LIC to offer Saral Pension Plan from July 1, 2021

Life Insurance Corporation of India (LIC) has decided to unveil its new immediate pension plan from today. Technically known as Standard immediate annuity plan – the pension scheme named as LIC Saral Pension Plan (LSPP) will be available to individuals from July 1, 2021.

The new policy is a single premium product and offers assured monthly, quarterly, half-yearly and annual periodic payout – pension. The policyholder has an option to choose type of annuity from two available options on payment of a lump sum amount. They are life annuity with return of purchase price and joint life last survivor annuity with return of purchase price on the death of last survivor. While the first option offers policyholder to enjoy an assured pension in his lifetime and return of purchase price to the nominee, the second option works for couples. An individual can enroll in this option and ensure annuity for self and spouse. Upon the death of last survivor of the two, the purchase price will be paid to the nominee.

This policy can be purchased offline as well as online directly through the insurer’s website. The minimum annuity is Rs.12,000 per annum. The minimum purchase price shall depend on the annuity mode, option chosen and age of the annuitant. There is no ceiling on maximum purchase price.

If the purchase price is more than Rs 5 lakh, then the annuity rates go up marginally. Minimum age at entry is 40 years and the maximum age at entry is 80 years.

The policy also offers for loans any time after six months from the date of commencement of the policy.
Insurance Regulatory Development Authority of India has issued guidelines to all life insurance companies to offer Standard Individual Immediate Annuity Product – Saral Pension.