LIC’s Saral Pension Plan

1. Builds trust between insurer and insured
2. Minimizes plan misuse
3. Creates uniformity
4. Creates common guidelines to eliminate disputed among insurance companies
5. Customer-friendly policy

Benefits of LIC Saral Pension Yojana:

The following are the key benefits of LIC Saral Pension Plan:

1.  Offers various death benefits, such as:

o   Returns 100% purchase price on demise of policyholder under single annuity option

o  Under joint-life annuity option:

§  Spouse will receive same annuity amount in case of death of annuitant

§  Nominee will receive 100% of the purchase price on demise of spouse

§  Annuitant will continue to receive annuity if the spouse dies before annuitant

§  Nominee will receive 100% of annuity amount, if both the annuitant and the spouse die

1. Free-look period: The plan offers 15 days or 30 days free-look period if purchased offline or online, respectively.

1. Loan benefit: Loan can be availed only after six months of the commencement of the policy. The maximum loan amount to be offered will be such that the total annual interest paid should not be more than 50% of the annuity.

1. Tax benefits: According to the Income Tax Act, 1961, policyholders will be exempted from tax under this pension scheme.

1.  Survival benefit: Annuity amount will be paid to the policyholder or the nominee, as applicable, under the survival benefit.

Annuity options offered by LIC Saral Pension Plan:

There are two annuity options offered by LIC if you avail yourself of the Saral Pension Plan:

1.  Life Annuity where 100% of the purchase price will be returned:

o   The option is available to only single policyholders

o   A benefit of Rs.12,000 is provided to the single policyholder till they survive the policy term

o   In the annuity option, the premium is returned to the nominee in case the life assured dies

1. Joint Life Last Survivor Annuity where 100% of the purchase price will be returned on death of last survivor: due to the death of the policyholder.

o   The option is available to the joint policyholders

o   Pension benefit will be provided to the couple

o   Total premium amount will be returned to the nominee on demise of last surviving spouse

Benefits of LIC Saral Pension Plan Annuity Options:

The benefits of LIC Saral Pension Plan annuity options are given below:

Eligibility Criteria of Saral Pension Plan:

The eligibility criteria you will have to fulfil to apply for Saral Pension Plan are given below:

1. The minimum entry age is 40 years, while the maximum entry age is 80 years.
2. The minimum annuity offered is given in the table below:

1. The minimum purchase price will depend on the minimum annuity chosen, and the age of the policyholder.
2. There is no maximum purchase price specified.

Features of LIC Saral Pension Plan:

Some of the features of LIC Saral Pension Plan are given below:

1. Surrender Value: Six months after the policy's start date, the insurance may be cancelled at any time. 95% of the Purchase Price will be paid to the annuitant upon approval of the surrender, less any outstanding loan balance and any applicable loan interest.
2. Loan: Six months after the policy's start date, the policy loan may be requested at any time. The loan can be obtained under the joint life annuity option by the annuitant and, in the event of the annuitant's death, by the spouse. The maximum loan amount allowed by the policy must be calculated so that the effective annual interest rate paid on the loan cannot be greater than 50% of the annual annuity payment allowed by the policy.
3.  Free Look Period: Once you avail yourself of the loan, you get a free look period. During this period, if you do not agree with any terms and conditions of the policy, you can return it within 30 days of the issuance of the receipt. Whatever amount you have paid will be refunded. 
4. Tax Advantages: Benefits from tax savings are accessible in accordance with the current Income Tax Act, 1961 laws.

List of critical illnesses covered under the Saral Pension Plan:

Given below is the list of critical illnesses covered under the Saral Pension Plan

1. Cancer

1. Myocardial Infarction

1. Open Chest CABG

1. Open heart replacement or repairing of heart valves

1. COMA of varied specificity
2. Failure of kidney or if regular dialysis is required

1. Stroke resulting in permanent symptom
2. Transplant of bone marrow or major organ
3.  Permanent paralysis of limbs

1. Motor neuron disease with permanent symptoms
2. Multiple sclerosis with persisting symptoms

1. Benign brain tumor

1. Blindness

1. End state lung failure

1. End stage liver failure

1. Loss of limbs

1. Loss of speech
2. Major head traum

1. Loss of limbs

1. Primary pulmonary hypertension
2. Third-degree burns