LIC launches Saral pension plan

Hyderabad: Life Insurance Corporation (LIC) of India has introduced LIC Saral Pension plan, a non-linked, non-participating, single premium, individual immediate annuity plan.

The annuity plan is as per the guidelines of Insurance Regulatory and Development Authority of India (IRDAI), which offers same terms and conditions across all the life insurers.

The policyholder has an option to choose type of annuity from two available options on payment of a lump sum amount.

Life annuity with a 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. The plan can be purchased offline as well as online directly through LIC website.

The minimum annuity is Rs 12,000 per annum and minimum purchase price shall depend on the annuity mode, option chosen, and age of the annuitant. There is no ceiling on maximum purchase price.

The modes of annuity available are yearly, half-yearly, quarterly, and monthly. An incentive for purchase price above Rs 5,00,000 is available by way of increase in the annuity rate.

The plan is available for ages from 40 years to 80 years. Loan shall be available at any time after six months from the date of commencement of the policy.