LIC Saral Pension Yojana : Are you looking for a stress-free and guaranteed source of income after retirement? The LIC Saral Pension Yojana might be the perfect solution for you. With a one-time investment, this simple and secure pension plan ensures a steady monthly pension for life—no complications, no uncertainties. Read on to discover how you can earn ₹12,000 per month for life with this government-backed annuity plan.
What is LIC Saral Pension Yojana?
The LIC Saral Pension Yojana is a standard immediate annuity plan introduced by the Life Insurance Corporation of India (LIC). Designed to offer simplicity, transparency, and guaranteed income, this plan is in line with the guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI).
It is a non-linked, non-participating, single premium, individual immediate annuity plan. This means you pay just once and start receiving your pension immediately. The plan is suitable for retirees or anyone looking for lifelong income with zero hassle.
Key Features of LIC Saral Pension Yojana
- One-time premium payment – Pay once and enjoy lifetime pension
- Guaranteed income for life – No risk of returns
- Immediate pension – Income starts right after purchase
- Two annuity options – Individual and joint life
- Simple and standardised – Same structure across all insurers
- Loan facility available – After completion of 6 months
- Return of purchase price on death – Secures family’s future
Pension Options Under the Plan
LIC offers two simple annuity options under the Saral Pension Yojana:
1. Life Annuity with Return of 100% Purchase Price
- Pension is paid for life of the policyholder
- On death, the purchase price is returned to the nominee
2. Joint Life Annuity with Return of 100% Purchase Price
- Pension is paid until the death of the last survivor (primary or spouse)
- After both pass away, the purchase price is returned to the nominee
LIC Saral Pension Yojana Monthly Pension Payout Table
Below is an illustrative table showing how much monthly pension you can get based on your one-time investment under the Life Annuity Option:
| One-Time Investment (₹) | Monthly Pension (Approx) | Annual Pension (₹) | Pension Starts From | Return of Purchase Price | Loan Available |
|---|---|---|---|---|---|
| ₹3,00,000 | ₹1,215 | ₹14,580 | Immediate | Yes | After 6 months |
| ₹5,00,000 | ₹2,025 | ₹24,300 | Immediate | Yes | After 6 months |
| ₹10,00,000 | ₹4,050 | ₹48,600 | Immediate | Yes | After 6 months |
| ₹15,00,000 | ₹6,075 | ₹72,900 | Immediate | Yes | After 6 months |
| ₹20,00,000 | ₹8,100 | ₹97,200 | Immediate | Yes | After 6 months |
| ₹25,00,000 | ₹10,125 | ₹1,21,500 | Immediate | Yes | After 6 months |
| ₹30,00,000 | ₹12,000 | ₹1,44,000 | Immediate | Yes | After 6 months |
Note: These are approximate values. Actual pension may vary based on age and prevailing annuity rates.
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Eligibility Criteria and Plan Details
Here’s a quick breakdown of who can apply and what you need to know:
| Criteria | Details |
|---|---|
| Minimum Entry Age | 40 years |
| Maximum Entry Age | 80 years |
| Premium Payment Mode | Single (One-time) |
| Minimum Purchase Price | Based on minimum pension of ₹1,000/month |
| Maximum Purchase Price | No upper limit |
| Annuity Payment Mode | Monthly, Quarterly, Half-yearly, Yearly |
| Policy Loan Facility | Available after 6 months |
| Free-look Period | 15 days (30 days for online purchase) |
Benefits of LIC Saral Pension Yojana
- Lifetime Security: Assured monthly income helps you maintain financial independence after retirement.
- Flexibility: Choose between single and joint life options to ensure your spouse’s future is also protected.
- Liquidity via Loan: Need funds? You can take a loan against the policy after 6 months.
- Death Benefit: The nominee receives the full purchase price on the annuitant’s death, ensuring your investment isn’t lost.
- No Medical Examination: Easily accessible to all eligible individuals.
Who Should Consider This Plan?
This plan is ideal for:
- Retirees looking for guaranteed monthly income
- Individuals with a lump sum retirement corpus
- Senior citizens who want zero-risk investment options
- Families seeking joint pension plans
- Those who want simplicity without complex terms
How to Buy LIC Saral Pension Yojana
You can purchase the policy through any of the following methods:
- Visit your nearest LIC branch
- Contact a licensed LIC agent
- Purchase online through LIC’s official website
Ensure you have the following documents:
- Identity proof (Aadhaar, PAN, Passport)
- Address proof
- Bank account details
- Passport size photo
Tax Implications
- The one-time investment is not eligible for deduction under Section 80C
- Monthly pension is treated as income and is taxable as per your income slab
- However, the return of purchase price is not taxed, as it is considered a return of capital
Always consult a tax advisor before making final decisions.
Comparison with Other Pension Plans
Here’s a brief comparison to help you understand how LIC Saral Pension fares against other similar pension schemes:
| Feature | LIC Saral Pension | NPS (Tier I) | Atal Pension Yojana | Bank FD (Senior Citizen) |
|---|---|---|---|---|
| Type of Pension Plan | Immediate Annuity | Market-Linked | Govt-Backed | Fixed Deposit |
| Investment Risk | No | Moderate to High | No | Low |
| Monthly Pension Start | Immediate | After 60 yrs | After 60 yrs | On maturity |
| Return of Purchase Price | Yes | No | No | No |
| Tax on Pension | Taxable | Taxable | Taxable | Taxable |
| Suitable for | Retirees | Long-term investors | Low-income groups | Conservative investors |
The LIC Saral Pension Yojana is a solid, no-frills pension plan that offers lifelong financial security through guaranteed monthly income. With just one investment, you can ensure a steady pension of ₹12,000 or more for life, making it a dependable option for retirees, senior citizens, or anyone looking for a stable post-retirement income. Its simplicity, guaranteed returns, and family protection features make it one of the most trusted options available in the Indian pension market.