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  • LIC Pension Plus Plan

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     Life Insurance Corporation’s Pension Plus plan is a unit-linked deferred pension plan, a type of ULIP, where the premiums paid by you are invested in debt or equity funds. The investment risk in this portfolio is borne by the policyholder as the value of investments may fluctuate depending on the performance of the market. The policy does not offer life insurance cover and once the policy matures or completes the lock-in period, you have to convert at least two-thirds of the amount into an annuity plan.


    Eligibility Criteria for LIC Pension Plus

    The following is the age eligibility criteria required to buy an LIC Pension Plus policy:

    Minimum age 18 years
    Maximum age 75 years
    Minimum vesting age 40 years
    Maximum vesting age 85 years
    Minimum deferment term 10 years

    Features of LIC Pension Plus

    Some of the key features of the LIC Pension Plus plan are as follows:

    Plan type Unit-linked, deferred pension plan
    Policy account Individual
    Premium payment term Single payment, monthly, quarterly, half-yearly or yearly, through ECS only
    Minimum premium Rs. 15,000 per year. For single payment it is Rs. 30,000
    Maximum premium Rs. 1 lakh per year. No maximum limit for single payment.
    Minimum sum assured You won’t get any minimum sum, but there is a Guaranteed Maturity Value.
    Cooling-off period If the policyholder is not satisfied with the terms, the policy can be returned within 15 days.
    Loan on policy Not available
    Top-up premium You can pay extra premium in multiples of Rs. 1,000 any time during the policy term. No top-up is allowed in the last 5 years of the policy period. If the premium is being paid in annual, half-yearly, quarterly or monthly ECS mode, top-up premiums can be paid only if all premiums have been paid under the policy.
    Investment fund types You can choose to invest in debt funds or mixed funds. You can switch from one fund to another during the policy term.
    Partial withdrawal Not available
    Lock-in period 5 years

    Benefits of LIC Pension Plus

    LIC Pension Plus offers several benefits focused on increasing your retirement corpus. Some of the key advantages are:

    • Guaranteed Maturity Value: If all due premiums are paid till maturity, interest will accumulate on the gross premiums at the end of each fiscal year. This interest would be 50 basis points higher than the average of the reverse repo rate prevalent on the last working day of June, September, December and March of the preceding year. It is, however, limited to maximum 6% and minimum 3%. If you have discontinued your policy, you will still get a guaranteed interest rate of 3.5%.
    • Conversion to Annuity: If you surrender or discontinue a policy, or you live to see your policy mature, the amount due to you will be converted into an annuity purchase. You will be able to keep one-third of the total maturity amount if the balance amount is enough to buy a minimum amount of annuity under Section 4 of the Insurance Act, 1938. You can purchase an annuity either from the LIC or from any life insurance company registered with the IRDA – but for this you need to notify LIC 6 months in advance.
    • Income Tax Benefit: This premium payments are covered under the tax exemptions through the provisions of section 80C of the Income Tax Act. The maturity amount you receive is exempt under section 10(10D).

    How LIC Pension Plus Plan Works

    When you buy an LIC Pension Plus, the amount you pay as premium is invested in instruments of your choice – either debt funds or mixed funds consisting of debt and equity. Your maturity benefits are dependent on the performance of your funds. The Net Asset Value (NAV) of your funds is published on a daily basis. The amount you get at the time of maturity, surrender or discontinuation of the policy is equal to the NAV of the day multiplied by the number of units in the Policyholder’s Fund Value.

    If you stop paying the premium before 5 years, the fund value is credited to discontinued policy and the amount is converted into an annuity plan after the end of the 5-year tenure. If you stop paying the premium after 5 years, or surrender the policy, the fund value is used to purchase an annuity plan.

    Charges Payable Under the LIC Pension Plus Plan

    The following fees will be charged by the Corporation for various services in the policy:

    • Premium Allocation Charge: For single-premium policies the premium allocation charge is 3.3% of the premium amount. For regular policies, the rates are:
      First year 6.75%
      2nd to 5th year 4.5%
      After 5 years 2.5%
    • Policy administration charge: Rs. 30 per month is charged during the first year and Rs. 30 per month increasing at 3% annually, is charged thereafter as policy administration charge.
    • Fund management charges: The current rates of fund management charges are: 0.70% p.a. of Unit Fund for Debt Fund and 0.80% p.a. of Unit Fund for Mixed Fund.
    • Switching Charge: Switching charge is levied if you want to switch the amount from one type of fund to another. In a policy year, 2 switches can be done for free, after which Rs. 100 will charged per switch.
    • Discontinuance charge: This is applicable if you decide to discontinue a regular policy (not applicable on single-premium policy). The rate of fees on regular policies are as follows:
      Where the policy is discontinued during the policy year Discontinuance charges for the policies having annualised premium up to Rs. 25,000/- Discontinuance charges for the policies having annualised premium above Rs. 25,000/-
      1 Lower of 10% * (Annualised Premium or Fund Value) subject to a maximum of Rs. 2,500 Lower of 6% * (Annualised Premium or Fund Value) subject to maximum of Rs. 6,000
      2 Lower of 7% * (Annualised Premium or Fund Value) subject to a maximum of Rs. 1,750 Lower of 4% * (Annualised Premium or Fund Value) subject to maximum of Rs. 5,000
      3 Lower of 5% * (Annualised Premium or Fund Value) subject to a maximum of Rs. 1,250 Lower of 3% * (Annualised Premium or Fund Value) subject to maximum of Rs. 4,000
      4 Lower of 3% * (Annualised Premium or Fund Value) subject to a maximum of Rs. 750 Lower of 2% * (Annualised Premium or Fund Value) subject to maximum of Rs. 2,000
      5 onwards Nil Nil
    • Service tax: Service tax is levied as per the ongoing rate in the country.
    • Miscellaneous Charge: Rs. 50 is levied if you change your premium mode – from monthly to quarterly, for instance – during the deferment term.

    Riders

    No rider benefits are included in the LIC pension plan, but you could include riders of your choice by paying a slightly higher premium.

    This Insurance Company has not partnered with BankBazaar.com. For more details, please visit its website/branch office. The trademarks, logos and other subject matters of intellectual property belong to their respective owners.

    GST of 18% is applicable on life insurance effective from the 1st of July, 2017

    LIC Pension Plus Plan Reviews

  • Page 1 of 12 1 2 3 4 5
    • LIC Life Insurance
      "Above average service"
      0.5 3.5/5 "Pretty good"
      I've a life insurance policy with the LIC. I pay a premium of 18000 per year. I make payments through the LIC website. The tenure of the policy is 30 years. My children will be also eligible for pension benefits. The sum assured is 1 Crore.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 02, 2018
    • LIC Life Insurance
      "Good pension plan"
      0.5 5.0/5 "Blown Away!"
      My family members were recommended me about the LIC pension policy. Death coverage and risk coverage is there. I have been using this policy for 4 years. Total tenure of the policy is 16 years. I make the payment through online in their web portals.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 27, 2018
    • LIC Life Insurance
      "Pension plan with LIC"
      0.5 4.0/5 "Great!"
      From LIFE INSURANCE CORPORATION OF INDIA i have taken a life insurance policy. Its a pension plan and the yearly premium is 25000 for the maturity period of 25 years. After the maturity i will start getting the pension as monthly installment.
      Was this review helpful? 0
      , nagpur
      Reviewed on May 14, 2018
    • LIC Life Insurance
      "GOOD"
      0.5 4.0/5 "Great!"
      I am holding my pension plan with the LIC, it is almost going to complete 20 years and for 20 years 3 years to go. Once i get my money only i come to know completely about the LIC. As of now the customer service is good. My policy is long term policy, I am happy to have my plan with LIC.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 13, 2018
    • LIC Life Insurance
      "Good experience"
      0.5 4.0/5 "Great!"
      I have taken a life insurance policy with LIC. It is a pension plan. I need to pay a premium till the age of 55 years. After which I would start to get the pension. The premium is on a monthly basis. It get deducted on a ECS basis. The services are also good.
      Was this review helpful? 0
      , bilaspur
      Reviewed on Mar 23, 2018
    • LIC Life Insurance
      "Good insurance"
      0.5 5.0/5 "Blown Away!"
      I have taken a pension scheme policy which includes 10 policies. I am using the LIC service for last 5 years. The policy was recommended by my friend. The LIC office is near to my policy so I don't face any difficulties. I am paying quarterly 10,350 rupees directly to the office.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 06, 2018
    • LIC Life Insurance
      "Average service"
      0.5 2.0/5 "Expected more"
      I have taken a Life Insurance with LIC.I pay a premium amount of Rs 5000 every quarterly.I get a policy coverage of ten lakhs.The plan name is pension scheme policy.The online site is helpful to make payment and its easy to understand.I closed the policy because i didn't pay my premium they have to refund the the amount however same was not done till date. Its still an ongoing issue........
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 12, 2018
    • LIC Life Insurance
      "Pension benifits with LIC"
      0.5 5.0/5 "Blown Away!"
      I have taken a life insurance from LIFE INSURANCE CORPORATION OF INDIA. Its a life time policy . This is a pension plan,were i get pension from the policy.the premium amount which i am paying yearly is 35000. After the maturity period i get some bonus with the total amount. I make my payment mostly through cheque.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 10, 2018
    • LIC Life Insurance
      "Good Savings"
      0.5 5.0/5 "Blown Away!"
      Before nine months I have taken LIC policy, I make the premium around Rs. 1.20 lakh on yearly. It has the tenure of 16 years, once my policy gets matured they give the sum assured around Rs. 47 lakhs and they provides pension on life time. If some thing happened to me, my dependants will get life cover with pension.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 21, 2017
    • LIC Life Insurance
      "Good Pension scheme"
      0.5 5.0/5 "Blown Away!"
      I have taken pension scheme policy with LIC, I should pay for 20 years then lump sum amount divided into another 20 + years. I have received the LIC bond on time, I paid the premium around Rs. 95,000 on yearly basis. It gives life cover and tax benefits too.
      Was this review helpful? 0
      , vadodara
      Reviewed on Dec 21, 2017
    • LIC Life Insurance
      "Average policy to use"
      0.5 4.0/5 "Great!"
      I have got the LIC life insurance policy around 7years ago. The customer support is good with the LIC. This pension plan has the tenure of 15years. I pay the premium of Rs,3557 every 3 months once. The plan benefits and the policy coverage is good with LIC.
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 06, 2017
    • LIC Life Insurance
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      Apart from being a customer of LIC, I have taken it up as a part time job as well. I would say that this company provides what ever is promised, unlike the private companies who provides an insured amount as per the current market rate. The policy I have would serve my purpose as it gets matured nearing the time of my retirement. It is like a pension plan.
      Was this review helpful? 0
      , chennai
      Reviewed on Oct 17, 2017
    • LIC Life Insurance
      "Trustworthy"
      0.5 5.0/5 "Blown Away!"
      LIC has a lot of policies which is very much beneficial. I have taken a pension plan, since I have taken it at the age of 40, I would have to pay a premium for the next 15 years. It is a economical one and the benefits are decent too. The maturity is worthed.
      Was this review helpful? 0
      , vadodara
      Reviewed on Aug 26, 2017
    • LIC Life Insurance
      "Good policy"
      0.5 5.0/5 "Blown Away!"
      I am using LIC for two years, every time I receive notification of premium I used to make the payment by visiting their office immediately and they provides the receipt copy. I am paying premium of Rs. 2700 on quarterly payment it has the tenure of 15 years. They offered me all the coverage including the plan benefits of Rs. 6 lakhs, After 20 years I will be getting pension amount Rs. 3000 to 4000 based on the range.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jul 05, 2017
    • LIC Life Insurance
      "Good Pension Scheme"
      0.5 5.0/5 "Blown Away!"
      I have taken the pension plan with LIC, now my age is 27 so I used to make the premium Rs. 1200 on monthly basis its for 25 years. Its gets complete in the age of 52, After 62 years I would be getting the monthly pension of Rs.15,000. If suppose something happen to me, my nominee get Rs.24 lakhs.
      Was this review helpful? 1
      , chennai
      Reviewed on Apr 03, 2017
    • LIC Life Insurance
      "Most trusted insurance company in India"
      0.5 4.5/5 "Excellent!"
      I have got my two life insurance policies with the LIC of India. One policy is pension based and the other is term insurance. The premium is around 60000 Rupees per annum for both the policies. Total tenure is around twenty years of time for pension plan. Customer service is really good like I used to dealt with an agent and he is really professional, also he took the responsiblity of my policy. There is a concern gap in the market among their competitors and they need to come up with it.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 05, 2017
    • LIC Life Insurance
      "Trustworthy site"
      0.5 4.5/5 "Excellent!"
      Trust worthy and Government organization. I am holding this LIC Policy for the past 4 years. I normally pay the premium close around 12k per quarter. The major benefits are like life insurance cover where we get pension scheme and I had opted through the agent.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 12, 2017
    • LIC Life Insurance
      "The best"
      0.5 5.0/5 "Blown Away!"
      Apart from being a customer of LIC, I have taken it up as a part time job as well. I would say that this company provides what ever is promised, unlike the private companies who provides an insured amount as per the current market rate. The policy I have would serve my purpose as it gets matured nearing the time of my retirement. It is like a pension plan.
      Was this review helpful? 0
      , chennai
      Reviewed on Dec 08, 2016
    • LIC Life Insurance
      "Very good"
      0.5 5.0/5 "Blown Away!"
      LIC policy is really good. I am holding this LIC policy for more than 3 years. The most important about this policy . They will provide some pension amount after retirement. Another plus is. As I am a frequent traveler, as my life is prone to risk this policy is of great help.
      Was this review helpful? 0
      , mangalore
      Reviewed on Nov 29, 2016
    • LIC Life Insurance
      "It is good and its recommendable"
      0.5 5.0/5 "Blown Away!"
      I am holding a LIC Policy named Jeevan anand I had taken this retirement plan. I am holding this LIC for a period of 25 years. Once I close 48 years I will get a premium 22 lakhs and on a monthly basis I will get around 12500 as a pension amount.
      Was this review helpful? 0
      , new delhi
      Reviewed on Oct 11, 2016
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