LIC Saral Pension Plan: Check Benefits, Eligibility And Other Returns LIC Policy For Maximum Benefit

Jul 02, 2021, 17:40 IST

LIC has introduced the Saral Pension Plan; learn about the advantages, eligibility, and other information.

The Saral Pension Plan additionally provides policyholders with a borrowing option. An individual can use this benefit six months after the policy's start date.

The Saral Pension Plan, which was launched on July 1, is a non-linked, non-participating, single premium, individual instant annuity plan.

The Saral Pension Scheme was developed by India's Life Insurance Corporation (LIC) with superannuation in mind. The programme, which began operations on July 1, is a non-linked, non-participating, single premium, individual instant annuity plan.

The Saral Pension Scheme is a basic instant annuity plan that is offered to all life insurers and follows the standards of the Insurance Regulatory and Development Authority of India (IRDAI). Following a one-time lump sum payment, policyholders can choose between two annuity alternatives.

The policyholder can pay a one-time lump sum as the scheme's purchase price and get set payments for the remainder of his or her life. The smallest annuity available is Rs 12,000 per year. The minimum purchase price is determined by the kind of annuity, the option selected, and the policy holder's or annuitant's age. In addition, there is no cap on the maximum purchasing price.

Saral Pension plan - Modes of Annuities

Annual, half-yearly, quarterly, and monthly annuities are offered. An increase in the annuity rate is provided as an incentive for purchase prices exceeding Rs 5 lakhs.

Saral Pension plan-Loan facility

Policyholders can also get a loan under the programme. An individual can use this benefit six months after the policy's start date.

Where can one buy the Saral Pension plan?

The plan may be purchased both in-person and online through the LIC's official website.

Saral Pension plan - Option offered while choosing an annuity

As previously stated, the policyholder has the option of choosing between two types of annuities when receiving a lump sum payment: -

Option 1: Life annuity with a return policy of the purchase price.

Option 2: A joint life last-survivor annuity that pays out 100% of the purchase amount if the last survivor dies.

The annuity rates are guaranteed at the start of the policy, and annuities are paid for the rest of the annuitant's life.

Saral Pension plan - Age limit

The plan is available to anyone aged 40 to 80.