LIC Saral Pension Yojana: Choosing the right insurance policy or pension plan can be confusing with companies touting their superiority. To simplify this, the Insurance Regulatory and Development Authority of India has introduced the Saral Pension Scheme. This scheme is designed for clarity and uniformity in its terms.
The Saral Pension Scheme aims to provide citizens with comprehensive information, covering its purpose, benefits, features, eligibility, required documents, and the application process. If you seek a straightforward and easy-to-understand pension option, the Saral Pension Scheme could be the solution. Keep reading for a brief guide to all the essential details.
LIC Saral Pension Yojana
LIC Saral Pension Yojana underscores the importance of financial planning for a secure old age. It emphasizes that your financial strength is pivotal in your later years. Given the potential challenges of physical exertion in old age, planning for retirement becomes essential.
Thankfully, there are various schemes today providing a steady income during retirement, ensuring your daily needs are comfortably met.
Looking for a pension plan? Explore LIC‘s Saral Pension Plan, offering a lifelong pension benefit. The unique feature is that you don’t need to wait until you’re 60; you can start receiving pension benefits as early as 40. Learn about all the features of this scheme for a comprehensive understanding.
Understand the Saral Pension Plan
LIC’s Saral Pension Plan operates as an immediate annuity plan, ensuring that pension benefits kick in as soon as you secure the coverage, providing instant financial support. A notable feature of this scheme is the one-time premium payment requirement during the coverage purchase.
Once the premium is paid, the insured begins receiving a pension, a regular payout that continues throughout their life. In the unfortunate event of the policyholder’s demise due to any cause, the deposited sum is returned to the nominee.
Offering a crucial measure of financial security for the policyholder’s family. This feature enhances the overall assurance of the Saral Pension Plan, making it a comprehensive and beneficial choice for individuals planning for their retirement.
The simple pension plan offers two straightforward options: single life and joint life.
- Single Life Option:
- The policyholder receives a pension as long as they are alive.
- Upon the policyholder’s demise, the invested amount is returned to the nominee.
- Joint Life Option:
- This option covers both spouses.
- The primary policyholder receives a pension during their lifetime.
- Upon their death, the spouse continues to receive the pension.
- In the unfortunate event of both spouses passing away, the deposited amount is given to the nominee.
This clear and concise structure ensures flexibility and provides financial benefits for the policyholder and their family.
Options under Saral Pension Yojana
Saral Pension Yojana 2023 is easily accessible through both online and offline channels. The scheme offers a minimum annuity of ₹12,000 per year, and the minimum purchase price depends on factors like the chosen annual mode, selected option, and the age of the policyholder. Importantly, there is no maximum limit on the purchase price.
This pension plan is open to citizens aged 40 to 80 years, with a minimum monthly investment requirement of ₹1,000. Interested individuals can choose between two user-friendly options to purchase this plan:
- Online Purchase
- Offline Purchase
These choices ensure flexibility and convenience for those looking to secure their financial future through the Saral Pension Yojana 2023.
- Life Annuity with Return of Purchase Price: In this scenario, a single person will receive the entire pension. The policyholder’s nominee will receive payment of the base price upon the pensioner’s death.
- Joint Life: The Joint Life option has the husband and wife becoming part of this program. The pension amount will be paid to the person who lives the longest. The wife will get the full amount of the pension upon her husband’s death. In a similar vein, the husband will receive the entire pension upon the death of the wife. The pension will not be reduced in amount. The nominee will get the base price upon the passing of both the husband and the wife.
Saral Pension Yojana Overview
|Name of scheme
|Saral Pension Yojana
|Who launched it?
|Insurance Regulatory and Development Authority of India
|Citizens of India
|To provide basic terms and conditions for the pension plan, making it available to all residents.
|Will be launched soon
|Type of Application
|1 April 2021
|Loan & Surrender Facility
|According to Annuity
Saral Pension Yojana Annuity
In the Saral Pension Yojana 2023, annuity signifies the annual amount provided by the insurance company in exchange for the customer’s investment. This scheme allows customers the flexibility to choose the annuity term, with options available on a monthly, quarterly, half-yearly, or annual basis.
To join this scheme, customers simply need to pay a purchase price, and in the unfortunate event of the customer’s demise, the scheme ensures a full refund of 100% of the purchase price.
The annuity payments are designed to continue throughout the customer’s life. In case of the customer’s death, the spouse becomes the beneficiary, receiving the annuity amount. If the spouse also passes away, the legal heir of the client receives a full refund of 100% of the purchase price.
Notably, this scheme does not offer maturity benefits, maintaining a straightforward and transparent structure for all participants.
Minimum Annuity Amount for Saral Pension Yojana in 2023
Saral Pension Yojana Loan Program and Discharge
Under the Saral Pension Scheme, a loan facility is available after 6 months of policy purchase. In the unfortunate event of the customer’s demise, the spouse can also avail of the loan on the policy, with the customer being required to pay interest on the loan.
Furthermore, if the customer’s spouse or children encounter a serious illness, the option to surrender the policy becomes available after 6 months from the date of purchase. Upon surrender, 95% of the purchase price will be refunded.
If a loan has been taken on the policy, the loan amount will be deducted from the purchase price. This feature introduces flexibility and financial support, allowing participants to navigate unexpected circumstances with ease.
Objectives of IRDAI Saral Pension Yojana 2023
The Saral Pension Yojana’s primary objective is to simplify the understanding of pension schemes for citizens across India. Implemented by all insurance companies, this scheme aims to provide uniform and straightforward terms and conditions.
The goal is to ensure that common citizens can easily grasp these terms, removing the challenges they might face in selecting a policy.
Launched nationwide from April 1, 2021, the Saral Pension Yojana promises consistent terms and conditions across all insurance companies.
This initiative marks a significant step in enhancing transparency and accessibility for customers, making the process of understanding and choosing pension policies clearer and more straightforward.
Saral Pension Yojana Benefits and Features
- This year, the Insurance Regulatory and Development Authority of India introduced the Saral Pension Yojana 2023.
- All insurance providers will begin offering this program on April 1, 2021.
- All insurance providers will be required to maintain uniform, straightforward terms and conditions under this plan.
- Customers who use this plan from any firm will now receive the identical terms.
- Annuities on investment will be given to consumers under this arrangement.
- The customer has the option to select a monthly, quarterly, half-yearly, or annual annuity period.
- To use this method, the customer must pay a purchasing price.
- 100% of this purchase price will be reimbursed following the customer’s passing.
- The customer will receive annuity payments for life.
- After the client passes away, the spouse will receive the annuity.
- The client’s legal heir will get a 100% refund of the purchase amount upon the death of the spouse.
- This arrangement will not give maturity benefit.
- The Saral Pension Plan also offers a loan facility.
- After purchasing the coverage for six months, you can take out this loan.
- In the event that the client passes away, their life partner may also be eligible to receive the loan.
- Interest on the loan will be paid by the client.
- After six months of purchase, the policy may also be redeemed if the policyholder’s spouse or kid has a serious sickness of any sort.
- Five percent of the purchase price will be reimbursed upon policy surrender.
Saral Pension Yojana Eligibility
- The candidate needs to live in India permanently.
- The customer should be at least forty years old.
- The customer’s age should not exceed 80 years old.
Saral Pension Yojana Important Documents
- Aadhar Card
- Bank Account Details
- Ration Card
- Residence certificate
- Income certificate
- Passport size photograph
- Mobile Number
Saral Pension Yojana How to apply
The following steps must be taken if you wish to apply online for the Saral Pension Yojana.
- You must first visit the bank’s or insurance company’s official website.
- The main screen will now appear in front of you.
- You must select the Saral Pension Yojana option on the main page.
- Following this, you must click the “Apply Now” option.
- The application form will now appear before you.
- All required fields on the application form, including name, age, and mobile number, must be filled out.
- You then need to attach all of the necessary paperwork.
- You must now select the “Submit” option.
- You will be able to apply online for the Saral Pension Scheme in this manner.
How to apply for the Saral Pension Yojana offline
You must follow these steps if you wish to apply offline for the Saral Pension Scheme.
- You must first proceed to the closest bank or insurance provider.
- You must now obtain the application form for the Saral Pension Scheme from that location.
- You must carefully fill all of the pertinent information requested in the application form after getting it.
- Subsequently, you must attach all pertinent application form materials.
- This application must now be turned in to the insurance company’s office.
- You will be able to apply offline for the Saral Pension Scheme in this manner.