LIC Saral Pension Plan: Invest For Once To Get Pension Worth Lakhs For Life

The LIC Saral Pension Plan, introduced by the Life Insurance Corporation (LIC) of India in August 2022, is a non-linked and non-participating upfront single premium annuity plan. It guarantees an annuity rate of approximately 5% from the start, and policyholders can choose to receive payments on a monthly, quarterly, half-yearly, or yearly basis for as long as they live.

Eligibility Criteria

Individuals between the ages of 40 to 80 years are eligible to subscribe to or purchase this annuity pension scheme.

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According to the LIC Saral Pension Plan details available on the official LIC website, policyholders can opt for a minimum monthly pension of Rs 1,000 or a yearly pension of Rs 12,000 by making a one-time single premium payment of Rs 2.50 lakh. For instance, an investor who invests Rs 10 lakh as a single premium will receive an annual pension of Rs 50,250. Similarly, to receive a Rs 1 lakh annual pension, an investor must make an upfront single premium payment of Rs 20 lakh.

Important Details of LIC Saral Pension Plan

Loan Benefit: Policyholders can avail of a loan facility after six months from the inception of the LIC plan.

Exit Option: It is possible to exit the LIC Saral Pension Plan after six months from the start.

Interest Rate: The annuity plan guarantees an annual return of approximately 5%.

Lifetime Pension Benefit: This plan offers a whole-life policy, ensuring that the policyholder is eligible for an annual or monthly pension for their entire life after inception.

Death Benefit for Nominee: In the event of the policyholder’s demise, the base premium amount will be given to the nominee.

No Maturity Benefit: The LIC Saral Pension Plan does not provide a maturity benefit, as the pension payments continue as long as the policyholder is alive.