LIC Pension plan: Get Rs 58,950 pension whole life by paying single premium: Check eligibility, premium, pension calculation

New Delhi: Life Insurance Corporation of India had last month launched the Saral Pension Yojana, giving a big opportunity to people between the age of 40 and 60 to earn pension by paying single premium.

LIC’s Saral Pension Scheme is a Standard Immediate Annuity plan as per the guidelines of IRDAI, which offers same terms and conditions across all the life insurers.

The Policyholder has an option to choose type of annuity from two available options on payment of a lump sum amount. The annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the life time of Annuitant(s). This plan can be purchased offline as well as online through LIC’s website www.licindia.in. 

The available annuity options under LIC’s Saral Pension plan are as under:

Option I: Life Annuity with Return of 100% of Purchase Price.

Option II: Joint Life Last Survivor Annuity with Return of 100% of Purchase Price on death of the last survivor.

LIC’s Saral Pension Scheme Eligibility Criteria:

Minimum Age at Entry: 40 years (completed)

Maximum Age at Entry: 80 years (completed) 

Check below the Illustrate calculation of pension and premium being paid on LIC’s Saral Pension 

For example, if you are 60 years of age, you can check out the following illustration.

Purchase Price : Rs 10 lakh (excluding applicable taxes)

Annuity Mode : Yearly

Age of Annuitant at entry : 60 years (completed)

Age of Spouse at entry : 55 years (completed) (applicable for Option II, Joint Life Last Survivor Annuity only)

You can earn the following on Option I and Option II on LIC’s Saral Pension 

Option I: Life Annuity with Return of 100% of Purchase Price: Earn Rs 58,950

Option II: Joint Life Last Survivor Annuity with Return of 100% of Purchase Price on death of the last survivor: Earn Rs 58,250

LIC further says that the policy can be surrendered at any time after six months from the date of commencement, if the annuitant or spouse or any of the children of the annuitant is diagnosed as suffering from any of the specified critical illnesses as Annexure, based on the documents produced to the satisfaction of the medical examiner of the Corporation. On approval of the surrender, 95% of the Purchase Price shall be paid to the annuitant, subject to deduction of any outstanding loan amount and the loan interest, if any.