LIC launches Saral Pension plan; Check benefits, eligibility, other details

The Life Insurance Corporation (LIC) of India has launched Saral Pension scheme keeping superannuation in mind. Launched on July 1, the scheme is a non-linked, non-participating, single premium, and individual immediate annuity plan. 

Saral Pension scheme is a standard immediate annuity plan as per the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), which offers the same terms and conditions across all life insurers. The plan offers two annuity options to policyholders following a one-time lump sum amount payment. 

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Saral Pension plan explained

The policyholder can pay up a lump sum amount as the purchase price for the scheme and receive regular fixed payments for the rest of his/her life. The minimum annuity one can avail is Rs 12,000 per annum. The minimum purchase price will hinge upon the mode of annuity, option chosen, and age of the policyholder or the annuitant. There is also no ceiling on the maximum purchase price.

Saral Pension plan - Modes of annuity

The modes of annuity available are yearly, half-yearly, quarterly, and monthly. An incentive for purchase price above Rs 5 lakh is available by way of an increase in the annuity rate.

Saral Pension plan- Loan facility

The scheme also offers loan facility to policyholders. An annuitant can avail this facility any time after six months from the date of commencement of the policy.

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Where can one buy Saral Pension plan

The scheme can be purchased offline as well as online directly through LIC's official website.

Saral Pension plan - Option offered while choosing annuity

As mentioned above, the policyholder has the choice to choose the type of annuity from the two available options on payment of a lump sum amount: -

Option 1: Life annuity with return of 100% of purchase price
Option 2: Joint life last survivor annuity with return of 100% of 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 lifetime of annuitant(s).

Saral Pension plan - Age limit

Those aged between 40 and 80 years can buy the scheme.

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