LIC Pension Plan

LIC offers a number of pension plans such as Life Akshay, Jeevan Shanti, Saral Jeevan and Pradhan Mantri Vaya Vandana Yojana. Each of them offers unique benefits. It is advisable to choose a suitable plan as per your requirements.

Yes, there are multiple benefits like regular income, financial security and more to investing in an LIC pension plan, especially for employees working in the private sector as they are not entitled to get pension post retirement like central and state government employees.

In the case of an employee’s pension plan, the pool of money is invested on behalf of the employee, and the earnings generate income to the employees upon retirement.

There are multiple benefits of LIC Pension Plans like premiums paid are exempted from tax, the death benefits are also exempted from the tax, rebates are offered in the premium rates if the policyholder is choosing a high sum assured.

Even though the purpose of both term plans and pension plans are the same, that is providing financial security there is a basic element of difference between the two. A pension plan gives financial security to the policyholder after retirement. In case of the sudden demise of the insured, the nominee will be entitled to get benefits. However, term insurance pays only after the policyholder’s death.

An annuity is a regular allowance, income or pension offered by LIC Pension Plans.

You can pay premiums monthly, quarterly, half-yearly, or yearly and even as a lump sum. However, most people choose the monthly premium mode as it is relatively easy to keep track of.

Yes, you should invest in LIC Pension Plan as the provident fund amount that you accumulated will be affected by factors like inflation with passing time. It is not advisable to rely only on provident funds as you grow old since your lifestyle needs change and with growing age individuals are prone to medical ailments which can not be covered by provident funds alone.

Yes. A person can invest in multiple pension plans with the help of private banks and other commercial pension plan sellers. However, the scenario is different when it comes to the National Pension Scheme or any other pension schemes by the Government of India, a person can invest in more than one.

The NPS is a brand new defined Contributory Pension Scheme brought you by the government of India for recruits to the primary government service (except army, navy and Air force) becoming a member of on or after 1.1.2004. Under the brand new Pension plan, each such critical authority employee will open a personal retirement account on becoming a member of the service. Each month, and until the employee retires or leaves government service, 10 percentage of the employee’s earnings will be transferred into this account with a matching contribution from the govt. While the person retires, he could be capable of using these financial savings to take care of the needs of his family throughout old age.

If you want to surrender the plan before the maturity date, then in such cases the entire surrendered value is added to your annual income and you might have to pay tax for the same as per your income slab. Moreover, you might have to pay back any tax exemptions that you got for the paid premiums of the past.

A participating plan allows the insured to share profits of the insurer in the form of bonuses or dividends. In a non-participating plan, the profits are not shared and no dividends will be paid to the insurer. Both plans offer guaranteed life cover.

Yes, it is possible. Even the Government employees used to do the same from a treasury or a post office.