LIC Pension Plans | Retirement Plans – What it is, Benefits, Types, Quotes

What are LIC Pension Plans? How it works?

LIC Pension Plans allow you to systematically save money over time and receive a steady income on a Periodic Basis after retirement. LIC Pension Plans provide regular income to Policyholders during their retirement years.These Plans are designed to ensure the financial security of Individuals after their retirement and are particularly suitable for senior citizens and individuals planning for a secure future, ensuring they can maintain their lifestyle without compromising on life’s essentials.

LIC of India offers various Pension Plans catering to different requirements and financial goals of people.

What are the Key Benefits of LIC Pension Plans?

The Key Benefits of LIC Pension Plans are listed below:

1. Regular Income and Financial Security: LIC Pension Plans Ensures a consistent flow of post-retirement income which Reduces uncertainty and provides financial security during retirement when the regular income reduces/ceases.
2. Flexible Premium Payments: Pension Plans offer flexibility in Premium Payment Modes by offering Single, Regular and Limited Premium Payment Modes.
3. Customization: Pension Plans offer options to choose between different annuity options (single/joint, immediate/deferred) suiting individual or family needs.
4. Loan and Withdrawal: Many plans offer loans or limited withdrawal options after the initial lock-in, enhancing liquidity.

What are the different types of LIC Pension Plans?

LIC currently offers five distinct pension plans:

1. LIC’s New Pension Plus
2. LIC Smart Pension Plan
3. LIC Jeevan Akshay-VII
4. LIC New Jeevan Shanti
5. LIC Saral Pension

LICs New Pension Plus Plan (Plan No. 867, UIN: 512L347V01):

LIC’s New Pension Plus Plan (UIN: 512L347V01) is a Unit-Linked, Non-Participating, Individual, Deferred Pension Plan designed to help individuals build a retirement corpus which can be converted to a regular income.

1. Type of Plan: Unit-Linked, Non-Participating, Individual Pension Plan
2. Entry Age: Minimum Entry Age of 25 years and Maximum Entry Age of 75 years.
3. Policy Term: Policy Term can range from 10 to 42 years, allowing a wide window for retirement planning and flexibility to plan according to the desired retirement age.
4. Vesting Age: The minimum vesting age is 35 years, while the maximum vesting is 85 years, allowing a wide window for retirement planning.
5. Minimum and Maximum Premium: The Minimum Premium for a Single Premium Policy is Rs1 lakh and Rs30,000 for Regular Premium Payment Policy. There is no limit on the maximum Premium allowed for each individual though it is subject to underwriting decision. The Plan offers options of Regular Premium Payment Frequency and Single Premium Payment Frequency.
6. Investment Options: LIC New Pension Plus Plan offers 4 types of fund options, catering to different risk appetites.
   • Pension Bond Fund (low risk)
   • Secured Fund (low to medium risk)
   • Balanced Fund (medium risk),
   • Growth Fund (high risk with equity exposure).
7. Guaranteed Additions: LIC New Pension Plus Plan offers Guaranteed Additions (as a Percentage of Annual Premium) which are added to the Unit Fund Value at the end of 6th, 10th Year and each policy year from 11th year and onwards till the expiry of Policy Term.
8. Partial Withdrawals: Partial Withdrawals are allowed after the end of the 5-year lock-in period to meet specific needs. Three partial withdrawals are permitted during the Policy Term.

LIC’s Jeevan Akshay-VII (Plan No. 857, UIN: 512N337V06)

LIC Jeevan Akshay VII is a Single-Premium, Non-Participating, Non-Linked, Individual, Savings, Immediate Annuity Plan. Under this plan, the Policyholder pays a lumpsum amount once and starts receiving a Guaranteed Lifetime Income immediately. Annuity rates are guaranteed at Policy Inception and annuities are payable throughout the lifetime of Annuitant. The Policyholder can choose the type of annuity amongst 10 different options in exchange for a lumpsum payment under the LIC Jeevan Akshay Plan VII. The Minimum Entry Age and the Maximum Entry Age for LIC Jeevan Akshay Plan VII is 35 years and 62 years respectively. LIC Jeevan Akshay Plan VII pays Annuity Income throughout the lifetime of Annuitant.

1. Type of Plan: Unit-Linked, Non-Participating, Individual, Immediate Annuity Plan
2. Entry Age: The minimum entry age for the LIC Jeevan Akshay VII Plan is 35 years (except Option J which has a minimum entry age of 40 years), and maximum entry age is 62 years.
3. Annuity Options: The plan offers 10 distinct annuity options as listed below
   • Option A: Immediate annuity for life.
   • Option B–E: Immediate annuity with guaranteed payment for 5, 10, 15, or 20 years respectively, followed by life annuity.
   • Option F: Immediate annuity for life with return of purchase price to the nominee on death.
   • Option G: Immediate annuity for life, increasing at a simple rate of 3% annually.
   • Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant upon the Primary Annuitant’s death.
   • Option I: Joint-life annuity with 100% payout as long as either annuitant survives.
   • Option J: Joint-life annuity with 100% payout and return of purchase price on death of last survivor
4. Policy Term: The LIC Jeevan Akshay Plan keeps making Annuity Payments till the death of the Primary or Secondary Annuitant as per the Plan Option Chosen.
5. Minimum and Maximum Purchase Price: The Minimum Purchase Price for a LIC Jeevan Akshay VII Plan is Rs1 lakh and there is no limit on the maximum Purchase Price.
6. Minimum Annuity Amount: The Minimum Annuity Amount that the Annuitant will receive is Rs12000 per annum. The Annuitant can receive the Annuity Payment in yearly, half-yearly, quarterly, and monthly mode.
7. Loan Facility: The Policyholder can avail a loan against the Policy after completion of the 3 months from the date of Policy Issuance. Loan can be availed only if the Policyholder has opted for Annuity Option F or J.

LIC’s New Jeevan Shanti (Plan No. 758, UIN: 512N338V07)

LIC’s New Jeevan Shanti Plan (UIN: 512N338V07) is a Single Premium, Non-Participating, Non-Linked, Individual, Savings, Deferred Annuity Plan where the Policyholder has an option to choose between Single life and Joint life Deferred annuity. The Plan has a Deferment Period of 1 to 5 years after which Annuity payments begin. The Annuity Rates are guaranteed at Policy Inception, and annuities are payable post deferment period throughout the lifetime of Annuitant. Policyholders can also avail a Loan against the Policy to meet their liquidity requirements. The Key Features of LIC New Jeevan Shanti Plan are as follows:

1. Entry Age: The minimum entry age for the LIC New Jeevan Shanti Plan is 30 years and maximum entry age is 79 years.
2. Deferment Period and Vesting Age: The minimum Deferment Period is 1 Year and the maximum Deferment Period is 5 Years subject to Maximum Vesting Age. The minimum Vesting Age is 31 Years and maximum Vesting Age is 80 Years.
3. Annuity Options: The plan offers 2 distinct annuity options: Deferred annuity for Single life and Deferred annuity for Joint life.
4. Minimum and Maximum Purchase Price: The Minimum Purchase Price for a LIC Jeevan Shanti Plan is Rs1.5 lakhs subject to minimum Annuity and there is no limit on the maximum Purchase Price.
5. Minimum Annuity Amount: The Minimum Annuity Amount that the Annuitant will receive is Rs12000 per annum. The Annuitant can receive the Annuity Payment in yearly, half-yearly, quarterly, and monthly mode.
6. Annuity Benefit: The Annuity Benefit is as follows: For Deferred Annuity for Single Life Option:
   • During the Deferment Period: During the Deferment Period, nothing is payable on Survival of the Annuitant while on the Death of the Annuitant, a Death Benefit is paid to the nominee.
   • After the Deferment Period: After the Deferment Period, Annuity Payments are made as long as the Annuitant is alive while on the Death of the Annuitant, a Death Benefit is paid to the nominee. For Deferred Annuity for Joint Life Option
   • During the Deferment Period: During the Deferment Period, nothing is payable on Survival of the Primary or Secondary Annuitant while on the Death of the last survivor, a Death Benefit is paid to the nominee.
   • After the Deferment Period: After the Deferment Period, Annuity Payments are made as long as the Primary/Secondary Annuitant is alive while on the Death of the last survivor, a Death Benefit is paid to the nominee.
7. Surrender Value: LIC Jeevan Shanti Plan can be surrendered at any time during the Policy Term with the surrender value payable being the higher of Guaranteed Surrender Value or Special Surrender Value.
8. Loan Facility: The Policyholder can avail a loan against the Policy after completion of the 3 months from the date of Policy Issuance. Policy loan is available during as well as after Deferment Period.

LIC’s Saral Pension (Plan No. 862, UIN: 512N342V05):

LIC’s Saral Pension is a Non-Participating, Non-Linked, Single Premium, Individual, Immediate Annuity Plan where the Policyholder has an option to choose between Single Life and Joint Life Immediate annuity. The Plan is designed as per the as per the guidelines of Insurance Regulatory and Development Authority of India (IRDAI), which offers same terms and conditions across all the Life Insurers. The Policyholder has to make one Lumpsum Payment (called the Purchase Price) for which he receives a guaranteed lifelong pension almost immediately. The Key Features of LIC Saral Pension Plan

1. Entry Age: The minimum entry age for the LIC Saral Pension Plan is 40 years and maximum entry age is 80 years.
2. Annuity Options: LIC Saral Pension Plan offers 2 Annuity Options as follows:
   • Option I: Life Annuity with Return of 100% of Purchase Price. The Annuitant receives pension for life. Upon death, 100% of the purchase price is returned to the nominee.
   • Option II: Joint Life Last Survivor Annuity with Return of 100% of Purchase Price on death of the last survivor. Pension is paid throughout the life of the primary annuitant. After their death, the spouse continues to receive the same pension for life. Once both pass away, 100% of the purchase price is returned to the nominee. Annuity option once chosen cannot be altered.
3. Minimum Annuity Amount: The Minimum Annuity Amount that the Annuitant will receive is Rs12000 per annum. The Annuitant can receive the Annuity Payment in yearly, half-yearly, quarterly, and monthly mode.
4. Minimum and Maximum Purchase Price: The Minimum Purchase Price for a LIC Saral Pension Plan depends on the Minimum Annuity and there is no limit on the maximum Purchase Price.
5. Surrender Value: LIC Saral Pension Plan can be surrendered after 6 Months from date of Policy Commencement if the annuitant or spouse or any of the children of the annuitant is diagnosed as suffering from any of the specified critical illnesses.
6. Loan Facility: The Policyholder can avail a loan against the Policy after completion of the 6 months from the date of Commencement of the Policy.

LICs Smart Pension Plan

LIC’s Smart Pension is a Non-Participating, Non-Linked, Immediate Annuity Plan Plan offering multiple Immediate Lifetime Pension Options with annuity rates that are guaranteed at the Policy Inception. LIC’s Smart Pension provides stable, guaranteed lifetime income with numerous options tailored to longevity, family support, or capital return needs. It’s suitable for National Pension Scheme subscribers wanting an immediate annuity, those prioritizing security over market risk, and anyone seeking a reliable retirement stream. The Key Features of LIC Smart Pension Plans are as follows:

1. Entry Age: The minimum entry age for the LIC Smart Pension Plan is 18 years and maximum entry age ranges from is 65 years to 85 Years depending on the annuity option chosen.
2. Minimum and Maximum Purchase Price: The Minimum Purchase Price for a LIC Smart Pension Plan is Rs1 Lakh and there is no limit on the maximum Purchase Price.
3. Minimum Annuity Amount: The Minimum Annuity Amount that the Annuitant will receive is Rs12000 per annum. The Annuitant can receive the Annuity Payment in yearly, half-yearly, quarterly, and monthly mode.
4. Annuity Options: The plan offers options to opt for either Single Life Annuity or Joint Life Annuity with multiple variants available under each option.
5. Surrender Value: The Policy can be surrendered at any time during the policy term
6. Loan Facility: The Policyholder can avail a loan against the Policy after completion of the 3 months from the date of Policy Issuance.

How to Purchase a LIC Pension Plan with Qian?

You can purchase a LIC Term Insurance Plan by following the below-mentioned steps:

1. Consult an Insurance Broker: You can contact Qian Insurance Broking to purchase an LIC Pension Plan. Qian will provide you with various plan options and the Premium Amount based on your requirements.
2. Fill the Proposal Form: Fill out the physical proposal form provided by Qian. Provide necessary details such as Personal Information, Sum Assured, Premium Type, Policy Term, Premium Paying Term, Premium Payment Mode, Smoker Status and Date of Policy Commencement and nominee details. Provide requisite Documents such as Income/Investment Proof, Cancelled Cheque, Address Proof and Photograph. Pay the premium via cash, cheque, or demand draft (DD) at the branch office.
3. Receive Insurance Policy: Pay the premium via cash, cheque, or NEFT/RTGS and the Policy will be mailed to your address within 2 days.

⁠ Purchase LIC Pension Plans

Purchase LIC Policies Though Qian Insurance

When you purchase your LIC Pension Plan through Qian, you get more than just insurance — you get expert support every step of the way. Our IRDAI-licensed advisors guide you in choosing the right plan based on your goals and budget, ensuring you make an informed decision. Qian is a licensed Insurance Broker with LIC. We can assist you with all Insurance Policies as well as Claim Settlement Process with Life Insurance Corporation. Get a Quote for LIC Policies with Qian at insurance@qian.co.in or call us on 022-35134695. We would be glad to assist you.