The oldest participant within the insurance sector, LIC has been catering to the insurance needs of the whole country from a long time. Being the best participant, LIC grabbed most market shares and continue to be the biggest participant in the market. The Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.
Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices and the Corporate office. LICís Wide Area Network covers 113 divisional offices connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities.
LIC Pension Plans are personal pension plan through which, one can give importance to the future needs. Pension plans are really effective for senior citizens to secure their future easily. With an effective pension plan, they do not have to compromise with future needs during post-retirement life. By taking pension plans, you can enjoy your life even after your retirement with your family. By taking LIC pension plan, the invested amount in the pension will help you in old age after your retirement. The LIC provides exclusive products once in a while to cater the changing and evolving needs of its customers. Currently, it has pension plans to offer economic stability during the post-retirement life with various financial benefits.
LIC of India has the sole privilege to operate this scheme. The Pradhan Mantri Vaya Vandana Yojana has been launched on 4th May 2017.The scheme shall be available for one year from date of launch. Under the same, on survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable. This policy is for the citizens 60 years and above.
On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable
On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to beneficiary.
On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.
It is an Immediate Annuity plan, that you can buy by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant. Various options are available for the type and mode of payment of annuities.
Type of Annuity:
Annuity payable for life at a uniform rate.
Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive
Annuity for life with return of purchase price on death of the annuitant.
Annuity payable for life increasing at a simple rate of 3% p.a.
Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her lifetime on death of annuitant. The purchase price will be returned on the death of the last survivor.
It is a conventional with profits pension plan with a combination of protection and saving features. This plan provides for death cover during the deferment period and offers annuity on survival to the date of vesting. Benefit on Vesting would be provided under the policy in full force, on vesting an amount equal to the Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be made available to the Life Assured.
Death benefit : Death benefit is the amount on a life insurance policy, annuity or pension that is payable to the beneficiary when the insured or annuitant passes away. Alternatively, a death benefit may be a large lump-sum payment from a life insurance policy.
Income Tax benefit : Charges paid to insurer for any of the LIC pension plans are exempted from tax.
The NPS is a brand new defined Contributory Pension Scheme brought by way of the crucial government for new recruits to the primary government service (except army, navy and Air force) becoming a member of on or after 1.1.2004. Under the brand new Pension plan, each such critical authorities employee will open a personal retirement account on becoming a member of the service. Each month, and until the employee retires or leaves government service, 10 percentage of the employee's earnings will be transferred into this account with a matching contribution from the govt. While the person retires, he could be capable of using these financial savings to take care of the needs of his family throughout old age.