LIC Saral Pension (Plan no. 862)
Just like any pension plan, the LIC Saral pension plan provides retirement benefits to the customers. It is a simple, immediate annuity plan where you invest once and start receiving a regular pension right away. The plan number for Saral Pension Yojana is 862.
What is the LIC Saral Plan?
LIC Saral Pension Plan (Yojana 862) is a non-par, non-linked, single-premium, and individual immediate annuity plan approved by IRDAI. You can buy this plan by paying a one-time lump sum amount. After that, you will start receiving a fixed pension (annuity). The pension amount is guaranteed from the start and continues for your lifetime.
You can buy this plan easily, either online through LIC's website or offline at a branch. This plan is available with two options, which include:Single Life Option: You will get a pension only till you are alive. The purchase amount will be returned to the nominee. Joint Life option: You will get a pension as long as you are alive. After your death, your spouse will continue to receive the same pension. The full purchase amount is returned to the nominee after both of you pass away.
Key Highlights of LIC Saral Pension Plan
| Feature | Details |
|---|---|
| Plan Type | Immediate annuity plan (pension starts right after purchase) |
| Risk Level | Low risk (fixed and guaranteed income) |
| Premium Payment | One-time lump sum payment |
| Annuity Options | Two options: Single Life or Joint Life (with spouse) |
| Payout Options | Monthly, Quarterly, Half-yearly, or Yearly |
| Guaranteed Returns | Yes, the annuity amount is fixed from the start |
| Lifetime Income | Yes, a pension is paid for a lifetime |
| Joint Life Benefit | Available (spouse continues to receive pension after your death) |
| Death Benefit Options | 100% purchase price returned to the nominee after death |
| Purchase Mode | Available both online and offline |
Eligibility Criteria for LIC Saral Pension Plan
| Feature | Details |
|---|---|
| Minimum Purchase Price | Depends on minimum annuity amount (Rs 1,000 per month / Rs 12,000 per year) |
| Maximum Purchase Price | No limit |
| Minimum Entry Age | 40 years |
| Maximum Entry Age | 80 years |
| Minimum Annuity | Rs 1,000 per month / Rs 3,000 per quarter / Rs 6,000 per half-year / Rs 12,000 per year |
| Maximum Annuity | No limit |
Note: For specially-abled dependents, the minimum purchase price is reduced to Rs 50,000 instead of Rs 1,50,000.
How Does LIC Saral Works?
Pay once Get fixed pension for life Full amount goes to nominee after death
Pay Once
You invest a lump sum amount (one-time payment) to buy the plan.Choose Pension Type
You select one of the two options:Single life pensionJoint life pension (with spouse)Start Receiving Pension
Your pension starts immediately after purchase (from next month/quarter/year, based on your choice).Get Fixed Income for Life
You receive a fixed and guaranteed pension for your lifetime.After Death
In the single life option, the full purchase amount goes to the nomineeIn the joint life option, the spouse continues to receive the pensionAfter both pass away, the full amount goes to the nominee
Benefits of LIC Saral Pension Plan
Here are some of the key benefits of LIC Saral Pension Plan:
Guaranteed Pension for Life
Once you invest in this plan, you start receiving a fixed pension regularly. This amount stays the same throughout your life, so you don't have to worry about market risks or changes.
Return on Full Investment (Purchase Price)
Your money is not lost even in your absence. Either it is given to the nominee in case of a single plan or the spouse in case of a joint LIC Saral Pension Plan.
Flexible Pension Payment Options
You can choose how often you want to receive your pension depending on your financial needs. The options available are:MonthlyQuarterlyHalf-yearly Yearly
Immediate Income After Purchase
This is an immediate annuity plan, which means your pension starts soon after you invest. There is no waiting period like other pension plans.
Loan Facility for Financial Needs
If you need money later, you can take a loan against the policy after 6 months. This gives you financial support without stopping your pension.
Surrender Option in Critical Situations
In case of serious health conditions (critical illness), you can surrender the policy after 6 months and receive about 95% of your invested amount, subject to conditions.
Better Returns on Higher Investment
If you invest a higher amount, you may get a slightly higher pension (annuity rate), which increases your overall income.
Extra Benefit on Online Purchase
If you buy the plan online, you may get a small increase in annuity (around 2%), which means a slightly higher pension.
Incentive Benefits
Higher investment = Higher annuity ratesOnline purchase = Approximately 2% higher annuity rate
Who Should Buy the LIC Saral Pension Plan?
Any of the following individuals should buy the LIC Saral retirement plan:
LIC Saral vs. Other LIC Retirement Plans: What is Different?
LIC Saral Pension is different because it gives pension immediately after investment, while other LIC plans may start pension after a few years. It is a simple and standard plan, with the same features across insurers.
Unlike some other plans, it offers fixed and guaranteed income with no market risk. However, other LIC retirement plans may provide more flexibility or higher returns over time.
How to Buy LIC Saral Plan?
To buy the LIC Saral plan online, follow these steps:
Step 1.
Visit the official LIC website.
Step 2.
On the homepage, select "Buy Policies Online" or choose the plan category (such as Endowment or Money Back).
Step 3.
Pick the specific plan you want to purchase.
Step 4.
Click on "Learn More" to access the application page.
Step 5.
Complete the form and upload the required documents.
Step 6.
Submit the form and pay online.
Identity proof such as Aadhaar Card, PAN Card, Passport, etc.Address proof, including Aadhaar, Driving Licence, Voter ID, etc.Age proof (Birth certificate, school certificate, passport, etc.)Recent passport-size photographBank details (cancelled cheque or account details)PAN Card (for KYC and financial transactions)
Annuity Option Cannot Be Changed
Once you select the pension option (single life or joint life), you cannot change it later. While buying the LIC Saral plan, choose the options carefully.
Pension is Paid in Arrears
Your pension is paid after the selected time period (like after 1 month, 3 months, etc.), as selected by you. The pension payment is not in advance.
Joint Life Option for Spouse Only
You can choose the joint life option only with your spouse, not with any other family member.
Free Look Period Available
Free Look Period = Time to review and cancel your policy without major lossIf you are not satisfied, you can return the policy within 30 days and get your money back after some deductions.
Loan Terms Apply
Loan is available after 6 monthsInterest will be deducted from your pensionLoan amount is limited based on your annuity amount
Loan Interest Rate May Change
The interest rate on a loan depends on government securities (G-Sec rates) and may vary from time to time.
Surrender is Allowed Only in Special Cases
You can surrender the policy only in case of specified critical illnesses, not anytime freely.
Tax Benefits Are Not Fixed
Tax benefits depend on current tax laws. It is better to consult a tax advisor before investing.
Avoid Early Exit
This is a long-term retirement plan. If you are someone who wants to exit early, then you may face financial loss. So it is better to continue the policy for the long term.
Read the Policy Document Carefully
The brochure gives only key details, not the complete information. Always check the full policy document before making a decision.
Documents Required for LIC Saral Plan
You need basic KYC documents, age proof, and bank details to buy the LIC Saral plan. This includes:
Things to Know About LIC Saral Plan
Here are some important terms and conditions you should know before buying the LIC Saral plan:
Disclaimer: Squareinsurance does not promote, rate, or recommend any specific insurance company or insurance plan. The above information is for general understanding only. For complete and accurate details, please refer to the official plan brochure.
FAQs
It is a pension plan where you invest once and start getting a fixed income for life.
Yes, it is a low-risk plan with a guaranteed pension and no market risk.
Pension starts immediately after you buy the plan, based on your chosen payout mode.
You can get a minimum of Rs. 1,000 per month (or Rs. 12,000 per year).
Yes, the full purchase amount is returned to your nominee after death.
Yes, you can take a loan after 6 months of buying the policy.