Pension plan is to provide financial security to the family.
ension planning is an important aspect of financial planning. We work for whole life to secure our future and to ensure financial stability during the post-retirement life. Pension plans are such plans that stare into our future and help us to maintain high standard of living in our post-retirement life.
Pension plan works with a very simple phenomenon which is to provide regular income to an individual during their golden years. Pension plans must not be evaluated with comparison to life insurance policies as these two investments are completely different in each aspect.
Features of Pension Plan
Under a pension plan, an individual is required to consistently require investing in a plan for fixed number of years or tenure and provides a regular return in form of annuities either for whole life or fixed number of years depending upon the policy.
In LIC, we have several plans for guaranteed Pension till life. They are :
Jeevan Akshay VI
Types of Pension Plans
There are various kinds of pension funds and plans offered by LIC.
Guaranteed period annuity is the most common among pension funds which means that an individual is provided a fixed sum of money for a fixed period irrespective of the survival of the policyholder.
The other pension plan known is life annuity in which a specified amount is paid for whole life.
Benefits of Pension Plans
You get to save for your old age in a systematic manner, which reduces your dependency on others and thus give you peace of mind
Safety of your funds is ensured along with the insurance coverage
You get longer time to grow your money or get benefits immediately, as chosen by you
You can choose the number of years for which you want to make investments
You are entitled to receive annuities in lump sum at once or in installments
You get the choice of covering your spouse in the same policy
One-third amount of sum insured received is not taxable
Annuities received for the fixed period or for life-time, in both ways serve as income source for the retired
Under National Pension Scheme (NPS), one can claim tax deduction of up to Rs 50,000 per year, U/S 80CC (D) of Income Tax Act.
This can be claimed in addition to the limit of Rs 1,50,000 U/S 80C
Still have quetions about the Plans?
This is a one-stop servicing solution for all your LIC insurance policies. We are happy to answer any insurance-related query you may have on your existing or new insurance plans. Reach out to us and we will get back to you at the earliest.