ABOUT LIC POLICY & LIC PENSION PLAN
LIC is a well-known and a trustworthy life insurer in the insurance sector. It came into existence after the LIC Life Insurance Corporation Act. It’s passed by the parliament of India in the month of September, during the year 1956. -There was the presence of only this insurance company which helped in its growth. When the Indian government eased the restrictions related to the insurance field. Then different insurance companies got a chance to make an entry. People trust LIC because it has provided excellent services to many people for a number of years. It is growth-oriented and manages to satisfy its customers efficiently. It is full of staff that is present there to do the work to the best of their abilities.
Planning your retirement has become the norm. This is where the pension plans come into play. Many people know that pension plans are easy way to plan one’s retirement. They allow individuals to be financially independent. So that they don’t have to think about arranging money from somewhere during their old age. Individuals who get this pension plan feel financially secure. This ensures more flexibility for an old couple. An old couple who gets involved in this planning early into their 20sare better off than those who think about this matter later.
LIC has a number of retirement plans for the different needs of different sets of people. This makes it more capable of satisfying various people’s financial woes. Introduction of many number of policies is taking place. This can help one to make it possible to learn about various policies in the market. These policies are very flexible and easy to understand.
The various pension plans that are presently available mentioned below –
- JEEVAN AKSHAY SIX.
- NEW JEEVAN NIDHI PLAN.
A detailed description of the two plans mentioned below –
Jeevan Akshay Sixt is an immediate allotment pension plan. That provides the following benefits. – In this pension plan, pension will be fully payable after the single premium payment.
There are many options of allotment payout –
1. life an unity that’s paid on a uniform rate.
2. Whole life annuity with purchase price that’s returned.
3. Annuity guaranteed for five, ten, fifteen or twenty years and payable for life thereafter.
4. Increase in life annuity at a simple rate of three percent per annum.
5. Life annuity to be payable after death of spouse.
6. 100 percent annuity to spouse after the annuitant’s death.
7. Hundred percent annuity to spouse after the annuitant’s death, return of purchase price after last survivor’s death.
8. This pension plan is very beneficial,flexible and customer-friendly.
9. The LIC pension plan can buy without undergoing any medical tests.
10. Annuity payments are higher if the LIC pension plan purchased online through the company website.
11. The premium paid to avail annuity is exempt from tax under section 80CCC.
12. A higher annuity would be payble in case of higher purchase price.
NEW JEEVANNIDHI PLAN –
It is a pension plan that has deferred annuitythat helps an individual plan for a safe retirement.
Bonuses as a way of profit participation offered under this plan In the first 5 years of this specific plan, additions guaranteed. These additions offered at the rate of five percent of the sum assured for every completed year of this policy. Reversionary bonuses (simple and final) paid from the policy’s sixth year. This will be based on the profit experience of the organisation. A policyholder has the option of purchasing immediate annuity from the company from the amount available .
If there occurs death of the policyholder in the five years from the beginning. Then the selected sum assured with the discussed additions. That’s guaranteed till death are to paid to the nominee who can avail the death benefit. This amount (death benefit) can availed in lump sum or annuity or partly. In lump sum and partly in annuity depending on one’s choice.
The benefit of death that is to paid to the nominee would be a minimum of 105% of all the premiums given till the time of death.This pension plan can accessed by availing the LIC’s accidental death. It also helps, if one avails the disability benefit rider.When a policyholder chooses maximum sum assured levels of three lacs Rupees and above. then rebates offered in the premium rates.As far as taxation’s concerned, death benefit provided under this pension plan. The policy is exempt from taxation under SECTION 10(10D). The premium paid to avail of the annuity will have the benefit of exemption. It’s under the section 80CCC of the Income Tax Act.The premium paying term will be also considered. The assured sum would vary from regular pay of 1 lacs to single pay of rupees 1.5 lacs.
ELIGIBILITY CRITERIA –
The entry age would be 20 years and the basic pay would be 58 years. The pay for an individual would be 60 years. The age of vesting will be fifty-five years(minimum) and 65 years in the case of the maximum. The policy tenure will vary from five years to 35 years. The annual premium would depend on the age, sumassured. The premium paying term will be also considered . The assured sum would vary from regular pay of 1 lacs to single pay of rupees 1.5 lacs. In this case the maximum assured amount would be having no limit. The premium paying frequency can be monthly.
Mentioned below are the measures that will help LIC in providing better, improved, up-to-date services. Following aspects require your complete attention –
1. In case an individual changes his or her address he or she would have to inform this change to the branch office.
2. The individual must submit his or her existence certificate in the specified and known format. The allotment payment will released on receiving of the certificate of existence.
3. The provisions of section 38 of the Insurance act, 1938 would govern the assignment.
4. The nomination would be in accordance with the provisions of section 39 in line with annexure-2
5. Death information will provided, during period of 90 days from the date of death. This should provided in writing to the corporation office in case of admissible claims.
6. In case of delay in the above mentioned. it will lead to condonation by the organization on merit, where delay’s proved to be outside one’s control.
7. Section 45, CURRENT provisions can enclosed in ANNEXURE-3.
8. The approved policy document related to this plan is available online in the form of an attachment.
Following definitions need to kept in mind –
Age – It is the last birthday of the person who is the recipient of annuity on the date when the policy starts.
Annuitant – These are the people who entitled to be the annuitant as updated and mentioned in the policy schedule. It is also believed that he/she is the person on whose life this policy’s understood to taken on.
Annuity – It means a specific amount which paid in accordance with the policy in regular time intervals.
Appointee – It is the person to whom the amounts related to the policy can paid on the behalf of dependent person with a disability.Assignee – It would be the person to whom the benefits and rights forwarded in regards with the assignment Assignment – it is the process of transferring of the assignee.
Corporation — It will be the life insurance organization of India LIC PENSION CALCULATOR LIC pension calculator can used to help pension holders to calculate the short-term pension. This calculator is a means through which the policyholders achieve a specific end. It helps one to take financial planning seriously. It aims at making retirement days free from worry and tension.The LIC calculator is available online on the website. One has to be very careful while providing the different details asked. The required details consist of an individual’s current age, age of retirement. The income earned annually, monthly contribution towards pension plan. Its expected returns rate, period of annuity. The pension percentage invested in the annuity, annuity interest.
LIC pension plans considered to be:-
After giving the information, one should cross check the information before pressing the SUBMIT option. LIC pension plans considered to be beneficial due to a variety of reasons. These include but are not limited to maximum income, flexible working. No delays in accessing the plan benefits, good alternatives for private jobs individuals. It’s interest is much more than the amount invested, it is a lifelong payment. One should be careful of the accumulation phase. It is the time during which one can regularly give premiums.