LIC Pension Plans are investment plans that lets you allow a part of your savings to accumulate over a period of time and provide you with steady income post retirement. Pension plans in LIC are best suited for senior citizens to plan their future securely. Hence, by taking an LIC pension plan you can enjoy your life even after your retirement with your loved ones. So, go through the following sections of this article to know about LIC Retirement plans.
- 1 LIC Pension Scheme Introduction
LIC Pension Scheme Introduction
After several years of hard work, everyone wants to relax. But to lead a stress-free relaxed life after the retirement, one must be away from financial worries. For that, you need to choose a best LIC Pension Plan. The Life Insurance Corporation of India has introduced some pension plans that provide dual benefits of insurance and investment. By taking LIC Retirement plan while you are earning, the invested amount in a pension plan will help you in old age after your retirement. The company will pay the pension throughout the lifetime of the policyholder.
The LIC Pension Plans are Individual plans that will concentrate on your future needs and financial stability in your old age. Also, the LIC Pension scheme provides a minimum guarantee on the premium paid. So, by taking pension plans you do not need to give up on the best things in your life. The Policyholder can purchase the policy by paying the lump-sum amount or by paying regular premiums. You have an option to choose the type and mode of payment such as Yearly/ Half yearly/ Quarterly/ Monthly according to your requirements.
If you have purchased the policy with high price you can get incentives. The different pension plans available under the Life Insurance Corporation of India are LIC Jeevan Akshay-6, Varistha Pension Bima Yojana, and LIC’s New Jeevan Nidhi. Each plan has different eligibility criteria, you can select any one of them by comparing each plan conditions according to your requirements. Here you can also calculate the returns available in LIC Pension plans using LIC Pension Plan calculator.
LIC Pension Plan Benefits
- Death Benefit.
- Income Tax Benefit.
These are the basic benefits available for all the LIC Pension Plans. Here I have also provided an example to understand clearly about pension scheme in LIC.
Death Benefit: On Death of the policyholder during the policy period, the purchased amount will be refunded or the premium will be paid to the nominee till the end of the guaranteed period or the policy will be seized. It completely depends on the pension option chooses by the policyholder.
Income Tax Benefit: Premiums paid to buy any of the LIC Retirement plans are exempted from tax. The Pension which will be received by the policyholder is taxable.
Advantages of LIC Retirement Plans
The LIC Annuity plans offer numerous advantages to their customers. So, let’s have a look at these advantages.
- The primary advantage of LIC pension plans is that the policyholder and his family will receive a regular income after the policy term.
- The pension plans of LIC offer payment for the lifetime.
- The LIC annuity plans are good alternatives for people in private jobs.
- Insured will receive much more than amount put in, besides the insurance.
For more Information please check the below list of LIC Annuity plans available.
Example for Pension Plan LIC
LIC Pension Plans – www.licindia.in
- LIC Jeevan Akshay Plan.
- LIC’s New Jeevan Nidhi Policy.
- Varishtha Pension Bima Yojana
Jeevan Akshay VI Plan
The LIC Jeevan Akshay 6 plan is a type of LIC pension plan. This plan is an immediate annuity pension plan. you can purchase this policy by paying a lump sum amount as a single Premium. In LIC Jeevan Akshay 6 Plan after buying the policy, the pension will start immediately without delay. In LIC Jeevan Akshay 6 plan you can select mode of pension payment such as yearly, half-yearly, quarterly and monthly. Once the payment mode is chosen, the option cannot be changed because the pension starts immediately after buying the LIC Jeevan Akshay 6 plan.
LIC New Jeevan Nidhi Plan
The LIC New Jeevan Nidhi Plan is a regular premium LIC pension plan. Premium needs to be paid till the completion of the policy period. In LIC New Jeevan Nidhi Plan at the end of the accumulation period, the maturity benefit comprising of the sum assured, final additional bonus and the increment bonus will be converted into the pension. After the end of the accumulation period, the vesting period starts in which pension will be paid out on regular intervals till the end of the policy period. After the expiry of the life insured, a lump sum will be paid to the nominee.
LIC Varishtha Pension Bima Yojana
Varishtha Pension Bima Yojana is one of the best LIC pension plans introduced by Life Insurance Corporation of India(LIC). The Government of India announced the revival of LIC Varishtha Pension Bima Yojana in Union Budget 2014-2015. LIC Varishtha Bima Yojana is a single premium pension policy for senior citizens, with pension starting to flow in immediately. One can opt to receive the pension in different modes like yearly, half-yearly, quarterly and monthly.
LIC Pension Plan Calculator
Have you ever calculated how much money you need to save for retirement? If your answer is no; then use the LIC Pension Plan Premium Calculator and find out how much amount you need to save. This LIC Pension Calculator is useful not only for the policyholders of LIC but also the for the people who want to opt an annuity plan. So, enter your name, age, planned retirement age, premium amount, mode of premium payment, etc. in the LIC Pension Plan premium calculator and calculate the annuity benefits.