New Delhi: The Life Insurance Corporation of India (LIC) has developed a new pension scheme – Saral Pension – which allows policyholders to pay a single premium and obtain an annuity for life. There are two options for pensions – life annuity and joint last survivor’s life annuity with a return of 100%
purchase price on the death of the last survivor.
In the first option, annuity payments are made in arrears for as long as the policyholder is alive. Upon the death of the person, payment of the annuity will cease immediately and 100% of the money will be payable to the nominee. In the second option, the amount of the annuity will be paid in arrears as long as
as long as the person or spouse is alive. The survivor’s pension can only be taken with the spouse.
While the minimum entry age has been maintained at 40, the maximum age is set at 80.
Under Saral Pension, the available annuity modes are annual, semi-annual, quarterly and monthly. The LIC in its policy document states that annuity rates are guaranteed at the start of the policy and that annuities are payable for the lifetime of the policyholder(s).
According to an illustration, if a person aged 60 invests Rs 10 lakh and opts for the annual annuity mode, he will receive Rs 58,950.
The plan can be purchased offline as well as online from the official website of LIC – www.licindia.in.
