LIC OF INDIA PENSION PLANS
In this age of high retail and medical inflation where the lives of common people is further stressed by the pandemic and low interest rates having a pension system in place is pretty important for the elderly population. In a country like ours where the number of young population is at majority and will grow older with time, awareness and implementation of such a social security in the form of pension becomes a necessity.
When one is in the workforce a regular monthly salary helps in fulfilling the daily needs and supports to live a good life with abundance but as soon as one approaches the retirement age the thought of not getting the definite salary every month creates a lot of stress among individuals as the expenses don’t subside but the income is on the verge of getting stopped and therefore a good pension plan is necessary to purchase so that even after retirement one can enjoy their life like before and can maintain a decent standard of living.
Pension makes up for the loss of income that comes with retirement. A good pension scheme ensures a lump sum amount and pensions to dependants in case of a member’s death. Pension can be considered as a retirement security.
It is unfortunate that a heavily populated country like India lacks many form of health care and social security schemes which is enjoyed by citizens of western countries like US, Canada and Europe. Also the both the central and the state government sector are scrapping up the pension system available in their respective departmental jobs. Although there are public schemes like national pension scheme available which is extended to all individuals in the society but the government neither the employer contributes to the scheme and the pension fund accumulated solely depends on the subscriber.
There are other forms of different pension products available with the public and the private sector life insurers which an individual should invest as per his convenience in various stages of life to accumulate a proper fund from which a monthly pension can be drawn. Life Insurance Corporation of India (LIC) specially designed tailor made pension schemes are made to provide a secure financial future to the senior citizens of the country after retirement. It provides a steady income to the individual with which they can enjoy their lives and live peacefully in old age after retirement. When it comes to choose a secure pension plan, LIC offers one of the best schemes as it is the oldest, trusted and one only public life insurance provider in the insurance sector.
There are many different pension and annuity schemes offered by LIC of India and as the title of the article suggests we will discuss some of them in brief below:
LIC JEEVAN SHANTI: This is a single premium payment plan where the policy holder has the option of choosing between single life and joint life deferred annuity. This plan is available online as well as offline so an individual can choose any one mode of buying the plan as per their convenience.
For the online purchase of plan one has to log in to the official LIC website i.e. licindia.in. This plan is quite beneficial as the policy holder has to invest one time lump sum amount and can enjoy guaranteed return in the form of monthly income lifelong. It gives option to choose a convenient plan as per ones requirement.
The facility of loan is also available for the policy holder which he or she can take after the completion of one year of the plan. It is particularly suitable for those individuals who have got a lump sum money, is on the verge of retirement and looking to purchase a pension plan to support one’s daily needs and family.
LIC of India is solely authorized to operate a scheme called Pradhan Mantri Vaya Vandana Yojana. This plan has a minimum entry age of 60 years and no maximum entry age. The scheme can be purchased by making a payment in lump sum of the purchase price which for yearly plan can be approximately 1.5 Lakhs and maximum 15 lakhs.
As per the scheme three different benefits will be paid, if the subscriber the policy term of 10 years pension is payable in arrears at the end of the period as per mode chosen (monthly, quarterly, half-yearly or yearly). Death benefit is payable in the form of return of purchase price to the beneficiary on the death of the subscriber in the policy term of 10 years. The purchase price together with final pension installments are payable on survival of the pensioner.
Jeevan Akshay VII is also one of the popular immediate annuity pension plans of the LIC which come with a wide range of around ten options. This is very suitable for people who are near to retirement or already retired and want to get the pension started immediately.
This plan creates some variations in the immediate annuity payment mode and gives the choice to the subscriber to choose as per convenience. Some of the options are immediate annuity for life or with a guaranteed period of 5, 10, 15, 20 years and life thereafter. Option is also available for immediate annuity with return of purchase price. Provision is also there for joint life immediate annuity with different provisions.