NEW DELHI: Life Insurance Corporation of India (LIC) has launched Saral pension plan on July 1. It is a non-linked, non-participating, single premium, individual immediate annuity plan.
The plan offers two annuity options on payment of a one-time lump sum. Also, a loan facility is offered after six months of the plan purchase.
Saral Pension Plan
Under the plan, policy holders can pay a lumpsum as purchase price and get a fixed payment at regular intervals for the rest of their lives.
The minimum annuity that a policyholder can avail is Rs 12,000 per annum. The minimum purchase price will depend on the mode of annuity, option chosen and age of the policyholder 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
Modes of annuity available are monthly, quarterly and half-yearly. So, minimum monthly annuity available under the plan is Rs 1,000, minimum quarterly annuity in this plan is Rs 3,000 while minimum half-yearly annuity offered in this plan is Rs 6,000.
Eligibility
The annuity plan is available for those aged between 40 and 80 years.
Loan facility
The plan offers a loan facility after six months of commencement of the plan to the policyholder.
