LIC New Deferred Future Secure Pension Plan 260

It helps provide a dependable income stream by paying a single premium lump sum amount.

About New Deferred Future Secure Pension Plan 260

At the time of policy purchase, the policyholder chooses between two annuity structures:

Option 1: A Deferred Annuity for Single Life with Return of Purchase Price, or

Option 2: A Deferred Annuity for Joint Life with Return of Purchase Price. Under both options, annuity payments begin only after the chosen deferment period of 3 to 10 years ends.

Key Features of New Deferred Future Secure Pension Plan 260

The plan is built around a few defining features that shape how and when it pays out:

• A choice between Option 1 (Single Life with Return of Purchase Price) and Option 2 (Joint Life with Return of Purchase Price), selected at inception

• A deferment period ranging from 3 to 10 years, chosen at the start of the contract

• No annuity income during the deferment period itself, with payments starting only in the policy year immediately after deferment ends

• Return of Purchase Price is built into both annuity options, rather than offered as a separate add-on

• A surrender benefit that grows year on year during deferment, but becomes restricted to specific circumstances after vesting

• A higher annuity rate for larger purchase prices, added automatically based on the band the purchase price falls into

Eligibility Criteria for New Deferred Future Secure Pension Plan 260

Eligibility under New Deferred Future Secure Pension Plan 260 is set by the purchase price paid, the entry age, and the length of the deferment period chosen:

Additional Annuity Rate for High Purchase Prices

Purchasers who commit a larger sum benefit from a higher annuity rate, applied across all payment modes:

Benefits of LIC New Deferred Future Secure Pension Plan 260

The LIC New Deferred Future Secure Pension Plan 260 pays out in different ways depending on the option chosen and whether the relevant life is still within the deferment period or past it.

Annuity Benefits (Payable on Survival)

Beneficiary Benefits (Payable on Death)

Surrender Benefit

The policy offers a surrender benefit under certain conditions. During the deferment period, you can surrender the policy from the 2nd policy year onwards. However, once the policy vests, surrender is permitted only in specific situations as defined by the policy terms.

• Surrender During Deferment: Available from the 2nd policy year onwards until the end of the deferment period.

• Surrender After Vesting: Allowed only under specific circumstances, such as:

  • Diagnosis of a critical illness of the annuitant.

  • Loss of employment before the date of superannuation.

  • Marriage of the annuitant's child.

• Guaranteed Surrender Value (GSV): Equal to 95% of the purchase price.

• Special Surrender Value (SSV): The insurer may pay a higher Special Surrender Value if applicable.

• SSV During Deferment (5 Years or Less):

  • Year 2: 95% of the single premium.

  • Increases by 1% each policy year until the end of the deferment period.

• SSV During Deferment (More Than 5 Years):

  • Year 2: 95% of the single premium.

  • Increases by 2.50% each policy year until the end of the deferment period.

• After Vesting: Once the deferment period ends, the surrender value stops increasing and remains unchanged thereafter.

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