LIC Agent in Nagpur

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LIC Pension Plus Plan 

Life Insurance Corporation’s Pension Plus plan is a unit-linked deferred pension plan, a type of ULIP, where the premiums paid by you are invested in debt or equity funds. The investment risk in this portfolio is borne by the policyholder as the value of investments may fluctuate depending on the performance of the market. The policy does not offer life insurance cover and once the policy matures or completes the lock-in period, you have to convert at least two-thirds of the amount into an annuity plan.


Pension Plus Features:

1. Guaranteed Maturity Proceeds2. One-third of the corpus can be withdrawn as a lumpsum amount3. The remaining two-thirds would be paid in either monthly or half-yearly installments after maturity4. Guarantee of interest rate on Discontinued Policy Fund:5. Top-up (Additional Premium) :6. Switching:7. Partial Withdrawal:8. Revival:9. Conversion to annuity:10. Minimum allocation charge

Benefits of LIC Pension Plus:

  • Guaranteed Maturity Value: If all due premiums are paid till maturity, interest will accumulate on the gross premiums at the end of each fiscal year. This interest would be 50 basis points higher than the average of the reverse repo rate prevalent on the last working day of June, September, December and March of the preceding year. It is, however, limited to maximum 6% and minimum 3%. If you have discontinued your policy, you will still get a guaranteed interest rate of 3.5%.
  • Conversion to Annuity: If you surrender or discontinue a policy, or you live to see your policy mature, the amount due to you will be converted into an annuity purchase. You will be able to keep one-third of the total maturity amount if the balance amount is enough to buy a minimum amount of annuity under Section 4 of the Insurance Act, 1938. You can purchase an annuity either from the LIC or from any life insurance company registered with the IRDA – but for this you need to notify LIC 6 months in advance.
  • Income Tax Benefit: This premium payments are covered under the tax exemptions through the provisions of section 80C of the Income Tax Act. The maturity amount you receive is exempt under section 10(10D).
How LIC Pension Plus Plan Works
LIC Pension Plus offers several benefits focused on increasing your retirement corpus. Some of the key advantages are:
When you buy an LIC Pension Plus, the amount you pay as premium is invested in instruments of your choice – either debt funds or mixed funds consisting of debt and equity. Your maturity benefits are dependent on the performance of your funds. The Net Asset Value (NAV) of your funds is published on a daily basis. The amount you get at the time of maturity, surrender or discontinuation of the policy is equal to the NAV of the day multiplied by the number of units in the Policyholder’s Fund Value.
If you stop paying the premium before 5 years, the fund value is credited to discontinued policy and the amount is converted into an annuity plan after the end of the 5-year tenure. If you stop paying the premium after 5 years, or surrender the policy, the fund value is used to purchase an annuity plan.

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