LIC announces New Pension Plus plan; all you need to know about term, premium and more

The Life Insurance Corporation of India (LIC) has introduced its ‘New Pension Plus’ plan. The plan, which went into effect from 5 September, can be purchased either as a single premium or regular premium policy. Under the regular premium policy, the premium will be payable over the duration of the New Pension Plus plan. According to LIC, the non-participating, unit-linked, individual pension plan can either be purchased through agents/intermediaries or through the company’s website- www.licindia.in.

The state-owned insurance company revealed the details of the plan through its Twitter handle. According to LIC, the plan will help “build a corpus by systematic and disciplined savings which can be converted into regular income by purchase of an annuity plan on completion of term.”

As per LIC, the partial withdrawal of units is allowed after five years. The policyholder must be between 25 and 75 years of age to avail the benefits. The minimum policy term is 10 years, while the maximum is 42 years.

The guaranteed additions offered by LIC shall be payable up to 5 percent on single premium on completion of a policy year. For regular premium, the guaranteed addition ranges from 5 to 15 percent.

View the tweet here:

The policyholder will have four funds to choose from when investing the amount. Each premium by the policyholder will be subject to a Premium Allocation Charge. Four free switches for change of funds in a policy year can be availed by the holder.

The New Pension Plus plan will allow policyholders to choose the amount of premium they have to pay and the policy term, provided their choice is subject to vesting age, policy term and the minimum and maximum limits of the premium. An option to extend the accumulation/deferment period on the same policy, with the same terms and conditions applicable as the original policy will be provided (under certain conditions).

The Net Asset Value (NAV) will be based on fund management charge of each fund type as well as on investment performance. It will be computed on a daily basis.

For more details, you can visit the website of LIC.

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