Pension Plans offered by LIC
Pension plans are specialized insurance plans to provide you with a steady flow of income after your retirement. A pension plan pays out the sum assured in periodic instalments so that you never feel the absence of a fixed source of income post retirement.
The Life Insurance Corporation of India, being one of the oldest insurance providers in the country, is most trusted in this field. Pension plans offered by LIC India include Varistha pension Bima Yojana, New Jeevan Dhara I, New Jeevan Nidhi, and Jeevan Akshay VI. The former two plans have been recently withdrawn by LIC. Hence, we will be talking about the plans that are still available in the market- LIC New Jeevan Nidhi and LIC Jeevan Akshay VI.
LIC New Jeevan Nidhi
This LIC pension plan is a deferred annuity with-profit pension plan. A deferred annuity plan is a type of pension plan in which you pay single or regular premiums throughout the policy term and start receiving regular pension after the maturity of the policy. Following are the features and benefits of this LIC pension plan:
- Entry age is Minimum 20 years and maximum 58 years (for regular pay)/60 years (for single pay).
- Policy Tenure is minimum 5 years and maximum 35 years.
- Vesting age is 55 years – 65 years.
- Minimum sum assured is Rs. 1 lakh (for regular pay)/ Rs. 1.5lakhs (for single pay).
- Premium paying term is equal to your policy term.
- Premium paying frequency is yearly/ half-yearly/ monthly/ quarterly.
- Death benefit.
- Vesting benefit.
- Guaranteed additions.
- Participation in profits of the company.
- Accidental Death and Disability Rider can be purchased to avail some additional benefits.
LIC Jeevan Akshay IV
This LIC pension plan is an immediate annuity plan. An Immediate annuity plan is a type of pension plan in which you pay a lump sum amount only once and start receiving your pension immediately. Following are the features and benefits of this LIC pension plan:
- Entry age is minimum 30 years and maximum 85 years.
- No medical examination is required to purchase this pension plan.
- You have to pay only once to purchase the plan.
- The purchase price is Rs. 1 lakh. If you purchase online, the purchase price will be Rs. 1.5lakhs.
- This pension plan allows you to choose from a variety of available annuity options. The list is as follows:
- Option 1: The annuity will be paid for life with a uniform rate.
- Option 2: Annuity will be paid for 5/10/15/20 years and thereafter as long as the policy holder is alive.
- Option 3: Annuity will be paid for life with return of original investment on death of the policy holder.
- Option 4: Annuity will be paid for life increasing at a simple rate of 3% p.a.
- Option 5: Annuity will be paid for life with a provision of 50% of the total annuity payable to spouse on death of the policy holder.
- Option 6: Same as option 5 with a 100% of the annuity payable to spouse on death of the policy holder.
- Option 7: Same as option 6, plus the original investment will be returned on the death of policy holder
- Annual annuity amount depends on the purchase price as well as on the age of the policy holder.
- The policy holder receives guaranteed annuity as long as he is alive.
- Annuity payout frequency is yearly/ half-yearly/ quarterly/ monthly
This LIC pension plan offers seven different annuity options. All these plans offer different benefits on the unfortunate death of the policy holder.
A pension plan is very important as it allows you to remain financially independent even after your retirement. There is no better way to a successful retirement planning than investing your hard earned money in an LIC pension plan so that you can lead a tension-free and financially secure life post retirement.