Know Everything About LIC Annuity Plans

The Life Insurance Corporation, or LIC, was founded in 1956. The organization has built a strong reputation for delivering numerous insurance products over the last 60 years and continues to lead the industry. LIC was the sole supplier of life insurance policies when it was founded, and it continues to be the market leader.
The firm caters to a wide range of consumer demands, and as a result, it has India's largest customer base. Annuity or pension plans are one of LIC's most popular products among its several life insurance products. Let's look at the annuity idea and the various plans offered by the Life Insurance Corporation of India. To know more about LIC Annuity Plans, read on.

What Are Annuity Plans?

An annuity plan provides you with a regular income for the rest of your life once you invest a lump sum. When you buy an annuity plan, your life insurance company invests your money and gives you back the earnings when you retire.
There are 2 types of annuity plans and they are as follows -
Deferred Annuity Plans - The annuity options that allow you to build up a nest egg for retirement over time. While you are employed, you can invest in a separate annuity plan. The amount of money you pay in premiums and get when your annuity plan matures is referred to as the accumulated corpus.
Immediate Annuity Plans - An instant annuity plan is for people who wish to start receiving regular payments as soon as they make the initial commitment. An immediate annuity is often for those who are nearing retirement age. A differentiated annuity plan accumulates the money you pay, whereas an immediate annuity returns it.

LIC Annuity Plans

Following are listed LIC annuity plans that an individual can opt for -

1. LIC New Jeevan Nidhi Plan

The LIC's typical differed insurance plan, the New Jeevan Nidhi Plan, allows you to build a retirement corpus during the course of the policy by paying regular premiums. As soon as this plan reaches maturity, you will get annuities.

Following are the features of LIC New Jeevan Nidhi Plan -

• It is participating pension insurance, which means that this plan is eligible to participate in LIC bonus declarations.
• The sum assured, vested bonuses, and the sum assured is paid as a maturity benefit when this annuity plan matures.
• Guaranteed increases are also made to the corpus, increasing the benefits available under this plan.
• The maturity benefits can also be utilized to buy a single premium differed annuity or an instant annuity.
• The cumulative sum assured is paid with guaranteed additions and vested bonuses upon the insured's death.

2. Pradhan Mantri Vaya Vandana Yojana

The Indian government created this annuity program to offer monthly income to older persons. This plan was offered through March 31, 2020, and is now being marketed by LIC.

Following are the features of Pradhan Mantri Vaya Vandana Yojana -

• It is a ten-year savings plan in which a pension is paid for the life of the plan.
• You can get a pension on a half-yearly, annual, monthly, or quarterly basis, depending on your needs.
• The nominee receives the purchase price paid for this program if the policyholder dies.

3. LIC Jeevan Shanti Plan

Jeevan Shanti is a flexible pension plan that allows you to get an income as soon as you purchase the insurance or after a few years. As a result, you have the option of receiving deferred or immediate annuity payments with this plan.

Following are the features of LIC Jeevan Shanti Plan -

• Availability of 2 Deferred Annuity Options
• Availability of Death Benefit
• Availability of Loan Against Insurance Policy

4. LIC Jeevan Akshay - VII

The LIC's Jeevan Akshay - VII is an Immediate Annuity plan that allows the life assured to select an annuity from a list of ten possibilities in exchange for a lump sum payout. The annuity rates are guaranteed at the time of policy issuance, and annuities are paid out for the rest of the life assured's life.
Following are the features of LIC Jeevan Akshay - VII -

• Non-Participating Plan
• Availability of Loan Against Insurance Policy
• Guaranteed Annuity Rates
• Availability of Death Benefit
• No Medical Examination Required

Endnotes

The Life Insurance Corporation of India (LIC) is a state-owned insurance company in India. LIC, India's most reputable insurance company, offers a diverse variety of insurance products. Annuity and Pension plans are one of LIC's most popular insurance products, and the company provides two appealing Annuity plans for retirement planning. Before diving into LIC's Annuity Plans, it's vital to understand the basics of Annuity Plans.

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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.