LIC's Saral Pension 862

 LIC’s Saral Pension Plan 862 is an immediate annuity plan that offers a guaranteed lifetime pension through a single lump sum premium. It is designed to provide financial independence during retirement by ensuring a steady and reliable flow of pension income starting immediately after the investment. The plan offers two variants: Life Annuity with return of 100% purchase price and Joint Life Last Survivor Annuity with return of 100% purchase price on death of the last survivor, making it suitable for individuals and couples seeking post-retirement financial security.​

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What is LIC’s Saral Pension Plan 862?

LIC Saral Pension Plan 862 is a non-linked, non-participating, immediate annuity product where the policyholder pays a one-time lump sum premium and receives periodic guaranteed pensions for life. This plan aims to provide financial security and peace of mind to seniors and retirees by delivering regular income to meet their day-to-day needs.​

It is simple to understand and convenient to buy, available both online and through LIC’s extensive network, with guaranteed annuity rates fixed at the policy start.​

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Key Features

• Immediate Annuity Plan: You receive immediate pension payments after purchasing the policy.​

• Single Premium Payment: One-time lump sum payment upon purchasing the plan.​

• Two Annuity Options:

  • Life Annuity with Return of 100% Purchase Price (for individuals).

  • Joint Life Last Survivor Annuity with Return of 100% Purchase Price (for spouses).​

• Guaranteed Annuity Rates: Rates are guaranteed and fixed at inception, ensuring stable income over the lifetime.​

• Flexible Payout Frequency: Monthly, quarterly, half-yearly, or yearly annuity payments to suit preferences.​

• Return of Purchase Price: Upon death, purchase price is returned to nominee ensuring capital protection.​

• Policy Can Be Surrendered: If annuitant or spouse/child is diagnosed with listed critical illness after 6 months, 95% of purchase price is refunded on surrender.​

• Loan Facility: Available after 6 months from the date of policy commencement. Loans attract interest not exceeding 50% of annual annuity.​

• Tax Benefits: Eligible for section 80C deduction on premium; annuity income taxed as per applicable slabs.​

• Higher Purchase Incentives: Additional annuity rate benefits for purchase price above ₹5 lakh and for less frequent payment modes.​

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Eligibility Criteria

• Minimum Entry Age: 40 years completed.​

• Maximum Entry Age: 80 years completed.​

• Policy Term: Whole life (annuity paid lifelong as long as annuitant is alive).​

• Minimum Annuity Amount: ₹1000 monthly or ₹12,000 annually.​

• Joint Life Annuity: Available only for spouse.​

• Minimum Purchase Price: As per the minimum annuity chosen (no max limit).​

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How Does LIC Saral Pension Work?

You pay a lump sum purchase price to LIC upfront. Based on this amount, your age, and selected annuity option, LIC calculates the guaranteed monthly or yearly pension. Pension payments start immediately and continue till your lifetime (and spouse’s lifetime for joint option). If you die, the purchase price is returned to your nominee under both options, providing security for your capital.​

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Benefits

• Regular guaranteed pension income providing financial independence.

• Choice between single life or joint life annuity, addressing diverse needs.

• Return of purchase price to nominee ensures capital preservation.

• Option to surrender policy on critical illness providing financial relief.

• Loan facility post 6 months enhances liquidity.

• Tax benefits on premium payment and structured income.

• Flexibility in mode and frequency of annuity payments.

• Incentives and higher rates for larger investments and less frequent payouts.​

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Annuity Options Explained

1. Life Annuity with Return of 100% Purchase Price: Pension paid monthly/quarterly/annually for the annuitant’s lifetime. On death, purchase price returned to nominee.​

2. Joint Life Last Survivor Annuity with Return of 100% Purchase Price: Pension paid to both annuitant and spouse (joint life). Upon death of last survivor, purchase price returned to nominee.​

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Premium and Pension Calculation

• Premium depends on age, annuity payout frequency, annuity option, and purchase price.

• Higher purchase price attracts better annuity rates.

• The plan provides a calculator for estimating pension payouts based on inputs.

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Claim and Surrender

• Claims require death certificate, policy document, claim forms, and nominee details.

• Surrender allowed after 6 months on diagnosis of specified critical illness.

• Refund is 95% of the purchase price after deducting any loans and interest.​

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Who Should Consider LIC Saral Pension?

• Retirees needing regular guaranteed income for life.

• Couples seeking joint pension options.

• Individuals wanting return of capital assurance.

• Those who may require liquidity through loans or surrender in case of severe illness.

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Conclusion

LIC Saral Pension Plan 862 is a simple and effective immediate annuity solution offering guaranteed lifelong pension with capital protection. Its flexibility in annuity options, payment modes, and surrender facilities makes it a worthy choice for senior citizens aiming for a stable retirement income. With LIC’s trusted brand and customer service, it provides peace of mind and financial independence for the golden years.