The Life Insurance Corporation (LIC) has launched a new annuity plan. The new scheme is called — LIC Saral Pension plan. According to the corporation, it is a non-linked, non-participating, single premium, individual immediate annuity plan.
Under this pension plan, the LIC is offering two annuity options of a lump sum amount — life annuity with a return of 100 per cent of the purchase price and joint life last survivor annuity with return of 100 per cent of the purchase price on death of the last survivor.
The annuity plan is as per the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI). IRDAI is a regulatory body under the jurisdiction of the Ministry of Finance and is tasked with regulating and promoting the insurance and re-insurance industries in the country.
A policy holder can pay a lumpsum and get a fixed payment at regular intervals for the rest of the life.
The modes of annuitant are monthly, quarterly and half-yearly. The minimum annuity that a policy holder can avail is Rs 12,000 per year. Accordingly, the minimum monthly annuity available in this plan is Rs 1,000, quarterly Rs 3,000, half-yearly Rs 6,000 and yearly Rs 12,000.
However, there is no cap on the maximum limit.
The plan also offers loan facility to the policy holder after six months of the purchase.
Those who are aged between 40 years to 80 years can buy LIC Saral pension plan.