LIC New Pension Plus Plan

LIC New Pension Plus Plan- An Overview

LIC New Pension Plus Plan 867 is a unit-linked pension plan by the Life Insurance Corporation of India (LIC). The investor can invest a single premium or regular sums throughout the policy term. The total corpus built till retirement can be converted into a regular income. With this plan, you can make guaranteed additions to the fund value, enhance security further, and increase the final payout.

Key Features of the LIC New Pension Plus Plan

• Flexibility in Premium Payment
  Pay a lump sum one-time amount or a fixed sum every month, quarter, 6 months, or year during the policy term. The minimum premium amount that one has to invest is fixed for each mode:

  • Single Premium - Rs 1 Lakh

  • Regular Premium - Rs 30,000 (yearly), Rs 16,000 (half-yearly), Rs 9,000 (quarterly), Rs 3,000 (monthly)

• Pension for life
  The total amount that one will have accumulated over the years can be annuitised. Annuitisation is converting a lump sum into a series of fixed payments, usually for the rest of one's life. This is done to ensure a regular income during retirement.

• Market-linked Returns
  The unit-linked nature of the plan allows policyholders to invest in the choice of their funds. Based on the performance of these funds in the market, policyholders stand a chance to generate increased returns. They can switch between these funds for free at least 4 times a year.

• Choice of Funds
  The Pension Plus Plan offers a choice of 4 investment fund options that one can choose based on their risk appetite. These are:

Eligibility Criteria for the LIC New Pension Plus Plan

Benefits of the LIC New Pension Plus Plan

• Death Benefit

  In case of the death of the life insured during the policy's tenure, the death benefit is paid to the beneficiary of the policy. The benefit paid is equal to the higher of the following.

  • Unit Fund Value as on the date of intimation of death or 

  • Assured Death Benefit

• Maturity Benefit

  If the policyholder survives till the end of the policy term, the plan will pay the maturity benefit equal to the Unit Fund Value.

• Guaranteed Additions

  LIC of India adds a guaranteed fixed amount to the fund value of your LIC 867 Plan at the end of the following years till the date of maturity:

  Policy Year	Guaranteed Additions
  	% of Annual Premium	% of Single Premium
  6	5%	4%
  10	10%	5%
  11-15	4%	1.25%
  16-20	5.5%	1.5%
  21-25	7%	2%
  26-30	8.75%	2.5%
  31-35	10.75%	3%
  36-40	13%	3.75%
  41-42	15.5%	4.5%

Sample Benefit Illustration for LIC Pension Plus Plan

Let’s say a 30-year-old invests an annual premium of Rs 30,000 throughout the policy term of 42 years. This brings the total investment to Rs 12,60,000.

Assuming that it is being invested in a mix of Secured, Balanced, and Growth funds with an 8% return rate, the calculated benefits come out to be:

• Total maturity value - Rs 59,92,991

• Pension per year - Rs 7,06,928

You can use the LIC Pension Plus maturity calculator tool to calculate the plan's benefits per your requirements.

Policy Details of LIC New Pension Plus Plan

• Partial Withdrawals

  • One can partially withdraw from the fund value after the initial lock-in period of 5 years.

  • Partial withdrawals can only be made thrice during the policy term and in case of emergencies.

  • Up to a maximum of 25% of the fund value can be withdrawn at one time.

• Policy Extension
  One can choose to extend the policy term provided that:

  • The policyholder is less than 60 years old.

  • It does not exceed the maximum vesting age.

  • It should be at most 42 years.

• Settlement Option
  Nominees can choose to receive the death benefit in installments over 5 years.

• Surrender

  • If the policy is surrendered before the lock-in period of 5 years, the fund value shall remain invested as part of a Discontinued Policy Fund.

  • If the policy is surrendered after 5 years, LIC will pay the unit fund value to the policyholder.

• Policy Revival
  The policy can be revived during the revival period of 3 years if the due premium payments are made.

• Free Look Period
  A free look period of 30 days is offered to policyholders, during which they can return it if they are unsatisfied with the terms and conditions.

• Suicide Claims
  Death claims arising out of suicide will be accepted only if it occur within 12 months from the date of policy issuance.