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LIC (Life India Corporation), the oldest player in the insurance sector in India, has been catering to the insurance needs of people for decades. It has successfully grabbed the maximum market share with more than 250 million customers. LIC has extensive market reach with a variety of plans that meet the needs of every generation. It keeps offering different products from time to time that meet the evolving needs of people. Currently, it is offering four pension plans to help people to safeguard their post-retirement life.
Pension plans offered by LIC are most suited for those who are planning a secure future and for senior citizens. Check the list of top pension plans provided by the LIC India.
It is an immediate annuity policy which can be purchased by paying a lump sum amount. Under this plan, annuity payment of the standard amount is made throughout the lifetime of the policyholder. Various options are available to receive annuities. The pension starts immediately from the next chosen date once the premium is paid.
Following are the types of annuity under LIC Jeevan Akshay VI plan:
One must fulfill the below-mentioned criteria to enter into LIC Jeevan Akshay Plan.
It is a single premium plan in which the policyholder has an option to choose an immediate or deferred annuity. Where the annuity rates are pre-decided at the time of inception of the policy. This plan enables the policyholder to make a one-time investment and earn income for the lifetime. LIC Jeevan Shanti plan offers nine different annuity options to choose from to meet different financial needs of people. This policy can be availed individually or as a joint plan with a parent, children, spouse, sibling, grandparent or grandchild. Under LIC Jeevan Shanti policy, a loan can be taken after completion of one year of the policy.
A policyholder is allowed to surrender the policy at any point of time after three months from the completion of the plan with annuity option of return of purchase price. Additionally, the corporation offers 15 days of free look period which means, if the policyholder is not satisfied with the terms of the plan, the policy may be returned to the corporation within 15 days.
In the case of an immediate annuity, the return starts immediately once the premium is paid. 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.
LIC's New Jeevan Nidhi Plan gives the dual benefit of protection and saving. This plan provides death cover during the policy period and offers annuity on survival till the death of the policyholder.
Jeevan Nidhi is a participating pension plan with the option of regular or single premium payment option. This policy gives a guaranteed accruing in each policy year for the first five years. Under New Jeevan Nidhi plan simple revisionary bonuses and additional bonuses are given from the 6th year till the end of the policy term.
PMVVY is for the senior citizen who is 60 years and above. Under this policy, senior citizens will receive guaranteed returns of 8% for ten years. Additionally, this plan is exempted form goods and service tax. The last date to apply for PMVVY is 31st March 2020. The investment limit under this plan is 15 lakhs.
The pension plans offered by LIC offers numerous benefits to the policyholder.
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.