LIC Pension Scheme : Planning for retirement is a critical step to ensure a stress-free future. With rising inflation and increasing healthcare costs, having a fixed monthly income post-retirement can provide peace of mind. Life Insurance Corporation of India (LIC), one of the most trusted names in insurance and investments, offers a powerful solution through its lifetime pension scheme – the Pradhan Mantri Vaya Vandana Yojana (PMVVY) and Jeevan Akshay VII Plan. These schemes can help individuals receive up to ₹12,000 monthly pension, ensuring financial independence in their golden years.
How LIC’s Lifetime Pension Plans Work
LIC offers two major pension schemes that guarantee a fixed monthly income for life:
- Pradhan Mantri Vaya Vandana Yojana (PMVVY): Specially designed for senior citizens.
- Jeevan Akshay VII: A non-linked, non-participating, immediate annuity plan for all age groups.
These plans are single premium schemes where you pay a lump sum once and start receiving pension immediately or after a chosen deferment period.
Top Features of LIC Pension Plans
Here are the key highlights that make these LIC pension schemes highly beneficial:
- Assured lifetime monthly income.
- Choice of monthly, quarterly, half-yearly, or yearly pension.
- Guaranteed returns with zero market risk.
- Option to choose joint life annuity (for spouse inclusion).
- Tax benefits under Section 80C and Section 10(10D).
- Return of purchase price to nominee upon death.
- Backed by Government of India (PMVVY).
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LIC Jeevan Akshay VII Plan Details
This plan is ideal for those looking for immediate pension after investing a lump sum. Below is a detailed overview:
| Feature | Details |
|---|---|
| Minimum Entry Age | 30 years |
| Maximum Entry Age | 85 years |
| Minimum Purchase Price | ₹1,00,000 |
| Pension Frequency | Monthly, Quarterly, Half-Yearly, Yearly |
| Minimum Annuity | ₹1,000 per month |
| Maximum Annuity | No limit (depends on purchase amount) |
| Joint Life Option | Yes |
| Return of Purchase Price | Yes (under certain annuity options) |
PMVVY – Government-backed LIC Pension for Seniors
PMVVY is specially designed for citizens aged 60 years and above. Below are the key details:
| Feature | Details |
|---|---|
| Minimum Entry Age | 60 years |
| Maximum Entry Age | No limit |
| Policy Term | 10 years |
| Minimum Pension | ₹1,000 per month |
| Maximum Pension | ₹9,250 per month (Single policy) |
| Maximum Investment | ₹15 lakhs per senior citizen |
| Pension Modes | Monthly, Quarterly, Half-Yearly, Yearly |
| Return of Purchase Price | On maturity or death |
| Loan Facility | Yes (after 3 years) |
How to Earn ₹12,000 Monthly from LIC Pension Plan?
To receive ₹12,000 per month, you must invest a lump sum based on the plan and annuity rate. Here is an estimated table:
| Scheme | Investment Needed (Approx.) | Monthly Pension |
|---|---|---|
| Jeevan Akshay VII | ₹19-20 lakhs | ₹12,000 |
| PMVVY (Single Policy) | ₹15 lakhs | ₹9,250 |
| PMVVY (Spouse Policy) | ₹15 lakhs (each) | ₹18,500 combined |
Note: Annuity rates vary depending on age, plan option, and market changes. Always confirm with LIC before investing.
Benefits of Investing in LIC Lifetime Pension Schemes
Here’s why you should consider LIC for your retirement planning:
- Financial Stability: Monthly pension helps manage daily expenses after retirement.
- Government-Backed Safety: Especially in PMVVY, returns are backed by the Indian Government.
- Flexibility: Multiple options in frequency and annuity types.
- Joint Life Option: Secure your spouse’s future too.
- No Market Dependency: Your income stays stable regardless of market fluctuations.
Who Should Invest in These LIC Pension Schemes?
These plans are ideal for:
- Senior citizens looking for a safe pension plan.
- Retirees without regular post-retirement income.
- Individuals with lump sum funds and long-term planning goals.
- Anyone wanting to ensure spouse security post-demise.
How to Buy LIC Pension Plans
You can buy the LIC pension plans through:
- LIC official website (https://licindia.in)
- Nearest LIC branch or authorized agent
- Online LIC customer portal for registered users
Ensure to carry necessary documents:
- Age proof (Aadhaar, PAN)
- Address proof
- Passport size photo
- Income declaration (optional)
Tax Benefits Under LIC Pension Plans
LIC pension plans provide the following tax advantages:
- Investment under Jeevan Akshay qualifies for deduction under Section 80C.
- Pension received is taxable as per your income slab.
- In PMVVY, purchase price returned on maturity is tax-exempt under Section 10(10D).
Things to Keep in Mind Before Investing
- Pension is fixed – there is no inflation adjustment.
- Jeevan Akshay offers multiple annuity options – choose carefully.
- In PMVVY, once invested, funds are locked for 10 years.
- Annuity is not cumulative – you receive it regularly, not as a lump sum.
Final Comparison Table of LIC Pension Plans
Here is a quick comparison to help you choose the right option:
| Criteria | Jeevan Akshay VII | PMVVY |
|---|---|---|
| Entry Age | 30 – 85 years | 60 years and above |
| Immediate Pension | Yes | Yes |
| Return of Purchase Price | Optional (based on annuity) | Yes |
| Joint Life Option | Yes | No |
| Max Pension | No cap | ₹9,250/month per person |
| Govt. Backing | No | Yes |
| Lock-in Period | None | 10 years |
| Loan Facility | No | Yes (after 3 years) |
LIC’s lifetime pension plans like Jeevan Akshay VII and PMVVY are excellent tools to ensure a regular monthly income post-retirement. With the ability to earn up to ₹12,000 per month and the assurance of lifelong financial support, these schemes are tailor-made for individuals seeking stability and peace in their golden years. Always consult with a LIC advisor to understand the latest rates and choose the best plan as per your needs.
The pension amounts mentioned are indicative and based on current annuity rates. LIC may revise rates or policy rules at its discretion. Consult official LIC sources or agents before making any financial decisions.
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