Private sector life insurer Shriram Life Insurance Company has introduced a Deferred Annuity Plan designed to provide a steady retirement income for customers. The annuity plan starts at Rs 60,000 a year, and the entry age is between 40 to 75 years. Customers can choose to have the annuity payable with or without the Return of Purchase Price option. The deferment period ranges from 5 to 10 years, after which annuity payments will commence.
The Managing Director and CEO, Casparus J H Kromhout, stated that the Shriram Life Deferred Annuity Plan aims to address the financial needs of individuals as they grow older, especially considering rising costs and health vulnerabilities.
The plan is targeted at individuals who may not have pensions or PF savings, offering a solution for securing financial independence during retirement.
This ensures that customers and their spouses can receive financial support without depending on their children or others. Additionally, the plan is accessible to entrepreneurs not covered under social security schemes. The plan includes a Return of Purchase Price benefit, which safeguards the initial investment in the event of terminal illness or death.
If the customer suffers a stroke or passes away after the deferment period, the entire premium amount invested is refunded to them or their family. Furthermore, the death benefit received during the deferment period is 125% of the total purchase price, the highest in the industry.
