LIC Saral Pension Plan: All you need to Know

Written by Sravan

Updated on:

Everyone wants to have a regular income every month. No matter how many Assets you own, if you have a monthly income, that courage is different.
What I am going to discuss today is that kind of regular income only.
That is LIC Saral Pension Scheme, Table No. 862

Let’s discuss, Who is eligible for this pension scheme and what are the benefits..!

What Is LIC Saral Pension Plan?

– LIC Saral Pension scheme is a Non-linked, Non-participating, Single premium, Immediate annuity plan.
Let me be a little clear.

– Non-linked means whatever premium you pay is not linked to Equity markets.
– Non-participating means that whatever the profits are, the Life Insurance Corporation of India (LIC) will not pay any share to these policy holders.
– Single premium means that you have to pay the entire premium in this plan upfront at once and that too at the time of taking this plan.
– Also, an Immediate Annuity Plan means regular payouts will start immediately after taking this plan.

Eligibility

Who is eligible for this policy?
The persons who want to take this policy should have a Minimum age should be completed 40 years to join this LIC Saral pension policy. The Maximum age is 80 years.

Minimum & Maximum Limit:

Let’s see how much premium you should pay to get the Pension.

In this plan, the policyholder has to avail of a minimum pension of at least Rs.1,000/- per month. That means you will get a pension of Rs.12,000/- per year. There is no limit on the maximum amount you can invest per month, so, you can deposit any amount as per your wish.

To get a regular income how much do I need to pay..!!
If you want to get a Monthly Rs. 1,000/- pension i.e. Rs.12,000/- p.a., then, you should pay under a Single premium payment of Rs. 2,50,000/-.

If you want to get a pension up to Rs.50,000 per annum then you have to pay Rs.10,00,000/- under a Single premium payment.

if you want annual pension of Rs.1,00,000/-p.a., then, you should pay Rs.20,00,000/- as a single premium payment.

The above-mentioned premium amount will be paid to policyholders till their lifetime. If the policyholder is at risk, the amount will be paid to the Nominee.

Annuity Payout Options

There are 4 options to get regular income in this LIC Saral Pension Plan.
You can take either Monthly, Quarterly, Half- Yearly or Annually.

You have the chance to select this Annuity Plan through 2 options. Also, the policyholder can select the desired options such as annuity payment mode as Monthly, Quarterly, Half-Yearly, or Annual.

Option 1: Single Plan
A lifetime annuity will be paid to whoever is the policyholder/owner of this plan.
If the policyholder dies, then the policy will be closed. Then 100% of the policy amount will be paid to the legal heirs.

Option 1: Joint plan
Under a Joint plan, both Husband and Wife can take this policy together.
In this case, the amount of annuity is paid to the living spouse if the husband dies. If the spouse also dies, then, the policy will be closed and all this policy amount will be paid to the nominee or legal hires.

Other benefits

– If you want the amount for your need, then there is a chance that you can have taken a Loan, if you have taken this insurance plan for more than six months.

– If you don’t want this policy, you can exit after six months of starting the policy. Then if you have 95% of the surrender value of any loans you have taken, that balance will be checked and the liability amount will be reduced and paid.

– No medical examination is required under this scheme.

– Once the policy is issued you are covered across the globe. Even in case you get an opportunity to work abroad the coverage shall be applicable.

Author is a Qualified CMA with rich industry experience for more than 6 years. He is an All India Ranker (AIR-101) in CMA and also a Semi-Qualified Chartered Accountant having a quite good experience in teaching the subjects of Accounting and Costing to the commerce aspirants.

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