LIC Pension Plans

Regular Income

The primary advantage of LIC pension plans is that the insured and his/her family receives a regular income once the annuity period starts. The only way to sustain your current standards of living would be to invest in a LIC pension plan. It is best to start as early as possible so that one has the advantage of time to grow a substantial pension fund.

Hassle-Free Process

You do not have to run from pillar to post to get your pension on time from LIC pension plans. Whichever product you choose, whether it is Jeevan Akshay VII or New Jeevan Shanti, the money gets deposited in the bank account like clockwork. With LIC’s online portals, it is now easier than ever to get the annuity payouts. All forms such as the existence certificate can be accessed at these channels. All you have to do is provide details of any change in address or bank account and surrender to the modalities of how and where you will receive your pension under the LIC pension plan.

A Good Alternative for People in Private Jobs

LIC pension plans are a good way to earn pensions for people employed in the private sector. Unlike the public sector, where the central or state allocates a certain percentage of the salary towards pension, there is no such benefit in the private sector. Also, with people changing jobs and locations ever so often, it makes sense to rely on an entity that is certain to pay the pension on time. This is where LIC pension plans have the upper hand.

Receive Much More Than the Amount Put in, Besides The Insurance

Apart from insurance protection, the guaranteed additions, such as the reversionary and final bonuses, add to the overall payout at the end of the plan. Also, all reversionary bonus percentages are declared to the public each year, so LIC pension plan policyholders have visibility on how much bonus they will receive. Moreover, LIC provides an additional bonus amount as a loyalty payment to the customer for staying with them for the whole term of the LIC pension plan.

Guaranteed Payouts

The payment under LIC pension plans is guaranteed. The person will not only receive the payout promised, but they will also be able to plan their future finances well in advance. Knowing the amount they will receive helps the person insured under the LIC pension plan to chalk out how much additional money they need to invest to receive a good pension amount.

Payment for Life

LIC pension plans such as Jeevan Akshay VII offer lifetime annuity options such as life annuity paid at a uniform rate, lifetime annuity with return of purchase price, life annuity increasing at a simple rate, etc.

Features and Benefits of LIC Pension Plus Plan

Here are key LIC Pension Plus Plan details:

• Buyers can invest a lump sum single premium amount or invest a fixed sum regularly on a monthly, quarterly, half-yearly, or yearly basis.

• The invested amount can be annuitised to create a regular stream of income post retirement. Annuitisation is the conversion of a lump sum amount to periodic fixed pensions/annuities.

• It comes with 4 different fund options ranging from equity and debt to a mix of both that one can choose per their risk tolerance.

• The most important benefit is the Guaranteed Additions that LIC of India makes to the fund value at specific policy years. These additions are 100% assured and made irrespective of any market fluctuations.

Eligibility Criteria of LIC New Pension Plus Plan (previously LIC Pension Plus Plan 803)

Features and Benefits of LIC SIIP Plan

• A part of the premium goes towards investment in market-linked funds and the remaining towards the life cover.

• If the policyholder dies within the policy term, his/her family receives the benefit amount.

• The policyholder gets 4 fund options to choose from depending on their risk appetite.

• If the chosen portfolio is not performing well, they can switch to different one at no extra cost.

Eligibility Criteria of LIC SIIP Plan

Features and Benefits of LIC Bima Jyoti

• The plan combines the benefits of savings and insurance.

• Guaranteed additions are made to the sum assured every year till the policy matures.

• Policyholders can choose to receive the Maturity benefit in monthly, quarterly, half-yearly, or yearly installments.

• Policyholders can align the date of maturity of the policy to their retirement age. This way LIC Bima Jyoti can offer them a fixed income to help with their post-retirement expenses.

Eligibility Criteria of LIC Bima Jyoti

Apart from this, LIC New Jeevan Anand and LIC Jeevan Umang are endowment-based popular plans that can used to maximize your savings for the future.

Features and Benefits of LIC New Jeevan Shanti

• The insured just need to invest only once to get lifelong guaranteed returns in the form of monthly income.

• Joint-life annuity can be taken for any lineal ascendant / descendant of a family i.e. children, parents, grandparents or siblings, or spouse.

• The policy offers a guaranteed additional benefit every month during the period of deferment. The total accrued amount is paid along with the death benefit amount.

• The policyholder can take a loan under the policy. The loan amount is limited to 80% of the surrender value.

Eligibility Criteria of LIC New Jeevan Shanti

Features and Benefits of Pradhan Mantri Vaya Vandana Yojana

• On survival of the annuitant during the policy tenure of 10 years, pension in arrears is payable to the annuitant as per the chosen mode.

• In case of an unfortunate demise of the annuitant during the policy tenure of 10 years, the purchase price is refunded to the policy's beneficiary.

• On survival of the annuitant to the end of the policy tenure, the purchase price and the final pension installment are payable to the annuitant.

• The policyholder can choose from the different modes of pension payment, i.e., yearly, quarterly, monthly, and half-yearly.

• Loan facility can be availed after the completion of 3 years of the policy.

• The scheme allows premature withdrawals during the policy tenure in specific circumstances.

Eligibility Criteria of Pradhan Mantri Vaya Vandana Yojana

Let’s take a look at the eligibility criteria of the policy.

Features and Benefits of LIC Jeevan Akshay VII

• This immediate annuity LIC pension scheme requires annuitants to make a lump sum payment.

• The policyholder can choose to receive the annuity on a yearly, half-yearly, quarterly, or monthly basis.

• The plan offers the option of joint life immediate annuity for life with a provision for 50% of the annuity to the secondary annuitant on the demise of the primary annuitant.

• The annuity options available under this LIC pension plan are:

• Lifetime immediate Annuity

• Lifetime Annuity with Return of Purchase Price

• Immediate Annuity guaranteed for 5/10/15/20 years (even on death) and after that payable for life.

• Life Annuity increasing at a simple rate of 3% p.a.

• Annuity for life with 50% or 100% annuity to the spouse after the annuitant's death.

• Annuity for life with 100% annuity for the spouse after the annuitant's death and Return of Purchase Price after the death of the last survivor.

Eligibility Criteria of LIC Jeevan Akshay-VII

Minimum Annuity:

Features and Benefits of LIC Saral Pension Plan

• The minimal annuity is Rs. 12,000 yearly.

• The annuity mode will determine the minimum buying cost, buyer's age, and the option selected.

• No upper limit exists on the purchase price.

• Annuity payments can be done monthly, quarterly, half-yearly, or annually.

• This plan is available to anyone aged 40-80 years.

• After six months, policyholders can borrow against the scheme.