The LIC Saral Pension Yojana is a pension scheme that holds significance for individuals planning their retirement and financial security. This blog addresses common queries related to this scheme, offering clarity on its nature and benefits.
Saral Pension Yojana is a pension scheme launched by the Indian government. The scheme aims to provide social security to unorganized sector workers such as farmers, self-employed individuals, and small business owners. India’s Insurance Regulatory and Development Authority has directed all insurance companies to launch this yojana. From 1 April 2021, all insurance companies will be required to implement this scheme.
All insurance companies must maintain simple and clear terms and conditions under this scheme. All of these terms and conditions will apply to all companies. If the customer uses this scheme from any company, he will receive the same terms and conditions.
Saral Pension Yojana Launched
On 1 July 2021, the Life Insurance Corporation of India introduced the Saral Pension Yojana. The policyholder will only have to pay a single premium when purchasing coverage through this programme. They will receive a pension. In addition, after six months following the policy’s purchase, a loan may be taken against the policy.
According to LIC, this plan is an individual, single-premium, non-linked, non-participating instant annuity plan. India’s Insurance Regulatory and Development Authority will run the Saral Pension Yojana. This plan’s unique feature is that it is an immediate annuity plan.
The subscriber can choose monthly, quarterly, half-yearly, or annual annuity periods.
Option Under Saral Pension Yojana
This Scheme is available online and offline for purchase. This plan’s minimum annuity is ₹12,000 per year. Furthermore, the annuity mode selected option and the policyholder’s age determine the minimum purchase price. The maximum purchase price has yet to be set under this scheme. Saral Pension Yojana is available to citizens aged 40 to 80. The beneficiary must invest at least one thousand rupees per month under this scheme.
- Life Annuity with Return of Purchase Price
- Joint Life
Eligibility Criteria for Saral Pension Yojana
| Criteria | Minimum | Maximum |
| Entry Age | 40 years from the last birthday | 80 years from the last birthday |
| Purchase Price | Depends on the annuity amount | |
| Policy Term | The policyholder is eligible to get a pension for the complete lifetime | |
| Annuity Amount | Yearly- ₹12,000 Half-yearly- ₹ 6, 000 Quarterly-₹ 3,000 Monthly- ₹ 1,000 | No limit |
Key Highlights Of Saral Pension Yojana 2024
| Scheme name | Saral Pension Yojana |
| Who launched | Insurance Regulatory and Development Authority of India |
| Beneficiary | Citizens of India |
| Purpose | To deliver pension scheme to all citizens with simple terms and conditions. |
| Official website | To be launched soon |
| Year | 2022 |
| Application type | Online/Offline |
| Start date | 1 April 2021 |
| Loan & surrender facility | Available |
| Purchase price | Annuity |
Saral Pension Yojana Annuity
The term ‘annuity’ refers to the sum that an insurance company pays a customer each year in exchange for an investment. The customer can receive an annuity upon investing under this Yojana. Subscribers can select a monthly, quarterly, half-yearly, or annual annuity period.
The customer must pay a fee to receive the benefits of this plan. Following the death of the subscriber, the full purchase amount will be returned. For the entirety of the subscriber’s life, an annuity will be paid. The annuity payment will be made to the subscriber’s spouse after his or her passing.
Saral Pension Yojana 2024 Minimum Annuity Amount
| Period | Minimum Amount |
| Monthly | ₹1000 |
| Quarter | ₹3000 |
| Half year | ₹6000 |
| Annual | ₹12000 |
Objective of IRDAI Saral Pension Yojana 2024
The Yojana’s major goal is to make it easier for all Indian citizens to understand the pension system. All insurance firms will launch the Saral Pension Yojana through this programme, which will have straightforward terms and conditions that are the same across all businesses so that the general public won’t struggle to grasp the terms and conditions and may choose the policy with ease. Through this program, the customer will now receive identical terms and conditions from all insurance firms.
Benefits and Features of Saral Pension Yojana
- In India, the Insurance Regulatory and Development Authority of India has launched the Saral Pension Yojana
- All insurance providers must maintain uniform, straightforward terms, and conditions under this plan
- Now, customers who take advantage of this arrangement from any organization will receive the same terms
- An annuity will be given to the consumers under this plan in exchange for their investment
- The consumer must pay a purchase price to receive the benefits of this plan
- The subscriber’s death will result in a full refund of the purchase fee
- The subscriber will receive an annuity payment for their entire life
- The annuity will be paid to the subscriber’s spouse after his or her passing
- 100% of the purchase price will be reimbursed to the client’s legitimate heirs in the event of the death of the spouse
- This plan will not offer a maturity benefit.
Important Documents
- Aadhar card
- Bank account statement
- Ration card
- Residence certificate
- Identity certificate
- Passport size photograph
- Mobile number
Why Vakilsearch?
Vakilsearch is now Zolvit a legal platform that provides various legal services for businesses and individuals. We have a team of legal experts who will guide you through the application process for the Saral Pension Scheme 2024. We will inform you about the scheme, eligibility, and benefits. Our law team will contact you and help you with the application process from the start.
The entire process will be transparent, and you will know the progress of the application process at every stage. The pricing of Vakilsearch’s services is lower compared to other online legal firms in India. Our customer support team will contact you if you have questions during the application process.
FAQs on Saral Pension Yojana 2024
What is a Saral Pension Yojana?
The Saral Pension Yojana is a pension scheme offered by the Life Insurance Corporation of India (LIC). It is designed to provide a simple and accessible way for individuals to secure a regular income after their retirement. This scheme allows policyholders to make periodic contributions, and upon reaching the vesting age, they receive regular pension payments.
How to calculate returns on Saral Pension Yojana?
Returns on the Saral Pension Yojana are typically calculated based on factors such as the premium amount, the chosen policy term, the age of the policyholder, and the prevailing interest rates at the time of investment. The LIC provides tools and tables to help individuals estimate their potential returns, or individuals can consult LIC agents or financial advisors for personalized calculations.
What will be the interest rate applicable on the loan provided under the LIC Saral Pension scheme?
The interest rate applicable to loans provided under the LIC Saral Pension scheme can vary and is typically determined by LIC based on market conditions and policy provisions. Policyholders should refer to the terms and conditions of their specific Saral Pension Yojana policy to understand the applicable interest rates for loans.
Will the LIC Saral Pension Yojana accept the Joint Subsidy Plan?
The acceptance of a Joint Subsidy Plan under the LIC Saral Pension Yojana may depend on the specific terms and conditions of the policy. It's advisable to contact LIC directly or consult with LIC agents or financial advisors to inquire about the availability of Joint Subsidy Plans for Saral Pension Yojana policies.
What is the age of access of the applicants to avail themselves of the LIC Saral Pension Yojana?
The age at which applicants can avail themselves of the LIC Saral Pension Yojana may vary based on the policy's terms and conditions. Typically, this pension scheme is designed to cater to individuals who are planning for their retirement, so the age of entry is relatively flexible and can range from a younger age to closer to retirement age. The exact age eligibility criteria should be checked with LIC.
Is there any facility like taking loans with the help of the Life Insurance Corporation’s Saral Pension Yojana 2021?
Yes, LIC Saral Pension Yojana policies may offer a loan facility. Policyholders may be eligible to take loans against the policy's surrender value, subject to certain conditions and terms outlined in the policy document. The specific loan provisions can vary, so it's essential to refer to the policy terms or consult LIC for details regarding loans.
When was the LIC Saral Pension Yojana officially launched by the Life Insurance Corporation of India?
The official launch date of the LIC Saral Pension Yojana was on July 1, 2021.
