LIC’s Pension Plus is a unit linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover.

Pension Plus Features:

• Minimum 4.5% guaranteed return
• One-third of the corpus can be withdrawn as a lumpsum amount
• The remaining two-thirds would be paid in either monthly or half-yearly installments after maturity
• Two Fund Type
• Minimum allocation charge

Two Fund Type:

• Debt  Fund
• Mixed Fund

Death Benefit:
The Policyholder’s Fund Value shall be payable either in a lump sum or as an annuity, as desired by the nominee.

Benefit on Vesting:
On your surviving to the date of vesting, the higher of Policyholder’s Fund Value and Guaranteed Maturity Proceeds. However, you may opt to commute up to one-third of the Benefit to be paid as a lump sum. Further, you may choose to purchase annuity from LIC or other life insurance company.

Payment of Premiums:
You may pay premiums yearly, half-yearly or quarterly or monthly through ECS mode.
Alternatively, a Single premium can also be paid.

Eligibility  Conditions  And  Other  Restrictions under Pension Plus:
Minimum Entry Age – 18 years (last birthday)
Maximum Entry Age – 75 years (nearest birthday)
Minimum Vesting Age  – 40 years (completed)
Maximum Vesting Age -  85 years (nearest birthday)
Minimum Deferment Term  -  10 years
Sum Assured – NIL

Minimum Premium
Regular premium (other than monthly (ECS) mode):Rs.15,000 yearly.
Regular premium (for monthly (ECS) mode) :Rs.1,500 p.m.

Single premium:  Rs.30,000

Maximum Premium
Regular premium : Rs. 1,00,000 yearly
Single premium: No Limit

Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-.

Premium Allocation Charge:
For Single premium policies:  3.3%

For Regular premium Allocation Charge:
First Year: 6.75%
2nd to 5th Year: 4.50%
thereafter: 2.50%

Allocation charge for Top-up: 1.25%

Policy Administration charge:
Rs. 30/- per month during the first policy year and Rs 30/- per month escalating at 3% p.a. thereafter, throughout the term of the policy shall be levied.

Fund Management Charge: It is a charge levied as a percentage of the value of units at following rates:
0.70% p.a. of Unit Fund for “Debt” Fund
0.80% p.a. of Unit Fund for “Mixed” Fund

Switching Charge:
Within a given policy year 2 switches will be allowed free of charge in Pension Plus plan. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.

   Send article as PDF