Everything You Need To Know About LIC Pension Plans

  • Peaceful Post-Retirement Life

  • Tax Free Regular Income

  • Wealth Generation to beat Inflation

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. 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
Secure
We don’t spam
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
Get Updates on WhatsApp
We are rated
rating
58.9 million
Registered Consumers
51
Insurance
Partners
26.4 million
Policies
Sold

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.

Secure Your Retirement Today
Start Investing ₹6,000/month
Get Pension ₹60,000/month+
Including Life Cover
View Plan
Pension Plans
+Standard T&A Applied
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Retirement Plans
Monthly Pension Plans
Higher Returns Than Fixed Deposit
Pension Calculator
Pension Calculator
How much do you need to save for retirement?
₹ 20,000
₹ 25,000
₹ 30,000
Monthly Expenses in 2023
Edit Done
Your expense go up every year by
Today 2023 Your expenses today in 2023, at the age of 34 Yrs
Your expenses in 2043, at the age of 55 Yrs
For a monthly pension of ₹77,300
you need to invest
₹14,300/month
Calculated as per past performance of 15%
View Plan Recalculate?

Pension plans articles

Recent Articles
Popular Articles
Pension Plans

01 Jun 2023

Pension Plan is an investment scheme that enables individuals to
Read more
UMANG App

24 May 2023

UMANG, short for "Unified Mobile Application for New-age
Read more
SSPMIS Mukhyamantri Vridhjan Pension Yojana

24 May 2023

SSPMIS Mukhyamantri Vridhjan Pension Yojana is a social welfare
Read more
SEP-IRA

24 May 2023

The SEP full form is a Simplified Employee Pension, also an
Read more
SIMPLE IRA

24 May 2023

SIMPLE IRA stands for Savings Incentive Match Plan for Employees
Read more
NPS Calculator 2023
The National Pension Scheme calculator is an online tool that enables individuals to plan for their retirement
Read more
National Pension Scheme (NPS) – Govt Approved Pension Scheme
National Pension Scheme or NPS scheme is an investment cum pension plan launched by the Indian Government. This
Read more
How to Get a 50K Pension Per Month?
Retirement planning should form an essential part of your financial decision-making. As we grow older, job
Read more
How to Unfreeze NPS Account?
Are you facing trouble accessing your NPS account and being unable to deposit your recurring subscription? Do not
Read more
Post Office NPS Calculator 2023
National Pension System is a scheme launched by the Government of India that offers stability to all Indian
Read more

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