LIC Saral Pension: All you need to know

LIC Saral Pension: All you need to know

Saral Pension (Plan No.862) is a Non-Linked, Non-Participating, Single-Premium, Individual Immediate Annuity Plan by LIC.

write an AIDA for pension insurance plan

Avail an immediate annuity, and return of purchase price to your nominee.

  • This is a standard immediate annuity plan according to the guidelines for Insurance Regulatory and Development Authority of India (IRDAI), which has the same terms and conditions across all life insurers.
  • It offers two types of annuity options for the policyholder.
  • The annuity rates are guaranteed and the annuities will be paid throughout the lifetime of you or your spouse.
  • Saral Pension is a non-linked, single premium plan that can be purchased in person or online from LIC.

Annuity Options

Option I: Life Annuity – Return 100% of your purchase price

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

After you choose an annuity, you can’t change it so make your decision as per your need.

Benefits:

Benefits Under Option I

  • Annuity payments will be paid in arrears as long as the annuitant is alive
  • Upon the death of the annuitant, the annuity payment will cease immediately and 100% of the purchase price paid shall be distributed to your nominee(s)/legal heirs.

Benefits Under Option II

  • The annuity is paid in arrears to the annuitant or spouse, as selected.
  • Upon the death of the last survivor, annuity payments will cease immediately and 100% of purchase price will be paid to your nominee(s)/legal heirs.
  • Option II annuity plan can be taken only with spouse. Its ideal plan for joint Pension scheme.

Eligibility Criteria

  • Minimum Age at Entry: 40 years (completed)
  • Maximum Age at Entry: 80 years (completed)

Minimum Pension:

Annuity ModeMonthlyQuarterlyHalf-yearlyYearly
Minimum annuityRs.1000/moRs.3000/qtrRs.6000/hyRs.12000/yr

The available annuity options are yearly, half-yearly, quarterly, and monthly. The annuity payment will be made after 1 year, 6 months, 3 months, and 1 month depending on the plan. The pension will be paid in arrears.

If you are eligible for a pension plan and want to choose the best one, Saral Pension is an option that guarantees annuity payments throughout your lifetime. This plan provides two types of annuities which can be chosen according to your need. The benefits under both options should be considered before making a decision. If you have any questions about this pension plan or would like more information on this plan, please contact your LIC agent.

Pradhan Mantri Vaya Vandana Yojana (PMVVY) – Pension Plan

Pradhan Mantri Vaya Vandana Yojana (PMVVY) – Pension Plan

Pradhan Mantri Vaya Vandana Yojana (PMVVY) Plan no.842 is a pension scheme for Senior citizens with an assured return of 8% on your purchase price. In Simple Term, Pay 15 Lakh on onetime and get Rs.10000/- per month pension. If you can save more if you need a pension once a year

Finance Minister has launched the new Pension Plan especially for senior citizens above the age of 60 years. In this scheme, you will need to invest your money once (In short this is a one-time premium pension plan). The scheme is exempt from the Goods and Services Tax (GST).

PMVVY
PMVVY

PMVVY Eligibility Conditions and Other Restrictions:

  • Minimum Entry Age: 60 years (completed)
  • Maximum Entry Age: No limit
  • Policy Term: 10 years

Minimum Pension:

  • Rs. 1,000/- per month
  • Rs. 3,000/- per quarter
  • Rs.6,000/- per half-year
  • Rs.12,000/- per year

Maximum Pension:

  • Rs. 10,000/- per month
  • Rs. 30,000/- per quarter
  • Rs. 60,000/- per half-year
  • Rs. 1,20,000/- per year

Loan:
You are eligible for a loan against (PMVVY) for up to 75% of your premium after 3 years.

For yearly pension, the minimum investment is Rs 1.45 lakh and the maximum is Rs 14.45 lakh. For monthly mode, the minimum to be invested is Rs 1.5 lakh and the maximum is Rs 15 lakh

You can get pension ranging from Rs 1,000 per month (12,000 per year) and Rs 10,000 per month (1,20,000 per year) across all family members, which include his/her wife/husband and dependent children if any.

The minimum and maximum Purchase Price under different modes of pension will be as under:

Mode of PensionMin. PurchaseMax Purchase Price
YearlyRs. 1,44,578/-Rs. 14,45,783/-
Half-yearlyRs. 1,47,601/-Rs. 14,76,015/-
QuarterlyRs. 1,49,068/-Rs. 14,90,683/-
MonthlyRs. 1,50,000/-Rs. 15,00,000/-

Pradhan Mantri Vaya Vandana Yojana (PMVVY) FAQ:

Who can opt for this scheme?
Any Indian Citizen aged 60 years or above.

Is there any market risk? or 8% Interest fixed or variable?
The scheme will provide an assured return of 8 percent per annum payable monthly (equivalent to 8.30 percent per annum) for 10 years.

When will I get the pension?
You can choose monthly, quarterly, half-yearly or yearly depending on your needs. The pension will be transferred to your bank account through NEFT or Adhar Based Payment System.

What’s the last date of enrolment?
PMVVY may Close on March 31, 2020, if Govt. does not extend this deadline this year.

How to buy it?
You can buy this plan online or through your LIC Agent/Branch.

If I want to exit this scheme midway?
You can surrender this plan anytime and you will get a 98% refund on your purchase price.

What if Policyholder dies before maturity?
In this case, the nominee will get the purchase price.

What are other options for pension seekers?
You can check out Jeevan Akshay VI and New Jeevan Nidhi

New Jeevan Nidhi

New Jeevan Nidhi

LIC New Jeevan Nidhi is a deferred pension plan. Plan no 812 is a conventional plan with a deferred annuity. The plan is open for the age between 20 years to 60 years old individual.

New Jeevan Nidhi Features at glance:

  • Insurance Cover upto Date of Vesting
  • Option To purchase an Immediate Annuity OR
  • Single-Premium Deferred Pension Plan
  • Guaranteed Additions for the first 5 years

With Profit:
New Jeevan Nidhi (Table no.812) is a with-profit pension plan, after the 6th policy year Vested Bonus and Final Additional Bonus benefits will be given (if any).

Flexible-Premium:
You may opt for a single premium option or go for regular premium i.e Yearly, Half-yearly, Quarterly, or Monthly (through ECS/SSS).

Accident Benefit Rider
Regular premium policyholders can avail of the Accident Benefit Rider.

Eligibility conditions and restriction for New Jeevan Nidhi:

DescriptionMinimumMaximum
Entry Age 20  60
Vesting Age 35  55
Policy Term 5 35
Sum Assured Rs.1,50,000 (Single premium)
Rs.1,00,000 (Regular Premium)
 No limit

Death Benefit:

Death within the first 5 years: Nominee will receive Basic Sum Assured + Accrued Guaranteed Additions.
Death on or after 6th year: Nominee will receive Basic Sum Assured + Accrued Guaranteed Additions + Vested Bonuses & Final Additional Bonus (if any).

The death benefit will be given to the nominee as lump sum OR In the form of Annuity OR Partly in a lump sum and balance in the form of Annuity at the then prevailing Immediate annuity rates.

Benefit on Vesting:

  1. Basic Sum Assured
  2. Accrued Guaranteed Additions
  3. Vested Simple Reversionary Bonuses & Final Additional Bonus (if any)

Guaranteed Additions:
Payable for the first five years @ Rs.50/- per thousand Basic Sum Assured for each completed year.

Participation in profits:
Simple Reversionary Bonus will be added from the 6th policy year onward till the end of the deferment period. Bonus will be announced by LIC every year.

Final Additional Bonus will be given either on vesting or on earlier death at the rates announced by LIC.

Accident Benefit Rider:

Death due to Accident: Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the Basic plan.
Disability due to Accident: All Future Premiums are waived and An amount equal to the Accident Benefit Sum Assured will be paid in monthly installments spread over 10 years.

Eligibility Condition for Accident Benefit Rider:

  • Age at Entry: 20-60 years
  • Sum Assured: 25,000 to max 50 lakh overall limit incl. all policies.

Backdating: allowed within the same financial year

Revival: In case, you missed a few year’s premium, you will still have the option to revive the policy within 5 years from the date of the First Unpaid premium and before the date of vesting by payment of Arrears of premium plus Interest and subject to continued insurability.

Surrender: Don’t want to continue the policy? No problem. You can surrender the policy at any time on payment of at least 3 years’ premiums and after completion of at least 3 policy years but before the date on which annuity vests. The Surrender Value payable would be the higher of Guaranteed Surrender Value and Special Surrender Value. The Surrender proceeds shall be utilized to purchase an immediate annuity product or a new Single Premium deferred pension product from LIC.

Benefit Illustration:

DescriptionSingle Premium  Regular Premium  
Age 35 35
Policy Term 25 Years 25 Years
Premium (excl. Service charge Rs.78,667 Rs.4,121
Premium Mode Single Yearly
Sum Assured Rs.1,50,000/- Rs.1,00,000/-
Vesting Age 60 Years 60 Years
Guaranteed Vested Benefit Rs.1,87,500/- Rs.1,25,000/-
Assuming Investment Return @8% Rs.3,50,250/- Rs.2,33,500/-

Refer to Old Jeevan Nidhi if you are looking for an old plan.


Update: LIC New Jeevan Nidhi Plan No.812 Has Been Discontinued.


Online Pension plan: New Jeevan Akshay VI

Online Pension plan: New Jeevan Akshay VI

LIC has customized traditional Jeevan Akshay VI the only immediate pension plan to sell it online due to the huge demand for online LIC policy. Jeevan Akshay VI is the single premium pension plan.

Features:

  • It’s a single premium pension plan with a minimum purchase price of Rs.1,00,000/- (except online.)
  • If you want to buy it online the minimum purchase would be Rs.1,50,000/-
  • No maximum purchase price limit or pension.
  • Minimum entry age: 30 years (completed)
  • Maximum entry age: 85 years (completed).
  • No medical examination is needed in this plan.
  • Age proof must be produced.

New Jeevan Akshay VI can be bought online and offline with these 7 pension Options:

  1. Annuity payable for life at a fixed rate.
  2. Annuity payable for 5, 10, 15, or 20 years certain and thereafter as long as the annuitant is alive. (4 Options)
  3. Annuity for life with return of purchase price on death of the annuitant.
  4. Annuity payable for life increasing at a simple rate of 3% p.a.
  5. Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
  6. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
  7. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her lifetime on death of the annuitant. The purchase price will be returned on the death of the last survivor.

Anyone who is eligible for the above plan can buy it online or contact their LIC agent to enroll it offline.

Flexible Pension option:
Receive pension monthly, quarterly, half-yearly, or yearly.

Surrender value:
There is no surrender value for this policy, hence you can not surrender.

Loan:
No loan available under this plan.

Service tax:
Service tax shall be payable by the policyholder along with the purchase price.

Which Proposal form?
Proposal Form 440 (IA) should be used under this plan for the offline policy.

Example:  If Mr. Rakesh (Age 40 ) buys an online pension plan with the minimum purchase price of Rs.1.5 lac He will need to pay Rs.1,50,000/- plus Rs.4635/- service tax (This may change as service tax change) total: Rs.1,54,635/- Depending on 7 options chosen Mr. Rakesh will get approx. 10,000 to 11,200/- annual pension. for more details click her

Pension Plus Plan 803 – ULIP Based

Pension Plus Plan 803 – ULIP Based

LIC Pension Plus is a unit-linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover. After maturity, one-third of the corpus can be withdrawn as a lump sum amount and the remaining two-thirds would be paid in either monthly or half-yearly installments after maturity, which would be decided by the policyholders.

Minimum Term:
The minimum term for the Pension Plus plan is 10 years.

Mode of Premium Payment:
Premiums can be paid yearly, half-yearly, quarterly, or monthly (through ECS mode only) or a single premium.

Premium Limit:
The minimum regular premium is Rs.15000 per annum (Except ECS Mode) while the maximum allowed for regular premium is Rs 1,00,000/-

For the ECS payment mode:
The minimum premium is Rs 1500 per month.

Single-Premium:
The minimum single premium is Rs.30000 and There is no limit on the Maximum one-time premium.

Top-up Premiums:
The top-up facility is available under the LIC Pension Plus plan which enables you to pay additional premiums in multiples of Rs 1000/- without any limit at any time, during the term of the policy.

Death Benefit:
The Policyholder’s Fund Value shall be payable either in a lump sum or as an annuity, as desired by the nominee.

Survival Benefits:
On surviving to the date of vesting, the higher of Policyholder’s Fund Value or Guaranteed Maturity Amount.

Fund Type:
The Pension Plus plan is available in two options — Debt fund and Mixed fund.

1. Debt Fund: Not less than 60 percent of the corpus would be invested in government securities, and the remaining 40 percent would be invested in money market instruments.

2. Mixed Fund: Investment in government securities is not less than 45 percent, and 40 percent into money market instruments and 15-35 percent into equities.

Fund Switching:
Two free switches per policy year are allowed free of charge.

Eligibility  Conditions  And  Other  Restrictions for Pension Plus:

  1. a)  Minimum Entry Age – 18 years (last birthday)
    b)  Maximum Entry Age – 75 years (nearest birthday)
    c)  Minimum Vesting Age  – 40 years (completed)
    d)  Maximum Vesting Age –  85 years (nearest birthday)
    f)  Sum Assured – NIL

Premium Allocation Charges:

  • For Single premium policies:  3.3%
  • For Regular Premium: First Year 6.75% 2nd to 5th Year 4.50% thereafter 2.50%
  • Allocation charge for Top-up: 1.25%

Update: LIC Pension Plus Plan No.803 Has Been Discontinued.


Note:
The above is the product summary giving the key features of the plan. This is for illustrative purposes only. This does not represent a contract and for details please refer to your policy document.

New Jeevan Nidhi

Jeevan Nidhi – Pension Plan

LIC Jeevan Nidhi Pension plan Summary:

Update: New Jeevan Nidhi Table no.812 launched. Refer to https://mypaisa.in/new-jeevan-nidhi-812/

If you want to ensure a pleasant life after retirement, then you should consider LIC’s Pension Plan.  In other words,  now you can retire at the age of 40 with Life Insurance Corporation of India’s pension plan.  LIC’s Jeevan Nidhi (Table No.169) is a with-profits Deferred Annuity (Pension) plan. On survival of the policyholder beyond the term of the policy the accumulated amount (i.e. Sum Assured + Guaranteed Additions + Bonuses) is used to generate a pension (annuity) for the policyholder. The plan also provides a risk cover during the deferment period.

Jeevan Nidhi Features:

a . Guaranteed Additions: LIC’s Jeevan Nidhi provides Guaranteed Additions at the rate of Rs.50/- per thousand Sum Assured during the first five years of the policy. The Guaranteed Additions are payable along with the Basic Sum Assured on vesting or on earlier death.

b. Participation in profits: The policy shall participate in profits of LIC from the 6th year onwards and shall be entitled to receive bonuses declared as per the experience of Life Insurance Corporation of India.

c. Benefit On Vesting:

1. Option to commute up to 1/3rd of the amount available on vesting, which shall include the Sum Assured under the Basic Plan together with accrued Guaranteed Additions, simple Reversionary Bonuses, and Terminal Bonus, if any.

2 . Annuity as per the option selected: Annuity on the balance amount if commutation is exercised, otherwise annuity on the full amount.

d. Annuity Options:
On vesting, the annuity installment, mode of an annuity payment, and type of annuity which shall be made available to the Life Assured (Annuitant) / Nominee will depend upon the then prevailing Immediate Annuity plan of the Life Insurance Corporation of India and its terms and conditions.

Currently, the following options are available under immediate annuities:

1. Annuity for life: The annuity is paid to the life assured as long as he/she is alive.

2. Annuity Guaranteed for certain periods: The annuity is paid to the life assured for periods of 5 or 10 or 15 or 20 years as chosen by him/her, whether or not he/she survives that period. After the chosen period, the annuity is paid to the life assured as long as he/she is alive.

3. Annuity with return of purchase price on death: The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, the purchase price of the annuity is paid as the death benefit. The purchase price includes the Sum Assured under the Basic Plan, the accrued Guaranteed Additions, and any accrued bonuses, excluding the commuted value, if any.

4. Increasing annuity: The annuity is paid to the life assured as long as he/she is alive. The amount of annuity increases every year at a simple rate of 3% per annum.

5. Joint Life Last Survivor Annuity: The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, 50% of the annuity is payable to the nominated spouse as long as the spouse is alive.

e. Death Benefit on death before annuity vests: On the death of the Life Assured during the deferment period of the policy, i.e. before the annuity vests, an amount equal to the Sum Assured under the Basic plan along with the accrued Guaranteed Additions, simple Reversionary Bonuses, and Terminal Bonus, if any, will be paid in a lump sum to the appointed nominee, provided the policy is in force for full Sum Assured. The nominee will also have the option to purchase an annuity with this amount.

Tax Benefits:
Tax relief under Section 80CCC(1) is available on premiums paid under this policy.

Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deduction, as opted by you, throughout the term of the policy or till earlier death.

Single-Premium
A single-Premium option is also available. You can pay a single premium for Jeevan Nidhi.

For Basic Benefit:

a)Minimum age at entry:18 years (completed)
b)Maximum age at entry:65 years
c)Minimum age at vesting:40 years
d)Maximum age at vesting75 years
e)Policy terms:6 to 35 years under Single Premium policies and 5 to 35 years under Regular Premium policies
f)Modes of premium payment:Yearly, Half-yearly, Quarterly, SSS & Single Premium
g)Sums Assured allowed:Rs.50,000/- and in multiples of Rs.5,000/- thereafter, with no upper limit.
h)Minimum Annual Premium:Rs.3,000/-
i)Minimum Single premium:Rs.10,000/-

For Term Assurance Rider Option:

a)Minimum age at entry:18 years (completed)
b)Maximum age at entry:50 years
c)Maximum age at vesting60 years
d)Policy terms:6 to 35 years under Single Premium mode and 10 to 35 years under regular premium mode
e)Minimum Sum Assured:Rs.1,00,000/-
f)Maximum Sum Assured:An amount equal to the Sum Assured under the Basic plan subject to a limit of Rs.25,00,000/- taking all Term Assurance Rider Sum Assured under all policies of life assured.
g)Multiples of Sum Assured:Rs.25,000/-

For Critical Illness Rider Option:

a)Minimum age at entry:20 years (completed)
b)Maximum age at entry:50 years
c)Maximum age at vesting60 years
d)Policy terms:10 to 35 years
e)Minimum Sum Assured:Rs.50,000/-
f)Maximum Sum Assured:An amount equal to the Sum Assured under the Basic plan subject to a limit of Rs.5,00,000/- taking all Critical Illness Rider Sum Assured under all policies of life assured
g)Multiples of Sum Assured:Rs.10,000/-

Accidental Death and Disability Benefit:

In case of death due to an accident (within 180 days), an additional amount equal to the Accident Benefit Sum assured will be payable. In case of Total and Permanent disability arising due to an accident, an amount equal to the accident benefit sum assured will be payable over a period of 10 years in monthly installments. However, the payment of accident benefit will be subject to an overall limit of Rs.25 lakh under all policies of the Life Assured with the Corporation taken together.

The disability due to accident should be total and such that the Life Assured is unable to carry out any work to earn a living. Following disabilities due to the accident are also covered –

a) irrevocable loss of the entire sight of both eyes or
b) amputation of both hands at or above the wrists or
c) amputation of both feet at or above ankles, or
d) amputation of one hand at or above the wrist and one foot at or above the ankle.

No benefit will be paid in case of accidental death or disability due to accident in case of

a) intentional self-injury, attempted suicide, insanity or immorality or the Life Assured is under the influence of intoxicating liquor, drug or narcotic,
b) engagement in aviation or aeronautics other than that of a passenger in any aircraft,
c) injuries resulting from riots, civil commotion, rebellion, war, invasion, hunting, mountaineering, steeple chasing or racing of any kind,
d) accident resulted from committing any breach of law.
e) accident arising from employment in armed forces or military services or police organization.

Term Assurance Rider Option: Term Assurance as an optional rider will be available under this plan. Premiums for this option are payable during the premium paying term and an amount equal to Term Assurance Sum Assured will be payable on death during the policy term. The maximum cover for this rider will be Rs.25 lakh under all policies of the Life Assured with the Corporation taken together.

Critical Illness Rider Option: An amount equal to the Critical Illness Rider Sum Assured as an optional rider will be payable in case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions. The maximum cover for this rider will be Rs.5 lakh under all policies of the Life Assured with the Corporation taken together.

If opted for Premium Waiver Benefit, then in case the Life Assured is diagnosed with any of the Critical Illnesses covered under the policy, the total future premiums in respect of the policy will be waived. Sum Assured under all such policies with the Corporation taken together will not exceed Rs.5 lakh.

Revival: The policyholder can revive his lapsed policy by paying arrears of premium together with interest within a period of five years from the date of the first unpaid premium subject to satisfactory evidence of health. The rate of interest for this purpose will be decided by LIC from time to time.

Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to Life Insurance Corporation Of India within 15 days.

The Unique Identification Number (UIN) for LIC’s Jeevan Nidhi is 512N224V01.

Note:
The above is the product summary giving the key features of the plan. This is for illustrative purposes only. This does not represent a contract and for details please refer to your policy document.


Update:  LIC Jeevan Nidhi Plan No.169 Has Been Discontinued.