- Date : 27/10/2022
- Read: 2 mins
The plan aims to build a corpus through disciplined and systematic savings. After maturity, one can convert it into regular income.
LIC, or Life Insurance Corporation of India, has recently launched the New Pension Plus Plan. It is a non-participating, unit-linked individual pension plan. The plan aims to build a corpus through disciplined and systematic savings. After maturity, one can convert it into regular income. You can purchase the plan as a regular or single premium payment frequency. It has a few essential points that you must know. Let's dive in!
5 Things To Know About the New Pension Plus Plan
- The New Pension Plus Plan is an individual pension plan which is unit-linked and non-participating. It helps build a corpus through disciplined and systematic savings that one can convert into regular income. You can purchase an annuity plan once the term is complete.
- You can purchase the plan as a regular or single premium payment frequency plan. The regular policy will have a premium payable over the policy's term. The policyholder can choose the premium amount and term, subject to maximum and minimum vesting age limits and premiums.
- The policyholder will get an option to increase the deferment period or period of accumulation in one policy and will have the same T&Cs, which will be subject to specific conditions.
- The policyholder will get a chance to invest premiums in any of the four available funds. There will be a Premium Allocation Charge for each premium the policyholder pays. The allocation rate or the balance amount constitutes the premium's part utilized when one purchases the chosen fund's units in the policy. You can switch four times a year.
- You have to pay guaranteed additions within an in-force policy which will be a percentage of the annual premium. Regular premium Guaranteed addition will be from 5% to 15.5%. It will be on a single premium payable amount of up to 5% after completing a policy year. You can use the Guaranteed additions to buy units according to the fund.
Also Read: Retirement Planning for Pros
LIC says the plan is for younger people to make post-retirement life provisions. One can purchase it online from licindia.in or offline through intermediaries and agents. The UIN is 512L347V01.