LIC Pension plus is a Unit Linked Deferred Pension Plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover. UIN: 512L260V01 You have a choice of investing your premiums in one of the two types of investment funds available. Premiums paid after deduction of allocation charge will purchase units of the fund you have chosenThe unit fund is subject to various charges and the value of its unit may increase or decrease depending on the net asset value (NAV). Visit LIC

LIC Pension Plus

Eligibility Condition

  • Minimum Entry age: 18 years (last birthday)
  • Maximum Entry age:  75 years (nearest birthday)
  • Minimum vesting age: 40 years (completed)
  • Maximum vesting age: 85 years (nearest birthday)
  • Minimum deferment term: 10 years
  • Sum Assured: Nil
  • Minimum premium:
  • Regular premium (other than monthly (ECS) mode): Rs 15000 pa.
  • Regular premium (for monthly (ECS) mode): Rs 1500 pm.
  • Single premium Rs 30000.
  • Maximum premium:
    Regular premium: Rs 1 Lac per Annum.
    Single premium: No limit
  • Annualized premiums shall be payable in multiples of   Rs 1000 for other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs 250.

#) Payment of Premiums

  • You may pay premiums regularly at yearly, half yearly or quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a single premium can be paid.
  • A grace period of 30 days will be allowed for payment of yearly or half yearly or quarterly premiums and 15 days for monthly (through ECS) premiums.

Table 803 Benefits:

Death benefits.

  • The holder’s fund value shall be payable in a lump sum or as an annuity, as desired by the nominee.
  • The amount of the annuity will depend on the payable lump sum and the then prevailing immediate annuity rates under the annuity option chosen,.

Benefit on Vesting

  • On your Surviving to the date of vesting, the higher of policy holder’s fund value and guaranteed maturity proceeds as defined under para 10 (I), will compulsorily be utilized to provide annuity based on the then prevailing immediate annuity rates under the relevant annuity option. However, you may opt to commute up to 1/3 of the benefits to be paid as a lump sum.
  • Further you may chose top purchase annuity from the company or other life insurance company.

Investment of Funds:

The plan offers following two funds detailed below. The policy holder has the option to choose any ONE out of the below 2 funds.

  1. Debt Fund.
  2. Mixed Fund.

Method of Calculation of Unit Price:

  • Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment.
  • There is no bid offer spread (the bid price and offer price of the unit will both be equal to the NAV).
  • The NAV will computed on a daily basis and will be based on investment performance.
  • Fund management charge and whether the fund is expanding or contracting under each fund type and shall be calculated as under

A) Appropriation Price is applied (When the fund is expanding):

  • The market value of investment held by the fund + the expenses incurred in the purchase of the asset + the value of any current asset + any accrued income net of fund management charges less the value of any current liabilities less provision, if any, divided by the number of the unit existing at the valuation date (before any new unit are allocated)

B) Expropriation price is applied (When the fund is contracting):

  • The market value of investment held by the fund less the expenses incurred in the sales of assets + the value of any current assets + any accrued income net of fund management charges less the value of any current liabilities less provision, if any divided by the number of units existing at the valuation date (before any unit redeemed).

C) Applicability of net asset value (NAV):

  • The premium received up to a preset time (presently 3 pm) by the servicing branch of the corporation through ECS or by way of a local check or a demand draft (DD) payable at par at the place where the premium is received, the closing NAV of the day on which premium is received is applicable.
  • The premiums received after such time by the servicing branch of the corporation through ECS or by way of a local check or a demand draft (DD) payable at the place where the premium is received.
  • The closing NAV of the next business day shall be applicable.
  • Similarly in respect of the valid applications received for surrender, complete withdrawal, death claim, switches etc. Up to such time by the servicing branch of the corporation closing NAV of that day shall be applicable.
  • For the valid application received in respect of surrender, complete withdrawal, death claim, switches etc., after such time by the servicing branch of the corporation, the closing NAV of the next business day shall be applicable.
  • In case of discontinuance, as specified in para 8 below, wherein the policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable.
  • In respect of the policies vesting, the NAV of the date of vesting shall be applicable. The timely (presently 3pm) is as per the existing guidelines and changes in this regard shall be as per the instructions from the IRDA.

Charges Under the Plan

A) Premium Allocation Charge:

This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (investment) units for the policy. The allocation charges are as below:

  • For single premium policies: 3.3%
  • For regular premium policies:
  • 1st year: 6.75%
  • 2nd to 5th year: 4.50%
  • Thereafter: 2.50%
  • Allocation charge for top up: 1.25%

B) Other charges:

The following charges shall be deducted during the term of the policy:

I) Policy Administration charge:

  • Rs 30/- per month during the first policy year and Rs 30/- per month escalating at 3% p.a. Thereafter, throughout the term of the policy shall be levied.

II) Fund management charge:

  • It’s a charge levied as a percentage of the value of units at following rates:
    0.70% p.a. Of Unit Fund for “Debt” fund
    0.80% p.a. Of Unit Fund for “Mixed” fund
  • The fund management charge shall be appropriate while computing the NAV.

III) Switching Charge:

  • This is the charge levied on switching of monies from one fund to another. Within a given policy year 2 switches will be allowed free of charge.
  • Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.

IV) Bid/Offer spread:

  • NIL

V) Discontinuance Charge:

The discontinuance charge for regular premium policies is as under:

Where the policy is
discontinued during
the policy year
Discontinuance
charges for the
policies having
annualized premium
up to Rs 25,000
Discontinuance
charges for the
policies having
annualized premium
above Rs 25,000
1 Lower of 10% *
(AP or FV) Subject
to a maximum
of Rs 2500
Lower of 6% *
(AP or FV) Subject
to a maximum
of Rs 6000
2 Lower of 7% *
(AP or FV) Subject
to a maximum
of Rs 1750
Lower of 4% *
(AP or FV) Subject
to a maximum
of Rs 5000
3 Lower of 5% *
(AP or FV) Subject
to a maximum
of Rs 1250
Lower of 3% *
(AP or FV) Subject
to a maximum
of Rs 4000
4 Lower of 3% *
(AP or FV) Subject
to a maximum of Rs 750
Lower of 2% *
(AP or FV) Subject
to a maximum
of Rs 2000
5 and onwards Nil Nil
  • AP – Annualized Premium
  • FV – Policyhoolder’s Fund Value excluding the fund value in respect of Topup premium paid, if any, on the date of discontinuance.
  • There shall not be any discontinuance charge under single premium.

VI) Service Tax charge:

  • A service tax charge, if any, will be as per the service tax laws and the rate of service tax as applicable from time to time.

VII) Miscellaneous Charge:

  • This is a charge levied for change in premium mode. It opted  for by the policyholder during the deferment term.
  • An alteration may be allowed subject to a charge of Rs 50.

C) Right to Revise Charges:

  • The corporation reserves the right to revise all or any of the  above charges except the premium allocation charge with prior approval of IRDA. Although the charges are reviewable, they will be subject to the following maximum limit:
  • Policy administration charge. Rs 60 per month during the first policy year and Rs 60 per month escalating at 3% p.a. Thereafter, throughout the term of the policy.

Loan:

  • No loan will be available under this plan.

Assignment:

  • The assignment shall not be allowed under this plan.

Exclusion

  • Nil

Reinstatement:

  • A policy once surrendered can’t be reinstated.

“In this policy, The investment risk in investment portfolio is borne by the policy holder.”

Other Pension Plans:

a) Jeevan Akshay 6 (Table No. 189):

  • An immediate annuity plan with a number of options.

b) New Jeevan Suraksha 1 (Table No. 147) & New Jeevan Dhara – 1 (Table No. 148):

  • Deferred Annuity plans. The annuitant has five options of annuity payments to choose from.

c) Jeevan Nidhi (Table No. 169):

  • A with a profit deferred pensionplan which provides death cover during the deferment period.

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