Pension Plans of LIC
Retirement Planning is the most important part of life. At old age one needs regular flow of income, when there will be no job. To live life happily at old age you need to have funds in your account. With improving medical facilities life expectancy is increasing day by day. If a person lives till the age of 90yrs, he needs income for 30yrs from 60 to 90. Also at old age, body is prone to diseases so lot of funds are required to maintain healthy life style. There are various kinds of pension plans available in LIC. Single premium pension plan, regular premium pension plan, immediate pension plan, deferred pension plan, Joint pension plan, market-linked pension plan, guaranteed pension plan & Tax free pension plans.
Why there is a Requirement for Pension Plans?
| Reasons for Choosing Pension Plans | Explanation |
| Increasing Expenses | Life is becoming more expensive, and pension plans help cover rising costs. |
| Increasing Medical Expenses | With age, health-related costs tend to rise, and pension plans ensure coverage for medical expenses. |
| Regular Flow of Income | Pension plans provide a steady income stream, supporting daily living expenses. |
| Nuclear Families | In smaller families, pension plans act as a financial safety net for individuals without extended family support. |
| Income of Kids may not be Enough | Children may not always have a high income, making pension plans crucial for financial security in old age. |
| To Live as Per Your Choice | Pension plans enable individuals to maintain their preferred lifestyle and live life on their terms. |
| Pilgrimage and Tourist Visits | Pension plans provide financial support for travel, pilgrimages, and exploration of different places. |
| People Value Financial Independence | Having financial independence through pension plans contributes to feeling respected and valued. |
| Avoiding Constant Requests for Money | Pension plans help individuals avoid frequent requests for financial support from their children. |
| Ensuring Grandchildren’s Enjoyment | Pension plans not only secure the individual’s future but also contribute to providing for grandchildren’s enjoyment. |
Available Pension Plans in LIC:
LIC Pension Plus: LIC Pension Plus is a unit-linked pension plan. In this policy, the customer’s money is invested in the stock market, providing handsome returns. LIC of India offers different fund options based on the risk appetite of the policyholder. After retirement, policyholders receive regular income throughout their lives.
Age entry: Minimum 25yrs.
Max age entry: 75years
Minimum Premium: Rs 30000 yly
Max purchase amount: No Limit
LIC Jeevan Akshay 7: This is a whole life guaranteed single premium immediate pension plan. In this policy, the policy holder invests a lump sum amount, and the policyholder starts receiving a pension monthly, quarterly, half-yearly, or yearly, as chosen, immediately for the entire life, up to 100 years of age. It also provides an option to include a spouse or kids along with the self if they are 30 or more years of age.
Age entry: Minimum 30yrs of age.
Max age entry: 85years
Minimum purchase amount: Rs 1 lac
Max purchase amount: No Limit
Mode of Pension : Monthly, Quarterly, Half-yearly, Yearly, This retirement scheme is also called monthly pension scheme
Jeevan Shanti: It is a single premium whole life guaranteed deferred income pension plan. In this policy, the amount is invested as a lump sum at the time of taking the policy. Since it is a deferred annuity plan, the policyholder can opt for a deferment from 1 year to 12 years. The pension rates are guaranteed throughout life or up to 100 years of the life assured, along with the joint policyholder.
Age entry: Minimum 30yrs of age.
Max age entry: 79years
Minimum purchase amount: Rs 1 lac
Max purchase amount: No Limit
Jeevan Umang: Jeevan Umang is an investment plan that provides guaranteed & tax free income to the policyholder after a period of 15, 20, 25, or 30 years, as chosen by the policyholder. The income is tax-free and guaranteed for the whole life. This policy is suitable for people who want a regular pension and aim to leave a legacy for their family.
Age entry: Minimum 90 days.
Max age entry: 55years
Minimum Sum Assured: Rs 2 lac
Max purchase amount: No Limit
Jeevan Utsav: Jeevan Utsav is a unique plan in LIC that provides the provision of creating a corpus even for kids for their retirement. It is a plan that provides a 10% guaranteed income for a lifetime, tax-free. Normally, it is a short-term guaranteed income lifetime accumulation plan that gives a guarantee of 5.5% compounding and value throughout life.
Age entry: Minimum 90 days.
Max age entry: 65years
Minimum Sum Assured: Rs 5 lac
Max purchase amount: No Limit
Advantages of early planning
| R | Ajay | Vijay | Sanjay |
| Current Age | 22 | 36 | 52 |
| Desired age of retirement | 60 | 60 | 60 |
| Years in Hand for Saving | 38 | 24 | 8 |
| Investment per month | 5000 | 5000 | 5000 |
| Approximate Returns | 8% | 8% | 8% |
| Total retirement fund at the age 60 | Rs1,36,96,917 | Rs41, 50, 727 | Rs6, 61, 273 |
Q1. What fees are associated with making LIC premium payments through net banking or phone banking?
Ans: LIC does not impose any charges, and this service is complimentary for its policyholders.
Q2. In what ways does pension plans of LIC differ from term insurance plans?
Ans:While both pension plans and term insurance provide financial protection, they fundamentally differ. A pension plan provides financial security to the policyholder after retirement, and in the event of the insured’s sudden demise, the nominee receives benefits. On the other hand, term insurance pays out only in the event of the policyholder’s death, with no payout if the insured survives the policy tenure.
Q3. What makes pension plan of LIC a valuable addition when I already have a Provident Fund (PF) account?
Ans: Even if you have a provident fund account, getting LIC’s pension plan is smart. As time passes, inflation might make your PF savings not enough. When you’re older, you might face more health issues, leading to higher medical costs. Just depending on a provident fund might not cover all your future needs. Also, LIC’s pension plans give you insurance coverage that can even include your spouse for added security.
Q4. Which one is the best pension plan in India?
Ans: All pension plans of the Life insurance corporation of India are best. They offer a variety of features that one will not get anywhere. Highest pension rates, Guaranteed addition, whole life pension commitment, can be taken jointly with son, daughter, wife, etc. The best part is LIC plans are backed by the guarantee of Central govt.
Q5. What are some of the GST charges I need to pay to avail LIC pension plan?
Ans: Only a Gst is to be paid over an above the premium. In single premium pension plans the GST is 1.8%, whereas the GST is 4.25% in regular premium pension plans.
Pension Plans of LIC,Buy now & Plan for life-long celebration
Why you should buy Pension Plans of LIC?
No Social Security: In India, the population is huge and support for pensions from the government is very less. So in order to have a regular income one should definitely buy LIC retirement schemes.
Nuclear Families: In the mid-20th Century people used to live in joint families but now people are living in nuclear families. Who will support them in old age?
Increasing living cost: The cost of living in India is increasing day by day, it will not be easy to survive after retirement if you will not have any pension.
Start Early save Big: If you will start saving towards your pension fund at around 25 to 30 years of age of your life then over a period of time it will grow a big amount and you will get a handsome pension.
Lic pension plan single premium Immediate annuity – LIC JEEVAN AKSHAY VII
Table No. 857
LIC Jeevan Akshay VII is the Single premium, guaranteed income, whole life, pension plan of LIC.
Age entry: Minimum 30yrs of age.
Max age entry: 85years
Minimum purchase amount: Rs 1 lac
Max purchase amount: No Limit
Mode of Pension : Monthly, Quarterly, Half-yearly, Yearly, This retirement scheme is also called monthly pension scheme
Single premium Deferred annuity – LIC JEEVAN SHANTI
Table No. 858
LIC Jeevan Shanti is the Single premium, guaranteed income, whole-life, pension plan of LIC.
Age entry: Minimum 30yrs of age.
Max age entry: 85years
Minimum purchase amount: Rs 1 lac
Max purchase amount: No Limit
Pay Rs 2lac for 15yrs and Rs 2 lac tax-free guaranteed every year for life and Rs 80Lac* for the family fund.
Jeevan Umang (Table No. 945)
LIC Jeevan Umang is the regular premium, guaranteed income, whole life, tax free, pension plan of LIC.
Age entry: Minimum 90 days.
Max age entry: 55years
Minimum purchase amount: Rs 2 lac
Max purchase amount: No Limit
Why you should buy a pension as early as possible?
Normally people try to calculate premiums through LIC pension plan calculator, or maturity with pension plan maturity calculators but on the right side if you will see you find how much you are losing if you will not start saving for your retirement fund at an early age.
Example 1: A person aged 25 who saves Rs 4000 p.m. in LIC pension plans, will get Rs 90,00,000 at the age of 60. It will definitely help him to purchase a big pension amount.
Example 2: As the age reaches 30 if the same amount Rs 4000 is saved then the maturity at the age of 60 will be Rs 51,00,000 which is 39,00,000 lakhs less than discussed in case 1.
So the more you delay your saving for your pension the lesser you will get.
Buy now and get a handsome pension.
How to buy LIC Plans direct from your home instantly?
Now all LIC plans can be bought online by just sitting in the comfort of your home.
Basic information: You fill out the form and provide us with your contact information.
LIC Staff will contact you: LIC will contact you and will reconfirm your requirement.
Plan presentation: Based on the requirement explained by you, we will send you the plan presentation.
Paperless process: Once you finalize the plan, it will be processed via ANANDA.
Policy Payment: The premium payment of the policy through ananda can be done online via credit card, debit card, net banking, UPI, etc.
Policy documents: The policy E- receipt & E- the bond will be received in your email and the original policy bond will be sent to your address via India post.
Which one is the best pension plan in India?
All pension plans of the Life insurance corporation of India are best. They offer a variety of features that one will not get anywhere. Highest pension rates, Guaranteed addition, whole life pension commitment, can be taken jointly with son, daughter, wife, etc. The best part is LIC plans are backed by the guarantee of Central govt.
How much money will I get from the LIC pension plan after it gets matured?
Different LIC pension plan offers different maturity. In some cases, one can get full corpus accumulated in the pension plan whereas in some pure pension plans only a commutation amount is given and for the rest, a pension is given.
LIC pension plus is a pure pension plan.
What are some of the charges I need to pay to avail LIC pension plan??
Only a Gst is to be paid over an above the premium. In single premium pension plans the GST is 1.8%, whereas the GST is 4.25% in regular premium pension plans.
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