What Are LIC Senior Citizen Monthly Income Scheme in 2022?

A working-class individual spends his entire life earning, to sustain himself and his family. At the same time, he also worries about saving so that he doesn’t have to face problems due to a dearth of funds in the autumn of his life. After working a lifetime, all a senior citizen wants is to enjoy independence financially as well as personally.

Read more
LIC, Policybazaar join hands to
accelerate insurance growth
LIC investment
  • Buy LIC policy online
    hassle free

  • Guaranteed maturity with life
    cover for securing family's future

  • Tax saving under Sec 80C &
    10(10D)

  • Sovereign guarantee as per
    Sec 37 of LIC Act

Now Available on Policybazaar
Grow wealth through
100% Guaranteed Returns with LIC
+91
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans", you agree to our Privacy Policy and Terms of Use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

Especially with coronavirus shaking the world economy and falling interest rates in various saving schemes, it becomes difficult for the customer to find an attractive plan.

Senior citizens often rely on FDs for a regular and steady income after their retirement. But with the rising risk of recession, banks have started a cut on FD interest rates, which do not cross the 7 percent mark. Hence, LIC brings an attractive alternative for all senior citizens. Below mentioned are a few LIC senior citizen monthly income schemes for the customer’s reference.

LIC Policy for Senior Citizen Monthly Income

Life Insurance Corporation of India has various offers for you as customers if you want to invest as a senior citizen and plan your pension in time. Pension plans of LIC enable you to enjoy your financial independence even after your retirement. If you’ve chosen to invest in any pension plan, trust LIC, for the gains of the distribution phase will be worth the pains of the accumulation phase.

Pradhan Mantri Vaya Vandana Yojana

This pension scheme was launched by LIC, for senior citizens in the year 2017 and will be available for consumers for purchase for another three years i.e. up to March 2023. In the current year of 2022, the scheme will earn an interest of 7.40% payable every month which will be fully taxable. The main attraction of this scheme is its high returns.

Eligibility Criteria

  • The customer must have attained 60 years of age
  • The customer must be a citizen of India
  • The customer can invest in this scheme only with a lump sum amount of your convenience.

Salient Features 

The key features offered by Pradhan Mantri Vaya Vandana Yojana are as follows:

  • It is a government’s pension plan devised for citizens above 60 years of age and the insurer can invest upto Rs 15 Lakh.
  • It can be purchased offline as well as online and the insurer can also pay his LIC premium payment online through his account.
  • The tenure of the policy is 10 years and the returns gained at the rate of 7.4% pa will be paid monthly to the beneficiary for the entire duration of the policy. But if the beneficiary chooses a yearly mode of pension, he will be entitled to an interest rate of 7.66%.
  • The pension amount that can be drawn is between Rs1000 – 9250 per month.
  • The pensioner has the choice of pension price as well as the mode of pension is monthly, quarterly, half-yearly or yearly

Core Benefits

 The key benefits of the plan are as follows:

  • If the pensioner survives the entire duration of the policy then pension in arrears will be payable to him but according to LIC, in case of death of the pensioner during the policy term, the nominee will receive the invested amount or purchase price
  • After three years of the purchase of the policy the customer can also avail a loan against it up to a maximum of 75% of his investment.
  • In case of premature exit, the investor will receive 98% of the purchase price as surrender value. But LIC allows the surrender of the policy only in unique cases like the case of the pensioner’s terminal illness or that of his/her spouse.

LIC Jeevan Shanti Plan

LIC’s Jeevan Shanti again is a single premium deferred annuity plan. This means you’ll have to make the investment with a lump sum. The deferment period of this policy is from one to twelve years. This scheme has two variants: Single Life & Joint Life Deferred Annuity. Single life covers only one individual under this scheme while Joint Life covers two individuals under one scheme where both the insurers will be equal participants in the pension.

Eligibility Criteria

  • The customer must be in between 30-79 years of age
  • He/she must be a citizen of India
  • The minimum purchase price is 1.5 Lakh

Salient Features

The key features of the LIC Jeevan Shanti Plan are as follows:

  • The death benefits do not change with a single or joint-life deferred annuity. Under both the variants, the beneficiary nominee will receive 105% times Purchase Price or (Purchase Price + additional benefit on death), whichever is higher.
  • The death benefit is paid in three modes: lump-sum payment, instalment basis or annually basis, the choice of which is made by the customer at the inception of the policy.
  • To purchase the joint-life deferred annuity version of LIC’s Jeevan Shanti Plan, the customer can add his/her spouse, children, parents, siblings, grandparents or grandchildren. It is a must that the joint partner has attained the age of 35 years.
  • At the inception of the policy, it is the customer’s choice to select the mode of payment of his pension which will be paid in arrears (yearly, half-yearly, quarterly or monthly)
  • The investor will get a full interest as guaranteed at the inception of the policy but will experience a decrease in the interest rate with half-yearly, quarterly and monthly annuity payment frequency. The percentage of reduction in (yearly) annuity rate is 2% for half-yearly mode, 3% for quarterly mode and 4% for monthly mode.

Core Benefits

The key benefits of the plan are as follows:

  • The customer can apply for a loan against the policy after three months of its inception. The amount of the interest of your loan should never be more than 50% of your pension or more than 80% of your surrender value.
  • One can surrender the policy at any time during the plan tenure.
  • There is no maturity benefit under this Plan but the customer will start getting his pension from his 31st year.
  • The customer can avail of tax benefits under section 80C on the income under this scheme even though the pension received under this plan is completely taxable.
  • The death benefit amount received will also be tax-free.
  • This policy can be bought online as well as offline. But if the investor makes the purchase online, directly from LIC’s website, he/ she will receive a 2% incentive. He can easily buy this LIC policy by online payment.
  • The customer gets a free look period of 15 days for offline mode of purchase and 30 days for online purchase.

LIC Jeevan Akshay – VII

LIC’s Jeevan Akshay VII is a fixed benefit plan in which the policyholder has all information about the amount of pension he will receive. This information is provided to him at the inception only. Jeevan Akshay is a single premium immediate annuity/pension plan. It is a single premium policy.

Eligibility Criteria

  • The minimum entry age is 30 years while the maximum is 85 years but for option F, the maximum age is 100 years.
  • The minimum investment is 1.5 lakhs

Salient Features

The following are the key features of the plan:

  • There are four modes of pension payment: yearly, half-yearly, quarterly and monthly.
  • LIC has provided ten annuity options to the customers under this plan. Listed under the options A to G covers single life. Options H, I and J covers joint life. 
  • Only option F and J have the facility to return the purchase price. This means that your invested amount will be returned to the nominee after your death. While in other option, the investment will not be returned.
  • The customer can purchase this policy jointly with his/ her spouse, children, siblings, parents, grandparents and grandchildren.
  • Special provision for handicapped dependent as there is no restriction on minimum annuity and minimum purchase price. They can make the purchase with a lump sum of only 50k.

Core Benefits

The following is the list of benefits offered under this scheme:

  • There’s no maturity benefit. Only survival or death benefit in some cases.
  • You can make your purchase online and even pay your premium online through your LIC account.
  • There is no restriction on the minimum pension for the subscribers of the national pension.
  • This policy provides a rebate for the high purchase price. Under this, the pension of the pensioner increases.
  • The policyholder can change the mode of payment of the death benefit till the time he is alive. After his death, the nominee cannot change this option. Three modes of payment of death benefit amount area lump-sum death benefit, annuitisation of death and in instalments.
  • Tax exempted under section 80C on the premium but your pension received will be taxable. The death benefit is also tax-free.
  • You can surrender your policy after 3 months of inception but you can only surrender your policy if you’ve made your purchase under option F and J. 
  • The loan facility is also available after 3 months but only for products purchased under options F and J.

Benefits of Monthly Income LIC Plans for Senior Citizens

LIC plans for senior citizens are one of the best ways to plan your retirement with. One of the most important benefits of retirement plans/pension plans is that it helps secure the customer’s future. 

It inculcates a saving habit in him with which he can buy pension plans like PMVVY and LIC’s Jeevan Shanti, and gain wealth in the long term by compounding. These senior citizen plans are specially designed to meet the post-retirement needs of the customer. 

Not only this, but the death benefits also make sure to take care of your family’s financial needs after you. This monthly income LIC plan ensures that you remain economically sound even post-retirement.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.

LIC of India articles

Recent Articles
Popular Articles
LIC New Pension Plus Plan

21 Sep 2022

LIC New Pension Plus Plan The LIC New Pension Plus Plan is the...
Read more
LIC Linked Accidental Death Benefit Rider

06 Sep 2022

LIC Linked Accidental Death Benefit Rider LIC riders are an...
Read more
Is LIC Maturity Amount Taxable?

30 Aug 2022

Is LIC Maturity Amount Taxable? The maturity amount is the sum LIC...
Read more
LIC New Endowment Plan 914 Bonus Rate

26 Aug 2022

This is one of LIC’s insurance cum savings plans that offer...
Read more
What Is Survival Benefit in LIC?

22 Aug 2022

LIC survival benefits come with money-back plans. As the name...
Read more
Surrendering LIC Policy Before Maturity Time: Your Guide!
The Life Insurance Corporation of India is one of the most prominent insurance companies. It has an unparalleled...
Read more
12,000 Monthly Pension On One-Time Investment: Buy LIC Saral Pension Scheme
LIC Saral Pension Yojana make sure that investors get 12,000 monthly by paying a single premium. Life Insurance...
Read more
How to Check the Maturity Amount of LIC Policies?
Life Insurance Corporation of India is one of the leading public companies in the service of insurance plans. And...
Read more
LIC Jeevan Saral (With-Profit) Maturity Calculator
LIC Jeevan Saral has been withdrawn by LIC and is therefore not available for sale anymore. It is an endowment...
Read more
LIC Policy for Girl Child in India
A child insurance plan is a plan that acts as a blend of investment and savings while also providing the child...
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL