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.
Pension Calculator
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.
