3 min
23-May-2025
The LIC Saral Pension Plan, introduced as part of the Saral Pension Yojana, is a simplified and standardised annuity plan aimed at providing a stable income post-retirement. This government-regulated scheme is ideal for individuals seeking a straightforward pension plan with guaranteed lifetime income. The plan offers flexibility in payout options and features a joint-life annuity for added security. Additionally, integrating life insurance alongside the plan ensures holistic financial protection, safeguarding both the policyholder and their family’s future.
Overview of LIC Saral Pension Plan
The LIC Saral Pension Plan is a non-linked, non-participating, immediate annuity plan introduced by the Life Insurance Corporation (LIC) in compliance with the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI). The plan requires a one-time premium payment, after which the annuity starts immediately. It is designed to cater to the retirement needs of individuals by offering guaranteed lifelong income. This scheme ensures financial independence in retirement while life insurance integration provides a safety net for dependents in unforeseen situations.Eligibility criteria for LIC Saral Pension Plan
To enrol in the LIC Saral Pension Plan, individuals must meet specific criteria:Minimum entry age:
The minimum age to enter the plan is 40 years.Maximum entry age:
The maximum age for eligibility is 80 years.Minimum annuity amount:
The minimum annual annuity payout is Rs. 12,000, with the purchase price varying accordingly.Residency status:
The plan is available to Indian residents only.Key benefits of LIC Saral Pension Plan
The Saral Pension Yojana LIC plan provides multiple benefits to ensure financial stability during retirement.Lifelong guaranteed income:
Policyholders receive regular annuity payments for life, ensuring a steady income stream.Joint-life annuity option:
The plan includes an option for joint-life annuity, where the surviving spouse continues to receive the annuity after the policyholder’s demise.Refund of purchase price:
The nominee receives the purchase price upon the death of the last annuitant, ensuring financial security for the family.Flexible annuity payouts:
Policyholders can choose from monthly, quarterly, half-yearly, or annual payouts to suit their financial needs.Life insurance integration:
Adding life insurance alongside the Saral Pension Plan enhances financial protection for dependents, covering unforeseen expenses like education or healthcare.How to apply for LIC Saral Pension Plan?
The application process for the Saral Pension Yojana LIC is simple and accessible:Visit the LIC website or branch:
Applicants can apply online through the LIC portal or visit the nearest LIC branch.Calculate annuity using the LIC Saral Pension Plan calculator:
Use the Saral Pension Yojana LIC calculator online to determine the purchase price and expected annuity payouts based on your financial requirements.Complete the application form:
Provide accurate personal details, annuity preferences, and payout mode.Submit required documents:
Attach identity proof, age proof, and other necessary documents for verification.Make the lump sum payment:
Pay the one-time premium to activate the plan.Start receiving annuity payouts:
Once approved, the annuity begins immediately based on the selected payout mode.Documents required for LIC Saral Pension Plan application
Applicants must submit the following documents during the application process:Identity proof:
Aadhaar card, PAN card, or voter ID.Age proof:
Birth certificate, school leaving certificate, or passport.Address proof:
Utility bills, Aadhaar card, or rental agreement.- Bank account details:
- A copy of the passbook or bank statement for annuity disbursement.
