LIC Pension Plus Plan

 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.

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LIC Pension Plus Plan Reviews

Page 1 of 12 1 2 3 4 5
  • LIC Life Insurance
    "One stop solution"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance from LIC and the policy coverage value was Rs. 70,00,000. This is a life long policy. After my 60 years completed i am getting pension benefit as Rs. 16,000 every month till my death, after my death my wife can avail same benefit. Annual premium i am paying Rs.36,000 even if i pay little high premium also i am getting good returns. I have an agent he is very close to my family he maintains my policy as well as my wifes policy so i don't want to take any headache.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Nov 25, 2019
  • LIC
    LIC Life Insurance
    "Very Good Policy"
    0.5 4.0/5 "Great!"
    I have life insurance policy from LIC and i get the returns when i turn into 64 years old which is a pension policy. LIC company is safer than others hence i have selected them. Premium payment period is already over. Earlier i have made the premium amount of Rs. 5500 every month.
    Was this review helpful? 1
    , indore
    Reviewed on Nov 19, 2019
  • LIC Life Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I have Life Insurance policy with LIC which was a pension plan and the tenure for 20 years .The policy details was shared by the agent .The premium is not so high it was medium.The policy detail was clearly shared by the agent.I am satisfied with the service so far .I am paying the premium through online only.
    Was this review helpful? 0
    , udaipur
    Reviewed on Nov 05, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    I have taken my life insurance policy from LIC. It was a Jeevan Umang. Its almost 150 years old which covers for 95% and the people invested in LIC is higher when i compared to others. This policy has two benefits one its a life insurance policy and other is pension covered policy. After 60 of years of age, i will get the pension.
    Was this review helpful? 0
    , vellore
    Reviewed on Oct 15, 2019
  • LIC Life Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    I have purchased the PENSION PLAN with the LIFE INSURANCE CORPORATION OF INDIA but after using for few years i have closed the plan because the premium has to be paid monthly once which is not convenient. The policy gives the coverage for self.
    Was this review helpful? 0
    , kolkata
    Reviewed on Jul 31, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC before 10 days. The policy is for 30 years and scheme of pension plan scheme. I am paying premium in the yearly package. While getting a policy my agent has given an information about the policy details. I use to provide cheque to an agent.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 06, 2019
  • LIC Life Insurance
    "EXCELLENT"
    0.5 5.0/5 "Blown Away!"
    The life insurance policy has been taken with LIFE INSURANCE CORPORATION OF INDIA and the policy has the maturity period of long term of 21 years added on that the premium paying for yearly once, i have purchased PENSION PLAN it give self coverage with good sum assured of pension as a regular income.
    Was this review helpful? 0
    , chennai
    Reviewed on Jun 30, 2019
  • LIC Life Insurance
    "EXCELLENT"
    0.5 5.0/5 "Blown Away!"
    I am using the LIFE INSURANCE CORPORATION OF INDIA since from last 10 years and the name of the policy i am using is JEEVAN TARANG where the policy has the benefit of getting pension after the maturity and the maturity period of 20 years. The service is good.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 22, 2019
  • LIC Life Insurance
    "Useful savings for a person"
    0.5 5.0/5 "Blown Away!"
    LIC is fine. Since its a big life insurance company of India and its undertaken by Government i have chosen the LIC company. This is a pension policy which will be useful for my future benefits. I have purchased this policy for my children and the premium is paying my children. After 60 years only, i get the benefits from this policy. Its a life assured policy.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Jun 11, 2019
  • LIC Life Insurance
    "Good"
    0.5 5.0/5 "Blown Away!"
    I have toot LIC pension plan premium annual they are charging Rs 24000 and maturity 25 years. amount will be detected from salary itself, its is monthly mode payment and customer service is good and responsive. i will recommended to my friends.
    Was this review helpful? 0
    , chennai
    Reviewed on Jun 08, 2019
  • LIC Life Insurance
    "Good Service"
    0.5 4.0/5 "Great!"
    I have taken Life Insurance policy which is Pension policy taken through LIC agent.This policy i have taken before 5 years and i am paying the premium for yearly mode and so far not faced any issues.This policy is still active and the premium is very nominal and got all the details through the agent ,The premium amount is also nominal not so high .
    Was this review helpful? 0
    , ghaziabad
    Reviewed on Jun 03, 2019
  • LIC Life Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I have Life Insurance policy which was taken directly by myself.Since i am working with LIC company i have taken this policy it is a Pension Plan for the tenure of 25 years and i am paying the premium on monthly basis through auto debit from my account .The policy features ,policy coverage ,plan and benefits are very good .This Insurance company is really doing an extraordinary service it is known by all .I have got all the details through the agent .I have got the policy documents on time .
    Was this review helpful? 0
    , chandigarh
    Reviewed on Jun 02, 2019
  • LIC Life Insurance
    "LIC is a super policy"
    0.5 5.0/5 "Blown Away!"
    Took my life insurance policy from LIC. I have selected the pension policy. Since the LIC is comfortable and the plans are transparent hence i have chosen this LIC. I have bought the policy through agent. I am paying the premium amount of Rs. 6000 three months once. I used to pay the premium for 15 years. 1 before i bought the policy.
    Was this review helpful? 0
    , chennai
    Reviewed on May 20, 2019
  • LIC Life Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I have purchased the PENSION PLAN with the LIFE INSURANCE CORPORATION OF INDIA where the policy has the maturity period of long term also the premium paying on time added on that the executive explained the details of the policy on time at the beginning.
    Was this review helpful? 0
    , thane
    Reviewed on May 11, 2019
  • LIC Life Insurance
    "EXCELLENT"
    0.5 5.0/5 "Blown Away!"
    I have purchased the PENSION PLAN with the LIFE INSURANCE CORPORATION OF INDIA where i am using its since from last many years and i get no issues with this insurance. The policy has the maturity period of long term and the premium paying for yearly once with this policy.
    Was this review helpful? 0
    , chennai
    Reviewed on May 10, 2019
  • LIC Life Insurance
    "Good Pension scheme after retirement"
    0.5 4.0/5 "Great!"
    I have insurance with LIC, I pay the premium of Rs.12,000 on quarterly basis, it has the term of 15 years. Till the maturity I need to pay the premium amount then after the term I would be getting the complete maturity benefits on pension basis.
    Was this review helpful? 0
    , mumbai
    Reviewed on May 02, 2019
  • LIC Life Insurance
    "Can do Better"
    0.5 3.5/5 "Pretty good"
    I generally pay the premium around Rs. 54,500 to jeevan umang policy it has term of 20 years. Actually it has life time cover and after 20 years I get the regular money back as a pension. I feel its not very good policy as others. The LIC agents are good.
    Was this review helpful? 0
    , kolkata
    Reviewed on Apr 27, 2019
  • LIC Life Insurance
    "EXCELLENT"
    0.5 5.0/5 "Blown Away!"
    I have purchased the PENSION plan with the LIFE INSURANCE CORPORATION OF INDIA where the maturity period of this policy is for long term also the premium paying for monthly once through the ECS from the salary. I am using from last 17 years it gives the coverage for disability, life coverage.
    Was this review helpful? 0
    , chennai
    Reviewed on Apr 23, 2019
  • LIC Life Insurance
    "Good Pension Plan"
    0.5 5.0/5 "Blown Away!"
    I started one policy in the year of 2010, on monthly basis I used the pay the amount of Rs. 2500 I need to pay the premium upto 20 years. Then I get the monthly pension amount upto 2080 its really helpful for the all. Its a good plan which I have availed it.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Apr 11, 2019
  • LIC Life Insurance
    "Its Good"
    0.5 3.0/5 "Satisfactory"
    I am very much fine with LIC, I have multiple policies including pension plan with them which was availed in the year of 2011. It has the tenure period of 30 years. Then I will be getting monthly pension and the sum assured value of Rs.3 lakhs . It would be nice if they improve the customer support and plan feature.
    Was this review helpful? 0
    , mumbai
    Reviewed on Apr 10, 2019
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