Lic Saral Pension Plan Calculator

LIC Saral Pension Plan Formula:

\[ Pension = Purchase\ Price \times Annuity\ Rate \]

Pension (monthly pension, INR):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the LIC Saral Pension Plan?

The LIC Saral Pension Plan is a non-linked, non-participating individual pension plan offered by Life Insurance Corporation of India. It provides a regular pension income during retirement years in exchange for a single premium payment.

2. How Does the Calculator Work?

The calculator uses the simple pension formula:

\[ Pension = Purchase\ Price \times Annuity\ Rate \]

Where:

\( Purchase\ Price \) — Single premium amount paid (INR)
\( Annuity\ Rate \) — Rate determined by LIC based on age and policy terms (decimal)
\( Pension \) — Monthly pension amount (INR)

Explanation: The annuity rate is predetermined by LIC and varies based on the purchaser's age, policy term, and type of annuity chosen. Higher purchase prices and annuity rates result in higher monthly pensions.

3. Importance of Pension Planning

Details: Proper pension planning ensures financial security during retirement years. The LIC Saral Pension Plan offers a guaranteed income stream, helping individuals maintain their standard of living after retirement.

4. Using the Calculator

Tips: Enter the single premium amount in INR and the annuity rate as a decimal (e.g., 0.05 for 5%). Both values must be positive numbers. The calculator will compute the monthly pension amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum purchase price for LIC Saral Pension Plan?
A: The minimum purchase price varies but typically starts from ₹1,00,000 for a single premium payment.

Q2: How is the annuity rate determined?
A: The annuity rate is set by LIC based on factors like age at entry, policy term, and type of annuity option chosen (immediate or deferred).

Q3: Can I surrender the policy before maturity?
A: Surrender terms vary by policy. Generally, early surrender may result in reduced benefits or surrender charges. Consult your policy document for specific terms.

Q4: Is the pension amount fixed or variable?
A: The LIC Saral Pension Plan typically offers a fixed pension amount throughout the payout period, providing stability and predictability.

Q5: Are there tax benefits available?
A: Premiums paid may be eligible for tax deductions under Section 80C of the Income Tax Act, subject to prevailing tax laws and limits.