LIC Pension Plan is a retirement scheme offered by LIC of India. It offers guaranteed returns and is one of the best LIC retirement schemes in India. The scheme offers various benefits such as guaranteed returns, safety of capital, regular income, etc. which makes it an attractive investment option for retirees. Read on to know more about the LIC Pension Plan and how it can help you secure a comfortable retirement.
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What is the LIC Pension Plan?
The LIC Pension Plan is a retirement scheme offered by the Life Insurance Corporation of India. It is a deferred annuity plan that provides a regular income after retirement. The plan can be purchased by paying a lump sum or in instalments. The minimum age for purchase is 18 years and the maximum age is 60 years. The policy term is 20 years.
The LIC Pension Plan offers several features and benefits, making it one of the best LIC retirement schemes in India:
– It provides financial security in old age
– It offers tax benefits under section 80C of the Income Tax Act
– It gives the option to choose between monthly and yearly payout options
– The annuity payments are guaranteed for life
– There is no upper limit on the amount that can be invested in the plan
– The investment growth is tax-free
Features of the LIC Pension Plan
If you are looking for a retirement plan that provides you with a regular income after retirement, then the LIC Pension Plan is the perfect choice for you. This pension plan from LIC of India offers several features that make it one of the best retirement schemes in the country. Some of the key features of this plan are:
1. Regular Income: The LIC Pension Plan provides you with a regular income after retirement. You can choose to receive this income monthly, quarterly, half-yearly or annually.
2. Tax Benefits: The LIC Pension Plan offers tax benefits under section 80C and 10(10D) of the Income Tax Act.
3. Death Benefit: In case of death of the policyholder during the policy term, the nominee will receive the sum assured along with vested bonuses.
4. Surrender Value: The policy can be surrendered at any time during the policy term for its surrender value.
5. Loan Facility: A loan can be availed against the policy after 3 years from its commencement date.
Benefits of the LIC Pension Plan
The LIC Pension Plan is one of the best retirement schemes in India. Here are some benefits of the LIC Pension Plan:
1. The LIC Pension Plan offers a guaranteed monthly income after retirement.
2. The LIC Pension Plan offers a death benefit, which ensures that your family will receive a monthly income in case of your demise.
3. The LIC Pension Plan has a very low investment cap, making it affordable for everyone.
4. The LIC Pension Plan offers tax benefits, which can help you save money on your taxes.
5. The LIC Pension Plan is backed by the government of India, making it a safe and secure investment option.
Types OF LIC Pension Plans Offered By LIC of India
1. LIC Pradhan Mantri Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme that provides guaranteed returns to senior citizens. The scheme is open to all Indian citizens aged 60 years and above.
Under the PMVVY, senior citizens can avail of an annuity for 10 years, which will provide them with a regular income during their retirement years. The annuity can be bought in lump sum or in instalments. The minimum investment under the scheme is Rs 1.5 lakh, while the maximum investment is Rs 15 lakh.
The interest rate under the PMVVY is currently 7.4%, and is payable monthly. The interest rate is guaranteed for the tenure of the policy, and will not change even if market conditions fluctuate.
In case of death of the policyholder during the policy term, the nominee will receive the entire corpus as a lump sum. If the policyholder survives till maturity, he/she will get back the entire corpus, along with accrued interest.
The PMVVY is a safe and secure investment option for senior citizens, as it offers guaranteed returns and capital protection. It is also one of the best retirement planning options available in India today.
2. LIC’s New Jeevan Shanti
LIC’s New Jeevan Shanti is a pension plan that offers guaranteed monthly income after retirement. It is a flexible and affordable plan that can be customized according to your needs. The plan also provides for an annuity option, which ensures a regular income during your retirement years.
3. LIC’s Saral Pension
LIC’s Saral Pension is a retirement scheme that offers guaranteed returns and is one of the best LIC pension plans in India. It is a unit linked non-participating deferred annuity plan which provides for regular income during post-retirement years. The pension plan can be bought online as well as offline.
Death benefit: On death of the annuitant during the policy term, higher of sum assured or fund value will be paid to the nominee and the policy will terminate.
Maturity benefit: On survival to the end of policy term, guaranteed lump sum benefit equal to purchase price plus simple reversionary bonuses declared during the policy term plus terminal
4.LIC’s Jeevan Akshay – VII
LIC’s Jeevan Akshay VII is a popular LIC pension plan that offers an annuity for life. It is a non-linked, with-profits annuity plan which provides guaranteed returns. The minimum guaranteed return under this plan is 5% p.a. and the maximum guaranteed return is 7% p.a.
This plan can be purchased by any individual between the ages of 45 and 80 years. The policy term is 10 years and the premium payment term is 5 years. The policyholder can choose to receive monthly, quarterly, half-yearly or yearly payments from the annuity.
The main features of this plan are:
1) Guaranteed returns – The annuity payments under this plan are guaranteed for life, no matter how long the policyholder lives.
2) Flexible payment options – Policyholders can choose to receive their annuity payments monthly, quarterly, half-yearly or yearly, as per their convenience.
3) Death benefits – In case of the policyholder’s death during the policy term, the nominee will receive all the accumulated premiums along with loyalty additions, if any.
4) Tax benefits – This plan offers tax benefits under Section 80C of the Income Tax Act 1961
Who is eligible for the LIC Pension Plan?
The LIC Pension Plan is a retirement scheme designed for Indian citizens who are at least 18 years old and have a regular source of income. Employees of the central and state governments, public sector undertakings, and certain other categories of workers are also eligible for the LIC Pension Plan. The minimum monthly pension under this scheme is Rs 1,000, and the maximum monthly pension is Rs 5,000.
How to apply for the LIC Pension Plan?
If you’re looking for a retirement plan that will give you a regular income after you retire, the LIC Pension Plan is a great option. Here’s how to apply for the plan:
1. Visit the LIC website and download the application form.
2. Fill out the form and submit it along with any required documents to your nearest LIC office.
3. Once your application is approved, you’ll need to make an initial payment into your account. You can do this by cheque or through online banking.
4. After your initial payment has been made, you’ll need to start making monthly payments into your account. This can be done through ECS or auto-debit from your bank account.
5. Once you reach retirement age, you can start withdrawing money from your account. You can choose to receive this as a lump sum or as a monthly income.
Conclusion
The LIC Pension Plan is one of the best retirement schemes in India. It offers a wide range of benefits and features, making it an ideal choice for those looking to secure their financial future. With its guaranteed returns and death benefit, the LIC Pension Plan is a great way to ensure that you and your loved ones are taken care of after you retire.
