It’s not difficult to plan your retirement income. To quickly estimate your annuity returns, use the LIC’s Saral Pension (Plan 862) Premium and Maturity Calculator. You can enter a premium and quickly see how much you will receive in periodic pensions under various annuity options, regardless of your age. This tool gives you the clarity, accuracy, and confidence you need to take charge of your retirement.
LIC Saral Pension (Plan 862)
Standard Individual Immediate Annuity Plan with Return of Purchase Price
Why Choose LIC’s Saral Pension (Plan 862)?
1. Simple, Transparent, Immediate Annuity
- This is a single premium, individual immediate annuity plan that is not linked and does not participate.
- In accordance with your selected mode (monthly, quarterly, half-yearly, or annual), you immediately start receiving annuity payments (in arrears) after paying a one-time premium (the “Purchase Price”).
- The plan’s value lies in turning your capital into a consistent, lifetime pension; it has no maturity benefit.
2. Multiple Options & Death Benefits
- Options such as Joint Life Last Survivor with Return of Purchase Price and Life Annuity with Return of Purchase Price are available to you.
- In many variations, your nominee receives 100% of the purchase price upon the annuitant’s (or last survivor’s, if applicable) death.
3. Policy Flexibility & Safeguards
- After you receive the policy document, you have 30 days to cancel at any time.
- If a critical illness is diagnosed after six months, for example, you may be able to surrender and receive 95% of the purchase price, subject to certain conditions.
- After six months, policy loans are permitted; the interest rate is set at the rate on 10-year government securities plus 200 basis points, with certain restrictions.
- Under the applicable provisions of the Insurance Act, nominations and assignments are permitted.
4. Trusted by Millions
The oldest and biggest life insurer in India supports the plan because it is under the auspices of LIC (Life Insurance Corporation of India). Because of LIC’s widespread reach, reputation, and regulatory oversight, many policyholders select it.
How the Premium & Maturity Calculator Works
- Input your age / gender / whether spouse is included
- Enter the premium (lump sum “Purchase Price”) you’re willing to invest
- Select the annuity payment frequency (monthly, quarterly, half-yearly, yearly)
- Select the annuity option (e.g. life annuity with return of purchase price, joint life, etc.)
- The calculator shows what happens to your capital or death benefit under each option and outputs your expected periodic pension amount.
You can compare options and select the one that best suits your retirement objectives thanks to this transparency.
Real-World Example & Data
Let’s run a sample:
- Age: 60 years
- Premium (Purchase Price): ₹10,00,000
- Option: Life Annuity with Return of Purchase Price
- Mode: Monthly
Assume (hypothetically) that the calculator indicates ₹8,500 per month for life. This translates to a pension of ₹1,02,000. If you die before then, the capital will be protected for your heirs. Over 20 years, that equates to ₹20,40,000 in payments, more than doubling.
Industry context:
- IRDAI data indicates that because of the uncertainty in equities and the volatility of interest markets, many retirees are switching from accumulation funds to guaranteed annuities.
- In India, pension plans with guaranteed payouts are growing in popularity, particularly as life expectancy increases.
Expert opinion:
“In a low-interest environment, locking in guaranteed lifetime income gives retirees peace of mind. Tools like the LIC’s Saral Pension calculator demystify the process.” — Senior Actuarial Consultant, Mumbai
Key Metrics & Benefits in Numbers
| Metric / Feature | Typical Value / Condition |
|---|---|
| Free look period | 30 days |
| Surrender (after conditions) | 95% of purchase price |
| Loan interest rate | 10-year G-Sec rate + 200 bps (floating) |
| Death benefit (for many options) | 100% of purchase price to nominee |
| Annuity modes available | Monthly, Quarterly, Half-yearly, Yearly |
| No maturity benefit | As this is an immediate annuity |
These characteristics make it obvious that this plan is not designed for accumulation or speculative growth, but rather for immediate, predictable income.
Frequently Asked Questions (FAQs)
Under LIC, it is a non-linked, non-participating individual immediate annuity plan. Depending on the frequency and option you choose, you pay a one-time amount (purchase price) and begin receiving annuity payments shortly thereafter.
Annuity payments start one interval (based on the mode) from the start of the policy (one month for monthly, one year for yearly, etc.) in arrears.
No. Once you choose your annuity option (life, joint, with return of purchase price etc.), it cannot be altered later.
No. This is an immediate annuity plan, so there is no maturity benefit.
The choice of an annuity option determines this. The nominee or legal heirs receive the purchase price in options that have “Return of Purchase Price” (ROP). Annuity payments usually stop upon death in a pure life annuity without ROP.
Normally, surrender is only permitted under specific circumstances and in cases of critical illness (after six months). After deductions, you might get 95% of the purchase price.
Yes, six months later. The maximum loan amount that can be taken out is restricted so that the annual interest does not surpass half of the annual annuity. The 10-year G-Sec plus 200 basis points is the basis for the interest rate.
In accordance with current tax laws, any applicable statutory taxes will be deducted from the premium or payouts. These taxes are not included in the calculation of an annuity and are extra.
Annuity payments will be modified starting on the following due date if the correct age is different. Interest may be collected on overpayments. The policy may be cancelled with a refund (deducting charges, etc.) if the corrected age makes the policy uninsurable.
After you receive the policy document (either in hard copy or electronic format), you have 30 days to “look it over.” Your premium (less stamp duty and any annuity already paid) will be reimbursed if you return the policy with objections to any terms you find unacceptable.
Final Thoughts & Persuasion
- Certainty in Uncertain Times: A guaranteed pension stream is a strong anchor for retirees during volatile market times.
- Comparing your options side by side with the calculator will allow you to see the differences between what you currently have and what your heirs might receive.
- Legacy Protection: Even if you die young, many versions leave your heirs 100% of the purchase price.
- Make use of LIC Credibility: LIC is a well-established, regulated insurer with a large local presence for support, grievance resolution, and servicing in your city.
- Empowerment Through Data: Using the calculator itself provides clarity; there are no hidden surprises or black boxes.