If you are looking for a new pension plan then you can apply for the LIC Pension Plus plan 2024 which was presented to help people who are looking for investment so that they can live their life easily. The investment plan started on 5th September 2022 and this is a very prestigious investment plan that can be either bought as a one-time payment or as a policy with regular payments. You can check out the details related to the plan from the article provided below and we will also share with you all the details related to the features and the benefits that will be provided to the people if they are applying for this new LIC Pension Plus Plan 2024 created by the LIC Corporation.
LIC Pension Plus Plan 2024
Life Insurance Corporation has created another pension plan that will help poor people get a monthly income to continue their livelihood when they have attained the age of 60 years. The beneficiaries can apply for this prestigious pension scheme because it has a very low investment risk and LIC Pension Plus Plan is a very safe scheme that can be invested in. This policy does not have a life insurance cover. You can apply for the scheme after you have attended the age of 18 years and you can apply for this scheme before the age of 75 years to be eligible for all of the benefits presented in this scheme such as the premium and the other available investments. This is a policy plan available for individuals and it is a deferred pension plan.
Features Of Plan
The applicant can check out the features of the scheme from the table provided below:-
| Plan type | Unit-linked, deferred pension plan |
| Premium payment term | Single payment, monthly, quarterly, half-yearly or yearly, through ECS only |
| Minimum premium | Rs. 15,000 per year. For a single payment it is Rs. 30,000 |
| Maximum premium | Rs. 1 lakh per year. No maximum limit for single payment. |
| Minimum sum assured | You won’t get any minimum sum, but there is a Guaranteed Maturity Value. |
| Cooling-off period | If the policyholder is not satisfied with the terms, the policy can be returned within 15 days. |
| Loan on policy | Not available |
| Top-up premium | You can pay an extra premium in multiples of Rs. 1,000 any time during the policy term. No top-up is allowed in the last 5 years of the policy period. If the premium is being paid in annual, half-yearly, quarterly or monthly ECS mode, top-up premiums can be paid only if all premiums have been paid under the policy. |
| Investment fund types | You can choose to invest in debt funds or mixed funds. You can switch from one fund to another during the policy term. |
| Partial withdrawal | Not available |
| Lock-in period | 5 years |
Benefits Of LIC Pension Plus Plan
The following benefits will be provided to the people who are selecting this prestigious LIC Pension Plus plan 2024:-
- Guaranteed Maturity Value: If all due premiums are paid till maturity, interest will accumulate on the gross premiums at the end of each fiscal year. This interest would be 50 basis points higher than the average of the reverse repo rate prevalent on the last working day of June, September, December, and March of the preceding year. It is, however, limited to a maximum of 6% and a minimum 3%. If you have discontinued your policy, you will still get a guaranteed interest rate of 3.5%.
- Conversion to Annuity: If you surrender or discontinue a policy, or you live to see your policy mature, the amount due to you will be converted into an annuity purchase. You will be able to keep one-third of the total maturity amount if the balance amount is enough to buy a minimum amount of annuity under Section 4 of the Insurance Act, of 1938.
- Income Tax Benefit: This premium payment is covered under the tax exemptions through the provisions of section 80C of the Income Tax Act. The maturity amount you receive is exempt under section 10(10D).
Eligibility Criteria
The applicant must follow the following eligibility criteria to apply for the scheme:-
| Minimum age | 18 years |
| Maximum age | 75 years |
| Minimum vesting age | 40 years |
| Maximum vesting age | 85 years |
| Minimum deferment term | 10 years |
Charges Payable
The following charges will be payable as per the rules and regulations presented by the LIC organization:-
- Premium Allocation Charge: For single-premium policies the premium allocation charge is 3.3% of the premium amount. For regular policies, the rates are:
| First year | 6.75% |
| 2nd to 5th year | 4.5% |
| After 5 years | 2.5% |
- Policy administration charge: Rs. 30 per month is charged during the first year and Rs. 30 per month increasing at 3% annually, is charged thereafter as a policy administration charge.
- Fund management charges: The current rates of fund management charges are: 0.70% p.a. of Unit Fund for Debt Fund and 0.80% p.a. of Unit Fund for Mixed Fund.
- Switching Charge: Switching charge is levied if you want to switch the amount from one type of fund to another. In a policy year, 2 switches can be done for free, after which Rs. 100 will be charged per switch.
- Service Tax: Service tax is levied as per the ongoing rate in the country.
- Miscellaneous Charge: Rs. 50 is levied if you change your premium mode – from monthly to quarterly, for instance – during the deferment term.
Discontinuance Charge
The applicant will have to give the following discontinuous charge in order to be a part of the LIC policy:-
| Where the policy is discontinued during the policy year | Discontinuance charges for the policies having annualised premium up to Rs. 25,000/- | Discontinuance charges for the policies having annualised premium above Rs. 25,000/- |
| 1 | Lower of 10% * (Annualised Premium or Fund Value) subject to a maximum of Rs. 2,500 | Lower of 6% * (Annualised Premium or Fund Value) subject to maximum of Rs. 6,000 |
| 2 | Lower of 7% * (Annualised Premium or Fund Value) subject to a maximum of Rs. 1,750 | Lower of 4% * (Annualised Premium or Fund Value) subject to maximum of Rs. 5,000 |
| 3 | Lower of 5% * (Annualised Premium or Fund Value) subject to a maximum of Rs. 1,250 | Lower of 3% * (Annualised Premium or Fund Value) subject to maximum of Rs. 4,000 |
| 4 | Lower of 3% * (Annualised Premium or Fund Value) subject to a maximum of Rs. 750 | Lower of 2% * (Annualised Premium or Fund Value) subject to maximum of Rs. 2,000 |
| 5 onwards | Nil | Nil |
LIC Pension Plus Plan 2023 Application Process
The applicants will have to visit the LIC Pension Plus Website or LIC office in order to easily apply for the LIC Pension Plus Plan. You can fill out the application form for the opportunity by asking the officials.