After retirement, everyone wants their income and they can live their lives without any concern. Keeping this need in mind, LIC (Life Insurance Corporation of India) has launched Guaranteed Pension Plans, which guarantees a fixed income every month after retirement. The aim of these schemes is that you should be financially self -sufficient in your old age and do not face any kind of financial trouble.
In today’s time, when getting pension after the job has become very low, the LIC Guaranteed Pension Plan has emerged as a reliable option. This scheme is specially made for those who work in the private sector or who have no regular pension.
By investing in this plan, you can ensure a safe future not only for yourself, but also for your family. In this article, we will know what is LIC Guaranteed Pension Plan, its features, benefits, eligibility, necessary documents, and every information related to it.
License Guarantee Pension Scheme: Full Overview
LIC Guaranteed Pension Plan is a scheme in which you invest a certain amount and in return you get every month, quarter, half -yearly or annually fixed income. This income is guaranteed for your whole life, that is, as long as you are alive, you will continue to get pension. There are many types of options in this plan, such as Immediate Annuity (immediate pension starts), Deferred annuity (pension starts after a few years), single life and joint life annuity (both for husband and wife) etc.
The table below has an overview of Lic Guaranteed Pension Plan:
| Speciality | Description |
| Name of the scheme | License guaranteed pension scheme |
| Minimum investment amount | ₹ 1,00,000 (₹ 1,50,000 in some schemes) |
| Maximum investment amount | No limit |
| Admission age | 30 years to 85 years (as per plan) |
| Age to start pension | 31 years to 85 years (as per plan) |
| Pension mode | Monthly, quarter, half, annual |
| Premium payment | Single Premium or regular |
| Pension option | Urgent/postponed, single/joint life annuity |
| Loan facility | Available in some options |
| tax benefit | Tax exemption under Section 80CCC |
| Death advantage | According to the option selected |
The main types of LIC Guaranteed Pension Plan
- Immediati Annuity Plan: Pension starts immediately after investing a lump sum.
- Deferred Annuity Plan: Pension starts a few years after investing in it.
- Single Life Annuity: Pension only gets to investor.
- Joint Life Annuity: Both pension investors and their spouse get it, the other keeps on getting one.
Major features of LIC Guaranteed Pension Plan
- Non-linked and non-participation scheme: The scheme is not connected to the stock market, so it does not risk.
- Lump sum or regular premium: You can submit a premium at once or every year/month as per your convenience.
- Fixed and guaranteed income: The more pension fixed, the more every month/quarter/half/annual.
- Loan Facility: In some options you can also take a loan against the policy.
- Death benefits: If the policy holder dies, the nominee gets the amount as per the option selected.
- Tax exemption: Tax exemption is received under Section 80CCCCC of Income Tax Act on premium.
License guaranteed pension scheme
- Income fixed every month: After retirement your income remains.
- Economic security: No need to depend on anyone in old age.
- Flexible option: You can choose pension mode and option according to your need.
- Security for the family: If you do not live on taking Joint Life Annuity, your spouse also gets pension.
- Tax Benefits: Tax exemption on premium and also tax benefits on maturity amount in some cases.
- Loan facility: You can also take loans against the policy if needed.
- Death Benefits: If the policy holder is not there, the nominee gets the amount.
LIC Guaranteed Pension Plan options (main options)
LIC’s Guaranteed Pension Plan has many options, such as:
- Life Annuity: As long as you are alive, pension will continue to be received.
- Life Annuity with Return of Purchase Price: Pension as well as the amount invested to the nominee after death.
- Annuity Certain for 5/10/15/20 Years: Pension guaranteed for fixed years, followed by life.
- Increasing Annuity: 3% or 6% increase in pension every year.
- Joint Life Annuity: Pension for both husband and wife.
How to invest in Lic Guaranteed Pension Plan?
- Contact LIC agent or branch.
- Decide your age, investment amount and age to start pension.
- Choose pension mode and option (immediati/Deferred, Single/Joint Life etc.).
- Submit essential documents (ID, address proof, age proof, photo, bank details).
- Deposit premium (lump sum or regular).
- Get policy documents.
Eligibility for Lic Guaranteed Pension Plan
- Age limit: 30 to 85 years (as per scheme)
- Minimum investment: ₹ 1,00,000 or ₹ 1,50,000 (as per scheme)
- Maximum investment: no limit
- Indian citizenship: It is necessary to be an Indian citizen
LIC Guaranteed Pension Plan Documents
- Aadhar Card/PAN Card (ID Proof)
- Address Proof
- Engineering certificate (age proof)
- Passport Size Photo
- Bank Passbook/Cancelled Check
How is the pension found in Lic Guaranteed Pension Plan?
- Purchase Price
- Annuity option selected
- Age at entry
- Immediate deferred annuity
- Pension Pension (Monthly/quarterly/semi-annual/annual)
For example, if you have invested at the age of 60 in ₹ 10 lakh Immediati Annuity Plan and have chosen a monthly pension, then you will continue to get the fixed amount (assuming ₹ 5,500- ₹ 6,000) every month as a pension. This amount can change according to your chosen option and age.
LIC Guaranteed Pension Plan disadvantages (Limitations)
- The pension amount is fixed, income may be reduced if inflation increases.
- In some options, the amount invested after death does not get back.
- Surrender in the middle of the policy provides less value.
- Return may be slightly lower than FD or other investment options, but security is more.
Popular plans of LIC Guaranteed Pension Plan
- License Life Akshaya VII
- License
- License new pension plus
- License smart pension scheme
All these plans have options for immediati and deferred annuity, as well as the option of single and joint life annuity.
Why choose Lic Guaranteed Pension Plan? (Why Choose Lic Pension Plan?)
- LIC’s trust: India’s largest and oldest insurance company.
- Guaranteed Income: Life -long income.
- Flexible option: You can choose the option as per your need.
- Easy process: Easy to buy and claim policy.
- Tax Benefits: Tax exemption on premium.
- Security for family: Income to life partner in Joint Life option.
People’s experiences about Lic Guaranteed Pension Plan
- Many people said that after taking LIC Pension Plan, they are financially independent even after retirement and they do not have to depend on their children.
- People like it due to low premium, cover and good service.
- Online premium payment and claim process is easy.
- It is easy to buy and understand the policy with the help of LIC branches and agents.
Lic Guaranteed Pension Plan vs Other Pension Options
| Speciality | License guaranteed pension scheme | Other Pension Options (NPS, FD, Mutual Fund) |
| Income guarantee | 100% guaranteed | Market dependent |
| hazard | Very little | More than medium |
| tax benefit | Yes | Yes |
| Liquidity | Limited | More |
| Pension mode | Monthly/quarter/half -yearly | Different |
| Death advantage | By option | Different |
| Security for family | Joint Life Options | In some options |
Some important questions related to LIC Guaranteed Pension Plan (FAQS)
Q1. What is the right time to invest in Lic Guaranteed Pension Plan?
Answer: The sooner you invest, the more pension will be given. It is best to invest at the age of 30–50 years.
Q2. Can you withdraw money in the middle of the policy?
Answer: Some options feature partial withdrawal or loan, but it is not possible to withdraw the entire amount.
Q3. Does the pension amount increase every year?
Answer: Some options increase by 3% or 6% every year.
Q4. Do you get tax exemption?
Answer: Yes, there is a tax exemption under Section 80CCC on the premium.
Q5. What if the policy holder dies?
Answer: As per the option selected, the nominee receives the amount invested or the remaining pension.
conclusion
Lic Guaranteed Pension Plan is a great option for those who want Monthly Fixed Income fixed every month after retirement. This scheme provides financial security to you and your family, as well as tax exemption and many other benefits. If you want to live your old age without any worry, then LIC Guaranteed Pension Plan is the most reliable way to you.
Disclaimer:
The scheme is completely real and is run by the LIC company recognized by the Government of India. Investing in this gives you a definite income guarantee, but before investing, study all the options according to your need and financial status. Lic Guaranteed Pension Plan is safe and reliable, but it may be slightly lower than market linked options. Be sure to read all the conditions and rules before investment.
