LIC Pension Plans are designed to provide regular income after retirement, ensuring that you continue to enjoy a comfortable lifestyle even after your working years are over. LIC offers several pension schemes, each with different features and benefits tailored to suit the varying needs of policyholders.
Here’s an overview of some of the popular LIC Pension Plans:
1. LIC Jeevan Akshay VII
Type: Immediate Annuity Plan
- Key Features:
- Immediate Annuity: The plan offers immediate annuity payments, meaning you receive a regular income right after purchasing the policy.
- Flexibility in Annuity Options: There are multiple annuity options to choose from, such as annuity for life, annuity with return of purchase price, etc.
- Annuity Payment Frequency: You can opt for monthly, quarterly, semi-annual, or annual payments.
- Lifetime Annuity: Provides lifelong income to the policyholder.
- Minimum Age at Entry: 30 years (completed).
- Maximum Age at Entry: 85 years (completed).
- Purchase Price: The policyholder pays a lump sum amount, and in return, receives annuity payments throughout their life.
- Benefits:
- Offers guaranteed periodic payments (annuity) for the rest of the policyholder’s life.
- Multiple annuity options to suit different needs, such as annuity for spouse after death, etc.
- Ideal for senior citizens looking for financial security in the form of regular income.
2. LIC New Jeevan Akshay VI
Type: Immediate Annuity Plan
- Key Features:
- Similar to Jeevan Akshay VII, it provides immediate annuity payments to policyholders.
- Annuity Options: Choose from various annuity options like annuity for life, annuity for a specific period, etc.
- Lifetime Income: Ensures income throughout the life of the annuitant.
- Minimum Age: 30 years.
- Maximum Age: 85 years.
- Benefits:
- The policy provides regular income for a long duration, ensuring a stable financial future after retirement.
- The purchase price can be made in a lump sum, and the annuity begins immediately after the policy is purchased.
3. LIC Jeevan Shanti
Type: Deferred Annuity Plan
- Key Features:
- Deferred Annuity: The plan offers deferred annuity, meaning the annuity payments begin after a certain deferment period.
- Two Options:
- Option 1: Provides a lump sum amount after the deferment period, followed by monthly annuity payments.
- Option 2: Provides annuity payments starting immediately after the premium paying term, with an option to receive a lump sum at the time of annuitant’s death.
- Policy Term: Flexible options to choose from for both annuity and premium paying terms.
- Age at Entry: 30 to 85 years.
- Premium Paying Term: Single premium or regular premium payments.
- Benefits:
- The policy guarantees a fixed, periodic income post-retirement.
- The deferred annuity option ensures that the policyholder has a secure income in their later years.
- Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C, and the annuity payments are taxable.
4. LIC Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Type: Government-Backed Pension Scheme
- Key Features:
- This is a government-backed pension scheme offered by LIC exclusively for senior citizens (60 years and above).
- Fixed Pension: Offers a fixed monthly, quarterly, half-yearly, or annual pension based on the investment made.
- Maximum Pension: The maximum pension payable is up to ₹10,000 per month.
- Loan Facility: You can avail a loan of up to 75% of the purchase price.
- Policy Term: The policy term is 10 years, with the option for an annual payment of pension.
- Death Benefit: In case of death during the policy term, the nominee receives the purchase price.
- Benefits:
- Guaranteed Return: The scheme provides a guaranteed return on the amount invested and offers a regular income to senior citizens.
- Tax-Free Pension: The pension paid is tax-free, making it a highly attractive option for senior citizens.
- Purchase Price Refund: In case of death during the policy term, the nominee receives the purchase price.
5. LIC Annuity Plus
Type: Immediate Annuity Plan
- Key Features:
- Immediate Annuity: Annuity payments start immediately after the policy is purchased.
- Multiple Annuity Options: Offers various options for annuity payouts, such as lifelong annuity, annuity with a return of purchase price, etc.
- Flexibility: Offers flexibility in choosing the frequency of annuity payments (monthly, quarterly, annually).
- Lifetime Cover: Guarantees lifelong income for the policyholder.
- Age at Entry: 30 years to 85 years.
- Benefits:
- Ensures fixed periodic payments for the policyholder’s life.
- Multiple payout options allow policyholders to choose what suits their financial goals.
- Ideal for individuals looking for consistent income post-retirement.
Key Considerations Before Choosing a LIC Pension Plan:
- Retirement Planning:
- Ensure that the plan you choose aligns with your retirement goals and provides sufficient income for your post-retirement years.
- Annuity Options:
- Consider which annuity options suit your needs—whether you prefer lifetime income, income for a specified period, or income for the spouse after your death.
- Premium Payment Term:
- Decide how much premium you are willing to pay and for how long. Some plans require a lump sum premium, while others offer regular premiums.
- Tax Implications:
- Remember that while premiums paid for some pension plans may offer tax deductions, the annuity payouts are subject to taxation as per your tax slab.
- Inflation:
- Factor in inflation when considering a pension plan, as the purchasing power of the annuity payments will reduce over time unless the plan offers increasing annuities.
