Formed in 1956, the Life Insurance Corporation of India is the oldest life insurance company in the Indian insurance market. Being the oldest, the company also is the most trusted and the largest insurance company. It offers all types of life insurance policies for individuals whether it is for their children’s secured financial future, wealth creation, protection or investment needs. The company also offers pension plans which help individuals plan for a better retirement. Pension plans are different from other life insurance plans in terms of the benefits that they offer. Let’s, therefore, understand the concept of pension plans and have a look at the different pension plans which LIC offers –
A pension plan is a life insurance plan which is designed for providing a steady source of income post retirement. The plan comes in two variants. One is the deferred annuity plan wherein the policyholder can choose the plan tenure. Thereafter, premiums are paid during the tenure which accumulates into a corpus. When the plan matures, the corpus is used to buy annuity pay-outs which are paid throughout the lifetime of the policyholder. The second one is an immediate annuity plan wherein the policyholder pays a lump sum and then starts getting annuity payment immediately.
Pension plans have the following salient features –
LIC offers four types of pension plans which are as follows –
Yes, the benefit received on death under LIC pension plans is completely tax-free in the hands of the beneficiary.
In case of death of the insured during the deferment period, the death benefit can be taken in a lump sum or in annuity payouts. The mode of receiving the death benefit under LIC pension plans would depend on the nominee.
Annuity payments can be made annually, half-yearly, quarterly or monthly as chosen by the policyholder.
No, the rider benefit is available only in LIC’s New Jeevan Nidhi Plan.
LIC’s Pension Plans