- Date : 03/10/2022
- Read: 3 mins
LIC's New Pension Plus plan came into effect from 5th September 2022.
Pension schemes in India have been a common investment for securing the future of millions of families in the country. The government and private sector have provided working professionals access to such schemes for a long time. Individuals can choose to invest in a retirement scheme from a pool of companies present in the market.
Also Read: Types of pension plans and their tax benefits
LIC New Pension Plus: Key attributes
LIC New Pension Plus is a new plan which came into effect on 5th September 2022. This plan has been launched to provide investors with a way of converting their savings into regular income post-retirement. LIC New Pension Plus has the following features:
- The investor can purchase the plan online through the LIC website or offline through LIC agents.
- The rate of interest provided by the policy ranges from 3 to 6 percent.
- The policy does not incorporate a minimum assured sum but has a guaranteed Maturity value.
- The cooling-off period for the policy is 15 days which means that the investor can return the policy within 15 days of purchase.
- A choice between debt and mixed funds is provided to the investor. The investor can switch between different funds during the term of the policy.
- The Lock-in period for the policy is 5 years.
- There is no partial withdrawal available for this policy.
How LIC became one of the biggest insurance companies in India?
LIC New Pension Plus: Charges
There are certain charges associated with the scheme which must be paid by the investor. These charges must be considered while planning to invest in the scheme.
Switching charge will be levied after two switches which will be Rs. 100 per month.
A discontinuance charge will be levied in case an investor decides to discontinue the policy. It will be calculated based on the premium paid and the no. of years before discontinuance.
Service tax will be levied as per government policy.
Benefits of LIC Pension Plus
The LIC Pension plus scheme has various benefits which provide the investors with a secure and profitable investment. These benefits are:
1. Guaranteed Interest Rate
LIC offers a guaranteed interest rate with a minimum of 3 percent and a maximum of 6 percent. Even if the investor decides to discontinue the policy an interest rate of 3.5 percent is guaranteed.
2. Vesting or Annuity benefit
The investor can withdraw one-third of the total amount after the scheme matures. The rest can be used to purchase an annuity.
3.Income tax benefit
The premiums paid for this scheme can be exempted from taxes with a limit of Rs 1,00,000.
LIC Pension Plus scheme will allow investors to convert their savings into a regular income after they retire. With tax benefits and a good rate of interest, it can provide investors with a secure future. The scheme also incorporates the flexibility of payment and has options to invest in one of four funds available. If you are looking to secure your future the LIC New Pension Plus scheme is an investment to look out for!
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
Pension schemes in India have been a common investment for securing the future of millions of families in the country. The government and private sector have provided working professionals access to such schemes for a long time. Individuals can choose to invest in a retirement scheme from a pool of companies present in the market.
Also Read: Types of pension plans and their tax benefits
LIC New Pension Plus: Key attributes
LIC New Pension Plus is a new plan which came into effect on 5th September 2022. This plan has been launched to provide investors with a way of converting their savings into regular income post-retirement. LIC New Pension Plus has the following features:
- The investor can purchase the plan online through the LIC website or offline through LIC agents.
- The rate of interest provided by the policy ranges from 3 to 6 percent.
- The policy does not incorporate a minimum assured sum but has a guaranteed Maturity value.
- The cooling-off period for the policy is 15 days which means that the investor can return the policy within 15 days of purchase.
- A choice between debt and mixed funds is provided to the investor. The investor can switch between different funds during the term of the policy.
- The Lock-in period for the policy is 5 years.
- There is no partial withdrawal available for this policy.
How LIC became one of the biggest insurance companies in India?
LIC New Pension Plus: Charges
There are certain charges associated with the scheme which must be paid by the investor. These charges must be considered while planning to invest in the scheme.
Switching charge will be levied after two switches which will be Rs. 100 per month.
A discontinuance charge will be levied in case an investor decides to discontinue the policy. It will be calculated based on the premium paid and the no. of years before discontinuance.
Service tax will be levied as per government policy.
Benefits of LIC Pension Plus
The LIC Pension plus scheme has various benefits which provide the investors with a secure and profitable investment. These benefits are:
1. Guaranteed Interest Rate
LIC offers a guaranteed interest rate with a minimum of 3 percent and a maximum of 6 percent. Even if the investor decides to discontinue the policy an interest rate of 3.5 percent is guaranteed.
2. Vesting or Annuity benefit
The investor can withdraw one-third of the total amount after the scheme matures. The rest can be used to purchase an annuity.
3.Income tax benefit
The premiums paid for this scheme can be exempted from taxes with a limit of Rs 1,00,000.
LIC Pension Plus scheme will allow investors to convert their savings into a regular income after they retire. With tax benefits and a good rate of interest, it can provide investors with a secure future. The scheme also incorporates the flexibility of payment and has options to invest in one of four funds available. If you are looking to secure your future the LIC New Pension Plus scheme is an investment to look out for!
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
