What Is LIC Saral Pension Plan 862? Eligibility & Benefits

What is LIC Saral Pension Plan? And Its Example

LIC Saral Pension Plan 862 is a single-premium immediate annuity plan that provides regular income after purchasing the policy. It is a non-linked, non-participating, individual annuity product that does not depend on market performance.

For example, a person can invest a lump sum amount and select an annuity option to receive regular payments throughout life. This LIC monthly pension plan option allows individuals to plan their retirement income through scheduled payouts. The final annuity amount depends on factors such as age, purchase price, and selected payment frequency. 

Key Features and Benefits of LIC Saral Pension Plan 862

The following features explain how this pension solution supports retirement income planning and financial stability.

Single Premium Payment Structure

The policy requires a one-time premium payment instead of regular premium contributions during the policy term.

Guaranteed Annuity Payments

The annuity rate is decided when the policy starts and remains fixed throughout the annuity period.

Multiple Payout Frequencies

Policyholders can select monthly, quarterly, half-yearly, or yearly annuity payment modes.

Purchase Price Return Benefit

The nominee receives the purchase price amount after the death of the annuitant or the last survivor.

Two Annuity Choices

The plan provides options based on individual income needs and family protection preferences.

Eligibility Criteria Under LIC Saral Pension Plan 862

Applicants should understand the eligibility requirements before selecting this LIC pension plan option for retirement planning.

 Age Requirement

Minimum entry age is 40 years, while the maximum entry age is 80 years.

Minimum Annuity Requirement

Minimum annuity amount is ₹1,000 monthly, ₹3,000 quarterly, ₹6,000 half-yearly, or ₹12,000 annually.\

Purchase Amount Selection

Purchase price depends on the selected annuity option, age, and required income amount.

Joint-life Availability

The joint-life option allows coverage for the policyholder and spouse under specific conditions.

No Maximum Purchase Limit

The plan does not specify a maximum limit for the purchase price.

Annuity Options Under LIC Saral Pension Scheme

The Saral Pension plan offers two structured annuity options based on individual retirement requirements.

Life Annuity with Return of Purchase Price

The annuity continues throughout the annuitant's lifetime, and the purchase price is returned to the nominee after death.

Joint Life Last Survivor Annuity with Return of Purchase Price

The annuity continues until both the policyholder and spouse pass away, followed by purchase price repayment.

LIC Saral Pension Plan Details

The following details explain important policy conditions related to flexibility, servicing, and cancellation rights.

Surrender Value

Surrender is permitted only under specific conditions mentioned in the policy terms. The policyholder can request surrender in case of specified critical illnesses affecting the annuitant or family members.

Loan

A loan facility is available after six months from the policy commencement date, subject to applicable policy conditions and limits.

Incentives

Higher purchase amounts may qualify for enhanced annuity rates. Online purchase options may also provide additional annuity benefits according to applicable terms.

Free Look Period

Policyholders receive a free look period to review policy conditions. They can return the policy if the terms do not meet their requirements.

How to Purchase LIC Saral Pension Scheme?

Purchasing this plan involves selecting the annuity option, completing documentation, and making the required single premium payment.

Online Method:

1. Visit the official LIC website and select the Saral Pension Plan option.
2. Review the plan details and calculate expected payouts using the LIC Saral Pension Plan calculator.
3. Complete the application form and submit required documents.
4. Make the premium payment through available digital payment methods.

Offline Method:

1. Visit an LIC branch or connect with an authorised LIC representative.
2. Submit application details along with identity and address documents.
3. Select the preferred annuity option and payment frequency.
4. Complete the premium payment process.

Secure Your Retirement Income With The Right Pension Choice

Planning for retirement requires understanding future income needs, financial goals, and available pension options. An annuity plan can help provide a regular income stream after retirement, making it important to evaluate features such as payout options, purchase price, and nominee benefits.

The LIC Saral Pension Plan is an individual immediate annuity plan that allows policyholders to receive regular pension payments after purchasing the plan. Before selecting this plan, individuals should review the available annuity options, benefits, and terms to understand how it aligns with their retirement goals. At Jio Insurance Broking Ltd., individuals can compare and buy insurance policies digitally, helping them make informed decisions based on their financial requirements.