LIC of India
LIC Retirement Plans

LIC Pension Plans

Everybody wants to save enough money for retirement and live a financially stable life. LIC Pension Plans are designed to safeguard an individual’s financial future once they retire. Individuals in their retirement years can rely on LIC pension plans for a steady stream of income.

Types Of LIC Pension Plans

LIC offers four types of pensions plans which are described below:

1. Pradhan Mantri Vaya Vandana Yojana

The Government of India launched this pension plan to provide senior citizens with a savings account in addition to regular salaries. This plan allows you to pay your pension monthly, quarterly, half-yearly, or annually.

Key Features:

  • Death Benefits: In case there is the death of the pensioner during the policy tenure, the purchase price will be refunded.
  • Maturity Benefit: In case the pensioner survives the policy tenure, the purchase price along with the final pension installment will be paid to the policyholder.
  • Loan Facility: After completing 3 years of the policy, the policyholder can avail loan facility.
ParametersValues
Minimum Entry Age60 Years (Completed)
Maximum Entry AgeNo Limit
Policy Term10 Years

2. LIC's Jeevan Akshay – VII

This is an annuity plan that pays off right away. This plan can be purchased with a single payment. You will receive annuity payments for the rest of your life. You can choose from a variety of annuity payment types and modes.

Key Features:

  • 10 Annuity Options: This plan offers 10 different annuity options to choose from.
  • Loan Facility: The loan facility will be accessible three months after the policy is completed (i.e., three months after the policy is issued) or after the free-look period has expired.
  • Different Annuity Mode: The policyholder can select to receive an annuity in yearly, half-yearly, quarterly, and monthly modes.
ParametersValues
Minimum Entry Age30 Years (Completed)
Maximum Entry Age85 To 100 Years (Completed)
Minimum Purchase PriceRs. 1 Lakh
Maximum Purchase PriceNo Limit

3. LIC's New Jeevan Shanti

This LIC plan is a single premium pension plan with the option of an immediate or deferred annuity for the insured. The annuity rates guaranteed at the policy’s beginning for both immediate and deferred annuities are payable for the rest of the individual’s life.

Key Features:

  • Multiple Annuity Options: The plan provides 9 different annuity options to choose from.
  • Lifetime Income: In lieu of one-time investment, the plan offers guaranteed lifelong income.
  • Guaranteed Additional Benefit: During the period of deferment, this policy offers guaranteed additional benefits to the policyholder.
ParametersValues
Minimum Entry Age30 Years
Maximum Entry Age79 Years
Minimum Purchase PriceRs. 1,50,000
Maximum Purchase PriceNo Limit

4. LIC's Saral Pension

The LIC Saral pension plan is available to those aged 40 to 80 years. However, it is best suited to those who have a lump sum cash to invest in order to ensure their retirement.

Key Features:

  • Option To Select Type Of Annuity: On payment of a lump sum amount, the policyholder has the option of choosing between two types of annuities: Option 1 and Option 2.
  • Mode Of Annuity Payments: Annual, half-yearly, quarterly, and monthly are the modes of annuities available under the plan.
  • Loan Facility: The policy loan can be taken out at any moment after six months from the policy’s start date.
ParametersValues
Minimum Entry Age40 Years (Completed)
Maximum Entry Age80 Years (Completed)

Why Choose LIC Pension Plans?

LIC pension plans offer a wide range of benefits to their customers. Some of them are discussed below:

1. Lifelong Payment:

The LIC pension plans provide payment for life to the policyholders. For example, the Jeevan Akshay – VI is an immediate annuity plan that comes with life annuity options.

2. Get Income Without Any Difficulty:

No matter what pension plan you choose from LIC, your money will be deposited in the bank account that you have specified. You need not complete paperwork to release your own money with LIC as most of the paperwork will be done by the employees of the company.

3. Consistent Income:

One of the biggest advantages of choosing LIC pension plans is that you receive consistent income. The majority of LIC pension plans allow for premium payments to be made throughout a person’s lifetime.

4. Guaranteed Payouts:

Under LIC pension plans, the payout amount is certain. Not only the policyholder will receive the guaranteed payouts but also, they will be able to plan their future finances in advance.

5. Enjoy Several Benefits:

The LIC pension plans allow the policyholders to enjoy various benefits, such as maturity benefit, death benefit, etc.

How To Purchase LIC Pension Plans?

There are basically two methods of purchasing a LIC pension plan. Both of them are discussed below:

ONLINE METHOD:

  1. Go to the company’s official website.

  2. Click on the yellow-colored banner which says, “Buy Policy Online”.

  3. You will be then directed to the page where you need to select the appropriate plan as per your needs.

  4. After selecting the plan, enter your details, such as gender, date of birth, etc., and then continue.

  5. Pay for the plan and the policy details will be sent to your registered mail address.

OFFLINE METHOD:

Visit a local LIC branch if you prefer to purchase the policy in person. When you visit the site before purchasing a policy, you can get all of the insurance information you require. However, if you continue to have issues, you can contact Probus Insurance for any investment related help.

What Are Things To Consider While Purchasing LIC Pension Plans?

While purchasing LIC pension plans, you should keep in mind the following things:

Type Of Pension Plans:

Before purchasing LIC pension plans, you should know your type of pension plan. This can be done by analyzing each pension plan provided by LIC and then choosing the one that is suitable for you. As LIC of india offers two-way benefits – insurance cover and assured returns, people prefer to buy them.

Fees Of Pension Plans:

It is very important to consider the charges of the pension plan before buying it because it assists you in identifying which plan offers better returns. If you will consider this aspect, you will be able to see a more clear picture of what you will have in return.

Buy A LIC Pension Plan Early:

If you will start early with a LIC pension plan, it will allow you to ensure building a sizeable corpus for your retirement days. Early starting means you need to invest less and grow more by the time you reach your retirement age.

Consider Deferred OR Immediate Annuity Plan:

Sometimes people fritter away a large amount of money and could not realize it. To avoid this, you should always consider purchasing an immediate or deferred annuity plan. This will ensure that your retirement fund is secure and that you are not left stranded when you retire.

Types Of Payout:

Some plans will offer you a lump sum amount as a payout, while others pay an annuity for life. Before purchasing LIC pension plans, know the total amount you wish to get back and then choose the type of payout accordingly.

Frequently Asked Questions

Yes. With LIC, a person can invest in various pension schemes.

If you surrender the plan before the maturity date, the entire surrender value is added to your annual income, and you may be required to pay tax on it depending on your income group.

If the assessee has paid any sum towards any annuity plan of the Life Insurance Corporation of India (LIC) or any other insurer for the purpose of collecting a pension from a pension fund, a deduction is allowed. The pension paid from the policy is also included in taxable income.

The annuitant can choose between monthly, quarterly, and half-yearly payments, according to the terms of the LIC Saral pension plan. As a result, the plan’s minimum monthly annuity is 1,000, its minimum quarterly annuity is 3,000, and the plan’s minimum half-yearly annuity is 6,000.

The fundamental benefit of LIC pension plans is that they provide a regular income to the insured and his family after the plan’s term has ended. The majority of LIC pension plans allow premium payments to be made at any point during the policyholder’s life.

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