What is LIC New Pension Plus Plan, Know Benefits, Key Features/ Details

LIC New Pension Plus Plan 2023 | Get All Information Related to LIC New Pension Plus Like Benefits, Eligibility, Key Features,

One of the most crucial choices in anyone’s life in retirement. It requires careful preparation on both a financial and emotional level. The loss of a steady income is one of the key variables to take into account when planning for retirement. The first thing that changes when a person decides to retire is his or her regular income. Investments make good pension plans, thus they are crucial. The “LIC New Pension Plus Plan was introduced to assist people in better planning their retirement years and to give them the chance to build a strong investment portfolio.

This deferred pension plan is unit-linked. Although this pension coverage does not include life insurance, the gross premium amount paid by the policyholder is at least guaranteed. Policyholders participating in the LIC New Pension Plus Plan may choose to invest in one of the two accessible categories of investment funds. In this article, we will provide you with detailed information related to the LIC New Pension Plus Plan like Features, benefits, eligibility criteria, and much more.

LIC Pension Plus Plan 2022

LIC New Pension Plus Plan 2023

New Pension Plus, a non-participating, unit-linked individual pension plan, was launched by Life Insurance Corporation (LIC) on 5 September. It supports the policyholder’s methodical and responsible saving. At the end of its term, it can be turned into regular income via an annuity plan. The plan is available for purchase as a regular premium payment or as a single premium payment policy. The premium will be paid throughout the insurance under the regular payment option. Following the minimum and maximum premium limits, the policy term, and the vesting age, the policyholder may also choose the premium amount and the policy term. With a few restrictions, he can also extend the accumulating time under the same terms and conditions.

LIC Kanyadan Policy

LIC New Pension Plus Policy Features

Some of the key features of the LIC New Pension Plus Policy are as follows:

  • Returns on premiums paid by the policyholder that is ensured at maturity
  • Low and tempting policy fees
  • Choosing to pay a single premium

LIC New Pension Plus Policy Other Features

ChargesPremium allocation charges service tax Miscellaneous charges policy administration charges Switching charges Discontinuance charge
SwitchingA policyholder may change between the two fund types at any moment throughout the policy’s duration.
Partial WithdrawalsUnder this scheme, no partial withdrawals are permitted.
RevivalThe insurer will issue a notification to revive the policy within 30 days of the date it was received if a policyholder fails to make a payment during the grace period.
ReinstatementUnder this arrangement, a surrendered policy cannot be reactivated.
Cooling-Off PeriodThe policyholder will have a 15-day cooling-off period after purchasing the plan during which time they may return it if they are unhappy with the terms and conditions.
LoanThis plan does not offer any loans.
AssignmentUnder this plan, the assignment option is not available.

 LIC Varishtha Pension Bima

LIC New Pension Plus Policy Benefits

Some of the key benefits of the LIC New Pension Plus Policy are as follows:

  • Death Benefit: There is no life insurance coverage under the plan. The nominee receives the fund value in the event of the policyholder’s death, either as a lump payment or as an annuity. The nominee may decide on this.
  • Vesting Benefit: An annuity must be purchased using the fund value and assured maturity proceeds of the policyholder’s policy if they live to the date of vesting. The option exists for the policyholder to withdraw one-third of the whole payment as a lump sum and invest the remaining funds in an annuity.
  • Income Tax Advantage:
    • Under section 80C, annual life insurance premium payments up to Rs. 1,000,000 are eligible for a deduction from taxable income.
    • According to section 10, the maturity amount you get from this plan is tax-free (10D).

LIC New Pension Plus Plan Sum Assured and Premium Range

The sum insured is what the insured individual receives when the policy matures. The legal heir or a nominee designated by the insured receives the sum assured in the event of the insured person’s passing while the LIC New Pension Plus Plan is still in effect.

ParameterDetails
Plan TypeNon-unit deferred pension plan
Minimum Entry Age18 years
Maximum Entry Age75 years
Minimum maturity Age40 years
Maximum maturity age85 years

PMVVY Pension Scheme 

LIC New Pension Plus Plan Eligibility Criteria

ParameterDetails
Plan TypeNon-unit deferred pension plan
Minimum Entry Age18 years
Maximum Entry Age75 years
Minimum maturity Age40 years
Maximum maturity age85 years

LIC New Pension Plus Plan Coverage

The LIC Pension Plus Plan offers coverage for the following conditions:

  • Guaranteed Maturity Proceeds: A guaranteed interest will be collected on the gross premium under the LIC Pension Plus Plan at the end of each fiscal year if the policyholder has paid all required premiums through the loan’s maturity. The guaranteed interest rate will be determined by the final working day of the preceding months of June, September, December, and March. 50 basis points more than the current reverse repo rate will be the guaranteed interest rate. The guaranteed interest rate may be in the 3% to 6% per annum range.
  • Guaranteed Interest Rate on Discontinued Policy Fund: This plan guarantees a minimum interest rate of 3.5% per year, which will be credited to the fund for canceled policies.
  • Additional Premiums: The policyholder will have the choice to pay additional premiums in multiples of Rs. 1,000 at any point during the policy’s term under this plan. The top-up option won’t be accessible, though, during the final five years of the policy.
  • Riders/Add-on Plans: A policyholder can add extra insurance coverage by purchasing a rider or add-on for a fee. Expenses that are typically not covered by the base plan are covered by a rider. The riders that can be attached under the LIC Pension Plus Plan are not currently the subject of any information. To find out if you can attach any add-ons to this plan, you can, however, get in touch with LIC directly.

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