LIC Saral Pension Plan: Invest Rs 3 lakh and receive Rs14,760 in pension; check eligibility

Written By DNA Web Team | Updated: Oct 26, 2022, 02:59 PM IST

After six months from the start date, the policy may be cancelled at any time.

The Saral Pension Plan of LIC is an individual instant annuity plan with a single premium that is non-linked and non-participating. After upgrading the prior existing plan, the Saral Pension Plan number 862 of the LIC was introduced in August of this year. According to the Insurance Regulatory and Development Authority of India's (IRDAI) regulations, this conventional immediate annuity plan allows the Policyholder to select the type of annuity from two options upon payment of a lump sum amount. 
 
The policy's inception guarantees the annuity rates, and payments are made for the duration of the annuitant's life (s). The two annuity choices under this plan are Joint Life Last Survivor Annuity with a Return of 100% of the Purchase Price on the Death of the Last Survivor and Life Annuity with Return of 100% of Purchase Price. (Also Read: Dhanteras 2022: Rates of gold and silver of major cities)

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LIC Saral Pension Plan Eligibility:
Anyone who has reached the age of 40 and is under 80 years old is eligible to join the LIC Saral Pension plan. The minimum monthly annuity or pension under the Saral Pension Plan is Rs 1000. This indicates that in order to receive a Rs 1000 monthly annuity or a Rs 12000 yearly annuity, one must invest the minimal amount necessary.
 
LIC Saral Pension Plan Investment and Return Calculator:
An investment in the LIC Saral Pension scheme generates a return of about 5%. If, at the age of 41, you invest Rs 2.5 lakh once in a pension plan, you would receive a pension of Rs 12,300 each year, or Rs 1,025 every month. A 3 lakh rupee investment will yield a pension of 14,760 rupees per year, or 1,195 rupees per month. You would receive an annuity of Rs 58,950 per year under the first annuity option and Rs 58,250 per year under the second annuity option if you decide to invest Rs 10 lakhs all at once.
 
If the annuitant, spouse, or any of the annuitant's children is determined to be suffering from any of the listed critical illnesses in Annexure, based on the documentation provided to the satisfaction of the Corporation's medical examiner, the policy may be surrendered at any time after six months from the date of commencement.
 
After six months from the day the policy began, the policy loan may be taken out at any time. There are four different annuity payment schedules: annual, semi-annual, quarterly, and monthly.