The Life Insurance Corporation of India (LIC) on 1 July introduced the Saral Pension Plan which offers two annuity options to policyholders after a one-time payment of the lump sum amount.
— LIC India Forever (@LICIndiaForever) July 1, 2021
The two annuity types are life annuity which offers a return of 100 percent of the purchase price. The other one is joint life last survivor annuity also with the return of 100 percent of the purchase price, upon the death of the last survivor.
According to a report by LiveMint, it is a single premium, non-linked, non-participating, and individual immediate annuity plan. The terms and conditions of this plan are the same across policyholders. With the help of the Saral Pension Plan, policyholders can also get a loan after six months of purchasing the plan.
In this plan, policyholders can avail a minimum annuity of Rs 12,000 per annum after paying a purchase price. They will receive a fixed payment at regular intervals once they pay the lump sum. Factors such as the age of the policyholder and mode of the annuity will affect the minimum purchase price.
Only those people who are between 40 years to 80 years of age can buy this plan.
Saral pension plan offers three modes of annuity, namely monthly, quarterly and half-yearly. The minimum monthly annuity available in the plan is Rs 1,000 while the minimum quarterly annuity is Rs 3,000. Lastly, the minimum half-yearly annuity offered in the Saral pension plan is Rs 6,000.
According to a report by The Hindustan Times, that there is no ceiling on the maximum purchase price in the Saral Pension Plan. If the purchase price is over Rs 5,00,000 then the policy subscribers will be incentivised by providing an increase in the annuity rate.
The plan can be purchased offline as well as online through the website www.licindia.in, said a press release by LIC.