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Investment Plans 55202 views January 31, 2020
LIC has been providing services for more than 60 years after being established in September 1956. LIC has the largest market capitalization and also the largest customer base too. LIC offers its customers a wide range of life insurance plans to suit their varying insurance needs. Pension plans are popular LIC products which allow individuals to plan for their retirements.
Pension plans are a type of life insurance plan which are retirement oriented and aim to create a retirement corpus for the individual. Pension plans provide a regular source of incomes even after the individual have stopped working. There are two basic types of pension plans and the individual can choose one as per his/her requirement.
They are discussed below.
1. Deferred Annuity Plans- In deferred annuity plan, you can accumulate a retirement corpus over a period of time and the accumulated corpus is paid to you on maturity in the form of lifelong income after your retirement.
2. Immediate annuity plans– Immediate annuity plans are for those individuals who have a lump sum amount in hand and want to receive fixed lifelong incomes from such lumpsum amount. Immediate annuity plans pay lifelong annuities at a fixed rate to the individual and thereby provides you with a non-stop source of income.
It is an online tool which helps you find out the annuity you can receive at a certain age and is also used to calculate the premium on the pension plan for both deferred annuity plans as well as for immediate annuity plans. It is available on the official site of LIC Company and can be used for free. It shows the amount of premium to be paid for the pension plan after filling in the relevant required details. There are two calculators for two annuity plans.
Premium Calculator for Deferred Annuity Plan and Annuity Calculator for Immediate Annuity Plan
1. Deferred Annuity Plan Calculator
For a deferred annuity plan, you can use both premium calculator as well as annuity calculator
1.1. Traditional Deferred Annuity Plan-
In premium calculator when you fill the relevant details such as your age, the sum assured and duration of the plan, the calculator will show how much premium you will need to pay for the chosen duration of the plan and it also shows how much corpus will be accumulated at the maturity of the plan.
In the annuity calculator, if you fill the relevant details such as your age and the corpus then the calculator will calculate how much annuity you will receive which can be monthly, quarterly, half-yearly or annually as chosen by you.
Example – If you are 40 years old and invest INR 4,000 monthly, you will get an annuity value of around INR 15-20 lakh over 20 years, assuming you retire at 60.
1.2. Unit Linked Deferred Annuity Plan-
In Unit Linked Deferred Annuity Plan you can calculate the amount of corpus that will accumulate as per your chosen premium which you want to invest, at an assumed interest and for a chosen tenure. The calculator will calculate the annuity corpus at the end of the tenure of the plan.
Example – If you invest INR 5,000 monthly and do so for 20 years from here, you could get a corpus of around INR 70-80 lakh. However, the returns can fluctuate based on market conditions.
2. Immediate Annuity Plan Calculator
If you want to calculate your life long income in the immediate annuity plan then you can use the annuity calculator to calculate the income you will receive. You can calculate either the annuity corpus or the premiums to be paid by using the calculator. The two options are as follows:
2.1. How many annuities will be received if you pay a chosen premium?
When you fill the relevant details such as the amount of premium paid on the policy or the purchase price, your age when you are taking the annuity, frequency of premium payments which can be monthly or quarterly or half-yearly or annually and annuity pay-out option you can calculate the annuity amount.
2.2. How much premium is to be paid if you want a specific annuity amount?
You can also calculate how much premiums you will have to pay if you want a specified annuity income at specific intervals.
Hence, pension plan LIC Calculator helps you not only to plan for your retirement but also to calculate the income which you will receive after your retirement and it enables you to calculate the premium payments on the pension plan easily. You can, therefore, take a better decision and plan your corpus according to your income. So when you are buying a pension plan from LIC make use of the calculator to calculate the premiums you should pay to create a sufficient retirement corpus as well as the annuity rates that you can expect.
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