LIC Pension Plans

We all worry about our old age when we no longer are able to take care of ourselves on our own both in monetary and non-monetary terms, as we do not have the strength to go out and earn our living. So what to do now to secure our future?  We need not worry, as LICI is with us, and it has come up with various Pension Plans to secure our future.

In 1956 Life insurance Corporation of India (LICI) was established through the Life Insurance of India Act, 1956. Through this Act 245 private insurance companies and others providing life insurance services were consolidated to form the company. It has different products to meet the needs of its clients – Insurance plans, Pension plans, Unit plans, Special plans, and Group scheme.

Pension Plus

It is a unit-linked insurance policy with following benefits:

Death: If the policy holder dies, then the nominee gets the fund value either in lump sum or as an annuity.

Vesting: In case the policy holder lives till the vesting date then an annuity is purchased using the fund value and guaranteed maturity proceeds. The policy holder can withdraw 1/3 of the value after vesting period and purchase the annuity with the rest amount.

Income tax: Up to Rs. 1, 00,000 premium is exempted U/S 80C and the maturity value is exempt U/S 10(10D).

The premiums can be paid in yearly, half-yearly, quarterly, monthly mode or lump sum. No additional rider is provided. Minimum premium is Rs. 1,000 with a lock in period of 5 years.

Jeevan Akshay-VI

It is an Immediate Annuity plan, which can be purchased through paying a lump sum amount. Minimum purchase price or premium is Rs.50, 000. The mode of Annuity can be at monthly, quarterly, half yearly or yearly intervals. The holder can enter at the age of 40 to 79 years.

New Jeevan Dhara-I

It is a Deferred Annuity plan. The holder can pay the premiums through Salary deduction in yearly, half-yearly, quarterly, monthly mode or lump sum. Premiums are exempted U/S 88.

New Jeevan Suraksha-I

It is a Deferred Annuity plan. The holder can pay the premiums through Salary deduction in yearly, half-yearly, quarterly, monthly mode or lump sum. Premiums are exempted U/S 80CCC.

Jeevan Nidhi

It is a Deferred Annuity plan with profits with following benefits:

Death: If the policy holder dies during the deferment period then an equal Sum Assured amount plus the accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, will be paid in a lump sum to the nominee.

Vesting: In case the policy holder lives till the vesting date then an annuity is purchased using the fund value and guaranteed maturity proceeds. The policy holder can withdraw 1/3 of the value after vesting period and purchase the annuity with the rest amount.

Income tax: Premiums are exempted U/S 80CCCC and the maturity value is exempt U/S 10(10D).

The pension starts at the age of 40.

Thus, by purchasing any of these plans, you can lead a life free of tension even after your retirement, when there won’t be a fixed salary. Through these effective plans, LIC ensures this mental peace to all its customers.

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