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Namaskar! Are you on the lookout for the best pension plans? Then you’ve come to the right place! Coverfox has all the vital information to help you choose the best policy to secure your finances in retirement.
This section covers the Pension Plans offered by the Life Insurance Corporation (LIC) and how they help you in the golden years of your life. Want to know more? Scroll down and make the best choice for your future!
LIC (Life India Corporation), the oldest player in India’s insurance sector, has been catering to people’s insurance needs for decades. It has successfully grabbed maximum market share with more than 250 million customers. LIC has extensive market reach, with a variety of plans that meet every generation’s evolving needs. Currently, it offers two pension plans to help prospective buyers plan their retirement smoothly.
One of LIC’s most popular pension plan, Jeevan Shanti, is a single premium policy. It means that the policyholder makes one payment, and they get annuity (life-time income) as per the option chosen by them.
Annuity Rates are pre-decided and guaranteed from the inception of the policy.
LIC’s Jeevan Shanti plan offers 10 different annuity options to choose from to meet various financial needs. This policy can be availed individually or as a joint plan with a parent, child, spouse, sibling, grandparent, or grandchild.
The plan offers 10 annuity options under immediate annuity to choose from:
Immediate Annuity for life
Immediate Annuity with a guaranteed period of 5 years and life thereafter
Immediate Annuity with a guaranteed period of 10 years and life thereafter
Immediate Annuity with a guaranteed period of 15 years and life thereafter
Immediate Annuity with a guaranteed period of 20 years and life thereafter.
Immediate Annuity for life with return of Purchase Price
Immediate Annuity for life increasing at a simple rate of 3% p.a.
Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on the death of the primary annuitant
Joint Life Immediate Annuity for life with a requirement for 100% of the annuity payable as long as one of the annuitants survives.
Joint Life Immediate Annuity for life with a requirement for 100% of the annuity payable as long as one of the annuitants survives and returns to Purchase Price on the death of the last survivor.
The options available under Deferred Annuity are:
A) Deferred annuity for Single life b) Deferred annuity for Joint life
LIC Jeevan Shanti policy allows the policyholder to avail of a loan facility after completing one year of the plan.
The Corporation offers 15 days of free look period. A policyholder is allowed to surrender the policy three months after its inception or after the expiry of the free-look period - whichever comes later. If the policyholder is not satisfied with the terms of the plan, the Corporation allows its return within 15 days.
Eligibility criteria for LIC Jeevan Shanti plan
In the case of an immediate annuity, returns begin after the payment of the premium. The deferred annuity starts after a certain period, as decided by the policyholder. The minimum period for a deferred annuity is one year, whereas the maximum period is 20 years. This plan allows an option to purchased for the benefit of handicapped dependent (Divyangjan) life.
PMVVY is for the senior citizens - those above the age of 60. Under this policy, senior citizens will receive a guaranteed pension rate. The scheme will guarantee a pension at 7.40% p.a. during the plan’s first year. The last date to apply for PMVVY is 31st March 2023 as the government has extended the period of sale of this plan for 3 more years.
The investment limit under this plan is 15 lakhs.
Benefits under Pradhan Mantri Vaya Vandana Yojana
Eligibility criteria of Pradhan Mantri Vaya Vandana Yojana
Sample Pension rates per Rs.1000/-Purchase Price
The pension rates for Rs.1000/-Purchase Price for different modes of pension payments are as below:
The pension installment shall be rounded off to the nearest rupee. These rates are age-independent.
Minimum and Maximum Purchase Price
The minimum and maximum Purchase Price under different modes of pension will be as under:
Minimum Purchase Price
You can apply for LIC pension plans online from the official website of LIC or through intermediaries.
You can log in to the official website of LIC India and choose a suitable LIC pension plan. Choose the coverage and provide personal details as asked. The system will determine the premium amount as per the details that you fill in. You can make premium payment via debit card, credit card or internet banking facility. After successful payment, the policy will be issued.
Some of the LIC pension plans which are not available online, can be purchased from LIC agents, brokers and banks.
Which is the best pension plan in LIC?
LIC offers a number of pension plans such as Life Akshay, Jeevan Shanti, New Jeevan Nidhi, and Pradhan Mantri Vaya Vandana Yojana. Each of them offers unique benefits. It is advisable to choose a suitable plan as per your requirements.
What is LIC Pension Plus plan?
LIC pension plan is a unit-linked pension plan that provides a policyholder a minimum guarantee on the gross premium paid.
Which is the best pension plan in India 2019?
The following are considered the top pension plans in India at present.
What is an employee pension plan?
In the case of employee's pension plan, the pool of money is invested on behalf of the employee, and the earnings generate income to the employees upon retirement.
Is PPF better than LIC?
The LIC maturity claim is treated as taxable income whereas PPF yields are tax-free. In the case of LIC, the premium stays constant whereas in PPF you can invest amount as low as rupees 500 a year.
Which is the best LIC policy for the long term?
LIC e-term insurance, LIC Jeevan Anand, LIC Jeevan Saral are some of the best LIC policies for long-term investment.
Why should I buy LIC’s pension plans?
The premiums paid are exempted from tax, the death benefits are also exempted from the tax, good rebates are given in the premium rates if the policyholder is choosing high sum assured.
Is there any pension plan in LIC?
Yes, LIC Jeevan Nidhi Plan, LIC Jeevan Akshay Plan, Pradhan Mantri Vaya Vandana Yojana are some of the pension plans offered by LIC.