Life Insurance Corporation of India (LIC) is one of the leading life insurance companies in India that provides a range of insurance policies to its customers, irrespective of their age. The company thus caters to different people with diverse requirements. With its foothold in almost every corner of the country and even on an international scale, it makes insurance accessible to everyone including senior citizens.
LIC has launched a multitude of schemes for senior citizens that would help them get a regular income in the form of a pension. Let's take a look at it.
Launched by LIC on 4th May 2017, Pradhan Mantri Vaya Vandana Yojana is a government's pension plan, which is exclusively designed for people above 60 years of age (Indian residents). Under the scheme, the amount to be invested is referred to as 'purchase price'. Till March 2021, the policy will provide an assured pension of 7.4% payable every month. The scheme has now been extended till March 31, 2023.
Launched as a non-participating single premium annuity plan, LIC New Jeevan Shanti comes with a range of annuity options. The policyholder has to choose between Single life and Joint life deferred annuity. At the inception of the policy, the annuity rates are guaranteed and annuities are payable after the period of deferment throughout the lifetime of the annuitant(s).
Percentage Reduction in
(Yearly) annuity rate
**Last Updated on 01-12-2020
Under the scheme, the policyholder has to choose the type of annuity from different options on payment of a lump-sum amount. At the inception of the plan, the annuity rates are guaranteed and annuities are payable throughout life. know more
Option A: It comes with an annuity for life.
Option B: It comes with a guaranteed period of 5 years and life thereafter.
Option C: It comes with a guaranteed period of 10 years and life thereafter.
Option D: It comes with a guaranteed period of 15 years and life thereafter.
Option E: It comes with a guaranteed period of 20 years and life thereafter.
Option F: It comes with an annuity for the entire life with a return of purchase price.
Option G: It comes with an annuity for life increasing at a simple rate of 3% p.a.
Option H: It comes with an annuity for life with a provision for 50% of the annuity to the secondary annuitant if the primary annuitant dies.
Option I: It comes with an annuity for life with a provision for 100% of the annuity payable as long as any of the annuitant lives.
Option J: It comes with an annuity for life with a provision for 100% of the annuity payable as long as one of the annuitants survives and purchase price return on death of the last survivor.
**Last Updated on 01-12-2020
Regardless of what policy you choose, LIC senior citizen pension scheme may provide you all the necessary benefits that may help secure your financial future after retirement. The above three schemes work in the favor of pensioners and provide a saving option for a long time.
Yes. Within the ‘free-look period’ stated in the policy, the investment made under the Pradhan Mantri Vaya Vandana Yojana can be canceled. For offline policies, the scheme comes with a free-look period of 15 days whereas, for online policies, it is 30 days. Once the policy will be canceled, the total purchase will be refunded back to the investor after deducting charges related to stamp duty and pension paid.
Yes, during the policy term of 10 years, surrender is allowed in Pradhan Mantri Vaya Vandana Yojana. But the surrender may only be done in exceptional cases like terminal illness care for self or spouse. Once the surrender has been completed, the company would pay 98% of the purchase price.
For example, if the investor’s spouse is diagnosed with an illness at an age of 70, the investor can surrender the policy to meet the requirement. If the investor had invested 10, 00,000, then he/she will get 98% of the total amount, i.e. INR 9, 80,000.
Yes, absolutely. LIC is a very trusted platform and you can easily buy from its website without worrying about the safety of your data.
Last updated on 01-12-2020