The Saral Pension Plan of LIC is an individual instant annuity plan with a non-linked and non-participating single premium. The two annuity options under this plan are Joint Life Last Survivor Annuity with a return of 100 percent of the Purchase Price on the death of the last survivor and Life Annuity with return of 100 percent of purchase price. Post upgrading the prior existing plan, the Saral Pension Plan number 862 of the LIC was launched in August of this year. As per the regulations of Insurance Regulatory and Development Authority of India (IRDAI), this conventional immediate annuity plan enables the policyholder to choose the type of annuity from 2 options upon payment of a lump sum amount. The annuity rates are guaranteed by the policy’s inception, and payments are made for the period of the annuitant’s life (s).
LIC Saral Pension Plan Return:
An investment in the LIC Saral Pension scheme gives a return of about 5 percent. If you invest Rs 2.5 lakh once in a pension plan at the age of 41 years, you would receive a pension of Rs 12,300 every year or Rs 1,025 each month.
A Rs 3 lakh investment will give a pension of Rs 14,760 per year, or Rs 1,195 per month. You would get an annuity of Rs 58,950 per year under the first annuity option and Rs 58,250 per year under the second annuity option if you make an investment of Rs 10 lakhs all at once.
After 6 months from the day of beginning of the policy, the policy loan may be taken out at any point of time. There are four different annuity payment schedules, namely annual, semi-annual, quarterly, and monthly.
Eligibility for LIC Saral Pension Plan:
Anyone between the age of 40-80 years old is eligible to join the LIC Saral Pension plan. The minimum monthly annuity or pension under the plan is Rs 1000. This implies that to receive a Rs 1000 monthly annuity or a Rs 12000 yearly annuity, one is required to invest the minimal amount necessary. Under this scheme, there is no maturity benefit.