LIC Policies for Age above 60 years in 2024

Similarly, the Life Insurance Corporation of India has become synonymous with well-being in our country. Those who have invested in a policy rarely have anything to worry about. People buy insurance at the beginning of their careers. It ensures a comfortable retirement. Any citizen is considered prudent only if they have invested in a policy or several policies.

Abiding by its infallible legacy of assuring the future, the LIC puts a lot of focus on senior citizens. A class that needs unyielding affirmation like no other. By investing in a policy, people above the age of 60 can easily ensure a regular pension. Furthermore, they can do it right from their home. A few minutes are all it takes to access the online features of the Life Insurance Corporation of India.

LIC Plans for the Senior Citizens 

Senior citizens are an essential component of society and their well-being is of significance to everyone. LIC has a significant number of schemes for people who have retired already. These policies provide them with desired retirement corpus and peace of mind when they are no longer working. Let us take stock of the various LIC plans for senior citizens systematically.

LIC New Jeevan Shanti

Insurance, as a sector, has always been dogged by overwhelming hassles. Online features of the Life Insurance Corporation have done away with several laborious steps. Still, there remain the minutiae of the policy, the handling and safekeeping of the documents, and, of course, the monthly maintenance via payment of premium. 

A sound solution, however, is available. Single-Premium Policies are bought with a one-time payment. The policyholder can start availing benefits after a look-out period. Also, the policy documents can fetch a loan equivalent to the investment after 30 days. 

New Jeevan Shanti is a single premium annuity from the Life Insurance Corporation. One can buy such a policy with a one-time investment. The lump-sum usually stands at a lac at least. Payment starts after a chosen period. The period can be a month, 3 months, 6 months, or a year. Such a plan is helpful for those who have a large sum of money. The amount should be at their ready disposal. 

Once bought, the policy pays a guaranteed annuity throughout the buyer's life. The policy can be Single Life or a Joint Life deferred annuity. It can even have a single purchaser and several beneficiaries. 

1. Salient Features of the Plan

   The key features of the LIC Jeevan Shanti Plan are as follows:

   • Option to surrender policy any time during the tenure 
   • An annuity is paid in arrears at 1 month, 3 months, 6 months, or 1 year
   • Annuity lessens if it is not paid annually. It decreases by 2% if paid half-yearly. A cut of 3% is applicable if the annuity is paid quarterly. By 4% if paid monthly. 
   • A policyholder can apply for a loan after 12 months of commencement of risk (or after a pre-decided 'look out' duration) 
   • The death benefit is 105% of 'Purchase Price' OR 'Purchase Price' + Accrued Benefits - Annuity paid (if any) 
   • Death benefits remain the same for both policy variants.

2. Eligibility Criteria of the Plan

   • Entry Age: 30 -79 Years
   • Vesting Age: 31 -80 Years
   • Minimum Purchase Price: INR 1,50,000
   • Maximum Purchase Price: No limit

LIC Jeevan Akshay - VII

To do away with the dogmas attached with insurance, 'Single Premium Policy' was conceptualized. A single payment policy is where a lump sum is paid at the beginning. Such policies guarantee an annuity payable throughout life. Single Payment Policies have evolved into varied forms.

Some of the plans allow the investor to decide the amount of annuity. This kind of policy can continue for 5 to even 20 years. Some have deferred rates of interest. There are also options that ensure additional sums on maturity.

1. Available Annuity Options

   The following are the annuity options available:

   • Option A: It comes with a life annuity option.
   • Option B: Annuity paid for at least 5 years even if the annuitant passes away. Continues if the policyholder is alive. Payable throughout life.
   • Option C: Annuity paid for at least 10 years even if the annuitant passes away. Continues if the policyholder is alive. Payable throughout life.
   • Option D: Annuity paid for at least 15 years even if the annuitant passes away. Continues if the policyholder is alive. Payable throughout life.
   • Option E: Annuity paid for at least 20 years even if the annuitant passes away. Continues if the policyholder is alive. Payable throughout life.
   • Option F: Annuity payable for life term and return of 'Purchase Price' after death. 
   • Option G: Annuity payable for a life term, and it increases at 3% per annum.
   • Option H: Annuity payable for life. Later, a 50% annuity is payable to the beneficiary. 
   • Option I: Annuity is paid throughout the life of the primary holder. Then 100% annuity is paid if any of the beneficiaries are alive. 
   • Option J: Annuity is paid throughout the life of the primary holder. Then 100% annuity is paid if any of the beneficiaries are alive. Return of 'Purchase Price' at the time of death of whoever survives last. 

2. Salient Features of the Plan

   The key features offered by LIC Jeevan Akshay – VII Plan are as follows:

   • A 30 -days free-look period is allowed to study conditions and terms of the policy. Return of the policy is acceptable for options F and J. 
   • A loan can be availed against such a policy after 3 months or the free-look period completion (whichever comes later). 
   • An annuity is payable monthly, quarterly, half-yearly, or annually. 

3. Eligibility Criteria of the Plan

   • Age at Entry: 30 -85 years 
   • Minimum Purchase Price: INR 1,00,000 to be eligible for minimum annuity
   • Maximum Purchase Price: No limit
   • A minimum annuity is payable at INR 1000 per month, INR 3000 quarterly, INR 6000 at 6 months, and INR 12000 yearly. 

Pradhan Mantri Vaya Vandana Yojna

In India, the private sector, along with the public sector, banks heavily on insurance. Its workingclass depends on different policies for most of its needs. Insurance policies for unanticipated health expenses, for children's education, and even for marriage are popular. Still, the predominant concern is that of leading a carefree life after retirement. 

Correspondingly, the government of India has resolved to take utmost care of its seniors. It reinforced that promise with the 'Pradhan Mantri Vaya Vandana Yojana. The scheme was launched in 2017 and has been extended till 31st March 2023. It guarantees an assured return of 7.4%. 

It is a policy available only to the senior citizens of India. Essentially, they have to be residents of the country. The amount to be invested is known as the 'Purchase Price.' It goes up to a maximum limit of INR 15 Lakh.

1. Salient Features of the Plan

   The following are the key features of Pradhan Mantri Vaya Vandana Yojna:

   • Payment of the pension can be set as monthly, quarterly, half-yearly, and yearly. 
   • Payment is AADHAAR Enabled through NEFT.
   • One can invest up to Rs.15 Lakh
   • The policy can be liquidated only after 3 years. 
   • A loan can be obtained against the policy up to 75% of the 'Purchase Price.' 3 years need to have passed since the beginning of the payment of the premium. 
   • The policy can also be surrendered. In the case of the pensioner or their spouse’s terminal illness, 98% of the 'Purchase Price' shall be paid in such a case. 
   • In case of survival, the policyholder gets the 'Purchase Price' until the policy term ends. It comes together with the final installment of the pension. 
   • Payment of the 'Purchase Price' shall be made to the beneficiary if the policyholder dies during the policy period. 

2. Eligibility Criteria of the Plan

   • Minimum Required Age: 60 Years
   • Age Limit: None
   • Policy Tenure: 10 Years
   • Minimum Pension: 1000
   • Maximum Pension: 9250 per month

Benefits of LIC Policies for Senior Citizens

Here is a rundown of the core benefits of LIC policies for Senior Citizens:

• LIC Policies remove uncertainty from a family’s future. The policyholders can ensure safety and fortune at home even after they retire.
• The health and well-being of senior citizens do not remain a cause for concern.
• Insurance policies also manage unforeseen or significant educational expenses for children of senior citizens.
• LIC Policies act as a safe deposit. Lagging on premium installments can risk the entire principal. The policyholder is forced to save, which proves immensely useful after retirement.
• LIC Policies are readily accepted as collateral against loans. A senior citizen can present an insurance policy for a loan only days after it is issued.
• Insurance policies remove risk. They erect a concrete wall against anxiety and ambiguity from a senior citizen’s life.

Final Thoughts

Only LIC can provide such an extensive range of policies to customers. The corporation goes to unmatched lengths to take care of the senior population of India. For decades LIC has been ensuring a relaxing and leisurely future for millions. It stands tall amongst the world's leading insurers with billions in funds. 

The above three schemes have instigated numerous other policies by competitors. This has helped the cause of senior citizens even further. The Life Insurance Corporation has been the lifeboat for many families. It can be termed as one of the strongest pillars in the story of the Indian Insurance sector.