LIC Senior Citizen Pension Scheme

What are Senior Citizen Pension Schemes?

Pension schemes offered by the Life Insurance Corporation of India is a type of investment wherein a policyholder invests a certain amount for a long tenure and receives pension at regular intervals. The policyholder has an option to choose for a pension on an annually, half-yearly, quarterly, and monthly basis. Currently, LIC offers 4 pension plans that will help the individual to secure their post-retirement life. 

LIC Pension Plans for Senior Citizens

Below mentioned are some of the LIC best retirement plans for senior citizens. Take a look:

1. LIC’s Jeevan Akshay- VII

   LIC Jeevan Akshay-VII is an Immediate Annuity plan where the policyholder has the flexibility to choose a plan type out of the 10 available options. The plan offers the guaranteed annuity rate at the inception of the policy.

   Key Features of LIC Jeevan Akshay-VII

   • The plan offers 10 Annuity options to choose from. The available options are:

     Option A: Immediate Annuity for life. 

     Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter. 

     Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter. 

     Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter. 

     Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter. 

     Option F: Immediate Annuity for life with return of Purchase Price. 

     Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a. 

     Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant. 

     Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives. 

     Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

   • The plan offers an incentive for a greater purchase price in the form of an increase in the annuity rate. The four pre-decided slabs are: i)Rs.5,00,000 to Rs.9,99,999; ii) Rs.10,00,000 to Rs.24,99,999; iii) Rs. 25,00,000 to Rs.99,99,999; and iv) Rs.1,00,00,000 and beyond,

   Eligibility Criteria of Plan

   Parameters	Details
   Entry Age	25-85 years Except for option F, wherein the maximum entry age is 100 years
   Minimum Purchase Price	Rs. 1 Lakh, subject to minimum annuity
   Maximum Purchase Price	No Limit
   Minimum Annuity	Monthly: Rs. 1,000 Quarterly: Rs. 3,000 Half-yearly: Rs. 6,000 Annually: Rs. 12,000

2. • LIC Pradhan Mantri Vaya Vandana Yojana offers an assured pension of 7.40% p.a. payable monthly.

   • The plan offers periodic payout options which can be chosen by the policyholder as per their convenience and financial requirements.

     Pradhan Mantri Vaya Vandana Yojana

     Launched by the Government of India, Pradhan Mantri Vaya Vandana Yojana is a pension plan designed for senior citizens of age 60 years and above. The plan offers assurance of returns and ensures that you get financial security after retirement.

     Key Features of Pradhan Mantri Vaya Vandana Yojana

   Eligibility Criteria of Plan

   Parameters	Details
   Entry Age	Min: 60 years Max: No limit
   Policy Term	10 years
   Maximum Purchase Price	No Limit
   Minimum Annuity	Monthly: Rs. 1,000 Quarterly: Rs. 3,000 Half-yearly: Rs. 6,000 Annually: Rs. 12,000

3. LIC's New Jeevan Shanti

   LIC New Jeevan Shanti is a single premium plan that allows the policyholder to choose Joint Life and Single life Deferred annuity. The annuity rates offered by the plan are guaranteed at the start of the policy and the annuities are paid throughout the life time of Annuitant(s) once the deferment period is over.

   Key Features of LIC New Jeevan Shanti

   • One can buy this plan to benefit a disabled person who is directly dependent on the policyholder. In a scenario of policyholder’s death, the death benefit can be used to purchase an immediate annuity plan which will create an instant income for the dependent.

   • The plan offers incentives in the form of extra annuity rates for the higher purchase price (above Rs.5 Lakhs)

   Eligibility Criteria of LIC New Jeevan Shanti

   Parameters	Details
   Entry Age	30-79 years
   Vesting Age	31-80 years
   Minimum Purchase Price	Rs. 1 Lakh, subject to minimum annuity
   Maximum Purchase Price	No Limit
   Minimum Annuity	Monthly: Rs. 1,000 Quarterly: Rs. 3,000 Half-yearly: Rs. 6,000 Annually: Rs. 12,000

4. LIC’s Saral Pension Yojna

   LIC Saral pension Yojna is an Immediate Annuity plan that offers immediate annuity. The plan comes with two annuity options: i) Life annuity with 100% return of purchase price & ii) Joint Life Annuity.

   Key Features of LIC Saral Pension Yojna

   • A policyholder can choose annuity frequency as per their needs. The plan allows the policyholder to avail annuity annually, half-yearly, quarterly, and monthly.

   • The plan also offers a loan facility once the policy completes 6 months.

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   Eligibility Criteria of LIC Saral Pension Yojna

   Parameters	Details
   Entry Age	40-80 years
   Minimum Purchase Price	Rs. 1 Lakh, subject to minimum annuity
   Maximum Purchase Price	No Limit
   Minimum Annuity	Monthly: Rs. 1,000 Quarterly: Rs. 3,000 Half-yearly: Rs. 6,000 Annually: Rs. 12,000

Summing it Up

LIC senior citizen pension scheme includes all the benefits that are required to secure the financial future of an individual after retirement. The different plans offered under the LIC Senior Citizen Pension Scheme precisely work in the favor of pensioners and efficiently provide them long-term saving options.