Retirement planning is crucial for ensuring a steady and reliable income in your golden years. One of the trusted ways to secure a lifelong pension is through a pension plan offered by Life Insurance Corporation of India (LIC). Among LIC’s offerings, the LIC Saral Pension Plan 862 stands out as a straightforward, immediate annuity plan designed to provide a guaranteed pension after a single lump sum payment.

What is LIC Saral Pension Plan 862?

LIC Saral Pension Plan 862 is a standard immediate annuity plan introduced by LIC to provide a simple and transparent retirement income solution. When you pay a one-time lump sum premium (also called purchase price), the insurer starts paying you a fixed pension immediately.

Key Highlights:

• Immediate Annuity: Pension payments start right after your one-time premium payment.
• Two Variants: Choose between Single Life Annuity and Joint Life Last Survivor Annuity.
• Guaranteed Pension: Annuity rates are guaranteed at the start and continue for life.
• No Medical Tests: Easy to buy without any health check-up.
• Policy Tenure: Whole life policy, pension paid throughout annuitant’s lifetime.
• Flexible Payment Mode: Monthly, quarterly, half-yearly, or yearly pension payments.
• Minimum Age At Entry: 40 years
• Maximum Age At Entry: 80 years

Why Choose LIC Saral Pension Plan?

The Saral Pension Plan is designed for people who want financial security in retirement with minimal complexities. Here’s why it is worth considering:

• It offers regular income for a lifetime.
• The lump sum premium is invested safely by LIC, a government-backed entity.
• After the pensioner’s death, the purchase price is returned to the nominee.
• In the Joint Life Option, the pension continues for the spouse or second annuitant until their demise.
• You can avail tax benefits under Section 80C for the premium paid.
• The annuity income is taxed as per your income slab but the purchase price return is tax-free.
• You can surrender the policy after 6 months in case of critical illness and get 95% refund.
• A loan facility is available against the policy after 6 months.

LIC Saral Pension Plan 862: Two Annuity Options Explained

When purchasing the LIC Saral Pension Plan, you can choose between these two options:

Annuity Option	Description	Pension Beneficiary	Purchase Price Return
Option 1: Single Life Annuity with Return of 100% Purchase Price	Pension paid to you for your lifetime	You (policyholder)	After your death, 100% of purchase price is returned to the nominee.
Option 2: Joint Life Last Survivor Annuity with Return of 100% Purchase Price	The pension is paid first to you, then to your spouse (or second annuitant) for their lifetime	You and your spouse/second annuitant	After the death of the last survivor, 100% of purchase price is returned to the nominee.

Note: The annuity option chosen when buying the plan is final and cannot be changed later.

How to Use LIC Saral Pension Plan 862 Calculator?

The LIC Saral Pension Plan calculator is a simple online tool that helps you estimate how much pension you will receive based on your inputs. Here is how it works:

Step-by-step Guide

1. Enter Your Age: Your age at the time of buying the policy affects the annuity rate.
2. Enter Purchase Price: This is the lump sum amount you pay as premium.
3. Choose Annuity Option: Single Life or Joint Life Last Survivor.
4. Select Annuity Frequency: Monthly, quarterly, half-yearly, or yearly.
5. Calculate: The calculator will show your estimated pension payout based on LIC’s annuity rates.

The pension payout depends on your purchase price, age, option chosen, and frequency. The calculator quickly gives you an idea of the retirement income you can expect.

Example of Pension Calculation

Let’s say you are 60 years old and want to invest ₹10,00,000 in the Saral Pension Plan.

• Option 1 – Single Life Annuity: You might get approximately ₹64,350 yearly pension.
• Option 2 – Joint Life Last Survivor Annuity (with spouse aged 55): Approximate yearly pension might be ₹63,650.

If you choose monthly payouts, divide the annual pension by 12 accordingly.

Features and Benefits of LIC Saral Pension Plan 862

• Guaranteed Pension for Life: No matter how long you live, pension payments will continue.
• Single Lump Sum Payment: No recurring premium payments.
• Flexible Pension Payout Frequency: Choose the mode that suits your convenience.
• Return of Purchase Price: Your lump sum is returned after the last surviving annuitant’s death.
• Online and Offline Purchase: Easy access via the LIC portal or branch offices.
• Tax Advantage: Premium qualifies for deduction under Section 80C, and the nominee receives a tax-free return.
• Policy Loan Available: After 6 months, you can avail a loan on your policy.
• Surrender Option: policy can be surrendered after 6 months for a 95% refund if critical illness strikes.

Eligibility and Conditions

• Age Limits: Minimum 40 years, Maximum 80 years.
• Minimum Purchase Price: Depends on minimum annuity, generally ₹2,50,000 or more.
• Maximum Purchase Price: No limit.
• Policy Term: Whole life with lifetime annuity payments.
• Nominee: Must be nominated at the time of policy purchase.

How to Buy LIC Saral Pension Plan 862?

You can easily buy LIC Saral Pension Plan 862 online or offline.

Online Process:

• Visit LIC Official Website.
• Go to ‘Buy Policies Online’ and select “Saral Pension Plan 862”.
• Fill in your personal details, age, premium amount, annuity option, and payment mode.
• Make the payment online.
• Get policy documents instantly after successful purchase.

This digital facility conveniently saves time and offers safe transactions.

Tax Benefits in LIC Saral Pension Plan 862

• The premium you pay as a lump sum qualifies for deduction under Section 80C of the Income Tax Act. The limit is up to ₹1.5 lakh per financial year.
• The annuity income received is taxable as per your income tax slab.
• The return of purchase price to nominee after death is tax-free under Section 10(10D).

LIC Saral Pension Plan Calculator: Benefits for You

Using the calculator, you can:

• Plan Your Finances Better: Know how much pension income you will get based on your investment.
• Compare Annuity Options: Check differences in payouts between Single Life and Joint Life options.
• Choose Payment Frequency: See impact of monthly vs yearly pension on your cash flow.
• Adjust Premium Amounts: Experiment with different lump sum amounts to fit your budget and desired pension.
• Make Informed Decisions: Clear picture of retirement income before buying the plan.

Important Notes and Tips

• Once your annuity option is chosen at the start, it cannot be changed later.
• Your pension amount is fixed and does not change with inflation, so consider this while planning.
• LIC Saral Pension Plan is best suited for individuals looking for steady, risk-free, lifelong income.
• If you want additional benefits like increasing pension over time or deferred annuity, you may explore other LIC pension plans like Jeevan Akshay VII or New Jeevan Shanti.
• Always buy plans from official LIC website or authorized agents to avoid fraud.
• Compare your pension calculator results with LIC’s latest annuity rates.
• Consider your tax implications and financial goals before investing.

Frequently Asked Questions

Summary

The LIC Saral Pension Plan 862 is an uncomplicated, reliable choice for anyone seeking an immediate pension after retirement. With a single lump sum payment, you get a guaranteed pension for life with an assured return of the purchase price to your nominee. The LIC Saral Pension Plan Calculator is a user-friendly tool to estimate your pension before making the investment, helping you plan your retirement income smartly.