Pension Plans are individual plans. These pension plans are most suited for the senior citizens and for the individuals those who are planning for a secure future. Lic Pension Plans gives financial support in your old age. These pension plans or annuity plans gives benefits after your retirement. Similar to the other life insurance plans policy holder needs to pay the premium to the Life Insurance Corporation of India. But the difference is, the policy holder will receive the benefits after retirement.
A Pension Plans are a series of regular payments from an insurance company to an individual (policy holder or annuitant) in return for a lump sum or installment premiums for a specified number of years. You can save money through Lic annuity plan which helps you financially in old age after your retirement. So, it is useful for every individual to take the Lic pension policy while earning.
Lic Pension plan offers pension to the individual or annuitant after the retirement. In case of death of the annuitant, the annuity will be payable to the spouse. On death of both annuitant and his/her spouse or last survivor the purchase price will be returned to the nominee. These features are available based on type of plan.
According to the manner in which the purchase price is paid, annuities can be either:
- An immediate annuity
- A deferred annuity
A Pension plan is the reverse of a life insurance policy. In life insurance plan the Lic of India takes on the risk, but with an annuity the annuitant takes on the risk that they won’t die in a very short period of time after paying the purchase price.
There are different types of annuity available. They are,
- Joint life
- Last survivor
- Life annuity with return of purchase price
- Increasing annuity
Lic Pension Plans / Annuity plans