Which Pension Plan is Best in LIC

Life India Corporation of India (LIC) is the oldest insurance company in India and has been fulfilling the insurance needs of many people for decades. A pension plan is a popular product and is also offered by LIC to help its customer in planning their retirement in a better way. Pension plans are retirement oriented plans. LIC pension plans help to create a retirement corpus and provide you with a regular and steady source income even after your retirement. There are two types of Pension plans- Deferred Annuity plans and Immediate Annuity Plans. Currently, LIC offers four pension plans to help people to safeguard their life after retirement.

Which Pension Plan is Best in LIC?

LIC offers a number of Pension Plans. Each of them offers unique benefits. Which pension plan is best in LIC depends on the needs and requirements of the individual. Let’s discuss various LIC pension plans which suit the variant needs of the people.

Pradhan Mantri Vaya Vandana Yojana

This plan is for senior citizens who is 60 years and above. It is a savings scheme and was launched by the government of India. Under Pradhan Mantri Vaya Vandana Yojana, the senior citizens will receive guaranteed returns and regular incomes. This plan will best suit senior citizens who want to plan their retirement and receiver regular and steady income after they retire. However, this pension plan is available only till 31st March 2020. The main features of this plan are as follows:

1. On the death of the insured within the tenure of the plan, the purchase price of the plan shall be refunded to the nominee of the plan
2. This plan can be brought online through the official website of the LIC
3. If you require the funds for a terminal illness or critical illness then you can surrender your policy and 98% of the amount invested in the policy will be refunded back.
4. A loan can also be taken against the plan after completion of 3 years of the term of the policy. A maximum loan of 75% of the policy price shall be granted.

Eligibility criteria of Pradhan Mantri Vaya Vandana Yojana

1. The minimum entry age limit for this scheme is 60 years and there is no maximum age limit.
2. The term of the policy is ten years.
3. The way of pension payment includes yearly, half-yearly, quarterly or monthly.
4. The yearly minimum purchase price is INR 144,578 and Maximum purchase price is INR 14,45,783
5. The monthly minimum pension amount is INR 1000 and Maximum pension amount is INR 10,000

LIC New Jeevan Nidhi

LIC New Jeevan Nidhi Plan provides a dual benefit of protection as well as saving. It offers deferred annuity option for creating a retirement corpus over the period of the policy by payments of premium. Hence this plan is best for those who want to plan their retirement in advance and to receive steady and regular income after their retirement. People who have started their career can choose this plan and efficiently plan their life after retirement. Features of this plan are as follows:

1. It offers the option of regular premium payment or single premium payment.
2. This plan gives a guaranteed accruing annuity in each of the first 5 policy years.
3. It also offers simple revisionary bonuses as well as additional bonuses declared by the company
4. You can commute and receive 1/3rd of the plan maturity benefit in cash

Eligibility Criteria for LIC New Jeevan Nidhi Plan

1. Minimum age required to enter into this plan is 20 years whereas the maximum age is 58 years for regular pay and 60 years for single pay.
2. The minimum duration of the policy duration is 5 years and the maximum duration is 35 years
3. The modes of premium payments can be monthly, quarterly, yearly or in a single premium.
4. The minimum sum assured is rupees 1 lakh for regular premium and rupees 1.5 lakh for a single premium. There is no maximum limit on the sum assured.
5. The minimum monthly pension amount is INR 1000 and Maximum amount is INR 10,000

LIC Jeevan Shanti

Jeevan Shanti Plan is a flexible annuity plan. It allows you to choose an immediate or deferred annuity plan. It offers nine different options of annuity to choose from in order to meet your different financial needs. This plan is best for those who want to cover their spouse or any other person in the plan or any other person who has already retired. They can choose the immediate annuity plan and enjoy its benefits. The main features of Jeevan Shanti plan are the following:

1. The plan is a one-time investment and can be brought in a single premium
2. The plan can be availed individually or as a joint plan with a spouse, parent, children, etc.
3. The plan can also be brought online from the official website of LIC
   Under LIC Jeevan Shanti plan, a loan can be taken after the expiry of one year of the plan

Eligibility criteria of LIC Jeevan Shanti Plan

1. Minimum entry age is 30 years and the maximum entry age is 100 years
2. The minimum purchase price is INR 1.5 lakhs and there is no maximum limit
3. The minimum deferment period is 1 year and the maximum period is 20 years

Conclusion

There are mainly three types of pension plans offered by LIC but Pradhan Mantri Vaya Vandana Yojana is available only for a short period that is up to March 2020. Each type of LIC pension plans has its unique features and advantages which enables you to accumulate fund and plan your future after retirement. Hence, which pension plan is best in LIC is dependent on what fulfils your need and requirement.