LIC Saral Pension Scheme is a pension plan launched by The Life Insurance Corporation of India and it includes an immediate annuity. Insured persons with low income and low investment can opt for this plan, which was launched in 2008 of India.
| LIC’s Saral Pension (Plan No. 862, UIN : 512N342V03) |
| Company Website : Click Here |
| Date of Launch : 30.08.2022 |
| LIC Saral Pension Plan Document BY LIC of India |
What is LIC Saral Pension Scheme?
The LIC Saral Pension Scheme is a retirement planning scheme offered by Life Insurance Corporation of India (LIC). It allows policyholders to accumulate a corpus over the course of their working life, which can then be used to receive a regular income during their retirement years. The scheme also offers death benefits, which can be used to provide financial security to the policyholder’s family in the event of their untimely death.
The LIC Saral Pension Scheme has a number of features and benefits that make it an attractive option for those looking to secure their financial future. Some of these features and benefits are listed below:
1. Flexible investment options: Policyholders can choose from a variety of investment options under the LIC Saral Pension Scheme, depending on their risk appetite and return expectations.
2. Attractive returns: The scheme offers competitive returns on investment, helping policyholders grow their corpus over time.
3. Death benefits: In the event of the policyholder’s death, the death benefit will be paid out to their nominees, which can help provide financial security to the family in case of an untimely demise.
4. Tax benefits: Policyholders can avail tax benefits under section 80C of the Income Tax Act on premiums paid towards the LIC Saral Pension Scheme.
5. Surrender value: Policyholders have the option to surrender their policy at any time and receive the surrender value, which is calculated as per the terms and conditions
Features of LIC Saral Pension Scheme
The LIC Saral Pension Scheme is a non-linked, with-profits pension plan which offers guaranteed returns. It is a single premium annuity plan where the policyholder can choose the payment frequency – monthly, quarterly, half-yearly or yearly. The policy term and vesting age are fixed.
The minimum entry age is 18 years and maximum entry age is 60 years. The minimum vesting age is 45 years and maximum vesting age is 80 years. The policy term cannot exceed the vesting age.
The guaranteed returns make it an ideal investment option for those looking for stability and guaranteed income after retirement. The other features and benefits of the scheme are:
– Flexibility to choose the mode of premium payment – lump sum or regular payments
– Attractive interest rates on regular premium payments
– Option to receive payments in Indian rupees or foreign currency
– Tax benefits under section 80C of the Income Tax Act
Benefits of LIC Saral Pension Scheme
The LIC Saral Pension Scheme is a government-sponsored retirement scheme that offers several benefits to its policyholders. Some of the key benefits of this scheme are mentioned below:
1. It offers guaranteed monthly income during retirement: Under this scheme, the policyholder is guaranteed a fixed monthly income during their retirement years. This income is paid out of the policyholder’s pension account, which is created at the time of purchase of the policy.
2. It offers death benefit: In case of death of the policyholder before maturity, the nominee will receive all the accumulated pension wealth along with an additional bonus, if any.
3. It offers tax benefits: The premiums paid towards this policy are eligible for deduction under Section 80C of the Income Tax Act. Additionally, the maturity proceeds are also exempt from taxation.
4. It provides liquidity: The policyholder can avail partial withdrawal facility after completion of 5 years from commencement date subject to some conditions. This facility can be availed multiple times and can be helpful in meeting financial needs during retirement years
How long does one need to contribute for the LIC Saral Pension Plan?
Assuming you are talking about the LIC Saral Pension Plan, one needs to contribute for a minimum period of 5 years and a maximum period of 35 years. The policy term is 20-35 years.
About the risk factor and surrendering your policy
When you purchase a life insurance policy, you are effectively gambling that you will live longer than the length of the policy. If you die before the policy expires, your beneficiaries will receive the death benefit. If you live past the policy’s expiration date, you will have “surrendered” your policy and will not receive any benefits.
The risk factor associated with life insurance policies is that they are often sold with a “guaranteed death benefit.” This means that if you die within the policy’s term, your beneficiaries are guaranteed to receive at least the death benefit. However, if you live past the expiration date, there is no guarantee that your beneficiaries will receive anything.
One of the main reasons people choose to surrender their life insurance policies is because they no longer need or want the coverage. For example, someone who has retired may no longer need life insurance because they are no longer working and their dependents are grown. Alternatively, someone may have a change in health status that makes them ineligible for coverage.
Before surrendering your life insurance policy, it is important to understand all of the ramifications. For example, you should make sure that you do not have any outstanding loans against the policy. If you do have loans against the policy, these must be paid back first before any death benefit can be paid out to your beneficiaries. Additionally, it is important to understand any tax implications associated with surrendering your life insurance policy as this could affect how much money your beneficiaries ultimately
Conclusion
The LIC Saral Pension Scheme is a great option for those looking for a retirement plan with guaranteed benefits. The scheme offers several features and benefits that make it an attractive choice for investors, including the ability to receive a lump sum payment at maturity, tax exemption on the maturity amount, and more. If you are looking for a retirement plan that can provide you with guaranteed income and peace of mind, then the LIC Saral Pension Scheme may be right for you.
