LIC Launches New Pension Plus Plan

LIC Launches New Pension Plus Plan. Find Out What’s New

LIC introduces the unit-linked, non-participating individual pension plan — the New Pension Plus plan. Before investing, learn everything there is to know about the new plan.

On September 5th, LIC unveiled a brand-new ULIP (Unit Linked Insurance Plan) plan called LIC New Pension Plus 867. This individual pension plan is non-participating, unit-linked, and promotes systematic and disciplined saving. Upon the expiration of the period, the corpus of systematic and disciplined savings can be transformed into a regular income by purchasing an annuity plan.

The plan is available for purchase as a regular premium payment or as a single premium payment policy. Under the regular payment option, the premium will be paid over the course of the insurance. The policyholder may, under certain restrictions, extend the accumulating period under the same terms and conditions. The entry age of the policy is minimum 25 years and maximum is 75 years.

Both offline and online purchases of the New Pension Plus policy can be made through brokers or other middlemen using the www.licindia.in website.

Features & Benefits of LIC New Pension Plus Plan

Here is the list of the features and benefits of LIC New Pension Plus. Let’s look at them.

  1. The policyholder will be given the option to select the premium payment amount and policy duration, subject to minimum and maximum limits.
  1. The Guaranteed Addition on Regular Premiums is between 5% and 15.5%, and the Guaranteed Addition on Single Premiums is up to 5% upon the conclusion of a certain policy year. The quantity of Guaranteed Additions will be used to buy units in accordance with the chosen fund type.
  1. According to the annuitization clause, the Life Assured shall use the proceeds of the Policy on Vesting (i.e., at the end of the Policy Term), on Surrender, or on Discontinuance. After five years, units may be partially withdrawn.
  1. The policyholder has the option to invest premiums in one of the four accessible types of funds. The policyholder will be charged a premium allocation charge for each premium they pay. The remaining sum, sometimes referred to as the allocation rate, represents the portion of the premium used to buy the policyholder’s chosen fund’s units. There are four accessible free switches for changing funds in a policy year.
  1. The daily NAV calculation will take into account each fund type’s fund management fee as well as investment performance.

LIC New Pension Plus Plan No 867 Review – Should You Invest?

After reading the aforementioned plan, you probably noted that it is a copy of the National Pension Scheme (NPS), which allows for investments in government bonds, corporate bonds, and equity.

Bond and equity investments in corporations carry risk. On the other hand, government bonds offer low returns while being secure investments with no credit or default risk.

LIC plans typically offer modest returns. The fancy term used by insurance companies to entice investors is “guaranteed additions.” However, this pension plan’s actual returns are modest.

Such pension plans might be chosen by investors who have confidence in the LIC brand and are thrilled by low returns. Otherwise, one can stay away from the new pension plus plan of this LIC.

What Achievements did LIC Make This Year (2022)?

LIC began its IPO in May of this year. On the final day of bidding, it was subscribed 2.95 times, with the portion set aside for qualified institutional buyers (QIBs) entirely booked, indicating a positive reaction from participants.

Against a 16.21 crore offer, 47.83 crores in bids were received. The pricing range for the LIC IPO was set at Rs 902–949 per share, and the business provided policyholders with a discount of Rs 60 per share and retail investors and LIC workers with a discount of Rs 45 per share.

With a market value of Rs 5,53,721.92 lakh crore on the day of its market listing in May, Life Insurance Corporation became the fifth-largest corporation in terms of valuation. Tuesday saw the shares of LIC begin trading on the BSE at a discount of 8.61%, or Rs 867.20 a share.

Article Published by

Related Posts

National Pension System
Probus Insurance

National Pension System

The National Pension System (NPS) is a retirement benefit program created by the Indian government to provide each subscriber with a steady income after

Read More »
How To Check PLI Status?
Probus Insurance

How To Check PLI Status?

PIL or Postal Life Insurance is a profitable scheme offered by the government to offer you higher returns on your life insurance plan premium.

Read More »