12,000 Monthly Pension On One-Time Investment: Buy LIC Saral Pension Scheme

Life Insurance Corporation of India (LIC) has launched many schemes over the past years for every type of investor. One such scheme under LIC with simple guidelines is the LIC Saral Pension Yojana. The main objective of the scheme is to introduce a standard, individual, and immediate annuity product which has standard features and terms and conditions.

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With attractive benefits like a 12,000 monthly pension on a one-time investment, annuity options, and more, LIC Saral Pension Scheme is making news in all good ways in the insurance market.

Let us explore the features, benefits, and options available under the LIC Saral Pension plan.

What Is LIC Saral Pension Yojana?

LIC Saral Pension Yojana is a Standard Immediate Annuity plan, launched under the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI).

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

Eligibility Criteria Under LIC Saral Pension Scheme

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

Annuity Options Under LIC Saral Pension Scheme

Annuity options available under LIC Saral Pension Yojana Plan are:

  1. Option I

    Life Annuity with Return of 100% of Purchase Price

  2. Option II

    Joint Life Last Survivor Annuity with Return of 100% of Purchase Price on death of the last survivor

Benefits of Annuity

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

How to Invest in LIC Saral Pension Scheme?

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

Annuity Payment Process

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.

What is the Minimum Investment Scheme Under LIC Saral Pension Scheme?

From annual Rs 12,000 or Rs 1,000 per month, the minimum investment under this LIC scheme is affordable and easy on the pocket. 

Let us look at the illustrator for a clear understanding.

Annuity Mode





Minimum Annuity

1,000 Rupees Per Month

3,000 Rupees Per Month

6,000 Rupees Per Month

12,000 Rupees Per Month

Pricing Of LIC Saral Pension Yojana

Annuity rates are decided based on the actuarial principle. The companies must ensure that the annuity rates are reasonable and fair to all customers. The band wise annuity rates shall be derived per the following table:


Purchase Price Range

Band -1

Less than Rs 2,00,000


Rs 2,00,000 to less than Rs 5,00,000


Rs 5,00,000 to less than Rs 10,00,000


Rs 10,00,000 to less than Rs 25,00,000


Rs 25,00,000 and above

LIC Saral Pension plan is an affordable and simple plan with a minimum annuity of Rs 12,000 per year.

Let us now have a look at the features and benefits of the plan.

Features Of LIC Saral Pension Yojana

LIC Saral Pension Yojana are:

  • It is a non-participating, single premium, non-linked, immediate annuity plan.
  • Two annuity options available are:
  • Life annuity with 100% return of purchase 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
  • Annuity payments can be made either monthly, quarterly, half-yearly, or yearly basis.

Benefits of LIC Saral Pension Yojana

  1. Death Benefit

    • 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.
  2. Survival Benefit

    The annuity amount is payable under survival benefits.

  3. Loan Benefit

    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.

To Sum Up!

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.

Start a good investment today!

Written By: PolicyBazaar - Updated: 30 September 2021
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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