LIC Pension Plus Plan
- Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
- Claim up to Rs. 1,50,000 deduction under section 80C**
- Choose between annual and monthly premium payment options
Retirement is one of the most important decision in anyone's life. It needs proper planning both financially and emotionally. One of the important factors that one has to consider while planning for retirement is the lack of regular income. When a person decides to retire, the first thing that gets affected is his/her regular income. Investing is a excellent pension plan is therefore very necessary.
To help people plan their retired life better and to give them an opportunity to create an excellent investment portfolio, LIC has introduced the “Pension Plus Plan”. This is a unit-linked deferred pension plan. This pension policy does not have a life cover but comes with a minimum guarantee on the gross premium paid by the policyholder. Under the LIC Pension Plus Plan, policyholders can choose to invest in any one of the two types of investment fund options available.
Eligibility – Who is the LIC Pension Plus Plan for?
To buy the LIC Pension Plus Plan, one has to meet the eligibility criteria set by the insurer.
| Parameter | Details |
| Plan Type | Non-unit deferred pension plan |
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 75 years |
| Minimum maturity Age | 40 years |
| Maximum maturity age | 85 years |
Sum Assured and Premium Range – What you get and what it costs
Sum Assured – It is the amount that is received by the insured person at the time of maturity. In case the insured individual encounters death and the LIC Pension Plus Plan is still active, the sum assured is received by the legal heir or a nominee assigned by the insured.
| Parameter | Details |
| Sum Assured | Nil |
| Minimum Deferred Term | 10 years |
| Premium Payment Frequency | Yearly, half-yearly, quarterly, and monthly |
| Minimum Premium |
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| Maximum Premium |
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Plan Coverage – What the LIC Pension Plus Plan covers
The following conditions are covered by the LIC Pension Plus Plan:
| Guaranteed Maturity Proceeds | Under the LIC Pension Plus Plan, if the policyholder has paid all the due premiums till the maturity of the loan, at the end of every financial year, a guaranteed interest will be accrued on the gross premium. The guaranteed interest rate will be as per the last working date in the month of June, September, December, and March of the preceding year. The guaranteed interest rate will be 50 basis points above the current reverse repo rate. The guaranteed interest rate can range between 3% and 6% p.a. |
| Guaranteed Interest Rate on Discontinued Policy Fund | Also, under this plan, a minimum interest rate of 3.5% p.a is guaranteed which will be credited to the discontinued policy fund. |
| Additional Premiums | Under this plan, a policyholder will have an option to make additional premiums in multiples of Rs.1,000 any time during the term of the policy. However, top-up option will not be available during the last 5 years of the policy. |
Riders/Add-on Plans – Additional coverage under the LIC Pension Plus Plan
A rider or an add-on can be purchased by a policyholder by paying an additional amount for extra protection. A rider will cover those expenses which are usually not covered under the base plan. Currently, no information is available about the riders that can be attached under the LIC Pension Plus Plan. However, you may contact LIC directly to check if you may attach any add-ons under this plan.
Exclusions – What the LIC Pension Plus Plan does not cover
Currently, there are no exclusions listed under this plan.
Other Key Features
| Charges |
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| Switching | At anytime during the term of the policy a policyholder can switch between the two fund types. |
| Partial Withdrawals | No partial withdrawals are allowed under this plan. |
| Revival | If a policyholder fails to make a payment within the grace period, the insurer will send a notification to revive the policy within 30 days from the date of receipt of such notice. |
| Reinstatement | A surrendered policy cannot be reinstated under this plan. |
| Cooling-Off Period | Once the policyholder get this plan, he/she will have 15 days cooling-off period within which the policyholder can return the plan if they are not satisfied with the terms and conditions of the plan. |
| Loan | No loans are available under this plan. |
| Assignment | Assignment option is not available under this plan. |
Tax Benefits – How you can save under the LIC Pension Plus Plan
Under this plan, tax benefits are available under Section 80C and Section 10(10D) of The Income Tax Act, 1961.
Other benefits
- LIC has a dedicated customer service center that functions 24x7. You can get in touch with an insurance agent anytime from anywhere.
- Policyholders can report a claim online anytime.
- One can renew their policy online using the official LIC’s official website.
- Customers can also get a free quote within a few seconds using the website.
- Insurer's website has all the details that an individual may require for understanding any part of the insurance policy. The individuals can also access a broad range of financial products and services to learn and compare.
- Policyholders are allowed to make contributions through credit/debit card, cash, cheque, wire transfer and a host of other payment methods.
- The policyholders can make the payments in quarterly, monthly, half-years, yearly, one-off, and periodical cycle based on the type of the insurance/policy.
- The existing policyholders and customers can log on to the website to access an extensive range of services that are exclusively designed for them.
- The insurer specializes in providing personalized plans to the customers that suits their requirements while keeping the budget at utmost priority.
Why you should buy the LIC Pension Plus Plan from LIC?
Life Insurance Corporation of India is one of the leading insurance provider in India. Headquartered in Mumbai, this state-owned insurance company is one of the largest insurance provider in the country. Founded in the year 1956, over 245 insurance bodies were merged to make it LIC. From group insurance plans to individual life insurance plans, LIC offers it all. It is one of the most trusted brand in the insurance industry in India.
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