Please suggest on good LIC Pension plan based on my mentioned needs?



I am going to take pension plan from LIC. But confused which pension plan to take. Please suggest a good one based on my requirements below.
My age is 29 years. I would like to get pension from 50 years or at the worse 55 years. I would like to get pension on monthly basis rather than getting in lump sum amount. And anything between 30k to 50k rupees per month I would prefer to get as pension. I can pay premium either yearly or monthly but I prefer paying monthly. Anything between 8k to 12k per month I can pay. So please suggest the best pension plan from LIC. And will I get the same amount of pension throughout my life? (like constant 40k throughout my life?)

I went to LIC premium calculator page for New Jeevan Suraksha-I and entered the details as follows,
Deferement period: 20
Notional cash option: Rs. 30,00,000
Premium in Rs. Monthly : 10,419.00
So in this, after 20 years of premium payment I can get lump sum of Rs. 30,00,000 ?
If I choose monthly option, how much will I get for lifelong ?

Suppose in between say after 10 years I am not able to pay for few months due to financial problems, will I loose the plan or I can still continue it? Please explain this.

Thanks in advance.

Please suggest on good LIC Pension plan based on my mentioned needs?
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4 Replies to “Please suggest on good LIC Pension plan based on my mentioned needs?”

  1. Notional Cash Option is the sum on which your pension will be calculated.
    Calculation of pension through various LIC plans also is possible.
    Pl contact professional agent from your locality who can help you.
    In case you are in Mumbai or nearby, I can be of help.


  2. According to your data you will get max benefits if you go for Tata-Aig Maha life Gold plan.There are 2/3 other plans + pension plans + Investment Plans (Unitlinked) that offer Single or as u wish time bound payment This is not the problem at all but the all other advantages u will get are tremendous.Best for youngsters like you.If you need more info I would like to help you here [email protected] Afterall its money matter & one must be choosy.


  3. Please do not go for any of the pension plans offered by insurance companies.

    The trick for getting good pension only depends upon the corpus you have at retirement. So try and create as big a corpus as possible until retirement. Pension can be created overnight by investing the corpus in IMMEDIATE ANNUITY at that time. By investing in a pension policy , you are limiting your corpus at retirement. The pension you will get will be negligible.

    Instead invest regularly in a combination of PPF/ SIP in mutual funds / Direct equity.

    PPF is a good investment for creating a pension. Invest as much as possible ( Rs 70000) in a financial year. Invest before 5th of April every year to enjoy full year’s interest. Extend the account after the initial 15 years. You can extend it in 5 year blocks any no of times. After retirement , pay Rs 500 per year to keep the account alive. The interest you earn on 31st March every year can be withdrawn every year in April to enjoy tax free pension . The present rate of interest is 8% . It is tax free as of now.


  4. Hi Gopi,

    First you need to understand , pension plans are nothing but a kind of saving plans which help you to accumulate money for your retirement. On maturity, you need to buy annuity from any insurer to get the monthly / quarterly / half-yearly or yearly pension.

    Current law stipulates that, from maturity amount of pension plans, you can take 33 % amount as lump sum for tax free and rest 67 % needs to be used to buy annuity. Make a note of that.

    Now let’s work on your case:

    Your Age: 29 years
    Retirement Age: 50 years
    Monthly income required after retirement: Rs. 30,000 to Rs. 50,000
    Years available for saving: 21 years

    Now, as per LIC’s Jeevan Akshay VI plan, which is a immediate pension / annuity plan:

    For a person aged 50 years, he / she can get Rs. 8,140 /- per annum as pension after investing Rs. 1,00,000 as a lump sum amount for rest of the life.

    So for generating pension of Rs. 30,000 per month, at today’s rate you would need to invest Rs. 44.23 laks and to generate pension of Rs. 50,000 per month, you need to invest Rs. 73.71 lakh.

    So you need to plan your finances in such a way that, you would need to accumulate up to Rs. 44 lakh to Rs. 74 lakh in a period of 21 years.

    So to accumulate that much amount, you can choose one of the many investment options available today like PPF, NSC, New Pension Scheme, Pension Plans, Mutual Funds etc. Choice of investment should depend upon your risk taking capacity and your understanding of financial markets.

    Also, if you are not able to pay premiums after say 10 years or so, then either your pension plan will lapse or will get paid up. In that case you will get your fund value minus any charges back if it is after 3 years. Solution to that would be a single premium plans which gives you the choice of Top ups at later date, and these top ups are not mandatory, so they do not become a financial liability.

    For more information, you may contact me or any financial planner.

    Also note that, the annuity amount offered by LIC or any other insurer may change at later date and is not guaranteed. Also rate of interests or returns offered on PPF / MFs / ULIPs are not guaranteed.

    Regards,

    Pranav.





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