Insurance

LIC pension plans are planned to offer individuals with regular income during their old age. Pension also known as retirement plans are particularly for the people who are willing to make their old age financially secure. There are various pension plans that the Life Insurance Corporation of India offers individuals to help them choose the most apt one depending on their current financial situation. These policies are planned not only to give financial security to the individuals but also their families and relatives.

The main objective behind LIC of India to initiate these pension plans is to provide standard earnings to people after their retirement from job. Pension plans are different from life insurance plans and are taken to cover the jeopardy during unfortunate occasions.

There are 5 main LIC plans that are active presently. The details of these plans are listed below:

Pension plus

Pension plus is a unique pension plan where an individual taking this plan can take out one-third of the corpus from the lump sum amount. The rest of the two-third amount will be paid either monthly or half-yearly after maturity as per the holders wish.

This policy is available in two forms; debt fund and mixed fund.

A certain minimum interest rate of 3.5% p.a. shall be accredited to the ceased Policy Fund comprised by the fund worth of all ceased policies. This Fund will be paid a minimum interest rate of 3.5% p.a. from the day of discontinuance of the policy to the day of conclusion of 5 years from the initiation of the policy. In case of death of the policy holder, the interest will accumulate from the day of suspension of the policy to the date of booking of legal responsibility.

The minimum age required for an individual to undertake this plan is to 18 and the maximum age is 75 years. The minimum maturity period is 10 years.

Jeevan Nidhi

Jeevan Nidhi is a profits deferred annuity plan. Under this pension plan, the policy holder needs to pay premiums over the entire term plan. In this scheme, the earlier an individual this plan, the more corpus will he receive on retirement. The USP of the pension plan start at the age of forty years. The holder will also receive a certain addition of 5 per cent of the sum assured over the first five policy years.

On maturity, he can alter one-third of the whole corpus including the sum guaranteed, the guaranteed additions, the bonuses affirmed and a terminal bonus, if any and can buy a pension with the left over amount.

If the policyholder expires at some stage in the term of the scheme, the beneficiary will be given the amount guaranteed and the accrued guaranteed additions and bonuses. The beneficiary also has the alternative of buying a pension with this amount.

There are 5 annuity options in action presently:

•Annuity for the whole life;

•Annuity for a set time phase of 5, 10, 15 or 20 years and for life after that;

•Annuity for whole life with return of purchase cost to the beneficiary;

•Annuity for whole life rising at 3 per cent per annum and

•Annuity for life with stipulation of 50 per cent of annuity to the spouse of the policy holder, after his death.

Jeevan Akshay VI

LIC's Jeevan Akshay- VI is a pension plan for people who are currently in their retirement age and have no pension. This is planned for immediate purchase by people.

LIC will pay the policy holders a consistent payment at standard time periods starting right away after the holder pays a lump sum premium towards the cost of the policy. The annuitant can accept the payment as per his wish either monthly, quarterly, half-yearly or yearly.

One has to submit standard age proof at the time of entry. He will have to choose the preference at the beginning of the plan.

Investors can choose from any of the 5 options:

•Annuity payable for life

•Annuity payable for life with guaranteed period of 5, 10, 15 or 20 years

•Life annuity with a return of purchase price

•Life annuity increasing at a fixed rate

•Joint life and last survivor annuity

Minimum age to avail this policy is 40 years and maximum age is 79 years. Minimum buy price is more than 50,000 and a sum that earns a sure minimum annuity for every choice

New Jeevan Dhara 1

New Jeevan Dhara 1 is a pension plan specially planned for professionals who want to take on a pension plan and secure their financial condition after retirement. This scheme allows the individual to make arrangement for regular income after retirement. The person can select on how he wants to pay the premiums either yearly, half-yearly, quarterly, monthly or through Salary deduction. The premium will be paid in one lump sum.

Policyholder can put in a term declaration rider by giving an extra payment. By the asset of this rider, in case of death of the policyholder at some stage in the deferment stage, amount assured chosen under term assurance, rider will be paid. Bonus is also payable under the policy.

For this policy, the minimum age at entry is 18 years while the maximum age at entry is 65 years.

New Jeevan Suraksha 1

New Jeevan Suraksha-I is an inimitable pension plan planned to offer pension from a selected retirement date. The scheme can be taken over by any person who desire to get pension after retirement. Under this plan, an individual has to pay single payment or regular payment over the suspension period to secure a pension initiating at an upcoming date. Policyholder has the choice to pay a single premium or regular premium either annually, half yearly, quarter or monthly.

Policyholder can put in a term declaration rider by giving an extra payment. By the asset of this rider, in case of death of the policyholder at some stage in the deferment stage, amount assured chosen under term assurance, rider will be paid. Bonus is also payable under the policy.

The minimum age at entry for this policy is 18 years, whereas the maximum age at entry is 65 years.