New Delhi: Life Insurance Corporation of India (LIC) last month introduced the Saral Pension Yojana, allowing persons between the ages of 40 and 60 a significant potential to earn pension by paying a single premium.
According to IRDAI criteria, the Saral Pension Scheme from LIC is a Standard Immediate Annuity plan that provides the same terms and conditions to all life insurers.
The Policyholder has an option to SELECT type of annuity from two available options on payment of a lump sum amount. The policy's inception guarantees the annuity rates, and payments are made for the duration of the annuitant's life (s). This plan can be purchased offline and also online through LIC’s website www.licindia.in.
The following are the annuity choices offered under the Saral Pension plan of LIC:
Option-I: Life Annuity with 100% of Purchase Price Returned.
Option II: Joint Life Last Survivor Annuity with 100% Purchase Price Refund upon Death of Last Survivor.
LIC’s Saral Pension Scheme Eligibility Criteria: 40 is the minimum age to enter (completed). 80 is the maximum age to enter (completed)
Check below the Illustrate calculation of pension and premium being paid on LIC’s Saral Pension:
If you are 60 years old, for instance, you can look at the following example.
Cost of purchase: Rs. 10 lakh (excluding applicable taxes). Annual Annuity Mode
Age of Annuitant at entry : 60 years (completed).
Age of Spouse at entry: 55 years (completed) (applicable for Option II, Joint Life Last Survivor Annuity only)
You can earn the following on Option I & Option II on LIC’s Saral Pension
Option I: Life Annuity with Return of 100% of Purchase Price: Earn Rs 58,950
Option II: Joint Life Last Survivor Annuity with 100% Purchase Price Refund upon Death of Last Survivor: Make Rs. 58,250.
LIC further says, if the annuitant, spouse, or any of the annuitant's children is determined to be suffering from any of the listed critical illnesses in Annexure, based on the documentation provided to the satisfaction of the Corporation's medical examiner, the policy may be surrendered at any time after six months from the date it began. 95% of the Purchase Price will be paid to the annuitant upon approval of the surrender, less any outstanding loan balance and any applicable loan interest.