LIC Saral Pension Plan: Eligibility criteria, benefits and how to apply

Life Insurance Corporation of India (LIC) is known for having a massive customer base across the country due to the wide range of insurance plans that the company offers to customers catering to various sections of society. LIC has also launched several schemes for people to adhere to their post-retirement needs and one such pension scheme is LIC Saral Pension Yojana. 

Launched as a Standard Immediate Annuity plan the scheme is one of the best available options in the market for post-retirement financial needs. To subscribe this plan, the insured person needs to pay the premium once a year, following which the policy holder will receive a minimum annual pension of Rs 12,000 for the rest of his life. 

While the LIC Saral Pension Yojana offers a mix of savings and protection to the policyholders, it also provides a number of benefits including tax savings and loan availability.  

LIC Saral Pension Yojana: Features

1. The scheme is a single premium immediate annuity plan and it comes with two options including a life annuity with a 100 per cent return on purchase price and a joint-life annuity. 

2. The policy holder can choose the frequency of annuity payment as per convenience. 

3. The minimum annuity is Rs 12,000 per annum while there is no maximum limit. 

Premium amount:

Minimum premium amount for the policy will depend on the annuity the policy holder wants to receive and the age of the life insured.

LIC Saral Pension Yojana: Benefits

1. Death Benefit: While 100 per cent of the purchase price is to be paid to the nominee after the life insured's death under a single-life annuity plan, in the case of a joint-life annuity plan, the spouse will receive the same annuity amount after the demise of the life insured. However, if both die, then the insured amount will be given to the nominee. 

2. Survival Benefit: The policy holder receives the annuity amount if he/she survives the policy period. 

3. Loan Benefit: After six months from the starting date of the policy, the policy holder becomes eligible to take a loan under the scheme. 

LIC Saral Pension Yojana: Eligibility

Anyone between the ages of 40 and 80 years is eligible to subscribe to the LIC Saral Pension Yojana. 

LIC Saral Pension Yojana: How to apply?

The scheme can be availed both online and offline. While interested individuals can visit LIC's official website and apply at https://licindia.in/, others can also apply offline by counselling with a LIC agent or by visiting the nearest LIC office.