LIC Pension Plus

LIC Pension Plus Policy

LIC Pension Plus is a unit-linked insurance policy (ULIP) where the premium amount is invested in the markets (debt, equity and cash market instruments). The value of investments may go up or down, hence the risk in ULIPS is borne by the policy holder and not by the insurance company.

 

Key Features of LIC Pension Plus Policy 

• Low and attractive policy charges
• Guaranteed returns on premiums paid by the policy holder at maturity
• Option of single premium payment

 

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Benefits you get from LIC Pension Plus Policy

Death Benefit – The plan does not provide any life cover. In case of death of the policy holder, the nominee gets the fund value either in a lump sum or as an annuity. This can be decided by the nominee.

Vesting Benefit - If the policy holder survives till the date of vesting, then his/her fund value plus guaranteed maturity proceeds are compulsorily utilised to purchase an annuity. There is an option whereby the policyholder can withdraw one-third of the amount in lump sum and purchase an annuity with the remaining amount.

Income Tax Benefit

Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C.

The maturity amount you receive from this plan are exempt from tax under section 10(10D).

 

 Eligibility conditions and other restrictions in LIC Pension Plus Policy

	Minimum	Maximum
Sum Assured (in Rs.)	NIL	NIL
Deferment Term (in years)	10	-
Premium Payment Term (in years)	NA	NA
Lock-in period (in years)	5
Entry Age of Policyholder (in years)	18	75
Age at Vesting (in years)	40	85
Regular premium (in Rs.)	15,000	1,00,000
Single premium (in Rs.)	30,000	No Limit
Payment modes	Yearly, Half-Yearly, Quarterly and Monthly (ECS)
Top-up premium	In multiples of Rs.1000	No Limit

 

 

Sample illustration of returns at the end of the policy term in LIC Pension Plus

Premium = Rs.25,000

Policy Term = 20 years

Total Investment  = Rs. 25,000 x 20 years = Rs.5,00,000

 

Additional Features and Benefits of LIC Pension Plus

Riders – Some additional benefits can be taken in the form of riders by paying extra premium
 

Type of Rider	Available with Policy
Accidental death benefit	No
Permanent disability benefit	No
Waiver of premium benefit	No
Critical illness (or dread diseases) benefit	No
Increased death benefit / Term rider	No
Hospital cash benefit	No

 

Investment Fund Options

The plan provides choice of two funds at comparatively low fund management charges

• Debt Fund
• Mixed Fund

 

Top-up

You can invest additional premiums as top-up premiums in multiples of Rs.1000 anytime except in the last five policy years.

 

Switching

You have the flexibility to switch investments from one fund to the other any time during the policy term.

 

Partial Withdrawal

You are not allowed to make partial withdrawals in this policy.

 

What happens if?

You stop paying the premium before 5 years - then the fund value is credited to discontinued policy fund. On completion of 5 policy years, the money is then used for payment of annuity

You stop paying the premium after 5 years - then the fund value in the policy will be used for payment of an annuity

You want to surrender the policy - then the fund value in the policy will be used for payment of an annuity

You want a loan against your policy - There are no loans allowed in this policy