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Shriram Life Insurance has launched a new product, the Shriram Life Deferred Annuity Plan, which the company describes as an affordable annuity plan that balances long-term savings growth along with insurance protection.
Targeted at individuals aged 40 up to 75, it offers tax benefits as well as steady retirement income. The minimum premium starts at ₹60,000 per year for limited and regular premium payment terms, while for single premium payment, it is ₹3 lakh. There is no limit on premium payable or purchase price, according to a statement.
“Financial independence is crucial as one ages, especially with rising costs and health vulnerabilities. Not everyone is secured with pensions or PF savings, thus putting the onus on the individual to find their own retirement solutions,” said Casparus JH Kromhout, MD and CEO, Shriram Life Insurance.
The Shriram Life Deferred Annuity Plan aims to fill this gap by providing an income stream and life cover, ensuring financial support for customers and their spouses without relying on their children or others. Its affordable rates cater to entrepreneurs not covered under social security schemes.
This plan includes a Return of Purchase Price (ROP) benefit, protecting the annuitant’s initial investment in case of terminal illness or death. For instance, if the annuitant suffers a paralytic stroke or passes away after the deferment period, the entire invested premium is refunded to them or their family. After annuity payments begin, the ROP feature continues to protect the annuitant’s investment, offering a safety net for their beneficiaries in the event of terminal illness or death. For joint life ROP options, the return of purchase price applies after the last surviving annuitant’s terminal illness diagnosis or death.
The new product targets younger professionals and entrepreneurs who have built a corpus during their working years and seek retirement benefits at a future date. The plan’s lower entry cost also allows earning members of the unorganised sector to plan for their retirement.
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