LIC Annuity Plans: Everything You Need to Know

In 1956, the Life Insurance Corporation, or LIC, was established. Over the last 60 years, the company has established a solid reputation for providing a wide range of insurance products and has continued to dominate the market. When LIC was established, it was the only provider of life insurance coverage, and it is still at the top of the market. The company serves a wide spectrum of consumer needs and so has the greatest client base in India. Among its many life insurance policies, annuities or pension plans are among LIC's most well-liked offerings. Let's examine the concept of annuities and the various plans that the Life Insurance Corporation of India has to offer. Continue reading to learn more about LIC Annuity Plans.

How Do Annuity Plans Work?

Once you invest a large payment, an annuity plan gives you a consistent income for the rest of your life. When you choose an annuity plan, your life insurance provider invests your funds and pays you the profits after you reach retirement age. The two different types of annuity programs are as follows:

Deferred Annuity Plans: These annuity choices let you gradually accumulate a nest egg for retirement. You are able to contribute to a different annuity plan while you are employed. The accumulated corpus is the sum of money you pay in premiums and get when your annuity plan matures.

Plans for Immediate Annuities - People who want to begin receiving monthly payments as soon as they make the first commitment may consider a plan for instant annuities. People who are getting close to retirement age frequently opt for an instant annuity. Unlike an instant annuity, a differentiated annuity plan invests the money you pay.

Annuity Plans for LIC

The LIC annuity programs that are available for selection are as follows:

New Jeevan Nidhi Plan from LIC

The New Jeevan Nidhi Plan, which is the standard different insurance plan offered by LIC, enables you to accrue a retirement corpus during the term of the policy by making monthly premium payments. You will get annuities as soon as this plan matures. The characteristics of the LIC New Jeevan Nidhi Plan are as follows:

• Given that it is participating pension insurance, this plan is qualified to take part in LIC bonus declarations.
• When this annuity plan matures, the sum promised, vested bonuses, and the sum assured are paid as a maturity benefit.
• The advantages offered under this plan are increased by guaranteed increases to the corpus.
• The maturity benefits may also be used to purchase an immediate annuity or a single premium differed annuity.
• Upon the insured's passing, the total sum promised is paid out together with guaranteed increases and vested bonuses.

The Pradhan Mantri Vaya Vandana Yojana

This annuity program was established by the Indian government to provide seniors with a monthly income. This plan, which was accessible until March 31, 2020, is now being promoted by LIC. These are the characteristics of the Pradhan Mantri Vaya Vandana Yojana:

• The pension is paid for the duration of the ten-year savings plan.
• Depending on your needs, you might get a pension on a semi-annual, annual, monthly, or quarterly basis. 
• If the policyholder passes away, the nominee will get the program's purchase price.

Plan LIC Jeevan Shanti

With the Jeevan Shanti flexible pension plan, you can start receiving payments as soon as you buy the insurance or wait a few years. You can choose to receive delayed or immediate annuity payments with this plan, as a consequence. The characteristics of the LIC Jeevan Shanti Plan are as follows:

• Two Deferred Annuity Options are Available.
• The existence of a death benefit
• Loans against Insurance Policies are Available

Jeevan Akshay VII of the LIC

In exchange for a lump sum payment, the life guaranteed may choose one annuity from a list of 10 options under the LIC's Jeevan Akshay - VII Immediate Annuity plan. Annuities are paid out for the remainder of the life of the life insured, and annuity rates are guaranteed at the time of policy issue. The characteristics of LIC Jeevan Akshay VII are as follows:

• Plan for Non-Participation
• Loans against Insurance Policies are Available
• Rates on Guaranteed Annuities
• The existence of a death benefit
• No Medical Exam Is Necessary

Take Away

India's state-owned insurance firm is called the Life Insurance Corporation of India (LIC). The most recognized insurance provider in India, LIC, provides a wide range of insurance products. One of LIC's most well-liked insurance products is annuity and pension plans, and the organization offers two enticing annuity programs for retirement planning. It's crucial to comprehend the fundamentals of annuity plans before delving into LIC's Annuity Plans.

Also read: Buying A Pension Plan For The First Time

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