LIC Saral Pension Plan: For the benefits of the customers, the Life Insurance Corporation of India (LIC) has recently announced an immediate annuity plan — LIC Saral Pension which is a non-linked non-participating plan to help customers in their old age. Part of the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), the LIC Has announced this plan from July 1. As per updates, the insurers will provide the same terms and conditions for this plan.
LIC Saral Pension Plan: Annuity Options
The LIC offers standard annuity plan to customers and there are two options. 1. Life annuity with 100 per cent return of purchase price. 2. The joint life last survivor annuity with 100 per cent return of purchase price on death of the last survivor.
LIC Saral Pension Plan: Annuity Rates
The LIC has said that the annuity rates are guaranteed at the beginning of the policy and annuities are payable throughout the lifetime of the annuitant(s).
LIC Saral Pension Plan: Pension Scheme
As per updates from the LIC, the minimum annuity is fixed at Rs 12,000 per annum. However, the minimum purchase price depends on the annuity mode, chosen option and age of the annuitant. However, there is no cap on the maximum purchase price.
LIC Saral Pension Plan: Surrender Policy
The LIC has made it clear that the policy can be surrendered at any time after six months from the date of commencement. After the LIC approves the submission of the policy, 95% of the purchase price shall be paid to the annuitant, subject to deduction of any outstanding loan amount and the loan interest, if any.
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