LIC Senior Citizen Monthly Income Scheme in 2025

What is LIC Senior Citizen Monthly Income Plan?

LIC Senior Citizen scheme for monthly income or monthly income pension plans are retirement plans or annuity plans that provide a regular monthly income to individuals during their retirement years. These plans offered by the LIC of India ensure a steady income stream for retirees, helping them meet their financial needs and maintain their lifestyles.

These monthly income schemes work similarly to a LIC fixed deposit plan for senior citizens, where a lump sum investment generates regular returns. However, unlike FDs, LIC pension plans often have added insurance benefits and lifetime income options, making them a more secure and long-term solution.

Whether planning your retirement or helping your dependents prepare for theirs, LIC's monthly income plans for senior citizens offer dependable support in the golden years.

What are the Benefits of LIC Senior Citizen Monthly Income Scheme?

An LIC Senior Citizen scheme is one of the best ways to plan your retirement. One of the most important benefits of retirement plans/pension plans is that they help secure the customer’s future.

• Financial Security in Retirement
  LIC Pension plans provide a steady income stream after retirement, helping individuals maintain their standard of living and cover daily expenses without relying on family support.

• Inflation Protection
  With rising living costs, a pension plan helps mitigate the effects of inflation. Regular payouts can also help preserve purchasing power over time.

• Longer Life Expectancy
  As life expectancy increases, individuals need to ensure they have sufficient funds to support themselves for potentially many years in retirement. Pension plans can help provide this long-term financial support.

• Peace of Mind
  Knowing that there is a structured plan in place for retirement can provide peace of mind. Individuals can enjoy their retirement years without the stress of financial uncertainty.

Best LIC Senior Citizen Monthly Income Scheme

Below-mentioned are some of the LIC Monthly Income Schemes that will help you to secure your post-retirement needs financially.

1. LIC New Jeevan Shanti Plan

   LIC New Jeevan Shanti 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 LIC senior citizen pension scheme is from one to five years. This LIC plan for senior citizens 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.

   Eligibility Criteria of LIC New Jeevan Shanti Plan

   Criteria	Minimum	Maximum
   Entry Age	30 years	79 years
   Vesting Age	31 years	80 years
   Purchase Price	Rs.1,50,000	No Limit
   Annuity	Monthly - Rs.1,000 Quarterly - Rs.3,000 Half-Yearly - Rs.6,000 Yearly - Rs.12,000	Depends on the purchase price

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

   • The death benefits do not change with a single or joint-life deferred annuity. Under both variants, the beneficiary or nominee will receive 105% times the Purchase Price or (Purchase Price + accrued additional benefit on death), whichever is higher.

   • The death benefit is paid in three modes: lump-sum payment, instalment basis or annuitisation, the choice of which is made by the customer at the policy's inception.

   • To purchase the joint-life deferred annuity version of LIC’s New Jeevan Shanti Plan, the customer can add his/her spouse, children, parents, siblings, grandparents, or grandchildren. The joint partner must have attained the age of 35.

   • 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)

2. LIC Jeevan Akshay – VII

   LIC’s Jeevan Akshay VII is a fixed benefit plan in which the policyholder has all the information about the pension amount they will receive. This information is provided to him only at the inception. Jeevan Akshay VII is a single-premium immediate annuity/pension plan. It is a single premium policy. It can be considered an LIC fixed deposit plan senior citizens, as it provides a steady income and has a wide range of Annuity options to choose from. It also offers the flexibility to choose from Single Life Annuity and Joint Life Annuity, and yearly, half-yearly, quarterly and monthly annuity payment modes.

Eligibility Criteria of LIC Jeevan Akshay VII

Key Features of LIC Jeevan Akshay VII
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 cover single life. Options H, I and J cover joint life. 

• Only options 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 the investment will not be returned in the other options.

• The customer can purchase this policy jointly with his/ her spouse, children, siblings, parents, grandparents and grandchildren.

• There is a special provision for handicapped dependents, as there is no minimum annuity and purchase price restriction. They can purchase with a lump sum of only Rs 50,000.

• The plan provides incentives for a higher purchase price and existing policyholders and the nominee/ beneficiary of the deceased policyholder.

1. LIC Saral Pension

   LIC Saral Pension is a single-premium immediate annuity plan where annuity rates are guaranteed from the start of the policy. There are two annuity options to choose from in this LIC plan for senior citizens. The Saral Pension plan can be purchased offline or online. 

   Eligibility Criteria of LIC Saral Pension

   Criteria	Minimum	Maximum
   Age at Entry	40 Years	80 Years
   Purchase Price	For Monthly: Rs 1000 For Quarterly: Rs. 3000 For Half-yearly: Rs. 6000 For Annually: Rs. 12000	No Limit
   Annuity Payment Mode	Yearly, half-yearly, quarterly, and monthly

   Key Features of LIC Saral Pension
   The following are the key features of the plan:

   • It is a single-premium plan that offers immediate annuity. 

   • The policyholder has to choose the type of annuity from two options:

     Option I: Life Annuity with Return of 100% of Purchase Price.

     Option II: Joint Life Last Survivor Annuity with Return of 100% of the Purchase Price on the death of the last survivor.

   • The annuity options, once chosen at the start of the policy, can not be changed later.

   • The Joint Life annuity can only be taken with a spouse.

   • The annuity rates are guaranteed and are payable throughout the annuitant(s) lifetime.

   • The policy also offers a loan facility for the policyholder’s emergency needs.

   • There are incentives for a higher purchase price. 

   LIC New Pension Plus

   The LIC New Pension Plus is a deferred annuity plan that offers single-premium and Regular premium paying options. Under this LIC senior citizen pension scheme, the death benefit paid to the policyholder’s nominee is the higher amount of Unit Fund Value (as on the date of intimation of death) and the Assured Death Benefit.

   Eligibility Criteria of LIC New Pension Plus

   Criteria	Minimum	Maximum
   Age at Entry	25 years	75 years
   Premium Amount (Rs)	Single Premium: 1,00,000 Regular Premium: Yearly- 30,000 Half-Yearly- 16,000 Quarterly- 9,000 Monthly- 3,000	No Limit
   Policy Term	10 years	42 years
   Vesting Age	35 years	85 years

   Key Features of LIC New Pension Plus
   The following are the key features of the plan:

   • LIC New Pension Plus is a unit-linked pension plan that offers a choice of 4 investment fund options that one can choose based on their risk appetite:

     Pension Bond Fund

     Pension Secured Fund

     Pension Balanced Fund

     Pension Growth Fund

   • The policyholders can switch between the investment funds for free at least 4 times a year.

   • The plan allows partial withdrawals after a 5-year lock-in period. 

   • There is a settlement option to receive the death benefit in instalments. 

   LIC Smart Pension

   LIC Smart Pension Plan 879 is an immediate annuity LIC plan for senior citizens offering various annuity options for both single and joint lives. The annuity rates are guaranteed from the start of the policy. Policyholders pay a lump sum and receive a fixed, lifelong pension. This plan is available for purchase both online and offline.

   Eligibility Criteria of LIC New Pension Plus

   Parameters	Criteria
   Minimum Entry Age	18 years
   Maximum Entry Age	100 years (Varies as per Annuity Options)
   Minimum Purchase Price	Rs. 1,00,000/-
   Maximum Purchase Price	No Limit (subject to approval as per Board Approved Underwriting Policy)
   Minimum Annuity	Monthly - Rs. 1,000 per month Quarterly - Rs. 3,000 per quarter Half-Yearly- Rs. 6,000 per half-year Yearly- Rs. 12,000 per annum
   Maximum Annuity	No Limit
   Premium Payment Mode	Single Premium

   Key Features of LIC Smart Pension Plan
   The following are the key features of the plan:

   • LIC Smart Pension is a single-premium immediate annuity plan with multiple annuity options to suit various financial goals.

   • Select between Single Life and Joint Life Annuity options for flexible retirement security.

   • The plan provides three death benefit choices: Annuitisation, Installments, or Lump sum, based on your preference.

   • You can choose from four payment frequencies: monthly, quarterly, half-yearly, and yearly.

   • Customise your plan by opting for Advanced Annuity, Liquidity, or Annuity Accumulation options to meet your financial aims.

   • Special incentives are available for existing policyholders and nominees of deceased policyholders, along with benefits for higher purchase amounts.

Wrapping It Up

The LIC Senior Citizen Monthly Income Scheme in 2025 is an invaluable financial tool designed to provide seniors with the peace of mind they deserve during their retirement years. With various plans, one can choose options that best fit one's financial needs, ensuring a steady income stream and financial security. 

LIC Resources

FAQs