LIC New Pension Plus Plan 803 – Planning for retirement is crucial, especially considering the potential reduction in regular income after retirement. One of the best ways to secure your financial future is through a reliable pension plan. To help individuals effectively manage their retirement and make sound investments, the Life Insurance Corporation of India (LIC) has introduced the New Pension Plus Plan. This pension insurance focuses on meeting daily financial needs without the burden of life cover. This article will guide you through the major features of the LIC New Pension Plus Plan, its eligibility criteria, and the application process in detail.
LIC New Pension Plus Plan Overview
Available from September 5, 2024, the LIC New Pension Plus Plan can be purchased as a lump sum or through regular premium payments. In the regular payment option, the premiums are paid for the duration of the policy, helping policyholders to save meticulously and consistently. At the end of the policy term, the funds can be transformed into an annuity plan, providing a continuous income stream.
Policyholders can determine their premium amounts and the duration of their coverage, provided they stay within specified limits regarding premium, policy term, and vesting age. Four types of funds are available for premium allocation, and each premium paid will have a premium allocation charge. The premium allocation rate refers to the proportion of the premium used to buy units in the chosen fund. Fund switching is allowed up to four times each policy year at no extra cost. Learn more about the LIC Varishtha Pension Bima.
LIC of India launched the New Pension Plus Plan on September 5, 2024. #LIC #NewPensionPlus pic.twitter.com/6vcT6JNsBr — LIC India Forever (@LICIndiaForever) September 6, 2024
Key Features of LIC New Pension Plus Plan
The LIC New Pension Plus Plan offers significant benefits:
- After the policyholder has paid all premiums, the accumulated premium will earn guaranteed interest at the end of each financial year. The guaranteed interest rate will correspond to the last working day rates from June, September, December, and March of the previous year, with an additional 50 basis points added to the reverse repo rate. The guaranteed interest can vary from 3% to 6% p.a.
- The guaranteed addition to the regular premium ranges from 5% to 15%, while for single premiums, it can go up to 5% by the end of certain policy years. These additions will be used to buy units in the selected fund.
- In case of policy maturity, surrender, or termination, the funds will be utilized for the annuitization clause.
Pradhan Mantri Jeevan Jyoti Bima Yojana
Benefits of the LIC New Pension Plus Plan
Several advantages are included in this pension plan, such as:
- No life coverage on the death of a beneficiary; however, if a designated nominee survives the policyholder, they will receive the fund amount either in a lump sum or as an annuity.
- If the policyholder survives until the vesting date, both the fund value and assured maturity profits must be used to purchase an annuity. Conversely, if the policyholder dies before vesting, no annuity is necessary.
- Under Section 80C, individuals can claim tax deductions for life insurance premiums paid up to Rs 1000.
- Tax benefits are also available under Sections 80C and 10(10D) of the Income Tax Act, 1961 for this plan.
- LIC offers 24×7 customer support and quick online claims processing.
- Policy renewals and essential information regarding the policy can be accessed online via LIC’s website.
- Different payment modes are available – quarterly, monthly, half-yearly, yearly, one-time, and periodic payments.
- Special services are available for new and existing policyholders on the website.
- LIC tailors policies to meet individual budgets and needs.
Eligibility Criteria for LIC New Pension Plus Plan
To be eligible for the LIC Pension Plus Plan, one must meet the following criteria:
- Age between 18 to 75 years.
- Age at vesting must be between 40 and 85 years.
- Minimum premium amounts range from Rs 15,000 to Rs 1 lakh.
- Payment modes available include Annual, Semiannual, Quarterly, and Monthly options.
Why Choose LIC New Pension Plus?
Life Insurance Corporation of India (LIC) is one of India’s leading insurance providers, known for its reliable services. As a government-owned entity headquartered in Mumbai, LIC has merged 245 insurance companies to offer comprehensive solutions for both corporate and individual life insurance needs. It stands as a trusted name among Indian insurers.