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LIC New Immediate Future Secure Pension Plan 259

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LIC (International) is a reliable organisation dedicated to spreading awareness about the importance of life insurance among people. There is a wide range of different plans to cater to your needs and allows you to maximise your savings.

Table of Content

    Annuity Options of the New Immediate Future Secure Pension Plan - 259

    Here are the following annuity options you can choose from when buying the plan:

    • Life annuity which will continue until the death of the annuitant.
    • Life annuity with return of purchase price is paid after the annuitant's death. 
    • Life annuity with 50% or 100% payable to the spouse after the unfortunate death of the annuitant till the spouse is alive.
    • Life annuity with 50% or 100% payable to the spouse after the unfortunate death of the annuitant till the spouse is alive with a return of purchase price.
    • Annuity payment is guaranteed for 5,10,15 and 20 years, also for life thereafter.

    Annuity Benefits (Amount Payable on Survival)

    Annuity Options

    Types of Annuity

    Annuity Benefits

    Option A

    Annuity for life

    Under this option, annuity payments will be made for as long as the annuitant is alive and will cease on the death of the annuitant.

    Option B5

     

    For 5 years and life thereafter

    The annuity payments are made till the annuitant is alive or until the end of the 5 year guaranteed period, whichever event is later.

    Option B10

     

    For 10 years and life thereafter

    The annuity payments are made till the annuitant is alive or until the end of the 10 year guaranteed period, whichever event is later.

    Option B15

     

    For 15 years and life thereafter

    The annuity payments are made till the annuitant is alive or until the end of the 15 year guaranteed period, whichever event is later.

    Option B20

    For 20 years and life thereafter

    Under this option, the annuity payments will be made for as long as the annuitant is alive or until the end of the 20 year guaranteed period, whichever is later.

    Options B5, B10, B15 and B20

    If the annuitant dies during the guaranteed period, the amount will be paid to the nominee till the expiry of the period.

    Option C

     

     

     

     

    Annuity with return of purchase price

     

     

     

    Under this option, the annuity payments will be made till the time the annuitant is alive and payments will cease on his/her death. The nominee will receive the purchase price. 

    Option D

    Annuity for life with 100% payable to the spouse on the death of the annuitant.

    Under this option, the annuity payments are made to the annuitant for as long as he/she is alive. On the death of the annuitant, 100% annuity amount is paid to the spouse till the time he/she is alive. If the spouse predeceases the annuitant, the annuity payments shall continue till the death of the annuitant.

     

    Option E

    Annuity for life with 50% payable to the spouse on the death of the annuitant.

    On the death of the Annuitant, 50% of the annuity amount is paid to the spouse till he/she is alive. The annuity payments will cease on the death of the spouse. If the spouse predeceases the annuitant, the annuity payments shall continue till the death of the annuitant.

    Option F

    Annuity for life with 100% payable to the spouse on the death of the annuitant with return of purchase price

    The annuity payments are given to the annuitant till he/she is alive and after death, 100% of the annuity amount will be payable to the surviving spouse. The annuity payments will cease on the subsequent death of the spouse and the purchase price will be payable to the nominee. If the spouse predeceases the annuitant, payments shall continue till the death of the annuitant and the purchase price will be payable to the nominee.

    Beneficiary Benefits (Amount Payable on Death)

    Annuity Options

    Types of Annuity

    Beneficiary Benefits

    Option A

    Annuity for life

    On the unfortunate death of the annuitant, the beneficiary will receive no payment. The annuity payments will cease immediately and the policy will be terminated.

    Option B5

     

    5 years and for life thereafter

    If death of the annuitant occurs during the 5 years guaranteed period, the beneficiary will receive payment until the expiry of the period, after which the annuity payments will cease and the policy will terminate.

    Option B10

     

    10  years and for life thereafter

    If death of the annuitant occurs during the 10 years guaranteed period, the beneficiary will receive payment until the expiry of the period, after which the annuity payments will cease and the policy will terminate.

    Option B15

     

    15 years and for life thereafter

    If death of the annuitant occurs during the 15 years guaranteed period, the beneficiary will receive payment until the expiry of the period, after which the annuity payments will cease and the policy will terminate.

    Option B20

    20 years and for life thereafter

    If death of the annuitant occurs during the 20 years guaranteed period, the beneficiary will receive payment until the expiry of the period, after which the annuity payments will cease and the policy will terminate.

    Option C

     

    Annuity with return of purchase price

    Death of the annuitant will cause the annuity payments to cease with immediate effect. The purchase price will be paid to the beneficiary and the policy will terminate.

    Option D

    Annuity for life with 100% payable to the spouse on the death of the annuitant.

    On the unfortunate death of the annuitant, 100% of the annuity amount will be payable to the surviving spouse. The payments will cease immediately on the subsequent death of the spouse and the policy will terminate. In case the spouse predeceases the annuitant, the payments shall continue and after the annuitant's death it shall cease and the policy will terminate thereafter.

    Option E

    Annuity for life with 50% payable to the spouse on the death of the annuitant.

    On the unfortunate death of the annuitant, the named spouse will get 50% of the annuity amount till he/she is alive. It will cease immediately on the subsequent death of the spouse and the policy will terminate. If the spouse predeceases the annuitant, payments will be made to the annuitant till death and the policy will terminate thereafter.

    Option F

    Annuity for life with 100% annuity payable  with a return of purchase price to the spouse if the annuitant dies

    After the death of the annuitant, the spouse will get 100% of the annuity amount till death. The annuity payments will cease after that and the policy will terminate after the purchase price is paid to the beneficiary.

    If the spouse predeceases the annuitant, payments shall continue and cease after the death of the annuitant. The purchase price will be paid to the beneficiary before the policy is terminated.

    Return of Purchase Price 

    This is applicable only under options C and F. 

    Maturity Benefit 

    This plan does not involve maturity benefits.

    Surrender Benefit 

    This benefit is only available under options C and F, an annuity with return of purchase price. The annuitant can also get this benefit under extreme circumstances such as critical illness, the marriage of children, loss of job before superannuation, etc. 

    Basic Product Eligibility Conditions

    • The minimum limit of purchase price is USD 15,000 and no maximum limit but subject to underwriting.
    • The minimum age for entry is 40 years (completed) and 75 years (nearer birthday) is the maximum age.
    • A single premium must be paid.
    • The mode of an annuity payment can be yearly, half-yearly, quarterly, and monthly.

    Servicing Aspects 

    Mode of Premium Payment  

    A single premium must be paid at the start of the policy term. 

    Surrender Value 

    The policy will get a surrender value only for options C and F in return for the purchase price. After the completion of one full policy year surrender value is paid. The guaranteed surrender value is 90% of the purchase price and special surrender value (SSV) is 95% of purchase price subject to change in the future as per the company.

    Policy Loan 

    The policy does not give a loan option.

    Paid Up Value

    Under the annuity options a paid up value is not applicable.

    Grace Period 

    Not applicable.

    Underwriting Requirements

    All aspects of underwriting policies are decided by the company.

    Why you should consider opting for the New Immediate Future Secure Pension Plan – 259?

    Annuity plans are pension products and you must invest your hard-earned money to secure your future and meet long-term financial needs. In an annuity plan, you have the flexibility to choose your mode of payment and the payouts are highly beneficial for you and your family members. The plan covers your financial risk by providing you with regular payments in the years when you need to live a stress-free and comfortable life.  

    Conclusion

    You can sign up for this plan by paying a single premium at the start of the policy, it offers various annuity options and gives you an opportunity to live life on your terms even after retirement. The nature of this savings plan is non-linked, it acts as a cushion and gives you added financial security. You can enjoy a second consistent income that will be useful for your future. If you are married, this plan can help provide for your spouse from the early age of 40 years up to the age of 75 years.

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