The country’s largest insurance company Life Insurance Corporation (LIC) has launched a new pension plan. LIC has named it ‘New Pension Plus Scheme’. It is a non-participating, unit-linked, individual pension plan.
Regarding this pension scheme, LIC says that people can prepare their retirement corpus with systematic and discipline through this scheme. There are two options available for premium payment in this scheme. You can buy this scheme with single premium payment option or with regular payment option. LIC is already running many types of pension schemes.
But in the Pension Plus scheme, the policyholder will get many options. If you subscribe to the new LIC scheme with the regular payment option, you will have to pay the premium for the entire tenure of the scheme. The special thing about this scheme is that you can convert it into regular income by buying an annuity plan or after the completion of the term.
Since it is a non-participating, unit-linked, individual pension plan, investors will have to pay a fixed premium based on the sum assured and get guaranteed returns. Under this scheme, policyholders can change the accumulation period or deferment period as per their requirement under the terms and conditions of the original policy, subject to certain conditions. This option will be available in the pension scheme.
Investors can invest in any one of the four types of investment funds available. There will be a premium allocation charge for every premium. If a policyholder wishes, he can switch funds four times in a policy year. He will not have to pay any kind of fee for this.
The buyer of the New Pension Plus scheme will get the option to select the policy term keeping in mind the amount of premium and minimum and maximum amount of premium, policy term and vesting age.
Guaranteed additions will have to be paid at one per cent on the annual premium. Guaranteed additions in the range of 15.5 per cent if you pay regular premiums and 5 per cent for a policy year on single premium payment.
