The Life Insurance Corporation (LIC) of India on Monday, July 1 launched Saral Pension Scheme- a non-linked, non-participating, single premium, individual immediate annuity plan.
The LIC Saral Pension plan offers two annuity options to policyholders following a one-time lump sum payment along with a loan facility after six months of the plan purchase. It is a standard immediate annuity plan under the guidelines of the insurance regulatory and Development Authority of India (IRDAI) and offers the same terms and conditions across all life insurers.
What are the two options for annuity?
The two options are a) Life Annuity with return of 100 percent of purchase rate and b) Joint last survivor annuity with return of 100 percent of purchase on the death of the last survivor.
The annuity rates are guaranteed at the beginning of the plan and annuities can be paid throughout the lifetime of the annuitant.
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Modes of annuity
The annuitant can choose between monthly, quarterly, or half-yearly payments, according to the terms of this LIC Saral pension plan. The minimum monthly annuity allowed under this plan is $1,000, the minimum quarterly annuity is 3,000, and the minimum half-yearly annuity is 6,000.
Where can I buy LIC’s Saral Pension plan?
The Saral Pension plan can be purchased in both modes- online as well as offline- directly through the official website of LIC.
Eligibility
Only those ages between 40 and 80 years are eligible to buy the plan.