Are you planning your retirement? In which you want to ensure a financially secure future for your loved ones? If yes, then you should immediately consider all the pension plans offered by LIC. As LIC is one of the most trusted and reputed insurance companies in India, it offers a wide range of pension plans to meet the various needs of individuals. In this article, we will look at LIC all pension plans and find out how they can help you secure a comfortable retirement.
Why is it important to plan for retirement?
Planning well in advance for retirement is essential, as retirement is one phase of life that cannot be avoided. Hence, to help people save money for their post-retirement years, LIC, one of the most reputed insurance companies in the insurance sector, offers a variety of pension plans. And these plans help provide a steady income in retirement and keep your retirement financially secure.
What are pension plans?
Pension plans, often referred to as retirement plans, are designed to provide regular, pension benefits to policyholders at the time of retirement. These plans help individuals accumulate money for a specific period, after which it is converted into regular pension or annuity payments. These LIC pension plans are designed to meet the diverse needs and preferences of individuals, ensuring a comfortable retirement.
LIC All Pension Plans in India
LIC offers a number of pension plans, each of which comes with distinct benefits and features. Let us know about LIC’s All Pension Plans:
1. LIC Jeevan Akshay VII
LIC Jeevan Akshay VII is an immediate annuity plan that provides lifetime income to the policyholder. It gives the policyholder the option to choose the type of annuity from 10 available options, such as a single-life annuity or a joint-life annuity, with or without return of the purchase price, on payment of a lump sum amount. This plan ensures financial security for you and your spouse during your lifetime.
2. LIC New Jeevan Nidhi
LIC New Jeevan Nidhi is a deferred annuity plan that combines the benefits of insurance and investment. It offers a regular income after retirement while providing life cover during the accumulation period. This plan also provides the option to commute a part of the pension fund for a lump sum amount, catering to your financial needs.
3. LIC Pradhan Mantri Vaya Vandana Yojana (PMVVY)
LIC Pradhan Mantri Vaya Vandana Yojana is a pension plan exclusively designed for senior citizens. It offers a guaranteed pension payout for ten years, ensuring a secure future during your retirement years. This plan also provides a death benefit to the nominee in case of the policyholder’s demise.
4. LIC Varishtha Pension Bima Yojana
LIC Varishtha Pension Bima Yojana is another pension plan catering to senior citizens. It offers a regular pension income for a fixed tenure of ten years. This plan provides financial stability and helps meet your post-retirement expenses effectively.
5. LIC Jeevan Shanti
LIC Jeevan Shanti is a non-linked, non-participating, single-premium annuity plan. It provides a guaranteed income for life or a fixed period, depending on the policyholder’s choice. This plan allows individuals to choose from various annuity options and offers flexibility in terms of payout frequencies.
6. LIC Saral Pension
LIC Saral Pension is a Non-Linked, Non-Participating, Single Premium, Individual Immediate Annuity Plan. The objective of this policy is to provide immediate pension benefits to the policyholder. Due to which the policyholders get the benefit of a regular pension during their retirement. To avail yourself of the benefits of this scheme, you have to pay the premium in one lump sum. Because it is a single-premium plan in which the premium has to be paid only once. and there is no other option available to pay the premium.
LIC all Pension Plan Comparison 2023
Out of all these pension policies, we will compare only 3 policies because in recent times only this policy is available in the market.
| Plan Details | Jeevan Akshay VII | Jeevan Shanti | Saral Pension |
|---|---|---|---|
| Table No. | 857 | 858 | 862 |
| Plan Pension Type | Immediate | Differed | Immediate |
| Premium Payment Term | Single Premium | Single Premium | Single Premium |
| Pension Available For | Single & Joint life | Single & Joint life | Single & Joint life |
| Interest | Fixed & Guaranteed | Fixed & Guaranteed | Fixed & Guaranteed |
| Minimum Entry Age | 30 Years | 30 Years | 40 Years |
| Maximum Entry Age | 100 Years | 79 Years | 80 Years |
| Pension Condition | Monthly – 1000/- Quarterly – 3000/- Half Yearly – 6000/- Yearly – 12000/- | Monthly – 1000/- Quarterly – 3000/- Half Yearly – 6000/- Yearly – 12000/- | Monthly – 1000/- Quarterly – 3000/- Half Yearly – 6000/- Yearly – 12000/- |
| Sum Assured – Min | 1 Lakh | 1.50 Lakh | 1 Lakh |
| Sum Assured – Max | No Limit | No Limit | No Limit |
| Pension Modes | Monthly, Quarterly, Half-yearly & Yearly | Monthly, Quarterly, Half-yearly & Yearly | Monthly, Quarterly, Half-yearly & Yearly |
| Surrender Eligibility | Available after 3 months (In case of critical illness or terminal illness) | Any Time | Available after 3 months (In case of critical illness or terminal illness) |
| Tax Benefits | Premium – Tax Rebate (80C) Pension – Taxable Death Benefit – Tax Free 10(10D) | Premium – Tax Rebate (80C) Pension – Taxable Death Benefit – Tax Free 10(10D) | Premium – Tax Rebate (80C) Pension – Taxable Death Benefit – Tax Free 10(10D) |
| Pension Options | 10 Options | 12 Option of Deform | Single / Joint Only |
| Pension Option in the plan | Option F – Single Life Option J – Joint Life | Option 1 – Single Life Option 2 – Joint Life | Option 1 – Single Life Option 2 – Joint Life |
| Pension % | 7% | 6.97% to 14.5% | 6.40% |
| Loan | After 3 Months | After 3 Months | After 6 Months |
| Whom will be selected as second annuitant | Spouse / Children / Siblings / Parents / Grand parents / Grand Children | Spouse / Children / Siblings / Parents / Grand parents / Grand Children | Spouse Only |
| Death Benefit to Nominee | Return of Purchase price | Return of Purchase price | Return of Purchase price |
| Death benefit options | Lump Sum / Installment Annuitization | Lump Sum / Installment Annuitization | Lump sum only |
Also Read:- lic accidental death claim process 2023
How LIC Pension Plans Work
LIC pension plans work on the principle of regular premium payments over a specific accumulation period. The accumulated funds are then converted into a pension or annuity payout, providing a steady income stream after retirement. The premium amount and the pension amount depend on various factors like age, policy term, premium payment mode, and annuity option chosen.
Benefits of LIC Pension Plans
Guaranteed Income: LIC pension plans offer a guaranteed income during your retirement years, ensuring financial stability and peace of mind.
Life Cover: Some of LIC’s pension plans provide life cover during the accumulation period, offering additional financial protection to your loved ones.
Flexibility: LIC pension plans provide flexibility in terms of annuity options, payout frequencies, and the choice to commute a part of the pension fund.
Tax Benefits: The premiums paid towards LIC pension plans are eligible for tax deductions under Section 80C of the Income Tax Act, 1961.
Factors to Consider Before Choosing a LIC Pension Plan
Before choosing a LIC pension plan, consider the following factors:
Age: Your age plays a crucial role in determining the premium amount and the pension payout. It is advisable to start early to accumulate a significant retirement corpus.
Policy Term: Evaluate the policy term and choose a plan that aligns with your retirement goals.
Annuity Options: Understand the various annuity options offered by LIC and select the one that suits your financial needs and preferences.
Premium Payment Mode: Consider your cash flow and choose a premium payment mode that is convenient for you.
How to Apply for a LIC Pension Plan
To apply for a LIC pension plan, follow these simple steps:
- Visit LIC’s official website or contact your nearest LIC branch.
- Fill out the application form with accurate details.
- Submit the necessary documents, such as age proof, identity proof, and address proof.
- Pay the premium amount as per the chosen plan and payment mode.
- Complete the medical examination, if required.
- The policy documents and other pertinent information will be sent to you after the application has been reviewed and approved.
Conclusion
Planning for retirement is a crucial step towards ensuring a secure and financially independent future. LIC’s all pension plans provide an excellent opportunity to build a corpus and receive a regular income after retirement. Whether you are a senior citizen or a working professional, there is a suitable LIC pension plan to meet your unique needs and preferences. Start planning today and secure a comfortable tomorrow with LIC.
Also Read:- Now you will not have to wait for 60 years; you will get the benefit of a pension in 40.
Frequently Asked Questions (FAQs)
Q 1: Can I purchase multiple LIC pension plans?
Yes, you can purchase multiple LIC pension plans as per your financial goals and requirements. However, ensure that the total pension payout does not exceed your income needs during retirement.
Q 2: Are the returns from LIC pension plans taxable?
Yes, the pension income received from LIC pension plans is taxable as per the prevailing income tax laws. The tax treatment may vary based on the annuity option chosen and the applicable tax rules.
Q 3: Can I avail of a loan against my LIC pension plan?
No, LIC pension plans do not offer any loan facility. These plans are primarily designed to provide a regular income after retirement.
Q 4: What happens to the pension amount in case of the policyholder’s demise?
In the unfortunate event of the policyholder’s demise, the pension amount may vary based on the annuity option chosen. The nominee or legal heir will receive the applicable benefits as per the policy terms and conditions.
Q 5: Can I surrender my LIC pension plan before maturity?
Yes, you can surrender your LIC pension plan before maturity; however, it may attract surrender charges and impact the overall returns. It is advisable to review the policy terms and conditions before making a decision.