LIC Deferred Future Secure Pension Plan 250

About LIC Deferred Future Secure Pension Plan 250

The LIC Deferred Future Secure Pension Plan 250 is designed for those who want to secure a guaranteed stream of annuity income in the future through a one-time investment. The plan offers two annuity options with return of purchase price and allows the policyholder to choose a deferment period between 3 and 10 years. As it is a non-linked plan, the benefits are not related to market changes.

Key Features of LIC Deferred Future Secure Pension Plan 250

The plan offers many features that promote long-term retirement planning:

• Non-linked, single premium deferred annuity plan

• One-time purchase price with no future premium payments

• Choice of two annuity options with return of purchase price

• Deferment period ranging from 3 to 10 years

• Annuity payments available yearly, half-yearly, quarterly, or monthly

• Return of purchase price available under both annuity options

• Higher annuity rates for larger purchase prices

• Guaranteed surrender value available after completing two full policy years, subject to policy terms

Eligibility Criteria for Deferred Future Secure Pension Plan 250

Eligibility is based on age, purchase price, and deferment period.

Benefits of LIC Deferred Future Secure Pension Plan 250

Deferred Future Secure Pension Plan 250 offers the following benefits:

Annuity Benefit

The plan provides two annuity options.

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

During the deferment period, no annuity is payable. Once the deferment period is completed, annuity payments begin in arrears and continue for as long as the annuitant survives. On the annuitant’s demise, annuity payments stop and the applicable death benefit is paid to the nominee.

Option 2: Deferred Annuity for Joint Life with Return of Purchase Price

No annuity is paid during the deferment period. After the deferment period, annuity payments start in arrears and continue throughout the lifetime of the annuitant. After the annuitant's demise, 100% of the annuity continues to the surviving named spouse for life. If the spouse passes away before the annuitant, the annuity continues to the annuitant until death.

Death Benefit

The death benefit depends on the selected annuity option and whether it occurs during or after the deferment period.

Option 1 – Single Life

• During the deferment period, the nominee receives the purchase price plus 1% of the purchase price for each completed year of deferment up to the year of death.

• After the deferment period, the nominee receives:

  • 105% of the purchase price if the deferment period is 5 years or less

  • 110% of the purchase price if the deferment period is more than 5 years

Option 2 – Joint Life

• During the deferment period, if both the annuitant and spouse pass away, the nominee receives the purchase price plus 1% of the purchase price for each year of deferment until the later of the two deaths.

• After the deferment period, if one of the two passes away, the surviving spouse receives 100% of the annuity. After both spouses have passed away, the nominee receives:

  • 105% of the purchase price for deferment periods of 5 years or less

  • 110% of the purchase price for deferment periods of more than 5 years

Return of Purchase Price

The return of purchase price feature is available under both annuity options and forms part of the death benefit payable under the policy terms.

Annuity Payment Modes

Annuity can be received through any one of the following modes:

• Yearly

• Half-Yearly

• Quarterly

• Monthly

Policy Details of Deferred Future Secure Pension Plan 250

The following features govern the operation of the policy.

Additional Annuity Rate

Higher purchase prices qualify for an increased annuity rate.

Surrender Benefit

The policy acquires surrender value after completion of two full policy years during the deferment period.

• Guaranteed surrender value is 90% of the purchase price.

• The company may pay a higher special surrender value where applicable.

• After the policy starts paying the annuity (i.e., after the vesting date), surrender is allowed only under specified extreme circumstances such as critical illness of the annuitant, loss of job before superannuation, or marriage of children.

Underwriting

Acceptance of the proposal is subject to the company's underwriting policy.

Taxes

Insurance levy and other applicable taxes are payable separately as per prevailing regulations.

Policy Restrictions of Deferred Future Secure Pension Plan 250

It is important to understand the policy conditions before purchasing the plan, as they determine when benefits become payable.

No Annuity During the Deferment Period

No annuity payment is made during the chosen deferment period under either annuity option.

Surrender Restriction After Vesting

After vesting, surrender is permitted only under specified extreme circumstances, such as critical illness of the annuitant, loss of employment before superannuation, or marriage of their children, as allowed under the policy terms.

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