04th July, 2024: Shriram Life Insurance has launched an affordable annuity plan that balances long-term savings growth along with insurance protection. Individuals aged 40 and up until the age of 75 can purchase Shriram Life Deferred Annuity Plan, which 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.

Speaking on the product, Casparus J.H. Kromhout, MD and CEO, Shriram Life Insurance said, “Financial independence is a key factor as one grows old, especially with rising costs and increasing health vulnerabilities. Not everyone is secured with pensions or PF savings, thus putting the onus on the individual to find their own retirement solutions. Shriram Life Deferred Annuity Plan seeks to close this gap and secure annuitants with an income stream along with life cover so that customers and their spouses can get financial support without depending on their children or others. Its affordable rates also target customers who are entrepreneurs and not covered under social security schemes.”

The Shriram Life Deferred Annuity Plan features a Return of Purchase Price (ROP) benefit, which protects the annuitant’s initial investment in the event of terminal illness or death. For example, if the annuitant suffers a paralytic stroke or passes away after the deferment period, the entire premium amount invested is refunded to them or their family. After the annuity begins, the ROP feature continues to safeguard the annuitant’s investment, providing a safety net for their beneficiaries in the event of terminal illness diagnosis or death. In the case of joint life ROP option, the Return of Purchase Price is applicable after the terminal illness diagnosis or death of the last surviving annuitant.

Annuity Payable for Single Life

If the death of the annuitant happens when the policy is in force, the death benefit, i.e. 125% of the purchase price, shall be paid to the nominee(s) and the policy will be terminated. In case of terminal illness of an annuitant, the purchase price will be returned to the annuitant, and the policy will be terminated if the Return of Purchase Price (ROP) option is chosen.

Annuity Payable for Joint Life

Apart from annuity being payable for life, this option also ensures that 100% of annuity goes to the secondary annuitant on the death of the primary annuitant. There is also an option where the Return of Purchase Price is also given during death or terminal illness of the last survivor. This is in addition to annuity payments for life and transfer of 100% of annuity to secondary annuitant.

Shriram Life Deferred Annuity targets younger professionals and entrepreneurs who have accumulated a corpus during their working years and wish to receive retirement benefits from a set future date. The plan’s lower ticket size enables earning members of the unorganized sector to plan their retirement. The product targets younger customers who have accumulated money but wish to continue working. It is also a great plan for senior citizens hoping to get regular payouts or leave a legacy for their children.