The Life Insurance Corporation (LIC) of India on 1st July 2021 launched Saral pension plan – a non-linked, non-participating, single premium, individual immediate annuity plan. This LIC Saral pension plan offers two annuity options to the policy holders after one-time lump sum amount payment. The plan also offers loan facility to the policy holder after six months of the plan purchase.
Fixed payment at regular intervals
In this LIC of India pension plan, the policy holder will can pay a lump-sum 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.
Option offered while choosing annuity
As mentioned above, this LIC Saral pension plan will offer two options to the policy holders while choosing the type of annuity — life annuity with 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.
Modes of annuity offered
As per the details of this LIC Saral pension plan, modes of annuity available for the annuitant are monthly, quarterly and half-yearly. Hence, minimum monthly annuity available in this plan is ₹1,000, minimum quarterly annuity in this plan is ₹3,000 while minimum half-yearly annuity offered in this plan is ₹6,000.
Those who are aged between 40 years to 80 years can buy this LIC’s Saral pension plan.
This LIC Saran pension plan also offers loan facility to the annuitants. An annuitant can avail this facility after six months of the commencement of this policy.