LIC Saral Pension Plan

Saral Pension plan from Life Insurance Corporation of India is a non-linked, non-participating, single premium, and individual immediate annuity plan providing an insured with guaranteed income benefits. Per the guidelines of IRDAI, the plan offers profitable terms and conditions with the advantage of most safety and trust. With the LIC Saral Pension, the insured receives an immediate guaranteed income by investing a single premium. In a sudden medical emergency, financial help is also available for the insured and the family.

Below mentioned are the highlights of LIC Saral Pension plan

• Investment Type

  One-time investment

• Free-look Period

  30 Days

• Joint Life Policy

  Available only for spouse

• Annuity Type

  Immediate Annuity

• Add-on

  20 critical illnesses covered

If you plan to buy LIC Saral Pension Plan to secure your retirement years, you must cover the following eligibility criteria and restrictions.

• Minimum Purchase Price

  Depends upon • Minimum annuity
  • Selected annuity option
  • Age of annuitant

• Maximum Purchase Price

  No limit

• Entry Age

  40 years - 80 years

• Minimum Annuity

  Monthly: Rs. 1000
  Quarterly: Rs. 3000
  Half-yearly: Rs. 6000
  Annual: Rs. 12,000

LIC Saral Pension plan offers the following annuity options

• Annuity Option 1

  Life annuity with a return of 100% of the Purchase Price.

• Annuity Option 2

  Joint life last survivor annuity with a return of 100% of the purchase price on the of the last survivor.

* The plan allows no alternations once an annuity option is selected at the time of purchase.

Purchasing a retirement plan from Life Insurance Corporation of India comes with multiple features, such as providing financial security after your job, medical assistance in an emergency, and meeting household expenses' needs. Except for these, the LIC Saral Pension Scheme benefits make the plan a perfect accompaniment to your retirement years.

As the name suggests, LIC Saral Pension Yojana is easy to understand for anyone planning their retirement. If you plan to buy, let’s look into a LIC Saral Pension example to grasp the working process better.

Say Rohit, at age 60, purchases LIC Saral Pension of Rs. 10 Lakh and selects the yearly annuity mode. The annuity amount will be in the following way.

* The above premium chart is a reflection presented by official LIC of India sources. You can use LIC Saral Pension Plan calculator to know the annuity amount for your financial requirements.

Saral Pension Plan of LIC of India provides additional features that make the purchase worthwhile for the golden years of life. Let’s look into the features of the pension plan to enhance the benefits per your requirements.

Mode of Annuity Payment

Payment of annuity can be made in yearly, half-yearly, quarterly, and annual modes. Hence as per the mode selected, the annuity payment will start from the date of commencement of the policy.

Avail of the Incentives

The following incentives are available under LIC’s Saral Pension Plan

a. Incentive for Higher Purchase Price

Incentives are available for higher purchase prices by way of an increase in the annuity rate and the mode of annuity payments.

Also, the incentives may increase if there’s a reduction in the frequency of annuity payments.

b. Incentive for Online Sale

If the policy is purchased online, a rebate of 2% by way of an increase in the annuity rate is applicable.

Surrender Value

The policyholder can surrender the policy anytime after six months of the date of commencement of the policy if any of the annuitants (for single and joint life) or the children are diagnosed with suffering from critical illness as specified under the LIC Saral Pension Plan. The annuitant needs to submit the documents, with mandatory NEFT submission.

On approval by the medical examiner, the Life Insurance Corporation of India will pay 95% of the Purchase Price to the annuitant after deducting any outstanding loan amount or interest. After the payment of the surrender value, all the benefits cease, and the policy terminates.

Policy Loan

The loan is available on the policy only after the policy is completed 6 months from the date of commencement of the policy. Under Annuity Option II (Joint Life), the annuitant can avail of the loan, or the spouse can avail of the loan in case of the death of the annuitant. The maximum loan amount is determined as the effective annual interest amount payable on the loan and does not exceed 50% of the annual annuity amount.

Tax Benefits

The annuitant is entitled to tax benefits of upto Rs. 1.5 lakhs under Section 80 CCC of the Income Tax Act, 1961. Also, the death benefits provided to the nominee are 100% tax exempted under Section 10D. Contact a tax advisor to learn more about income tax benefits.

Free Look Period

A freelook period of 30 days is available from the date of receipt of the electronic or physical mode of the policy document, whichever is earlier. If the policyholder is not satisfied with the policy’s terms and conditions, they can return the policy to the corporation within the specified days stating the reasons for objections to receiving the policy. LIC of India will cancel the policy and return the premium paid after deducting the charges or any annuity paid.

Life Insurance Corporation of India covers the following 20 critical illnesses under the Saral Pension plan.

• Cancer of specified severity
• Mayocardinal Infarction
• Open Chest Cabg
• Open Heart Replacement or Repair of Heart Valves
• Coma of Specified Severity
• Kidney Failure Requiring Regular Dialysis
• Stroke Resulting in Permanent Symptoms
• Major Organ/ Bone Marrow Transplant
• Permanent Paralysis of Limbs
• Motor Neuron Disease with Permanent Symptoms
• Multiple Sclerosis with Persisting Symptoms
• Benign Brain Tumor
• Blindness (total, permanent, and irreversible)
• End Stage Lung Failure
• End Stage Liver Failure
• Loss of Speech
• Loss of Limbs
• Major Head Trauma
• Primary Pulmonary Hypertension
• Third Degree Burns 

The documents required to buy LIC Saral Pension Yojana are as follows.

• Age proof: PAN card, Aadhaar, Passport, Driving License, or School Certificate.
• Income proof: Form 16, Income Tax Returns, Bank Statement, Salary Slip, Pension Passbook.
• Address proof: Voter ID, Passport, Bank Passbook, Ration Card, Electricity Bill, Gas Bill, Water Bill, Credit Card Bill, Rental Agreement.
• Photo ID proof: Bank passbook with proposer photograph, PAN card, Aadhaar, Passport, Driving License, Voter ID, Ration Card.

Retirement days are to spend joyful time with your family; buying Saral Pension plan from Life Insurance Corporation of India can make it possible. The LIC Saral Pension plan can provide a minimum of Rs. 12000 annuities by paying a single premium of Rs. 2.5 lakhs, that too in flexible payment options. With the bond of trust, LIC of India lets you decide on the best retirement planning. You can buy the plan online or offline with no maximum annuities limit and cover yourself and your family for any mishaps with LIC Saral Pension plan.

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