LIC’s New Pension Plus Plan: Check Eligibility, Features, Premium Options and Withdrawals

The Life Insurance Corporation of India has launched LIC Pension Plus Plan for its customers. It is a non-participating, unit Linked, an individual pension plan that will help you build a corpus by systematic & disciplined savings which can be transformed into regular income by purchase of an annuity plan on completion of term.

Similar to the National Pension System (NPS), LIC's New Pension Plus (NPP) offers pension seekers a variety of investment options from which they can choose the one that best suits their level of risk tolerance.

Pension Bond Fund, Pension Secured Fund, Pension Balanced Fund, Pension Growth Fund, and Pension Discontinued Fund are the possible investment options.

Pension Discontinued Fund: This fund will be a separate Unit Fund and will include all Discontinued Policy Funds of all policies offered under Unit Linked Pension Products.

Eligibility Criteria and Features

Entry Age

Minimum entry age:25 years

Maximum entry age:75 years

Vesting Age

Minimum vesting age:35 years

Maximum vesting age:85 years

Policy Term

Minimum Policy Term age:10 years

Maximum Policy Term:42 years

Premium Payment Options

Single premium and regular premium are the two premium payment Options. The term for paying regular premiums will be the same as the policy term.

Minimum and Maximum Premium

The minimum premium varies with the frequency of payment. The minimum premium is Rs 3,000 for monthly payments, Rs 9,000 for quarterly payments, Rs 16,000 for half-yearly payments, and Rs 30,000 for annual payments. The maximum premium has no upper limit.

Partial Withdrawals

Maximum three partial withdrawals between 10% and 25% of the fund value based on the premium band are permitted during the policy term, according to the terms and conditions of the policy, for purposes such as education, treatment, marriage, residency, etc. The charges per withdrawal will be Rs 100.

Guaranteed Additions

Guaranteed additions up to 15.5% of annualised premium on regular premium plans and up to 5% on single premium on single premium plans will be added at the end of the sixth year, the tenth year, and every subsequent year from the eleventh year until the end of the policy term.

Insurance Cover

In case of the unfortunate death of a policyholder during the policy term, the nominee will receive the greater of the fund value and 105% of the total premium paid (excluding taxes, interest on late payment and charges, if any).

Commutation

Up to 60% of the fund value may be commuted at the time vesting, and the remaining balance will be used to buy immediate or deferred annuity plans. The date of vesting may be extended by a policyholder by intimating the LIC of India before 3 months from the date of original vesting.

For More Details Visit Official Websites: https://licindia.in/