The Life Insurance Corporation of India (LIC) has launched the LIC Saral Pension Plan, a solitary premium, non-linked, non-participating individual instant annuity plan.
The annuity plan follows the standards of the Insurance Regulatory and Development Authority of India (IRDAI), which offers the same terms and conditions across all the life insurers.
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On payment of a lump sum amount, the policyholder has the option of choosing between two types of annuities. Life annuity with a 100% purchase price return and Joint Life Last Survivor annuity with a 100% purchase price return on the death of the last survivor.
The annuity rates are fixed at the start of the policy, and annuities are paid for the rest of the annuitant’s life. The plan may be purchased both in-person or online through the LIC website.
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The minimum annuity is Rs 12,000 per year, while the minimum purchase price is determined by the kind of annuity, the option selected, and the annuitant’s age. The maximum purchasing price has no limit.
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 5,00,000.
The plan is offered to those between the ages of 40 and 80. After six months from the policy’s start date, the loan will be accessible at any time.
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In January, the regulator IRDAI issued regulations for a standardised non-linked, non-participating instant annuity plan known as Saral Pension. Since then, several companies have begun to market their plans. Max Life Insurance, Tata-AIA Life, IndiaFirst Life Insurance, Ageas Federal Life Insurance, and Aegon Life are among these companies.
