivor Annuity with 100% Return of Purchase Price (covers you and your spouse).
• Payouts can be monthly, quarterly, half-yearly, or yearly via bank transfer; minimum monthly payout ₹1,000.
• On death, the full purchase price is returned to nominees (minus any annuity instalments already paid out after death, which get recovered).
• Surrender is allowed after 6 months if the annuitant is diagnosed with a specified critical illness, paying 95% of the purchase price minus any outstanding loan.
• A policy loan facility is available after 6 months, with interest capped at 50% of the annual annuity amount.

Worked example

Worth knowing before you decide

• Because both options guarantee return of the full purchase price, the annual payout rate is lower than plans that don't offer this guarantee.
• Outside of the critical-illness surrender window, this is largely an irreversible, illiquid product - you're locking in the purchase price for a lifetime income stream.
• Free look period is only 15 days for offline purchases (30 days if bought online), shorter than the 30-day standard on many other SBI Life products.
• A 2% additional benefit applies for SBI Life/RRB staff, not for the general public.

Official source

⌟ Official product brochure

Learn about this category

Read the full annuities & retirement explainer → · See all retirement products →