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LIC Saral Pension Plan: Amidst rising inflation, everyone seeks an investment plan that ensures a regular income after retirement. LIC's Saral Pension Plan is one such option. Read on to learn more.

LIC Saral Pension Plan: Given the rising cost of living, individuals want to invest a portion of their earnings in avenues that yield substantial returns in the future. People, especially retirees, look for safe investment options that provide a steady income. In this context, the Life Insurance Corporation of India's (LIC) Saral Pension Plan is considered an excellent choice. A key feature of this scheme is that it requires only a one-time investment, after which the policyholder receives a pension for the rest of their life.

A Single-Premium Plan

The LIC Saral Pension Plan is a single-premium pension scheme, meaning the investment amount is deposited just once. Once the investment is made, the policyholder receives a fixed pension for life. It has been specifically designed to ensure a regular income post-retirement.

The best aspect of this scheme is that the pension amount fixed at the outset remains constant throughout one's life. If an individual invests their PF or gratuity funds in this scheme, pension payments can commence immediately after the investment.

Joint Option for Spouses

Individuals aged between 40 and 80 years can invest in the LIC Saral Pension Plan. One can purchase the policy individually, or a husband and wife can invest in it jointly. This scheme offers the benefit of a guaranteed pension. Notably, the plan also provides a facility to surrender the policy; it can be surrendered six months after commencement. Additionally, if the need arises, the policyholder can apply for a loan after six months.

What benefits are available upon death? In the event of the policyholder's death, the invested principal amount will be refunded to the nominee. Under this scheme, an annuity of at least ₹12,000 per annum can be purchased, while there is no upper limit on the investment amount.

How to get a monthly pension of over ₹21,000

According to the LIC calculator, if a 40-year-old individual invests a lump sum of ₹40 lakh in this scheme, they can receive an annual pension of ₹2,62,453. This effectively means they would receive a regular monthly pension of approximately ₹21,871. This scheme can be a good option for those seeking a regular income after retirement.