LIC Saral Pension: There are various schemes available in the investment market that provide good pension. Saral Pension Scheme of LIC is one such scheme. The scheme was launched on March 1, 2023. LIC Saral Pension Scheme is a standard immediate annuity plan as per Insurance Regulatory and Development Authority of India (IRDAI) guidelines. It offers the same terms and conditions as all life insurance companies.
In recent times the number of people doing private jobs is increasing day by day. Jobs in the private sector offer competitive pay but do not guarantee a decent pension after retirement. However, market experts say that the need for pension is very high in the face of rising costs. Against this backdrop, there are various schemes available in the investment market that provide good pension. Saral Pension Scheme of LIC is one such scheme. The scheme was launched on March 1, 2023. LIC Saral Pension Scheme is a standard immediate annuity plan as per Insurance Regulatory and Development Authority of India (IRDAI) guidelines. It offers the same terms and conditions as all life insurance companies. Under this scheme the annuity rates are guaranteed at the inception of the policy. Also the respective annuity(s) will be paid for lifetime. The scheme offers two annuity options. So let’s know more details about LIC Saral Pension Scheme.
Annuity Plan-1
Under this option the plan offers a life annuity with a return of 100 percent of the purchase price of the LIC Saral Pension Scheme. Annuity Payments The annuity payment method selected pays the dues for as long as the annuitant lives. Payment of annuity ceases immediately upon death of the annuitant. Nominee(s)/legal heirs will be paid 100 percent of the purchase price.
Annuity Plan-2
Under this option the policyholder can opt for a Joint Life Last Survivor Annuity with a return of 100 percent of the purchase price on the death of the last survivor. Annuity option once selected cannot be changed. Here are the benefits of the scheme depending on the option you choose: The annuity will be paid in installments as long as the annuitant and/or spouse survives as per the annuity payment method chosen. Upon the death of the last survivor, the annuity payments stop immediately. Also 100 percent of the purchase price shall be paid to the nominee(s)/legal heirs. Note that this option is only available to married policyholders.
Eligible
To be eligible to apply for LIC Saral Scheme the policyholder must be at least 40 years of age (full) at the time of joining the scheme. Maximum age for entry of policyholder is 80 years (completed). There is no limit to the maximum purchase price for the scheme. Minimum annual amount per month for monthly annuity is Rs. 1000 will be. Minimum annual sum for quarterly annuity is Rs. 3000 is. The minimum annuity amount for half yearly annuity is Rs. 6000. The minimum annual amount for annual annuity is Rs. 12,000.
The incentives are as follows
Under the LIC Saral Pension Scheme, the scheme provides an incentive for a higher purchase price by increasing the annuity rate. Incentive for higher purchase price through increase in annuity rate Divided into three slabs with respect to purchase price.
- Rs. 5,00,000 to Rs. 9,99,999
- Rs. 10,00,000 to Rs. 24,99,999
- Rs. 25,00,000 and above are divided into slabs.
The incentive for a higher purchase price depends on the purchase price slab, the pattern of annuity payments. The incentive increases when the purchase price moves from a lower slab to a higher slab of purchase price. The incentive also increases with the reduction in the frequency of annuity payments. This scheme is useful for retirement planning as any person can buy an annuity in lump sum investment using the PF and gratuity money received after retirement. According to the LIC calculator, if a 42-year-old buys an annuity of Rs 30 lakh, he will get Rs 12,388 as pension every month.
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