LIC Saral Pension Plan: Get 12,000 Monthly Pension for Life with a Single Premium
If you’re planning for retirement and looking for a reliable monthly income, the LIC Saral Pension Plan is worth your attention. It’s a straightforward, government-backed scheme designed to give you financial security in your golden years.
One of the biggest advantages? You invest just once and receive a guaranteed pension for life. That means no market worries, no recurring premiums—just a steady income every month.
Let’s dive into how this LIC pension scheme works, who it’s ideal for, and how you can make the most of it.
What Is LIC Saral Pension Plan?
The Saral Pension Plan by Life Insurance Corporation of India (LIC) is a single premium annuity plan. It offers lifetime guaranteed income through annuity payouts. Once you make the lump sum investment, LIC begins paying you pension—monthly, quarterly, half-yearly, or yearly, as per your choice.
This plan is suitable for anyone nearing retirement or someone who wants to park a lump sum and receive regular income without any risk exposure.
It’s especially ideal for those receiving large payouts from Provident Fund (PF), gratuity, or voluntary retirement schemes.
Key Features of LIC Saral Pension Plan
Here’s what makes this plan a strong retirement tool:
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✅ One-Time Investment: Pay once, enjoy lifelong returns.
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✅ Guaranteed Monthly Income: No market fluctuation or interest rate risks.
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✅ Multiple Payout Options: Monthly, quarterly, half-yearly, or annual.
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✅ Loan Facility: Available after 6 months from the date of purchase.
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✅ Surrender Option: Exit possible under certain conditions like critical illness.
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✅ Joint Life Option: Pension continues for spouse in case of the policyholder’s demise.
🧠 Did You Know?
Saral Pension is designed based on IRDAI’s standard guidelines, which means it follows a simple structure and transparent terms—helping consumers make confident choices.
Eligibility Criteria and Investment Details
To buy the LIC Saral Pension Plan, here’s what you need to know:
| Criteria | Details |
|---|---|
| Minimum Entry Age | 40 years |
| Maximum Entry Age | 80 years |
| Minimum Annuity (Monthly) | ₹1,000 |
| Minimum Annuity (Yearly) | ₹12,000 |
| Maximum Investment | No upper limit |
Depending on the frequency of payout you choose (monthly, quarterly, half-yearly, annually), the annuity amount and investment requirement may vary.
How to Get ₹12,000 Monthly Pension from LIC?
Many people ask how much they need to invest to receive ₹12,000 per month. Here’s a simple example:
Let’s say you’re 42 years old. If you invest ₹30 lakhs in LIC Saral Pension Plan, LIC will pay you around ₹12,388 per month for life. This is based on LIC’s annuity calculator and subject to change depending on your age and annuity option.
📊 Tip:
Always use the official LIC pension calculator on licindia.in to estimate your annuity before investing. It helps you plan better and avoid surprises.
Payment Modes You Can Choose
LIC offers flexibility in how you receive your pension:
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🗓 Monthly – Ideal for retirees who rely on regular income.
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📅 Quarterly
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🌓 Half-Yearly
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🌞 Yearly
You can select the option that suits your financial planning best. Remember, once selected, the payout mode cannot be changed later.
Can You Get a Loan Against This Plan?
Yes. Once the policy completes six months, you can apply for a loan against it. This is especially useful in times of urgent financial need. The loan amount depends on the total annuity purchased and remaining value of the plan.
Also, under special situations—like a terminal illness—you’re allowed to surrender the policy and receive a portion of your invested amount back. This makes it a flexible option even after retirement.
Types of Annuity Options Available
LIC offers two types of annuity choices under the Saral Pension Plan:
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Single Life Annuity (Option 1)
Pension is paid for the lifetime of the policyholder. After death, the original purchase price is returned to the nominee. -
Joint Life Annuity (Option 2)
Pension continues for both spouses. After the death of the last survivor, the purchase amount is returned to the nominee.
💬 Expert Note:
For married couples, the Joint Life option is highly recommended as it ensures income security for both partners.
How to Buy LIC Saral Pension Plan Online
You can easily buy this plan online or through an authorized LIC agent. Here’s how to do it yourself:
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Go to the official LIC India website
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Navigate to the Pension Plans section
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Click on Saral Pension
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Use the calculator to estimate annuity
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Fill in personal and payment details
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Submit documents and pay the premium
FAQs – People Also Ask
Q1: Is LIC Saral Pension Plan safe?
Yes, it’s one of the safest pension options in India. It’s backed by the government-owned LIC and regulated by IRDAI, ensuring transparency and stability.
Q2: Can I surrender the policy before maturity?
You can surrender the policy after six months, but only under special circumstances like critical illness or death of the spouse (in joint life option).
Q3: Will I get the full investment amount back?
Yes, under both options, the purchase price (initial investment) is returned to your nominee after your death or that of the last surviving annuitant.
Final Thoughts
The LIC Saral Pension Plan is a simple, no-frills retirement product that guarantees peace of mind. Whether you’re retiring from the private sector or a government job, this plan can help convert your retirement corpus into steady monthly income—with minimal risk.
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