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LIC Saral Pension Plan: All Details, Benefits, Full Amount

LIC Saral Pension Plan: Pension plans prove to be helpful in old age when there is no option of earning. There are many pension schemes in the country, which can be easily availed. LIC is also running one such pension scheme. Its name is Saral Pension Plan (LIC Saral Pension Plan). LIC launched it in July 2021. It is a non-linked, non-participating, single premium, individual immediate annuity plan. It can be taken alone or with spouse.

In LIC’s Saral Pension Plan, one has to invest money only once and then the pension continues for life. Let us know the complete details about this scheme-

Available in two options

LIC Saral Pension Plan is available in two options. The first option is a life annuity with a return of 100% of the purchase price. The second option is a Joint Life Last Survivor Annuity with 100% return of the purchase price. The life annuity option with 100% return of purchase price is for a single life, ie the pension will be linked to a single person. As long as the pensioner is alive, he will continue to get pension under the Saral Pension Scheme. After the death of the pensioner, the entire base premium paid for taking the policy will be returned to the nominee/legal heir.

Joint life option has coverage for both husband and wife. In this, the husband and/or wife continue to get pension during their lifetime. After this, whoever survives for a long time continues to get pension. When both are no more, the nominee/legal heir will get the base price. Keep in mind that the joint life annuity option can be taken only with the spouse.

Who can take this pension plan

LIC Saral Pension Plan is available for people in the age group of 40 to 80 years. In case of joint life annuity option, the age of the spouse should also be in the same age limit. Option to get pension on monthly, quarterly, half yearly or yearly basis is available. In Saral Pension Plan, loan can be availed at any time after six months from the date of commencement of the policy.

Pension amount and purchase price details

The minimum annuity under Saral Pension Plan is Rs 12000 per annum. That is, on an annual basis, you will get a minimum pension of Rs 12000. At the same time, the minimum pension is Rs 1000 on monthly basis, Rs 3000 on quarterly basis and Rs 6000 on half yearly basis. The minimum purchase price under LIC Saral Pension Plan depends on the minimum annuity i.e. pension, the option opted and the age of the policy taker. There is no limit on the maximum purchase price in Saral Pension Plan.

Understand how much pension by example

Suppose a 60 year old person has taken Saral Pension Plan. He invested Rs 10 lakh in lump sum and opted to get pension on annual basis. In such a situation, he will get a pension of Rs 51650 annually under the life annuity option. On the other hand, if the joint life annuity option is taken and the age of the spouse is 55 years, then a pension of Rs 51150 will be available annually.

If the policy taker has opted to pay the pension on monthly basis, then he/she will get the first pension after one month of taking the policy. The one who has opted for the annual basis option will get the first pension on completion of one year. Similar rule is also applicable for those opting for pension payment option on half yearly and quarterly basis.

Free look period

If the policyholder is not satisfied with the terms and conditions of this pension plan, he can return the policy to LIC within 15 days of receipt of the policy bond. If the policy is taken online, then this can be done within 30 days. But along with the reasons for the objection will also have to be given. LIC will refund the premium after deducting the stamp duty charge to the policy taker and if any pension installment has been received.

Will there be a surrender in the middle?

The LIC Saral Pension Plan policy can be surrendered anytime after the completion of 6 months, in the event of the policyholder or spouse or children succumbing to any critical illness as specified in the terms of the policy document. In this case, 95% of the purchase price will be refunded. You can buy LIC’s Saral Pension Scheme offline or online from the website of

Features of Saral Pension Yojana

  • This will be a single premium, non-participating, non-linked immediate annuity plan.
  • The Saral Pension will offer two annuity options i.e.
  • Life annuity with 100% return of purchase price
  • Joint life annuity with a 100% annuity to the secondary annuitant in case of demise of the primary annuitant and return of 100% purchase price in case of demise of the last survivor.
  • The plan offers a single premium payment option as it will be an immediate annuity policy.
  • The mode of annuity payment will be monthly, quarterly, half-yearly, and yearly.

Saral Pension Yojana Eligibility Criteria

Criteria Minimum
Entry Age 40 years from last birthday
Purchase Price Depends on the annuity amount
Policy Term This is a whole life policy
Annuity Amount Yearly- Rs.12,000 Half-yearly- Rs. 6, 000 Quarterly-Rs. 3,000 Monthly- Rs. 1,000



Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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