LIC Pension Plans
Meaning of Pension
Pension is the payment made periodically to the employee by the employer post retirement. It is the benefit obtained by person for the services of the past years.
Pension plan is the procedure in which the person starts investing a small amount before his retirement so that he can make use of the accumulated money, post retirement. Pension plans provide a high return and regular income compared to other investments. Pension plans prove to be more favorable as nowadays not all companies provide the pension facilities.
Different Pension Plans by LIC
LIC has been active for 50 years and it has been our country’s largest investor till date. LIC’s pension plans gazes into the future of the investor and provides the policies that give a secured future to the investors post retirement. The following are the pension plans by LIC:
- New Jeevan Suraksha – I
- New Jeevan Dhara – I
- Jeevan Nidhi
- Jeevan Akshay – VI
New Jeevan Suraksha – I & New Jeevan Dhara – I
The features of these 2 policies are same. These are the plans which permit the policy holder to get regular income after selecting the required term.
The following are the features of New Jeevan Suraksha-I & New Jeevan Dhara –I:
- The premiums can be paid annually, half yearly, quarterly, monthly or even by deducting from the salary. However, the payment of premium depends on the option decided by the policy holder. Tax exemption is available under Section 80ccc on premiums paid under these 2 policies. For New Jeevan Suraksha-I, it is Table No. 147 in Section 80ccc and for New Jeevan Dhara –I, it is Table No. 148 in Section 80ccc in Income Tax Act.
- Benefits of Tax exemption: Policies share profits in the form of bonus. Additional bonus can also be paid if the policy has been recognized for certain period.
- Bonus:
In this policy, the premium paid is exempted from tax under Section 80ccc in Income Tax Act. The policy also provides risk coverage for the deferment period.
The features of this policy are:
- There is a guaranteed inclusion on completion of an year, of Rs.50/- per thousand sum for each year for the first 5 years. The profits will be distributed from the 6th year and the bonus received will be as per the corporation standards.
- Profit Distribution: The payment mode and type of annuity for the policy holder or nominee will be decided according to the availability of the annuity plan at that point of time.
- Annuity:
Jeevan Akshay – VI
It is a policy in which the pension plan can be purchased immediately by paying a large amount. Annuity is payable here according to the plan chosen by the policy holder.
The different types of annuity available are:
- Annuity at uniform rate.
- Annuity for 5, 10, 15, 20 years and will be paid as long as the policy holder is alive.
- Annuity for whole life along with the return of the purchase price after the death of policy holder
- Annuity of whole life along with an option of transferring 50% payment made to spouse after the death of policy holder.
- Annuity of whole life along with an option of transferring 100% payment made to spouse after the death of policy holder.
The features of this policy are:
- Premium has to be paid in a large amount.
- There is no requirement for medical examination under this plan.
- There is no specific maximum limit mentioned for annuity and purchase price.
- Age proof is necessary to apply for this policy.
These policies are very beneficial as it suits the policies are made according the requirements of policy holder. Choosing the suitable plan depends on the investor.
Contributed By: B C Shetty & Co |
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Established in 1985 by Mr.Chandra Shekar Shetty, operating from 3 branches, B.C.Shetty & Co. is a firm dedicated to serving their clients with utmost transperancy by offering qualitative professional service. | |
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