In today’s time, every earning individual wants their income to continue after retirement and to be free from financial worries in their old age. Keeping this need in mind, people look for investment options that offer both security and regular income, along with savings. Post Office small savings schemes, along with plans from the Life Insurance Corporation of India (LIC), are quite popular among people for this very reason. LIC’s Saral Pension Yojana (Simple Pension Plan) emerges as a strong option for those who want to invest once and receive a pension for life.
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Why is the Saral Pension Yojana special for retirement planning?
The Saral Pension Yojana is specifically designed keeping in mind the financial needs after retirement. After investing in this plan, the policyholder receives a fixed pension for life. It is not affected by market fluctuations, making this scheme reliable for those who want to avoid risk and desire a guaranteed income.
Options available for both husband and wife
A special feature of LIC’s Saral Pension Yojana is that it can be taken by an individual alone or jointly by a husband and wife. The minimum age for this policy is 40 years, and the maximum is 80 years. This means that even those who are nearing retirement can benefit from this scheme and secure their future financially.
One-time investment, same pension for life
In this scheme, a lump sum amount needs to be invested only once. After the investment, the policyholder receives a pension on a monthly, quarterly, half-yearly, or annual basis. The pension amount remains the same from beginning to end, meaning there is no reduction over time. This option can prove very useful for those who want to invest their PF or gratuity amount in a secure place at the time of retirement. Surrender and Death Benefit Facility
The Saral Pension Yojana also offers a surrender facility after six months from the policy’s inception. Additionally, if the policyholder dies, the nominee receives the entire invested amount back. This ensures the financial security of the family and safeguards the invested money.
Minimum Investment and Loan Facility
Under this scheme, an annuity can be purchased with a minimum annual investment of Rs. 12,000. There is no maximum limit on the investment, meaning investors can invest according to their capacity. A loan facility is also available after six months of taking the policy, allowing for financial assistance from this scheme when needed.
Example of Pension Exceeding Rs. 12,000 per Month
According to the LIC calculator, if a 42-year-old individual invests approximately Rs. 30 lakh as a lump sum in this scheme, they can receive a guaranteed pension of approximately Rs. 12,388 per month. This pension continues for life, providing a strong source of regular income after retirement.
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How to Buy the Policy Online
The Saral Pension Yojana can be purchased online through the official LIC website. Alternatively, information about this policy can be obtained, and investments can be made through the nearest LIC branch or an authorised agent.