It is an Immediate Annuity plan from LIC's , which can be purchased by paying a lump sum amount. The plan provides for annuity (pension) payments of a declared amount throughout the life time of the annuitant. The type and mode of payment of annuities comes in various options.
Type of Annuity:
• Annuity payable for life at a uniform rate.
• Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
• Annuity for life with return of purchase price on death of the annuitant.
• Annuity payable for life increasing at a simple rate of 3% p.a.
• Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
• Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
You may choose any one. Once chosen, the option cannot be altered.
Annuity can be paid monthly, quarterly, half yearly or yearly intervals. Any mode of payment of Annuity can be opted.
Salient features
• Premium is to be paid in a lump sum.
• Minimum purchase price: Rs.50,000/= or such amount which may secure a minimum annuity of Rs.3,000/- p.a.
• No medical examination is required.
• No maximum limits for purchase price, annuity etc.
• Minimum age 40 years last birthday, Maximum age 79 years last birthday.
• Age proof necessary.
Cooling-off period
If not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days from the date of receipt of the Policy Bond.
Paid-up value
The policy does not acquire any paid-up value.
Surrender Value
No surrender value will be available under the policy.
Loan
No loan will be available under the policy.
Annuity Rate:
Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as under:
last birthday Yearly annuity amount under option
Age ( i ) ( ii )&(5years certain) ( iii ) ( iv ) ( v ) ( vi )
40 7330 7320 6720 5430 7120 6920
45 7610 7590 6760 5730 7320 7060
50 7990 7960 6800 6130 7600 7250
55 8520 8460 6860 6680 7990 7520
60 9230 9140 6940 7410 8510 7900
65 10300 10130 7030 8480 9280 8450
70 11980 11570 7130 10130 10450 9270
75 14420 13400 7240 12500 12150 10500
cooling-off period
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days from the date of receipt of the Policy Bond.
Incentives for high purchase price
If your purchase price is Rs. 1.50 lakh or more, you will receive higher amount of annuity
Paid-up value
The policy does not acquire any paid-up value.
Surrender Value
No surrender value will be available under the policy.
Loan
No loan will be available under the policy.
Benefits
The amount of annuity is assured throughout life of the annuitant.
What happens if the annuitant dies? If the annuitant dies:
1. Under option (i) annuity ceases.
2. Under option (ii)
3. On death during the guaranteed period - annuity is paid to the nominee till the end of the guaranteed period after which the same ceases.
4. On death after the guaranteed period - annuity ceases.
5. Under option (iii) annuity ceases and the purchase price is paid to the nominee.
6. Under option (iv) annuity ceases.
7. Under option (v) annuity ceases and 50% of the annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
8. Under option (vi) annuity ceases and full annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
When first installment of annuity payable: First installment of annuity is payable after 1 month, 3 months, 6 months or 1 year from the date of purchase of annuity depending on the mode chosen is monthly, quarterly, half yearly or yearly respectively.
