LIC New Pension Plus (Plan No: 867)

LIC New Pension Plus (Plan No: 867) is a long-term investment plan which is generally a Unit Linked Pension Plan. The aim of the policy is to provide financial independence after retirement.

The policyholders can invest in the share market through the policy and secure financial independence after retirement.

To know about the policy visit the official site LIC New Pension Plus (Plan no: 867)

LIC New Pension Plus (Plan No: 867)

Key features:

1. Investment of funds:

Investors of the LIC New Pension Plus scheme can invest in the below as per your needs:

• Bond Fund (Low risk)
• Secured Fund (Low to Moderate risk)
• Balanced Fund (Intermediate risk)
• Growth Fund (High risk)
• Money Market Fund (Low risk)

Investors can choose their type of fund based on their needs on investment risks.

2. Mode of Payment:

• Single Premium: Making One Time Payment.
• Regular Premium: Making the monthly, quarterly, half-yearly, and yearly payment.

3. Capital Protection:

The pension amount is given based on the investment risks, but a minimum sum assured will be given to the investors.

4. Share and value:

The amount invested in this plan is determined by the Equity Value (NAV) of the market fund (Stock). Also, NAV is calculated on a daily basis.

5. Surrender:

• You can get the Surrender value only after the Lock-in period.
• LIC makes surrender charges, if the fund is surrendered before the end of the policy.
• To know your surrender price, LIC will calculate the current financial value of the plan and also the deductions.

6. Switching:

• Investors can switch funds for 4 times on a yearly basis. Also, LIC collects the switching charge of Rs.100.

7. Organization control:

Moreover, LIC will drive the plan based on the market and economic environment.

8. Partial withdrawal:

• LIC will allow the withdrawal of a partial amount only after the 5-year lock-in Period.
• LIC allows 3 partial withdrawals during the policy period.
• Based on the premium, the partial withdrawal percentage is determined.

For Regular premium policies:

For Single premium policies:

10. Tax benefits:

• Under section 80C, the tax deductible for the annual premium payment is up to Rs. 1.5 Lakhs
• After the vesting period, the pension annuity is tax deductible.
• After the completion of the Vesting period, if 60% of the amount is withdrawn that is not tax deductible.

11. Look Period:  

• 30 days.
• In this period, investors can withdraw or cancel the scheme.
• Also, get a full refund of the paid premium amount.

12. Loan:

• Thus, there is no Loan option provided for this scheme.

13. Death benefits:

• The Unit fund value will be paid, after the notification of the date of death.
• The death benefit of 105% of the premium paid is availed till the date of death.

14. Policy Revival:

• Renewal of the policy can be done in the lock-in period, after the lock-in period, or during the unpaid premium on the start of the policy within 3 years.

15. Suicide Claims:

• In case of the death of policyholder on the first year of the policy, the premium paid or invested amount is fully settled to their family.
• After the 1 year, the complete death benefits are provided.

LIC New Pension Plus (Plan No: 867) Age Limit:

• Minimum Age Limit: 25 Years
• Maximum Age Limit: 75 Years

Policy Term:

• Minimum period: 10 years
• Maximum period: 42 years

Vesting Period:

The period to get the pension amount at the end of the scheme.

• Minimum Vesting Period: 35 Years (Age).
• Maximum Vesting Period: 75 Years (Age).

Option after the Vesting period:

Annual changes in pension amount:

• On completion of the vesting period, the amount invested in the policy is a pension fund.

Partial withdraw:

• The Lump sum of 60% of the fund can be withdrawn.
• The rest of the amount is Pension fund.

Charges:

 1. Fund Management Charges:

• LIC makes fund management charges for investing in share market and loan-based schemes.
• This will be 0.50% to 1.35% annually.

2. Administration Charges:

This charge deductible is only for 5 years. Also, it is based on the installment premium

3. Policy Issuance Charges:

• Policy issuance charges are applicable to the investors during the issuance of the policy, which is generally a minimum amount.

4. Surrender Charges:

• Suppose, the Policy is withdrawn in the middle then the Surrender amount has to be paid.

5. Premium Allocation Charges:

• For a regular premium policy, the charges are 7.00% in the first year, 4.5% for the second to fifth year, and 3.5% after five years.
• 3.3% is the premium allocation charge for the Single Premium policy.

6. Mortality Charge:

• Nil

7. Fund management charges: 

• 1.35% p.a. All four funds are based on the Unit funds.
• 0.50% p.a. Pension deferred unit funds.

8. Switching Charge:

• LIC pension plus scheme allows 4 times for switching in the available fund option in their policy term.
• However, after 4 attempts of switching the funds, a charge of Rs. 100 is applicable for each alteration.

9. Discontinuance charge:

• The discontinuance charges are applicable on canceling the regular premium policy.
• Meanwhile, this is not applicable to the Single Premium policy.

10. Partial withdrawal Charge:

• Certainly, LIC charges Rs.100 for each partial withdrawal.
• On the whole, this will be deducted by canceling the suitable units from the unit fund value.

11.  Miscellaneous Charge:

• Under the Regular premium policy, if you make any alteration in the premium mode after the issuance of the policy this charge is applicable.
• Further, LIC charges Rs.100 for each change.

Benefits of the policy:

1. Online monitoring: Obviously, Investors can monitor their investments online.
2. Risk Factors:
   Moreover, this Scheme is well built up for the investors with acceptance of market changes.
3. Death benefits:
   In case of death, an assured plan amount will be given to the family members of the investors.

Who benefits from this scheme?

• A person who plans for a long-term retirement plan.
• Also, Investors who like to invest in stock market-based schemes.

Risks:

• Consider that loss of all benefits of the policies, before surrendering the policy,
• Also, the lock-in period and long vesting period may not be suitable for some investors.
• Moreover, this scheme shall be invested in the stock market or interest-based schemes which may affected by the market conditions.

Disclaimers:

1. Policy condition:

• LIC decides the rules and conditions of the policy and it holds the right to change at any time.

2. No income security:

• This policy does not provide any guaranteed income, all that is based on investment research.

3. Tax rules:

• Tax-related benefits change yearly and the tax rules change based on Government act.

To know more about the policy further, visit the nearest LIC office or the official website of LIC

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