Who doesn’t want a wealthy retirement with a tension-free smooth monthly pension? To facilitate policyholders, there are multiple Pension Plans LIC for monthly income.
Here, in this blog post, we will figure out LIC pension plan schemes. From this retirement plan of LIC, you can easily judge the best LIC Pension for you.
Table of Contents
Types of Pension Plans
Although Agents can turn any LIC Plan into a pension plan. But officially there are two basic categories of plans to suit clients’ different needs.
The available pension plans are of two types
| Deferred Annuity Plan | 1. Under the Deferred Annuity Plan, you invest for a few years. 2. Accumulate money 3. wait for a few more years or 4. instantly start taking annuity ( pension payments) |
| Immediate Annuity Plan | 1. Under the Immediate Annuity Plan you Deposit a Lump Sum amount 2. Choose your annuity mode monthly, quarterly, half-yearly or yearly ) 3. Enjoy pension from next month, Quarter, Half Year or year. |
LIC Pension Plans Details
Based on the above two parameters LIC Pension plan can be divided into the following categories:
| Deferred Annuity Plan | Immediate Annuity Plan |
| LIC New Jeevan Shanti ( plan no 858)- Single Premium | LIC Saral Pension Plan ( plan no 862) |
| LIC Jeevan Dhara-II ( plan no 872)-Regular or Single Premium | LIC Jeevan Akshay 7( plan no 857) |
| LIC New Pension Plus – ULIP Pension Plan -Regular or Single Premium | LIC New Pension Plus – ULIP Pension Plan -Regular or Single Premium |
This categorisation makes the choice simpler for you. So, if you wish to accumulate money in a few years – you can choose Deferred Annuity plans otherwise go for an Immediate Annuity Plan.
LIC New Jeevan Shanti (table number 858)
LIC New Jeevan Shanti is a single premium LIC pension plan. It is a deferred annuity plan where after payment of the lumpsum amount one has to wait for at least a year, to get pension.
The minimum Deferment period is 1 year. However, the policyholder can choose to defer the annuity for 1 to 12 years.
Key Features
- Two Annuity Options: The plan provides 2 different annuity options to choose from.
- Deferred annuity for Single life and Deferred annuity for Joint life
- Lifetime Income: Pay – Once – Enjoy – Forever
- Deferment Period – Minimum 1 year and Maximum 12 years.
- Guaranteed Additional Benefit: During the period of deferment, this policy offers guaranteed additional benefits to the policyholder.
- Death Benefits shall be higher of:
- → “Purchase Price” plus accrued “Additional Benefit on Death” minus Total annuity amount payable till date of death
- OR
- →105% of Purchase Price.
| Minimum age at entry: | 30 years |
| Maximum age at entry | 79 years for Deferred annuity |
| Minimum/Maximum Deferment Period | 1 Year/ 12 Years |
| Minimum/Maximum purchase Price | Rs. 150000/ No Limit |
LIC Jeevan Akshay VII
LIC Jeevan Akshay VII is an Immediate Annuity plan. This plan can be purchased by paying a lump sum amount. You can choose from the 10 different annuity options. Mode of payment such as monthly, quarterly, half-yearly or yearly options are available.
Key Features
- 10 Annuity Options to choose from
- Different Annuity modes are available- monthly, quarterly, half-yearly or yearly options
| Minimum age at entry: | 25 years |
| Maximum age at entry | 85 years and 100 Years for option J |
| Minimum/Maximum Purchase Price | Rs. 100000/ No Limit |
Annuity Options LIC Jeevan Akshay VII
- Option A: Immediate Annuity for life.
- Option B: Immediate Annuity with a guaranteed period of 5 years and life thereafter.
- Option C: Immediate Annuity with a guaranteed period of 10 years and life thereafter.
- Option D: Immediate Annuity with a guaranteed period of 15 years and life thereafter
- Option E: Immediate Annuity with a guaranteed period of 20 years and life thereafter
- Option F: Annuity for life with return of purchase price on death of the annuitant.
- Option G: Annuity payable for life increasing at a simple rate of 3% p.a.
- Option H: Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
- Option I: Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
- Option J: Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of survivor.
LIC Saral pension Plan
LIC Saral pension Plan is an Individual Immediate Annuity plan. Make a lump sum payment and enjoy a life-long pension. You can choose from the 2 annuity options. Mode of payment such as monthly, quarterly, half-yearly or yearly options are available.
Key Features
- On payment of a lump sum amount, the policyholder has the option of choosing between two types of annuities: Option 1 and Option 2.
- Mode Of Annuity Payments: Annual, half-yearly, quarterly, and monthly are the modes of annuities available under the plan.
- Loan Facility: The policy loan can be taken out at any moment after six months from the policy’s start date.
- Annuity Starts as early as next month.
| Minimum age at entry: | 40 years ( last Birthday) |
| Maximum age at entry | 80 years ( last Birthday) |
| Minimum/Maximum Purchase Price | depend on the Minimum Annuity / No Limit |
LIC New Pension Plus (Table number 867)
LIC’s New Pension Plus is a Non-Participating, Unit Linked, Individual Pension plan. One can pay systematically and take regular income in later years.
This plan can be purchased either as Single Premium or Regular Premium payment frequency.
LIC New Pension Plus Features
- Flexibility to choose your premium amount and policy term
- Choose from Single Premium/ Regular premium
- Four funds investment Option
- Guaranteed Addition at a prespecified duration
- Option to select Annuity Option – One can choose to take immediate annuity or defer the payments
| Minimum age at entry: | 25 years ( last Birthday) |
| Maximum age at entry | 75 years ( last Birthday) |
| Minimum Purchase Price | Single Premium – Rs. 1,00,000Regular Premium – Rs. 30,000 |
| Maximum Purchase Price | No Limit |
LIC Jeevan Dhara II
LIC Jeevan Dhara-II plan is a Non-Linked, Deferred Annuity plan, where you pay for a certain duration of 5 to 15 years or more and enjoy regular annuities.
Jeevan Dhara provides the option to choose the mode of Premium Payment, Deferment Period, Annuity Option and mode of Annuity Payment too.
Key Features
- Guaranteed Annuity – You know the annuity amount in beginning itself
- Wide range of annuity options to suit your needs.
- Flexibility to choose from: Regular Premium and Single Premium & Single Life Annuity and Joint Life Annuity.
- Available Deferment Period from 5 years to 15 years (in case of Regular Premium) and from 1 year to 15 years (in case of Single Premium)] i.e. when to start annuity payments as per your requirements.
- Mode of Annuity payments (yearly, half-yearly, quarterly and monthly).
- High Premium Incentive.
- Incentive for existing Policyholders/Nominees/Beneficiaries of the Corporation.
- Top-up Annuity i.e. Option to increase the annuity by paying additional premium at any time during the Deferment Period.
- Option to take death benefit as Lump-sum, in the form of Annuitisation or in installments.
- Liquidity Option i.e. option to receive a lump-sum amount in return of a reduction in annuity payments and other benefits.
- Advanced Annuity Option in case of Joint Life Annuity Options with Return of Premium i.e. option to the surviving Annuitant [on the first death (of either of the covered lives)] to withdraw discounted cash value of annuity payable during the ‘Advance Annuity Period’ as a lump-sum
| Minimum age at entry: | 20 years ( last Birthday) |
| Maximum age at entry | 80 years ( last Birthday) |
| Minimum Purchase Price | Single Premium – Rs. 1,00,000 Regular Premium – Rs. 11,000 |
| Maximum Purchase Price | No Limit |
Why choose LIC Pension Plans
Choosing LIC (Life Insurance Corporation of India) pension plans can be advantageous for several reasons:
1. Trust and Reliability– LIC is one of the oldest and most trusted insurance companies in India. It has a long-standing reputation for providing reliable financial products and services.
2. Variety of Plans– LIC offers a variety of pension plans catering to different needs and preferences of individuals. Whether you’re looking for a deferred annuity plan, immediate annuity plan, or a combination of both, LIC likely has a product to suit your requirements.
3. Guaranteed Income– LIC pension plans often come with the option of receiving a guaranteed income for life, ensuring financial stability during retirement.
4. Tax Benefits- Contributions made towards LIC pension plans are eligible for tax benefits under Section 80CCC of the Income Tax Act, 1961. But , the annuity received is taxable under the head ‘Income from Other Sources.’
5. Flexibility-LIC pension plans typically offer flexibility in terms of premium payment options, annuity options, and the choice of riders to enhance coverage.
6. Bonus and Additions– Some LIC pension plans may offer bonuses or additions, which can further boost the accumulated corpus or annuity payouts.
7. Survivor Benefits– Many LIC pension plans come with survivor benefits, ensuring that the spouse or nominee continues to receive benefits in case of the policyholder’s demise.
8. Financial Security-Planning for retirement with LIC pension plans can provide peace of mind and financial security during your post-retirement years.
9. Customer Service– LIC has an extensive network of branches and customer service outlets, making it convenient for policyholders to manage their pension plans and address any queries or concerns.
10. Government Backing– LIC is a government-owned corporation, providing an additional layer of security and trust for policyholders.
Before choosing any pension plan, it’s essential to assess your financial goals, risk tolerance, and retirement needs to ensure that the plan aligns with your objectives. Additionally, consulting with a financial advisor can help you make an informed decision based on your circumstances.
How to purchase LIC pension Plan
As a customer one can purchase LIC Plans online or offline through LIC Agents or Bank branches.
Online Method
- Visit LIC Website https://licindia.in/home
- Click on Buy Online
- Choose your Plan
- Fill in your details such as name, age, gender, plan options etc.
- Make Premium Payment
- Policy details will be sent online to the registered email address.
Offline Method
Visit a local LIC branch or ask for an advisor’s help. This way you can purchase LIC policy offline.
You can always work with a Certified Financial planner and plan your finances, including Emergency funding, building a corpus for house purchase, and taking care of your health needs so that you can plan a better retirement income in your second inning, leading to a more secure and financially stable retirement.
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