Under this scheme, LIC will give the benefit of pension for life to its insurer. It is a non-participating, unit linked individual pension plan, which helps in building a corpus through systematic and disciplined savings.
New Delhi. Life Insurance Corporation of India ie LIC operates various types of insurance schemes. In this episode, LIC has launched New Pension Plus plan. Under this scheme, LIC will give the benefit of pension for life to its insurer.
It is a non-participating, unit linked individual pension plan, which helps in building a corpus through systematic and disciplined savings. This fund can be converted into regular income by purchasing an annuity plan at the end of the term. This policy is effective from 5 September.
Users can buy this plan in 2 ways, single premium payment policy or regular premium payment plan. In the regular payment option, the premium has to be deposited during the entire term of the policy.
Option to choose premium amount, policy term
The policyholder will have the option to choose the amount of premium payable and the term of the policy, minimum and maximum premium limits and age. Under certain conditions, the option to extend the accumulation period or deferment period within the same policy with the same terms and conditions as the original policy will also be available. Deferment period means the estimated time the policyholder expects to be unable to work.
There is an option to invest in 4 funds
The policyholder gets the option of investing the premium in one of the 4 types of funds available. Premium allocation charge will be levied on every premium paid by the policyholder. The rest of the money is known as the allocation rate, which is used to buy units of the fund chosen by the policyholder. Four free switches are available for change of funds in a policy year.
