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LIC Pension Plus

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This plan has been withdrawn by the insurance company and is no longer available for sale.

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




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




Sum Assured (in Rs.)



Deferment Term (in years)



Premium Payment Term (in years)



Lock-in period (in years)


Entry Age of Policyholder (in years)



Age at Vesting (in years)



Regular premium (in Rs.)



Single premium (in Rs.)


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

LIC Pension Plus Sample Illustration


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


Permanent disability benefit


Waiver of premium benefit


Critical illness (or dread diseases) benefit


Increased death benefit / Term rider


Hospital cash benefit



Investment Fund Options

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

  • Debt Fund
  • Mixed Fund



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



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


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