LIC Pension Plan

lic pension plan

LIC Pension plan allows you to spend your post retirement life worry-free. Having a good income allows you to live life comfortable as well as save for the future, but not always are you able to save enough that'd last all your life. Hence it is very important to find a steady source of cash to take care of your needs even after you retire.

Many times it is seen that people who are retired without a income are in a constant look out for jobs that could fulfil their day to day monetary needs. But only after a few years, the realization that being old doesn't make it easy to do regular jobs, making them feel helpless and cashless. The worry about the financial dependence in old age years strip them off their happiness.

 A LIC pension Plan is a policy where you invest some amount monthly for a period of a fixed number of years, and you get a fixed amount of return every month as pension from LIC pension plan, till you die. Not only does the retirement plan help you get the income when you need it the most, but it also helps you save the income tax, today.

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Why should you invest in LIC Pension Plan?


You work hard all your life to maintain your lifestyle and sustain. When you are in a job, the general expenses like daily household needs, medical expenses and travel take up most of your current salary and after retirement, without having a source that matches up to this, it is very difficult to manage day to day expenses.

By investing in a LIC pension plan, you become self-sufficient to take care of financial needs of the family after retirement. A LIC Retirement plan guarantees income on monthly basis, which, when calculated, is so much more than you could have accumulated by saving the same amount as your premium, every month.

The government employees and those who are eligible to pension from government after retirement might think that there is no need for them to get such plans, but that's something that almost every such person regrets. While government pension is sufficient to help you stay afloat, it is certainly not enough to compensate for the daily needs and inflation both, this additional amount could give you the financial freedom that you want in your old age.

Investing in a LIC Pension plan helps you to really retire and live your life as you lived while in the job.

Advantages of LIC Pension/Retirement Plan

There are many advantages of buying a LIC retirement plan, first being that it offers monthly income after you retire so that you can fulfil your daily needs, such as food, medication and other household expenses. But that's not the only advantage, there are other advantages too that make this investment worth it.

  1. Small monthly investment reaps huge monthly pension
  2. No income tax payable on this LIC pension scheme, after retirement.
  3. Tax benefit under 80 CCC of income tax act.
  4. Some policies offer life cover as well.
How do we help you to buy a LIC Pension Plan?

We assign a full time advisor, who helps you choose the right pension scheme according to your living standard and probable future needs. Our advisor helps you select the plan that is most appropriate for you and helps you meet your financial ends in the future, pay the premium timely and when the policy is about to mature, he/she helps you claim the returns. Our advisor will also help you in other services like making a new nominee, changing nominee, changing address or phone number and other details, upgrading the LIC pension plan to get better returns etc.

Documents needed for buying a LIC pension plan

LIC Pension plans are meant for the easy monthly return as the pension that is promised by the policy, and to make this process seamless, the documentation is required. Getting all your details right will help the company to process your claim smoothly.

  • 2 Passport size photographs (self-attested)
  • I.D. Proof, which can be any one of these: Pan Card issued by income tax department, Passport, Aadhaar Card, Driving License issued by RTO, Election voter i.d. card.
  • Age proof: high school certificate is asked for widely, but Aadhaar, Election voter i.d. card, driving license are also accepted.
  • Residence or Address proof: ration card, election voter i.d. card, electricity bill, water bill, landline telephone bill, credit card bill, copy of bank passbook, driving license, rent agreement, passport.
  • One cancelled cheque.

The three latest policies in this section have been launched that take post-retirement financial planning to the next level. These plans not only provide the monthly pension, but also safe keep the lump sum which is returned with the last pension. These plans enable the common man to save his hard-earned money with guaranteed timely returns.

Pradhan Mantri Vaya Vandana Yojana

There are many retirement plans offered by different companies, but those who fall in the economically weaker section and live life hand to mouth are not able to afford most of such plans because they need huge investments over a number of years. For them, it is difficult to save for the future when they are barely able to sail through the present. Such people, when get a lump sum on retirement, it is usually not enough to spend the post-retirement lifetime, but quite a sum for investment. But with investment, a sure return is expected because losing that could mean destitution for their families.

Pradhan mantra Vaya Vandana Yojana has been launched by our Hon'ble Prime Minister that exclusively address the lower income group of the country and safe keeps their lump sum while providing them pension for 10 years and returns the sum in the end.

PMVVY allows anyone to invest 1.5 L to 7.5 L once and get a pension of 1000 to 5000 respectively, for 10 years. The options available for receiving the pension are monthly, quarterly, half yearly or annually. And with the last pension, your sum assured will be returned to you as it is. You can choose any amount within this range and the regular income will be received accordingly.

Jeevan Akashya-VI

The middle-class demographic is prevalent in our country who have enough to survive, save and spend, but as retirement approaches, they are dependent on their retirement income in old age or the lump sum they get on retirement, just as they were on their salary. For them, LIC presents Jeevan Akshaya VI plan which allows them to invest their retirement amount and live off 5/10/15/20 years (as chosen while buying the policy) of regular income.

The same theme of investing a lump sum to get pension later, as in PMVVY is followed in this plan too, except that while starting from 1 L, this plan isn't capped at any limits, which means anyone can get the benefits of this plan, regardless of their financial status.

There is a sum assured which is to be paid once as annuity and the returns are received as pension. In this plan there are 10 options to choose from, which determine whether the returns will be paid to the person who has taken the policy and/or to the spouse. By this method, you can secure the pension for the family even after you are gone, by the means of providing income to the spouse.

LIC's New Jeevan Nidhi

All of us want to live as long as we can, but after retirement, sometimes it becomes a financial liability if we are dependent on someone else. With the developing medical facilities and ever increasing life expectancy, it is not out of the ordinary for a person to live till their late 80s or even 90s. LIC pension plan, LIC's new Jeevan Nidhi is launched with this thought, to cover the risk of living too long, which means having over 25 years of retired life... so that you can support yourself in your old age, and long life remains a blessing, not a 'risk' anymore.

LIC's new Jeevan Nidhi is basically a deferred annuity plan with bonus facility, introduced for those who are willing to save some money as their wealth/capital. The premium is to paid in first 5 years (or 7 in some cases) for which LIC adds guaranteed additions. The bonuses are pooled in from 6th year onwards, making Sum Assured + Accrued Guaranteed Additions + Simple Reversionary Bonus + Terminal Bonus quite a capital, capable to cover the monetary needs in old age.

LIC Pension Plan also has a rider of Accidental Death and Disability Benefit which can be received by the nominee after accidental death of the insurer and disability benefit to the insurer him/her-self.

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