LIC India Pension Plans: Best Ones to Choose for Your Safe Future

A pension is the amount of money received by an individual post-retirement. There are certain pension plans offered by various financial institutions and banks that may not promise a king-size life but will commit to the fulfilment of basic necessities. LIC pension scheme is curated to hold the delicate balance between pension and needs.

Let’s explore the four LIC best pension plans and deduce their uniqueness to give you a LIC pension policy as your retirement arrangement.

LIC of India Pension Plan: Overview

Life Insurance Corporation (LIC) of India, headquartered in Mumbai was founded by the government of India in the year 1956. In the proud journey of 66 years, LIC has provided insurance to more than 250 million individuals and has held their trust ever since. LIC offers services like health plans, insurance plans, pension plans, unit linked plans. Micro-insurance plans and withdrawn plans. Each plan hits the bull’s eye with top-notch features and distinctiveness.

There are four LIC pension schemes available for securing the financial well-being of a person after their retirement. LIC ensures that your golden years are stress-free and full of laughs, favourite shows and not letting nostalgia hit you too hard.

LIC India Pension Plan: Benefits

The benefits of choosing the LIC of India pension plan are:

• It guarantees a steady flow of income that helps in sustaining an individual’s current living standards. It is advised to begin with the pension plan as soon as possible so that income is generated once the annuity period starts.
• You can opt for the LIC’s best pension plan through their online platform. It is a hassle free process.
• Employees of the private sector can also earn pension through the LIC pension scheme. Unlike the public sector, pension will not be provided by the central or state bank as a percentage of the salary, LIC’s scheme gets the upper hand.
• The guaranteed increases, such as the reversionary and final bonuses, increase the total payout at the conclusion of the plan in addition to providing insurance protection. Additionally, each year all reversionary bonus percentages are made public, allowing holders of LIC pension scheme to know how much bonus they will earn.
• LIC offers a customer a loyalty benefit for sticking with them for the whole LIC pension plan’s duration.
• LIC pension policy guarantees payouts which allows a person to plan their future accordingly.
• Lifetime annuity alternatives are available through LIC of India pension plan like Jeevan Akshay VII, including those with uniform rate payments, returns on the purchase price, and simple rate increases.

What is the LIC Pension Plan All About?

The pension plans offered by LIC are designed to provide a safe haven to the people in their golden years. These plans offer consistent payments in the form of an annuity or a monthly income that you can utilise to finance your retirement and easily cover your spouse’s costs. The vesting date, which determines when you are entitled to start receiving the pension, might be set to coincide with the age at which you would ostensibly retire. Your financial security and stress-free retirement are guaranteed by the LIC best pension plans.

LIC Best Pension Plans

Life Insurance Corporation of India offers four pension plans. You can opt for the unique LIC pension scheme which aligns with your retirement plan. Let’s comprehend in detail the various LIC pension plans:

Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana was launched by the Indian government with the intention of protecting people’s quality of life after retirement. The Ministry of Finance reviews and decides on the pension rate of the scheme each year in accordance with the terms and conditions of the policy. The annual interest rate that is currently in effect for PMVVY is 7.40%. This programme can be purchased offline or online.

The features of the Pradhan Mantri Vaya Vandana Yojana are:

• Individuals aged 60 or above are eligible for this scheme.
• Pension in arrears is paid to the annuitant in accordance with the selected mode upon the survival of the annuitant during the ten-year policy term.
• The purchase amount is reimbursed to the policy’s beneficiary in the tragic event that the annuitant passes away within the policy’s 10-year term.
• The purchase amount and the last pension instalment are paid to the annuitant if they live to the end of the policy’s term.
• The insured has a choice between several pension payment schedules, including yearly, quarterly, monthly, and half-yearly.
• After the policy has been in effect for three years, a loan facility may be requested.
• In some situations, the scheme permits early withdrawals during the term of the insurance.

LIC’s Jeevan Akshay – VII

The policyholder may select one of ten annuity alternatives under this immediate annuity LIC pension plan. The annuity rate is promised at the start of the insurance and is paid to the annuitant for the duration of that person’s life.

The features of LIC’s Jeevan Akshay – VII are:

• The annuitants in this LIC instant annuity pension plan are required to pay a lumpsum amount.
• The policyholder has a choice of how often the annuity is paid out: annually, biannually, quarterly, or monthly.
• The option of a joint life instantaneous annuity for life is available under the plan, with a clause that, in the event of the death of the primary annuitant, transfers 50% of the annuity to the secondary annuitant.

The following annuity choices are offered by this LIC pension plan:

• Immediate lifetime annuity
• Lifetime Annuity with Purchase Price Refund
• Immediate Annuity is payable for life after being guaranteed for 5/10/15/20 years (even in the event of death).
• A simple annual growth rate of 3% is applied to life annuities.
• Lifetime annuity with a 50% or 100% spousal annuity in the event of the annuitant’s passing.

LIC’s New Jeevan Shanti

The insurance holder receives annuity payments following the deferment period under this single premium payment policy. The annuity rates are established at the start of the policy and are paid over the course of the annuitant’s lifetime.

Features of LIC’s New Jeevan Shanti Scheme are:

• The insured just needs to make one investment to get monthly income that is guaranteed for life.
• Any lineal ascendant or descendant of a family, such as children, parents, grandparents, siblings, or spouse, may purchase a joint-life annuity.
• During the deferment period, the policy guarantees an additional benefit that is paid each month. The death benefit amount is paid in addition to the overall accrued amount.
• The policy allows the policyholder to take out a loan. A maximum of 80% of the surrender value may be borrowed.

LIC’s Saral Pension

One premium must be paid to obtain this policy. Then, the annuity will start. The Saral Pension Plan of LIC offers guaranteed annuity rates that are paid for the duration of annuitants’ lives.

Features of LIC’s Saral Pension are:

• The annual minimum annuity is INR 12,000
• The minimum purchase price, the buyer’s age, and the choice chosen are all determined by the annuity mode.
• The price paid for the property has no maximum.
• The frequency of annuity payments might range from monthly to quarterly to annual.
• Those between the ages of 40 and 80 may enrol in this plan.
• Policyholders may borrow against the programme after six months.

The LIC pension scheme accurately gauges the different needs of a person after their retirement. So, sit tight and weave stories to your grandchildren while patting them on the head, relishing the fact that your future is financially secured.

Frequently Asked Questions (FAQs)