LIC allows investors to start saving little to build a corpus for their retirement.
New Delhi: Life Insurance Corporation (LIC) of India, the country’s largest insurer, offers several various policies allowing investors to secure their retirement. Besides impressive returns, investors get options to save their taxes with the policies.
In most schemes, LIC allows investors to start saving little to build a corpus for their retirement. However, in the LIC Saral Pension Yojana, subscribers have to invest a certain amount just once to enjoy monthly pensions.
Under the scheme, one can get a minimum of Rs 12,000 pension in a year. The scheme offers investors to select the annuity type from two available options on payment of a lump sum amount. The scheme is a ‘Standard Immediate Annuity plan’.
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The annuity rates in the LIC Saral Pension Yojana are guaranteed at the inception of the policy. Insurer receives the payable throughout his or her lifetime.
2 Options under LIC Saral Pension Yojana
Option 1 of LIC Saral Pension Yojana:
The option allows investors to select a life annuity along with a return of 100% of the purchase price. The insurer makes annuity payments till the death of the annuitant in the option. In case of the death of the annuitant, the annuity payment is ceased and 100% of the purchase price is paid to the nominee(s) or legal heirs.
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Option 2 of LIC Saral Pension Yojana:
The second option under the LIC Saral Pension Yojana offers a joint last survivor annuity with a return of 100% of the purchase price on the last survivor’s death. The option also ensures that the annuity amount is paid till the annuitant and/or spouse are alive.
LIC Saral Pension Yojana Eligibility Criteria
Any Indian citizen between the age of 40 years to 80 years can start investing in the LIC Saral Pension Yojana. Investors can select a minimum annuity per month of Rs 1000 or Rs 12000 annually.
