LIC Saral Pension plan: Life Insurance Corporation of India (LIC) has come out with its Saral Pension scheme with effect from Thursday. The scheme is a non-linked, non-participating, single premium, individual immediate annuity plan. It is a standard immediate annuity plan according to the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI) that provides the same terms and conditions across all the insurers.
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LIC has introduced this LIC Saral Pension plan (Annuity Plan) with effect from July 1, 2021. The plan will be available from ages 40 to 80 years.
The policyholder has an option to choose type of annuity from two available options on payment of a lump sum amount.
Life annuity with a return of 100 per cent of purchase price and Joint Life Last survivor annuity with return of 100 per cent of purchase price on death of the last survivor. The plan can be purchased offline as well as online directly through LIC website.
Fixed payment at regular intervals
In this LIC of India pension plan, the policy holder can pay a lumpsum as purchase price and get a fixed payment at regular intervals for the rest of its life. The minimum annuity that a policy holder can avail is ₹12,000 per annum. Minimum purchase price shall depend upon the mode of annuity, option and age of the policy subscriber or annuitant. However, there is no ceiling on the maximum purchase price.
Options for choosing annuity
Under option 1, policyholders can opt for a life annuity with a return of 100% on the purchase price and the other option offers joint life last survivor annuity with a return of 100% of pure purchase price on death of the last survivor. The annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the life of annuitants.
Modes of annuity
The modes of annuity available are yearly, half yearly, quarterly and monthly. An incentive for purchase price above Rs 5,00,000 is available by way of increase in the annuity rate. The plan is available for ages from 40 years to 80 years.
The LIC Saral Pension annuity plan is available for those aged between 40 years and 80 years.
LIC Saral Pension Plan offers a loan facility after six months of commencement of the plan to the policyholder.