Everything You Need To Know About LIC Pension Plans

Best Pension Options
  • Get Tax Free Pension For Life

  • Flexibility to withdraw fund value any time

  • Guaranteed Tax Savings

    Under Sec 80 C & 10(10D)

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

Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000

Get the best returns & make the most of your Golden years

+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

What is a pension?

After years of hard work, a certain time comes where an individual is required to settle down in his or her life. In this period, funds are needed to help her/him meet various daily needs and these funds aren't going to appear from thin air.

However, with proper planning and much thought, an individual's future can be secured financially. An individual can accumulate funds for her/his retirement over a long period of time. This fund is also known as Pension.

Traits of a suitable pension plan: 

If you are also interested in financially securing your post-retirement phase and are looking for a safety cushion in your retirement days, you will have to start by looking into the traits of different pension plans available in the market. The traits offered by these pension plans should be able to compliment your needs completely.

The following factors will guide you to find the best suitable plan:

  • A flexible plan- The pension plan you are seeking should be able to take care of all your requirements in different times and circumstances. For instance, you could be between jobs or starting your own business and hence, your finances are going to be affected.
  • Simplicity- The pension plan should be easy to go through and interpret. You should also be able to understand its basics and the terms & conditions associated with it.
  • An honest plan- The plan you chose should be a transparent program and not a scam in disguise.
  • Bonuses- The best pension plan should have bonuses and offer maximum profits.

LIC Pension Plan

LIC Pension Plan meets all these criteria and hence, can be considered as one of the most suitable plans for you in the long run. There are two pension plans currently being offered by LIC:

  1. Pradhan Mantri Vaya Vandana Yojana (PMVVY)
  2. New Jeevan Nidhi Plan. 

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension plan exclusively designed for senior citizens aged 60 years or above. There is no limit set on the maximum age for entry in this scheme. The scheme was launched on 4th May 2017 and is open till 3rd May 2018.

One can apply for it online as well as offline. This scheme provides the senior citizens with an assured return of 8% to 8.30% for the next 10 years. The rate of interest is dependent upon whether you choose to receive your pension on a yearly (8.30%), half-yearly, quarterly or a monthly (8%) basis.

You can purchase the policy for minimum of Rs 1.5 lakhs, wherein you will receive a pension amount of Rs 1000/month.

If you happen to survive the policy tenure (10 years), you will receive your pension your pension in arrears (in the payment mode chosen by you).

In case the pensioner dies before the completion of the policy tenure, the purchase price will be returned to the beneficiary chosen by her/him.

If the pensioner is able to survive the policy tenure and the plan has matured, s/he is eligible to receive the purchase price along with final pension installment.

               

Entry Age limit

Minimum = 60

Maximum = No Limit

Minimum Purchase Price

Rs. 1,50,000 (Monthly)

Rs. 1,49,068 (Quarterly)

Rs. 1,47,601 (Half-yearly)

Rs. 1,44,578 (Yearly)

Maximum Purchase Price

Rs. 7,50,000 (Monthly)

Rs. 7,45,342 (Quarterly)

Rs. 7,38,007 (Half-yearly)

Rs. 7,22,892

(Yearly)

Minimum Pension

Rs 1,000 per month

Rs 3,000 per quarter

Rs 6,000 per half-year

Rs 12,000 per year

Maximum Pension

Rs 5,000 per month

Rs 15,000 per quarter

Rs 30,000 per half-year

Rs 60,000 per year

 

 New Jeevan Nidhi Plan 

New Jeevan Nidhi Plan is also a pension plan offered by LIC. There are two factors which decide the premium to be paid by a potential annuitant - the amount of cover you opt for, and the period of cover you choose. There are several benefits that add up along the way like additions and bonuses. 

After the initial five years of agreement, the annuitant receives the assured amount, additions and bonuses subject to the accidental death or disability of the annuitant. 

In a scenario where the annuitant survives through the years of cover, he or she gets the assured amount, additions and bonuses. 

The annuitant can thereafter purchase a new pension plan or invest some of the amount for a regular income in return from LIC. The nominee of the death benefit will be 105% minimum of the total premium to be paid.

Rebates are also provided upon selection of relatively higher assured amounts of about Rs. 3 lakhs and more.

 

 

Minimum

Maximum

Entry age limit

20 yrs

60 yrs

Vesting age

55 yrs

65

Term for the plan

5yrs

35yrs

Assured amount

Regular= Rs. 1 lakh

Single= Rs. 1.5 lakh

No limit

Premium payment turnout

Yearly, half yearly, quarterly, monthly

similar

 

Benefits of LIC Pension Plans

The following are benefits of LIC Pension Plan:

  1. Income is realized with time after the plan term.
  2. The income is deposited into your account, saving you the trouble of picking up cheques from any offices.
  3. The amount you receive is higher compared to the amount you pay.
  4. There is a regular source of income for the rest of the policyholder’s life.
  5. The policyholder is certain of this income.
You may also like to read: How to Check LIC Policy Status Online

Conclusion:

The rising inflation rate is eventually going to make your savings seem insufficient. Also, as your age grows, you are going to become more prone to diseases and ailments; which means, an added expense to your budget. Hence, it’s always a great idea to start planning and investing in pension plans, so you won’t have any troubles meeting your lifestyle needs in your golden years.

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

Written By: PolicyBazaar - Updated: 19 August 2021
Pension Plans
Search
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Retirement Plans
Monthly Pension Plans
Newsletter
Sign up for newsletter
Sign up our newsletter and get email about Pension Plans.
Higher Returns Than Fixed Deposit

Pension plans articles

Recent Articles
Popular Articles
10 Lesser Known Facts About Atal Pension Yojana

20 Oct 2021

Atal Pension Yojana, an Indian Government-backed pension plan...
Can We Withdraw Partial Amount From National Pension Scheme?

20 Oct 2021

National Pension Scheme is a reliable government-backed plan...
Pensions Plans for NRI in India

06 Oct 2021

Most of us want to have a good standard of living in our golden...
Step-By-Step Approach to Retirement Planning

08 Sep 2021

Nowadays, retirement planning is important and it has been...
Here is How to Safeguard Pension Plans from Taxes

08 Sep 2021

A person works hard to formulate pension plans that can cover...
National Pension Scheme (NPS)
National Pension Scheme (NPS) is an investment cum pension plan launched by the Indian Government. This scheme is...
NPS Calculator: National Pension Scheme Calculator Online
National Pension Scheme Calculator is an online tool, which allows the individual to calculate the estimated...
EPF v/s VPF v/s PPF: Which One is Better
Retirement planning has become the most talked about topic among people as young as 25. With so many investment...
Best Pension Plans in 2019-20
English Hindi   If you are planning a secure retirement then investing in a good pension plan is important. A...
LIC Senior Citizen Pension Scheme
Post demonetization the banks are cutting down the interest rates on fixed deposits. Hence, to safeguard the...
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL