Star health 
New India Insurance 
LIC Saral Pension Plan No.862 is a new immediate pension plan launched on 1st July 2021. It is a Standard Individual Immediate Annuity Product
# Surrender Option:-
The policy can be surrendered any time after six months from the date of commencement, if the annuitant or the spouse or any of the children of the annuitant is diagnosed as suffering from any of the critical illnesses specified in the Policy Document, based on the documents produced to the satisfaction of the medical examiner of the Insurer. The list of critical illnesses may be revised from time to time by the Authority as needed. On approval of surrender, 95% of the Purchase Price shall be paid to the annuitant, subject to deduction of outstanding loan amount and loan interest, if any. On payment of surrender value, the policy stands terminated.
# Loan:-
Loan can be availed any time after six months from the date of commencement of the policy. The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on the loan does not exceed 50% of the annual annuity amount payable under the policy. Under the joint-life option, the loan can be availed by the primary annuitant and on the death of the primary annuitant, it can be availed by the secondary annuitant.
The interest on loan shall be at 10-year G-Sec rate per annum as at 1st April, of the relevant financial year, as published by M/s. FBIL, plus not more than 200 bps and shall be applicable for all loans granted during the period of twelve months, beginning 1st May of the relevant financial year.
The loan interest will be recovered from the annuity amount payable under the policy. The loan interest will accrue as per the frequency of annuity payment under the policy and it will be due on the date of the annuity. The loan outstanding shall be recovered from the claim proceeds under the policy. However, the annuitant has the flexibility to repay the loan principal at any time during the currency of the annuity payments.
Let me give you an illustrative example:- Let us assume Mr.A whose age is 60 years and his wife Mrs.A, whose age is 55 years invested in this policy for the purchase price of Rs.10,00,000 and opted for yearly pension option.
- Option 1 – Mr.A will receive Rs.51,650 (Approximate value) per year as long as he is alive. Once he dies, pension payment will stop there itself and his wife Mrs.A will receive Rs.10,00,000 as a lump sum.
- Option 2 – Mr.A will receive Rs.51,150 (Approximate value) per year as long as he is alive. Once he dies, then his wife Mrs.A will receive the same yearly pension of Rs.51,150 throughout her life. If she too dies, then the nominee will receive Rs.10,00,000 (the original purchase price).