LIC Saral Pension Plan: Get INR 12,000 Pension for Lifetime with LIC Single Premium Pension Plan

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Updated on Jan 30, 2024

To attract more and more people towards insurance a range of new and emerging products were launched suiting the taste buds of different individuals by LIC. In this write-up, let us discuss one such lucrative product – LIC Saral Pension Plan.

LIC has been offering some unique plans and products appealing to the needs and requirements of different people from varied sections of the society.  The Saral Pension Scheme is one such unique plan that allows the insured to receive guaranteed monthly return by investing in a single premium plan.

Under the LIC Saral Pension Yojana, the insured can receive INR 12,000 pension by paying a single premium. This is one of the many schemes launched by the LIC of India in the last few years to target different types of investors in the country. The policy comes with remarkable returns available at maturity together with better sum assured. The policy supports the investor and his/her family financially in case of any sudden unfortunate medical emergency.

There are various appealing features of the LIC Saral Pension Yojana such as;

  • INR 12,000 minimum annual pension
  • One time investment option
  • Annuity options etc.

Loaded with all such excellent features and several benefits, the LIC Saral Pension plan is one of the best products for people looking to invest in retirement plans for a peaceful life during old age. Now, let us explore the features and benefits of the LIC Saral Pension Yojana in detail.

What Is LIC Saral Pension Yojana?

Launched as per the guidelines of the IRDAI or Insurance Regulatory and Development Authority of India, the LIC Saral Pension Plan is a life insurance plan available with immediate annuity.  The plan guarantees an annual annuity rate of over 5% with monthly, quarterly and annual payment options to the annuitant.

Once the policyholder makes the payment of the lump sum amount as premium, the person becomes eligible for annuity payment immediately which continues throughout the life time of the annuitant.

LIC Saral Pension Plan – Objective

  • To help people make informed choice with this customer-friendly plan
  • To build the bond of trust between Insurance company and the Insured
  • To reduce the misuse of LIC policies
  • To lower the likely disputes between insurers by making common guidelines

LIC Saral Pension Plan – Eligibility

Eligibility  Criteria
Minimum Entry Age 40 years (completed)
Maximum Entry Age 80 years (completed)
Minimum Purchase Price Depends on minimum annuity as specified in the Annuity option
Maximum Purchase Price No Limit
Policy Term Whole life policy
Minimum Annuity Monthly: INR 1000

Quarterly: INR 3000

Half-yearly: INR 6000

Annually: INR 12000

LIC Saral Pension Plan – Features

As already discussed, this pension plan is loaded with some wonderful features that make it a worthwhile policy. You may note some such features below:

  • LIC Saral Pension Scheme is a single premium, non-participating and non-linked policy that allow immediate annuity
  • The plan comes with two options of annuities such as, Life annuity and Joint life annuity

With Life Annuity, the insured can get 100 percent return of investment amount, while under Joint life annuity, 100 percent return is offered to the spouse if the policyholder dies. However, if the insured as well as the spouse passes away, the complete return of amount is paid the nominee/beneficiary of the policyholder

  • As per the frequency of the annuity payment is concerned, it is decided depending on the comfort of the policyholder. The  various options available are month-wise payment, quarterly or semi-annual payment as well as annual payment
  • The dispersal of pension amounts under Saral Pension Plan starts as soon as an individual buys a plan. The minimum annuity offered under the plan is INR 12000/annum by paying a single premium of INR 2.5 lakh. However, there is no maximum limit to the investment. So, to earn more pension on a monthly or quarterly basis, you can invest accordingly
  • The policy also allow the option to surrender it after 6 months of commencement of the plan if the insured or a family member is diagnosed with a critical illness mentioned under the plan
  • Saral pension Plan LIC also allow the  life assured to avail loan against the plan after 6 months of the plan initiation

Read More: Pension Plans in India: Best Retirement Plans for Senior Citizens

LIC Saral Pension Plan – Benefits

Among the various benefits of LIC Saral Pension Yojana, the below mentioned are the key ones:

  • Death Benefit – The policy offers death benefit to the nominee of the policyholder in case of his/her demise under a single life annuity
  • In case of joint-life annuity, the annuity continues with the spouse if the policyholder dies. In case both of are no more, the nominee receive 100 percent of the sum invested
  • Survival Benefit – The plan offer annuity amount to the insured under survival benefit
  • Loan Benefit – Loan can also be availed after 6 months of the plan initiation
  • Free-Look Period – The plan is available with a 15 to 30 days free-look period from the date of policy purchase during which the policyholder can reject the plan if she/she doesn’t like it
  • Tax Benefits – The insured can also avail tax benefits under the existing income tax laws 

LIC Saral Pension Yojana – Annuity Options

The Policy offer two annuity options under the scheme including:

  • Life Annuity which allow 100 percent return of Purchase Price, and
  • Joint Life Last Survivor Annuity which allow 100 percent return of Purchase Price in case of demise of the last survivor under the policy

LIC Saral Pension Yojana – Annuity Options

Annuity  Benefit
Annuity option 1 Annuity is paid in arrears so far the annuitant is alive

Once the annuitant dies, the payment comes to an end an 100 percent purchase price is paid to the nominee

Annuity option 2 Annuity payment is done in arrears so far the policyholder or spouse survives

Once the annuitant dies, the payment comes to an end and 100 per cent Purchase Price is paid to the nominee

Also Read: A Beginner’s Guide to Retirement Pension Plans in India

How to Buy A LIC Saral Pension Scheme?

You can buy a LIC Saral Pension Scheme via online or offline mode. You may seek help from:

  • A licensed LIC agent to buy it offline
  • Visit the nearest branch of LIC
  • Visit the official website of LIC to buy the plan online

Summing Up

The LIC Saral Pension Yojana 2022 was initiated to cater to the retirement and pension needs of people. This is a well planned policy that allows a tension free financial future for individuals after retirement. With no maximum limit of annuity, a policyholder can invest in this plan with any amount he/she wants to receive corresponding 5% as annuity. This is a scheme for the masses and it is getting very popular among common people.

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FAQs on LIC Saral Pension Scheme

How much pension will I get from the LIC Saral pension plan?

If a policyholder invests INR 2.5 lakh under the scheme, he/she can receive a minimum monthly income of INR 1,000 or an annual pension of INR 12,000. This amount varies as per the sum invested.  

How many options of annuity are there in the Saral pension plan?

The Saral Pension Plan offers two different annuity options to choose from as per the convenience of the insured such as Life Annuity and Joint Life Annuity.

Is Saral pension Yojana taxable?

The premium paid towards the Saral Pension Plan can be used to save tax of up to INR 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961. In addition, the death benefit offered under the plan to the nominee of the policyholder is also exempted from tax under Section 10(10D). 

How does the LIC Endowment pension plan work?

The LIC pension plan (Endowment) offers guaranteed payout at maturity and a death benefit for the family if the policyholder dies.

Is Saral pension Yojana good?

Saral Pension Yojana is a non-linked and non-participating upfront single premium scheme. This is an annuity plan with a 5 per cent rate of annuity guaranteed with the plan.

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Dec 28, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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