On July 1, the Life Insurance Corporation (LIC) of India launched the Saral pension plan which is basically a non-linked, non-participating, single premium, individual immediate annuity plan. In terms of features, the LIC Saral pension plan provides two annuity options to the policyholders after the payment of a one-time lump sum amount. Besides that, the plan extends the loan facility to the policyholder after six months of the plan purchase.
This LIC plan allows policyholders to pay a lump sum amount as the purchasing price of the plan and then they receive a fixed amount of money at regular intervals. A policyholder can get a minimum annuity of Rs 12,000 per annum. The minimum purchase price also depends upon the mode of annuity, option and age of the policy subscriber or annuitant. But there is no cap on the maximum purchase price.
The LIC Saral pension plan will come with two options to the policyholders when it comes to deciding the type of annuity — life annuity with return of 100 percent of the purchase price and joint life last survivor annuity with return of 100 percent of the purchase price on death of the last survivor.
The LIC Saral pension plan offers modes of annuity for the annuitant monthly, quarterly and half-yearly. Therefore, the minimum monthly annuity in this plan is Rs 1,000, the minimum quarterly annuity in this plan is Rs 3,000 while the minimum half-yearly annuity offered in this plan is Rs 6,000.
The age limit for buying the LIC Saral Pension plan is between 40 years and 80 years.