Top 3 LIC Pension Plans For Regular Income After Retirement: Everything You Need To Know!

Life Insurance Corporation Of India (LIC) is offering three pension schemes providing guaranteed regular income after retirement. Learn about its benefits and eligibility.

Pension Plans

Do you know LIC is offering three retirement pension plans with amazing benefits? The largest insurance company in India (with a market share of 62.58% as on March 2023) is offering you three annuity plans. Whether you are a young professional planning for a secure future or a senior citizen, LIC pension plans can help you achieve your financial goals even after retirement. 

LIC plans provide you with a wide range of comprehensive insurance products along with retirement benefits. That is why they have become a lucrative investment alternative for people seeking insurance.

Top 3 LIC Pension Plans For Your Retirement in 2023 And Beyond

Life Insurance Corporation of India is offering three annuity LIC plans:

  1. Jeevan Akshay - VII
  2. New Jeevan Shanti 
  3. Saral Pension

1. LIC Jeevan Akshay - VII Plan

About The Plan:

Jeevan Akshay - VII is an Immediate-Annuity plan. Its plan number is 857 and UIN number is 512N337V04. You may choose from 10 available options (A-to-J) for the annuity.  

Eligibility Criteria

  • Minimum Entry Age:
    • 25 years (completed)
  • Maximum Entry Age:
    • 85 years (completed) for all annuity options except option F
    • 100 years (completed) for option F
  • Minimum Purchase Limit:
    • Rs. 10 lakhs for 25-29 years
    • Rs. 1 lakh for 30 years and above
  • Maximum Purchase Limit:
    • There is no limit.
  • Minimum Annuity:
    • Your minimum annuity is Rs. 1000, Rs. 3000, Rs. 6000, and Rs. 12000 per month, quarter, half year, and year respectively. 

Benefits:

  • Pension Benefit:
    • Rs. 12000 p.a. is your minimum guaranteed income.
  • Death Benefit:
    • The assured sum will be paid as per the annuity option chosen.
      • The nominee may get paid in:
        • Lumpsum or
        • Regular instalments
      • The nominee may also purchase an immediate-annuity-plan
  • Income Tax Benefit:
    • You can get tax benefits in F and J options under Income-Tax-Acts:
      • Section 80C
      • Section 10 (10D)
  • Loan Facility:
    • You can get a loan if you choose Option "F" or Option "J" but after 3 months of policy completion.
    • The maximum amount of loan you can get under options “F” and “J” is:
      • 80% of Surrender value
    • The annual interest of the loan shouldn't go above half of the yearly annuity.

Also Read: What are Different Kinds Of Pension Plans? What Are Their Tax Benefits?

2. LIC New Jeevan Shanti Plan

About The Plan:

This is a single premium LIC plan. Its plan number is 858 and UIN number is 512N338V04. You can choose either single-life or joint-life deferred annuity. At the time of inception, this policy guarantees annuity rates. You’ll start getting annuities after the deferment period. The policyholder will receive a guaranteed monthly income throughout his/her lifetime. 

Eligibility Criteria:

  • Minimum Purchase Plan:
    • Rs. 1,50,000
  • Minimum/Maximum Entry Age:
    • 30-79 years (Completed)
  • Minimum/Maximum Vesting Age:
    • 31-80 years (Completed)
  • Minimum/Maximum Period Of Deferment:
    • One-to-twelve years
  • Minimum Annuity:
    • Your minimum annuity is Rs. 1000, Rs. 3000, Rs. 6000, and Rs. 12000 monthly, quarterly, half yearly, and yearly respectively. 

Benefits:

  • Pension Benefit:
    • If you purchase a Rs. 10 lakh policy, you’ll receive a monthly pension of Rs. 11,192. 
  • Death Benefit:
    • The second annuitant of the joint policy or the nominee will receive a guaranteed income after the demise of the primary annuitant.

3. LIC Saral Pension

About The Plan

Saral Pension of LIC is considered a Standard Instant Annuity plan. It is  plan number is 862 and UIN number is 512N342V04. While receiving a lump sum payment, you may choose from Life Annuity (providing  a 100% return) or Joint Life Last Survivor Annuity (nominee receiving a death benefit 100% of the plan's purchase price) options. 

Eligibility Criteria:

Your age should be between 40 years and 80 years. 

Benefits:

  • Death Benefit:
    • The nominee will receive the base premium.
  • Lifetime Pension:
    • You are entitled to receive a monthly or yearly pension throughout your lifetime.
  • Interest Rate:
    • You’ll receive around 5% annual return (guaranteed).
  • Loan Benefit:
    • You may apply for a loan under LIC's Saral Pension Plan after completing the first 6 months.
  • Exit Plan:
    • You may exit this plan after 6 months from the date of subscription.

Also Read: LIC Saral Pension Plan Provides Both Life Cover And Secure Income After Retirement

Maintain your current economic status even when you are not working anymore. You can choose one or all three LIC pension plans to get a fixed, regular income and secure your financial needs after retirement. 

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