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LIC Saral pension plan

LIC Saral Pension Plan: A Secure Retirement Solution

LIC Saral Pension Plan is an individual instant annuity plan offered by the Life Insurance Corporation (LIC) of India. Introduced in August 2022, this non-linked and non-participating upfront single premium scheme provides individuals with a guaranteed annuity rate of around 5 percent from the inception of the plan. The plan offers flexibility in terms of the frequency of payments, allowing annuitants to choose between monthly, quarterly, half-yearly, or yearly payments throughout their lifetime.

Saral pension plan

Eligibility criteria

To be eligible for the LIC Saral Pension Plan, individuals must be between the ages of 40 and 80. This annuity pension scheme provides a range of options for policyholders to consider.

According to the details available on the official LIC website, individuals can opt for a minimum monthly pension of ₹1,000 or a minimum yearly pension of ₹12,000.

To secure this minimum pension, a one-time single premium payment of ₹2.50 lakh is required. Alternatively, by investing a single premium of ₹10 lakh, policyholders can receive an annual pension of ₹50,250. Similarly, for an annual pension of ₹1 lakh, an upfront single premium payment of ₹20 lakh is necessary.


The LIC Saral Pension Plan offers certain important features and benefits that potential policyholders should consider. Firstly, after six months from the inception of the plan, individuals have the option to avail themselves of a loan facility.

This provides some financial flexibility to policyholders who may require immediate funds. Additionally, after completing a minimum of six months, policyholders have the option to exit the LIC Saral Pension Plan if they choose to do so.


One of the key advantages of the LIC Saral Pension Plan is the guaranteed annual return of around 5 percent. This ensures a stable and predictable income for the annuitant throughout their lifetime.

As a whole life policy, this plan provides lifetime pension benefits, meaning the annuitant will continue to receive annual or monthly pensions for the entirety of their life after the inception of the plan. In the unfortunate event of the annuitant’s death, the nominee will receive the base premium as a death benefit.

No Maturity Benefits

It is important to note that the LIC Saral Pension Plan does not offer any maturity benefit. The primary purpose of this plan is to provide a steady source of income in the form of a pension, which is available as long as the policyholder is alive.

The absence of a maturity benefit distinguishes this plan from other investment-oriented policies that typically provide a lump sum payout at the end of the policy term.

the LIC Saral Pension Plan is designed to provide individuals with a reliable and guaranteed income stream during their retirement years.

With a minimum entry age of 40 and an upper age limit of 80, it offers a wide range of options to suit different financial needs and goals.

By offering a guaranteed annuity rate, loan facility, lifetime pension benefits, and a death benefit for the nominee, the plan aims to ensure financial security and peace of mind for individuals as they enter their retirement phase.


                                                     LIC Saral Pension Plan Details 


Plan Type                                                                                  –        Individual Instant Annuity Plan
Policy Provider                                                                        –        Life Insurance Corporation (LIC) of India
Plan Type                                                                                  –        Non-linked, Non-participating, Upfront Single Premium
Annuity Rate                                                                            –        Guaranteed around 5%
Eligibility                                                                                  –        Age between 40 to 80 years
Payment Options                                                                    –        Monthly, Quarterly, Half-yearly, Yearly
Minimum Monthly Pension                                                  –        ₹1,000
Minimum Yearly Pension                                                      –        ₹12,000
Single Premium Payment for Minimum Pension            –        ₹2.50 lakh
Single Premium Payment for ₹50,250 Annual Pension –       ₹10 lakh
Single Premium Payment for ₹1 lakh Annual Pension   –       ₹20 lakh
Loan Benefit                                                                             –       Available after 6 months of inception
Exit Plan                                                                                    –       Available after 6 months of inception
Guaranteed Interest Rate                                                      –       Approximately 5%
Lifetime Pension Benefit                                                       –       Yes, for the entire life
Death Benefit for Nominee                                                   –       Base Premium Amount
Maturity Benefit                                                                       –      No benefit, as pension is provided until the policyholder is alive


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