While many of us might be worried about pension and retirement schemes, very few are aware that there are schemes that can pay you an immediate annuity.
The Life Insurance Corporation of India’s Saral Pension Yojana is one such plan. Individuals who opt for the policy can get an immediate annuity.
The scheme is open to individuals from the ages of 40-80. The annuity can be paid monthly, quarterly, half-yearly or annually, depending on the choice of the annuitant. The minimum purchase price of the scheme will also depend on the minimum annuity plan chosen.
There are two types of annuity options available under the Saral Pension Yojana. The annuity payments will be made in arrears for as long as the annuitant is alive, under the first option. On the death of the person, the annuity payments will cease and the annuitant’s legal heirs/nominees will be paid 100 percent of the purchase price.
Under the second option, the annuity will be paid as long as the annuitant or their spouse is alive. On the death of the last survivor, the legal heirs/nominees will be entitled to 100 percent of the purchase price and annuity payments shall end.
The plan can be purchased through LIC’s website as well as offline. People interested in the scheme should note that they cannot alter the annuity option they have chosen in the scheme. Check the details of the scheme here.
According to the information given by LIC, the policy can be surrendered any time after six months have passed since 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 surrender of the policy, the annuitant will be paid 95 percent of the purchase price, subject to the outstanding loan amount and the loan interest (if any) being deducted.
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