Come LIC Saral Pension Plan (LIC Saral Pension Plan) Know about the features, benefits and options.
What is LIC Saral Pension Plan?
LIC Saral Pension Plan There is a standard immediate annuity plan, launched under the guidelines and procedures of IRDAI (Insurance Regulatory and Development Authority of India) (IRDAI). The policyholder has the option to choose the annuity type from 2 available options on lump sum payment. Annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the life of the annuitant.
The main objective of Saral Pension Yojana is:
1. To make the policy customer-friendly which helps in making an informed choice
2. To glorify the trust between the insurer and the insured
3. To create uniformity and reduce misuse of the scheme
4. Minimizing potential disputes between 2 insurance companies by creating common guidelines
Eligibility Criteria under LIC Saral Pension Plan:
|Minimum at the time of admission||Age 40 Years (Completed)|
|Maximum age 80 years (completed) at the time of admission||Age 80 Years (Completed)|
|minimum purchase price||Depends on the minimum annuity specified in the annuity option|
|maximum purchase price||No limits|
|policy term||whole life policy|
|Minimum annuity||1000 rupees monthly
For the quarter: Rs. 3000
For Half-Yearly: Rs. 6000
For Annuity: Rs. 12000
Features of LIC Saral Pension Plan
It is a non-participating, single premium, non-linked, immediate annuity plan.
There are two annuity options available:
Life Annuity with 100% Return of Purchase Price: It offers annuity for life with 100% return on purchase price.
In joint life annuity, 100% of the annuity is paid to the second spouse in case of death of the primary. However, if both die, 100% of the purchase price will be given to the nominee
An insured can choose the frequency of annuity payments as per his convenience. LIC offers annual, half-yearly, quarterly and monthly payment modes under Saral Pension Plan.
Pension starts when a person earns minimum annuity of Rs. 12000/yr, no maximum limit.
The policy can be surrendered at any time after 6 months from the date of commencement, if the spouse or any of their children is diagnosed with any critical illness.
The insured can take a loan against the plan after 6 months from the start of the plan.
Benefits of LIC Saral Pension Plan | LIC Saral Pension Plan Benefits:
a. Under single-life annuity, After the death of the annuitant, 100% of the purchase price is paid to the nominee.
b. Under Joint Life Annuity: If the spouse is alive, they will receive the same annuity amount on the death of the annuitant. However, if the spouse also dies, 100% of the purchase price will be given to the nominee.
Survival Benefit / Survival Benefit :
Annuity amount is payable under Survival Benefit.
Loan Benefit / Loan Benefit:
Loan under LIC Saral Pension Plan is allowed only after 6 months from the date of inception of the policy. The maximum loan amount will be such that the annual interest paid does not exceed 50% of the annual annuity amount.
Free Look Period
If the policyholder is not satisfied, the policy can be returned to the policy company within 15 days (if the policy is purchased online) from the date of receipt of the policy documents mentioning the reasons for objections.
Tax Benefits / Tax Benefits :
Tax saving benefits are available as per the prevailing laws of Income Tax Act, 1961.
Annuity Option under LIC Saral Pension Plan:
Under Saral Pension Plan, LIC offers two options which are:
Life Annuity with 100% return of purchase price: This option is offered only to an individual or a single policyholder in which they are entitled to Rs. 12,000 benefit amount, as long as they are alive. If the Life Assured dies, the amount of premium is paid to the nominee.
Joint Life Last Survivor Annuity with a return of 100% of the purchase price on the death of the last survivor: This option allows a couple to receive a pension. In such cases, the nominee receives the premium after the death of the last surviving spouse.
Benefits of Annuity :
|Option I||• Annuity is paid as arrears as long as the annuitant is alive.
• After the death of the annuitant, the annuity payment stops and 100% of the purchase price is paid to the nominee
|Option II||Option II• Annuity is paid in arrears as long as the annuitant or spouse survives.
• After the death of the annuitant, the annuity payment stops, and 100% of the purchase price is paid to the nominee
How to invest in LIC Saral Pension Plan?
LIC Saral Pension Plan can be bought both online and offline. Similarly, individuals who are planning to invest in Saral, Standard, Individual plan can buy this policy by either:
a lic agent offline or
Nearest LIC Office or
LIC official website www.licindia.com On reaching
When the person retires and he/she will get his/her provident fund amount, gratuity amount in one go, it will become a lump sum amount. The amount can be kept in the fixed deposit option, but in case of LIC’s Saral Pension Scheme, 2021, the policyholder will get a fixed regular pension from LIC with the assurance of basic premiums paid to the nominee.
This LIC’s Saral Pension Scheme, 2021 is a suitable plan for senior citizens who have lump sum amount to pay in lump sum. LIC Saral Pension Plan There is a well planned policy to make the financial future of the policyholder stress free. With a minimum annuity of at least Rs 12,000 per annum, this scheme is increasing among the masses every day.