Know All About LIC Annuity Plans

Over the last 60 years, the company has earned a great reputation for providing a wide range of insurance products and continues to dominate the sector. When it was created, LIC was the only provider of life insurance coverage, and it remains the market leader today. As a result of LIC ability to meet a wide range of customer needs, the company has India's largest customer base.

What Are Annuity Plans?

When you invest a lump sum in an annuity plan, you will get a regular income for the rest of your life. When you purchase an annuity, your life insurance company invests your money and returns the earnings to you when you retire.
The following are the two different types of annuity plans:
Deferred Annuity Plans (DAPs) are a type of annuity that allows you to accumulate a retirement fund over time. You can set up a second annuity plan while you are still working. The accumulated corpus refers to the total amount of money you pay in premiums and get when your annuity plan matures.

Immediate Annuity Plans - An instant annuity plan is for customers who want to start receiving regular payments right away after making the first commitment. An immediate annuity is commonly used by those who are approaching retirement age. An instant annuity returns the money you pay, while a differentiated annuity accumulates it.

LIC Annuity Plans

An individual can choose from the following LIC annuity plans:

1. LIC New Jeevan Nidhi Plan

The New Jeevan Nidhi Plan, a common LIC differed insurance plan, lets you build a retirement corpus during the duration of the policy by paying regular premiums. You will get annuities as soon as this plan reaches maturity.
The following are some of the benefits of the LIC New Jeevan Nidhi Plan:

• This plan is a participating pension insurance plan, which implies it is eligible for LIC bonus declarations.
• When this annuity plan matures, the sum assured, vested bonuses, and the sum assured are paid as a maturity benefit.
• Guaranteed additions to the corpus are also made, boosting the benefits accessible under this plan.
• The maturity advantages can also be used to purchase an immediate annuity or a single premium deferred annuity.
• On the insured's death, the cumulative sum promised is paid, along with guaranteed increases and vested bonuses.

2. Pradhan Mantri Vaya Vandana Yojana

This annuity scheme was designed by the Indian government to provide seniors with monthly income. LIC is now selling this plan, which was previously available until March 31, 2020.
The following are some of the advantages of the Pradhan Mantri Vaya Vandana Yojana:

• It is a ten-year savings plan that pays a pension for the duration of the plan.
• Depending on your demands, you can acquire a pension on a half-yearly, annual, monthly, or quarterly basis.
• If the policyholder dies, the nominee receives the purchase amount paid for the programme.

3. LIC Jeevan Shanti Plan

Jeevan Shanti is a flexible pension plan that allows you to start receiving payments as soon as you buy the policy or after a few years. As a result, this plan allows you to choose between delayed and immediate annuity payments.
The following are some of the benefits of the LIC Jeevan Shanti Plan:

• Two deferred annuity options are available to you.
• The Death Benefit Is Available
• Loans secured by insurance policies are available.

4. LIC Jeevan Akshay - VII

The Jeevan Akshay - VII plan from the Life Insurance Corporation of India (LIC) is an Immediate Annuity plan that allows the life assured to choose an annuity from a list of ten options in exchange for a lump sum payout. At the time of policy issue, annuity rates are guaranteed, and annuities are paid out for the rest of the life assured's life.
The features of LIC Jeevan Akshay - VII are as follows:

• Plan for Non-Participants
• Loans against insurance policies are available.
• Annuity Rates That Are Guaranteed
• Death Benefits Are Available
• A medical examination is not required.

Take Away

The Life Insurance Corporation of India (LIC) is an Indian state-owned insurer. India's most prestigious insurance company, the Life Insurance Corporation of India (LIC), offers a wide range of insurance products. One of LIC's most popular insurance products is annuities and pension plans, and the firm offers two enticing Annuity options for retirement planning. It is critical to understand the foundations of Annuity Plans before going into LIC's Annuity Plans.

Also read - How Much Income Would You Require After Retirement?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.