'Pay single premium, get pension for life': LIC launches new plan - All you need to know 

New Delhi: The Life Insurance Corporation of India (LIC) has come up with a new pension plan - Saral Pension - which allows policyholders to pay in single premium and get an annuity for a lifetime. There are two options for pensions - lifetime, and joint life last survivor annuity with a return of 100 percent of
purchase price on the death of the last survivor.

In the first option, the annuity payments shall be made in arrears for as long as the policyholder is alive. On the death of the person, the annuity payment shall cease immediately and 100 percent money shall be payable to the nominee. In the second option, the annuity amount will be paid in arrears for as long
as the person or spouse is alive. The joint-life annuity can be taken with spouse only.

While the minimum age at entry has been kept at 40 years, the maximum age is fixed at 80 years.

Under Saral Pension, the modes of annuity available are yearly, half-yearly, quarterly, and monthly. The LIC in its policy document states that the annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the lifetime of the policyholder(s).

According to one illustration, if a person aged 60 invests Rs 10 lakh and goes for yearly annuity mode, he or she will get Rs 58,950.    

The plan can be purchased offline as well as online through the official website of LIC - www.licindia.in.