LIC Saral Pension Yojana makes sure that investors get the annual pension of Rs. 12,000 by paying a single premium of Rs. 2.15 Lakhs. The plan is designed to offer a regular flow of income after the retirement of the policyholder and ensure that they are financially independent. With attractive benefits on a one-time investment, annuity options, and more, LIC Saral Pension Scheme is making news in all good ways in the insurance market.Read more
The Life Insurance Corporation of India (LIC) has launched many schemes to look after the post-retirement needs of the policyholder. These plans offer financial security to you after your retirement. One such scheme under LIC with unique featuresis the LIC Saral Pension Yojana.
LIC Saral Pension Yojana is a Standard Immediate Annuity plan, launched under the guidelines and procedures of the IRDAI (Insurance Regulatory and Development Authority of India) (IRDAI). The policyholder has an option to choose the annuity type from 2 available options on payment of lump sum. The rates of annuity are guaranteed at the commencement of the policy and annuities are payable throughout the annuitant’s lifetime.
The main objective of the Saral Pension Yojana is:
To make the policy customer-friendly that helps to make an informed choice
To glorify trust between Insurer and Insured
To create uniformity and reduce misuse of plan
To reduce potential disputes between 2 insurance companies by making common guidelines
|Minimum Age at Entry||40 years (completed)|
|Maximum Age at Entry||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||For Monthly: Rs 1000|
|For Quarterly: Rs. 3000|
|For Half-yearly: Rs. 6000|
|For Annually: Rs. 12000|
Let us now have a look at the features and benefits of the plan.
The salient features of LIC Saral Pension Yojana are:
It is a non-participating, single premium, non-linked, immediate annuity plan.
The plan comes with two annuity options. Two annuity options available are:
Life annuity with 100% return of purchase price: It provides an annuity for a lifetime with a 100% return on the buying price.
In a Joint life annuity, 100% annuity is paid to the other spouse in case of demise of the primary. However, if both pass away, then 100% of the purchase price will be given to the nominee
An insured can choose the frequency of the annuity payment as per their comfort. LIC offers Annual, Half-Yearly, Quarterly, and Monthly modes of annuity payment under the LIC Saral Pension Scheme.
The pension starts when a person buys the plan with the minimum annuity being Rs. 12000/annum, no maximum limit.
The policy can be surrendered at any time after 6 months from the inception date if the spouse or annuitant or any of their children is diagnosed with any stated critical illnesses.
The life assured can take a loan against the scheme after 6 months of its commencement.
Under a single-life annuity, 100% of the purchase price is paid to the nominee after the death of the annuitant.
Under joint-life annuity:
If the spouse is alive, then they will receive the same annuity amount upon the demise of the annuitant. However, if the spouse also dies, 100% of the purchase price will be given to the nominee.
If the spouse passes away before the annuitant, then the annuitant will continue to receive the annuity. If both pass away, 100% of the purchase price will be given to the nominee.
The annuity amount is payable under survival benefits.
A loan under the LIC Saral Pension Scheme is allowed only after 6 months from the starting date of the policy. The maximum loan amount shall be in such a way that the annual interest amount paid does not exceed 50% of the annual annuity amount.
If the policyholder is not satisfied with the T&Cs of the policy, the policy may be returned to the company within 15 days (30 days if the policy is bought online) from the receipt date of policy documents mentioning the reasons of objections.
Tax savings benefits are available as per the prevailing laws of the Income Tax Act, 1961.
Under the Saral Pension Yojana, LIC offers two options which are:
Life Annuity with Return of 100% of Purchase Price: This option is offered only for an individual or single policyholder in which they are entitled for Rs. 12,000 benefit amount, till they are surviving. In case the life assured dies, the amount of premium is repaid to the nominee.
Joint Life Last Survivor Annuity with Return of 100% of Purchase Price on demise of the last survivor: This option allows a couple to receive the pension. In such cases, the nominee receives the premium after the last surviving spouse ‘s death.
Note: Annuity options chosen once cannot be changed.
Benefits payable under the above options are:
|Option I||• Payment of annuity is made in arrears as long as the annuitant survives.
• After the death of the annuitant, the annuity payment cease and 100% of the purchase price is to be paid to the nominee
|Option II||• Payment of annuity is made in arrears as long as the annuitant or spouse survives.
• After the death of the annuitant, the annuity payments cease, and 100% of the Purchase Price is paid to the nominee
LIC Saral Pension Scheme can be purchased both online and offline. Similarly, individuals who are planning to invest in the simple, standard, individual scheme can buy this policy either through:
A LIC agent offline or
At the nearest LIC office or
By visiting the official website of LIC
LIC Saral Pension scheme is a well-planned policy to make the financial future of the policyholder tension-free. With a minimum annuity as low as Rs 12,000 annually, this scheme is growing amongst the masses every day.
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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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