LIC Pension Plan – The Indian life insurance company LIC is the oldest and most trusted insurer in the insurance industry. Under the law of the life insurance company adopted by the Indian Parliament on September 1, 1956, LIC is registered and enjoys the monopoly of power of the country.

In January 2002, the Indian government relaxed insurance regulations and allowed private agents to enter the insurance market.

There are currently around 28 players on the market, but thanks to decades of activity in the insurance sector, LIC still has the largest market share.

Today, the company has a broad customer base of more than 250 million people and strives to maintain the same prices for its services and products in an increasingly competitive insurance market.


LIC Pension Plan


What Are Pension Plans?

Specialized insurance plans that earn a steady income in the golden years after you retire are called pension plans.

These plans are designed so that instead of a principal payment at maturity, as is the case with most insurance plans, a stream of payments is due for maturity for the life of the plan holder.

This may be the reason why these plans are referred to as a cancellation of life insurance plans that provide a lump sum at maturity.

These plans come in two different versions.

1. Immediate pension plan– This is suitable for seniors who have a flat rate. You can pay the lump sum in one option and buy these plans. The annuity rate is fixed or increases depending on the case and known to the bondholder.

The company makes annuity payments from the one-time premium until the policyholder who made the payment is alive. After his death, the pension payments are discontinued.

The policyholder can also purchase the common life version of the immediate pension plan. In this version, the pension is first payable to the policyholder and continues to be paid to the spouse after death and does not end before the death of the spouse.

In some cases, the Company may also reimburse the one-time premium paid to secure the annuity following the death of the creditor and in the case of a joint annuity following the death of the spouse.

2. Deferred annuity -These annuity payments start after the grace period. In this case, the policyholder can make a lump sum payment and then wait for the pension to begin or use the deferment period to pay the premiums accumulated in a corpus.

The latter is generally preferred by investors as they can pay installments to slowly build up a corpus while awaiting pension.

Pension schemes are subject to different tax rules than other insurance schemes, as the pension received is taxable because it is considered income and is therefore not tax-exempt.


Also Read: LIC Jeevan Lakshya Plan


Why Pension Plan?

  • Pension plans are your answer if you want to build a secure pension fund. Since these plans provide for a tiered payment and no lump sum, it is ensured that the funds received are actually used to finance pension and not for other expenses.
    • You can choose the exercise date, ie the date from which you are entitled to a pension, to be the same as the age at which you expect to retire.
    • This would mean that pension payments begin immediately after the end of your income so that you do not feel you have no source of income even after you retire.
    • These projects make you financially independent.

Also Read: LIC Policy Maturity Calculator


LIC Pension Plans

Life insurance corporation India has many pension plans for its clients in his shopping cart.

At the end of the financial year 2014-15, the company had 16.35 million for LIC plans with a sum insured of Rs.1,928.14 billion and an annual premium of Rs.905.64 billion.

It added 24,608 new LIC pension plans this year, with a sum insured of Rs 10,504.04 crore and an annual bonus of Rs 58,97 crore.

From time to time, the company implements new pension plans for LIC and currently offers two main plans to its clients.

The plans are listed below:


Also Read: LIC Jeevan Anand Maturity Calculator


LIC Pension Plan – Jeevan Akshay VI

The Immediate pension plan provides you the following benefit:

  • The LIC pension scheme is an immediate pension plan in which the pension is paid immediately after the payment of the single premium.
  • The pension may be chosen to be paid for a single life, that of the pensioner himself or for the life of the pensioner and his spouse together until the death of the last person.
  • There are several options for pensions available under this LIC plan:
    • Life pension at the lump sum
    • Life annuity with a refund of the purchase price
    • Life pension guaranteed on 5/10/15 or 20 years and payable thereafter
    • Life pension rises at a simple rate of 3% pa ​​
    • Life pension with 50% pension for the spouse after the death of the pensioner
    • Life annuity with 100% pension to the spouse after the death of the pensioner
    • Life annuity with 100% pension for the spouse after the death of the creditor as well as the return price of the purchase price after the death of the last survivor
    • The LIC pension plan can be purchased without a medical test
    • For amounts above the purchase price of at least 2.5 lakhs, a higher pension is payable
    • Pension payments are also higher if the LIC pension plan is purchased online through the company’s website.
    • The premium paid for the pension is tax-exempt under section 80CCC.

Also Read: LIC India Premium Calculator


LIC Pension Plan – Jeevan Akshay VI: Eligibility Details

MaximumMinimum
Annuity Payout FrequencyMonthly, Quarterly,
Half-yearly,
Annually
Monthly, Quarterly,
Half-yearly,
Annually
Purchase Priceno limitRegular Mode: 1 Lakh
Online Mode: 1.5 Lakh
Annual Annuity AmountDepends on the purchase
prise paid and the
Annuitant’s Age
Depends on the purchase
prise paid and the
Annuitant’s Age
Entry Age85 Year30 Year

Also Read: New Endowment Plan Of LIC


LIC Pension Plan – New Jeevan Nidhi Plan

The LIC pension plan is a deferred annuity plan providing savings for retirement and features of the plan are as follows:

  • Profit-sharing is promised through premiums under the plan.
  • Guaranteed supplements will be added to 5% of the sum insured for each full year of insurance in the first five years of this low-income pension plan.
  • Thereafter, the simple survivor bonuses and the last additional bonuses from the 6th year of insurance will be paid in accordance with the profits of the company.
  • At the time of purchase, the sum insured will be paid, including guaranteed supplements, simple repayment bonuses, and any additional final bonus.
  • The policyholder can choose to purchase an immediate pension from the company’s available proceeds upon purchase or to purchase a deferred pension plan with the company at the time of acquisition. this LIC pension plan.
  • If the policyholder of this LIC plan dies within the first five years of the plan, the sum insured with the guaranteed premiums accumulated until death shall be payable to the nominee who is entitled to the death benefit in the form of a lump sum, annuity or an annuity or part thereof. Flat rate and partial pension of your choice
  • In the event of death after the first 5 years, the sum insured of the LIC plan, including the cumulative guaranteed allowances, the individual survivor allowances and the last additional bonus, if any, is due to the candidate who is eligible for the death benefit Lump sum or an annuity or, in part, in the form of a lump sum, and in part in the form of a life at its sole discretion, may benefit
  • The death benefit payment to the candidate is at least 105% of all premiums paid up to the date of death.
  • The low-income country-specific pension scheme can be made more comprehensive with the help of this country’s accident victim and disability pensioner.

Also Read: LIC Jeevan Umang


LIC Pension Plan – New Jeevan Nidhi: Eligibility Details

MaximumMinimum
Premium Paying FrequencyMonthly, Annually,
Half Yearly, Quarterly
Monthly, Annually,
Half Yearly, Quarterly
Sum AssuredNo LimitRegular Pay- 1 lakh
Single Pay- 1.5 Lakh
Annual PremiumDepends On The Age Sum
Assured, And Premium
Paying Terms
Depends On The Age Sum
Assured, And Premium
Paying Terms
Premium Paying TennureEquals To The Policy
Pay Or Single Pay
Equals To The Policy
Pay Or Single Pay
Policy Tenure35 years5 years
Vesting Age65 years55 years
Entry AgeRegular Pay- 58 Years
Single Pay- 60 Years
20 years

Also Read: LIC Jeevan Anand


Applying For LIC Pension Plan

The company offers special pension plans for LIC that are only available online.

Online:

The customer simply has to log on to the Policy Planner’s website, select the desired LIC pension plan, select insurance coverage, and provide the details.

The premium is determined based on the given data. The customer then has to pay the premium online via a credit card, debit card or online banking facility and the policy will be issued.

Intermediaries:

LIC pension plans that are not available online can be purchased from agents, brokers, banks, etc. where intermediaries participate in the application process.


Also Read: LIC Jeevan Labh


Advantages of LIC Pension Plans

LIC pension plans offer policyholders many benefits. These include obvious benefits such as regular income from some hidden benefits.

Let’s take a closer look:

  • Regular Income: The main benefit of LICP plans is that the insured and his / her family receive regular income after the LIC pension plan period has expired.
    • Most LICPs provide for the payment of the premium throughout the life of the person. While it may seem difficult for people who care more about the present and the present to see the future as reality, it is an indisputable fact that will come.
    • And the only way to live your preferred lifestyle is to invest in a retirement plan for LICs, as you can save time and raise your pension income to a level that makes life easy for you.
  • Hassle-free Income: You do not have to move from one pillar to the next to receive your LIC pension.
    • Regardless of which product you choose, be it for Jeevan Akshay VI or the new Jeevan Nidhi Plan, the money will be paid into the bank account you specify.
    • Unless the pension plans, which require a lot of paperwork just to force them to repay their own money, you are not worried about a LIC retirement plan.
    • Most of the minimum documentation would have been provided at the time the policy was completed, and the LIC staff will do most of the documentation at the end of the LIC plan when you begin to receive your policy.
    • Pension. All you need to do is change the address or bank account and give your consent to how and where you receive your pension from the LIC plan.
  • A good alternative for the private sector: LIC pension schemes are a great way to earn a pension for those working in the private sector.
    • Unlike in the public sector, where the central government or the state pays a percentage of pension income, this advantage does not exist in the private sector.
    • In addition, it makes sense to trust a trusted company that it pays on time as employees often change jobs. Here the PFR pension plans have the upper hand.
  • In addition to the insurance, you will receive more than the corresponding amount: Guaranteed additions such as the refund bonus and the final bonus will be added to the final payment at the end of the plan.
    • In addition, every year, the details of the percentages of the survivor’s bonuses are communicated to the public, so that the holders of LIC pension plans know how many bonuses they receive through simple supplements.
    • This helps to achieve much better returns. In addition, LIC pays the customer, who stays with him for the duration of his or her pension, an additional bonus as a loyalty payment.
  • Guaranteed Payments: Unlike ULIPs, where the amount of payments is not secure, the LIC pension payment is guaranteed.
    • The person will not only receive the promised payment but also be able to plan their future finances in advance.
    • Knowing that the amount they receive helps the LIC insured to determine the additional amount they need to invest to get a good pension.
  • Lifetime Payment: Pensions in low-income countries offer lifelong payment.
    • For example, Jeevan Akshay VI’s immediate pension plans include a range of options such as a lump-sum pension, a life annuity with reimbursement of the purchase price and an increase in the living pension at the standard rate of 3.% per annum, etc.
    • Policyholders who subscribe to the New Jeevan Nidhi Plan, may, as needed, purchase an immediate annuity from the available maturity product or a deferred single premium plan.

Also Read: LIC Jeevan Saral


Things to Keep In Mind When Purchasing a Pension Plan

This section discusses some things you need to keep in mind to ensure that the plan you buy for the PFR is appropriate and helps you achieve your goals to reach.

  • Know Your pension: You need to know how much you will need in the future after pension.
    • Keep in mind that the real value of money will decrease over time and you need to build up a lot of bodies to lead the lifestyle you feel comfortable with.
    • What work you need will depend on your current expenses, minus any expenses such as the loans you would have repaid at the time of retirement, as well as any increase in health care costs and other expenses that are necessary to your health and wellbeing possible additional costs. imagine after pension.
  • Quickly buy a plan: The advice of all financial experts on capitalization power can not be sufficiently highlighted.
    • If you start early with a LIC pension plan, you can easily build up a significant amount of work for your pension.
    • If you start at the age of 20, you will have to invest less because the small amounts you have invested will have reached a considerable amount when you reach pension age.
    • Alternatively, if you invest in the 1940s or ’50s, you will have to pay significantly higher amounts to get the same body size.
  • Buy a deferred or immediate pension plan after the LIC pension plan has expired: Most people do not know it, but people are inherently unable to understand and use big sums of money right.
    • They had heard stories of people wasting huge sums of money just because they were unable to handle these sums and because they did not recognize the effects of their actions.
    • To avoid this for your pension insurance, you must immediately invest the lump sum received at the time of purchase in an immediate or deferred pension plan.
    • This ensures that your pension stays safe and you are not unprepared when you retire. LIC’s new plan Jeevan Nidhi offers this option.
  • Know the types of plans: There are different types of plans.
    • The first option consists of plans, such as EPF, PPF, and NPS, where you deposit money each year and receive pension income after pension at a certain age.
    • The second option consists of the pension plans of listed asset managers. The third option is savings insurance, which provides a pension for you while protecting you from risks.
    • Each option has its pros and cons and you should choose the one that suits you best. Many people prefer LIC pension plans because they offer a two-way benefit: insurance cover and insured return.
  • The type of payment is important: There are different types of plans. Some will give you a lump sum of the total amount at the time of purchase, while others would pay you a lifetime pension.
    • Which you should choose should be based on the total amount, the total return percentage, and the convenience factor.
    • For example, with Jeevan Nidhi’s new LIC pension plan, you will receive a single acquisition that will allow you to earn an immediate pension or a one-time deferred pension plan.
    • These low-income plans are better because most people are otherwise unable to choose a good pension option and waste the money they receive in a lump sum.
  • Know the Fees and Fees: Knowing fees and charges helps you identify which plans offer the best returns. Few know how much money is wasted on hidden fees. Their factorisation provides a clearer picture of real returns.


Frequently Asked Questions

Que.1 What is a LIC pension?

Ans. LIC Pension Plan – New Jeevan Nidhi Plan
The LIC pension plan is a traditional deferred pension plan that provides pension savings. The plan is characterized by the following features: … In the first five years of this low-income pension plan, guaranteed supplements amounting to 5% of the sum insured for each full insurance year are added.

Que.2 What is a LIC pension?

Ans. LIC Jeevan Akshay is an immediate pension plan of Life Life Corporation of India (LIC), the Indian life insurance and investment company. This is a single premium policy, for which a lump sum has to be paid. The pension can be paid on a monthly, quarterly, half-yearly or annual basis as required.

Que.3 Is the LIC pension tax-free?

Ans. Any claim (due date, pension, death) that LIC makes to the customer is tax-free. The income of the fund managed under this plan is fully exempt from income tax, as it is a fund managed within the meaning of Section 10 (23 AAB) of the Law.

Que.4 Is Jeevan Anand a pension Plan?

Ans. LIC New Jeevan Anand – Main Features
LIC Jeevan Anand is a traditional staffing plan for life. The plan offers the insured the possibility of regular premium payment. In the case of survival until the end of the term of the plan, the benefit is paid out to the insured at maturity and the plan remains in force.

This Article Is Written By

Kajal Bhagat

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