LIC Pension Plus offers multiple benefits such as guaranteed additions, maturity benefit, life cover and more. You can buy LIC pension plus 867 plan, both ways-online and offline. You can also choose the premium payment frequency as Yearly, half yearly, quarterly or monthly or one time.
We will cover each section one by one.
Table of Contents
LIC Pension Plus 867 – Eligibility & Premium Details
| Features | Eligibility |
| Premium Payment Option | Single/ Regular |
| Minimum Entry Age | 25 years |
| Maximum Entry Age | 75 years |
| Minimum Vesting Age ( Start pension age) | 35 years |
| Maximum vesting Age ( Start pension age) | 85 years |
| Policy term in years | 10-42 years |
| Minimum Investment Single Premium | 1 lac |
| Minimum Investment Regular Premium | Rs 3000 monthly/ Rs.9000 Quarterly/ Rs.16000 half yearly/ Rs .30000 yearly |
| Investment Options | Pension Bond fund (60% -100% investment in Govt. Bonds,securities |
Investment Funds choice
LIC Pension Plus Charges
There are multiple charges which are associated with the plan. These charges are Policy Allocation Charge, Mortality charge, Premium Allocation charge etc.
*Please note that charges differ for offline ( through agent) and online purchase.
Premium Allocation Charges
Premium allocation charges are the charges which are deducted before investing your money. Suppose you pay a premium of Rs 1 lac on annual basis. Your Policy allocation charges are 7% then Rs or Rs 7000 will be deducted from money( premium) and rest will be invested.
| Offline Purchase | Offline Purchase | Online Purchase | |
| Annual Premium (AP) less than Rs. 50,000/- (charged As a % of Instalment Premium) | Annual Premium (AP) greater than or equal to Rs. 50,000/-(charged As a % of Instalment Premium) | (charged As a % of Instalment Premium) | |
| 1st | 7.00% | 7.00% | 2.5% |
| 2nd to 5th | 4.50% | 4.00% | 1.5% |
| 6th and onwards | 3.50% | 3.00% | 1.0% |
Premium Allocation Charges for Single Premium (SP) policies:
| Year | Offline (As a % of SP) | Online (As a % of Premium) |
| 1st | 3.30% | 1.50% |
| 2nd and onwards | Nil | Nil |
Mortality Charges
There are no mortality Charges in the policy.
Policy Admin Charges
Fund management Charges
This is a charge levied as a percentage of the value of assets and shall be appropriated by adjusting the NAV. Fund Management (FMC) Charge shall be as under:
- 1.35% p.a. of Unit Fund for all the four Funds available under an in-force policy i.e. Pension Bond Fund, Pension Secured Fund, Pension Balanced Fund and Pension Growth Fund.
- 0.50% p.a. of Unit Fund for “Pension Discontinued Fund”.
Switching Charges
Within a given policy year, 4 switches shall be allowed free of charge. Subsequent switches, if any, shall be subject to a Switching Charge of Rs. 100 per switch.
Benefits on Vesting Date
- You will get an amount equal to the Unit Fund Value as on Vesting date.
- On vesting date policy holder can take following actions:
- Purchase immediate or deferred annuity : The policy holder must buy Immediate or deferred annuity plan from LIC or other Insurer for at least 50% corpus( currently 50% of the entire proceeds of the policy net of commutation) OR
- Commute upto 60% and utilize the balance amount to purchase immediate or deferred annuity from LIC
- Option to extend the date of Vesting:
The Life Assured shall have an Option to extend the date of Vesting.
Death Benefit:
On death of the Life Assured BEFORE the date of Vesting:
a. In case of an in-force policy:
The higher of the following benefits shall be payable:
- Unit Fund Value as on the date of intimation of death; or
- 105% of the Total Premiums received upto the date of death reduced by Partial Withdrawals made during two-year period immediately preceding the death of the Life Assured.
Guaranteed Additions:
LIC PENSION PLUS provide Guaranteed Additions as a percentage of Annual Premium. If you pay Rs 1 lac annual premium for 42year term, you will get near about Rs. 2.91 Lac money worth units from LIC. In a SPAN of 42 Years ( Almost half a life of a human being :).
In case policyholder dies then the family will get 105% paid premium or fund value.
| End of Policy Year | Guaranteed Additions per annum (as a percentage of one Annual Premium) | Guaranteed Additions per annum (as a percentage of one Single Premium |
| 6th | 5.00% | 4.00% |
| 10th | 10.00% | 5.00% |
| 11th to 15th | 4.00% | 1.25% |
| 16th to 20th | 5.50% | 1.50% |
| 21st to 25th | 7.00% | 2.00% |
| 26th to 30th | 8.75% | 2.50% |
| 31st to 35th | 10.75% | 3.00% |
| 36th to 40th | 13.00% | 3.75% |
| 41st to 42nd | 15.50% | 4.50% |
Should You buy – LIC New Pension Plus?
LIC pension Plus is a unit link product with lots of features, charges and options. The policy provide risk cover and investment in one single product. In my view the product cannot do justice with both. The charges are very high in the policy. Therefore in the initial years, one end up paying more to the corporation rather than making money from the policy.
In other words we can say that it is a really costlier version of National pension scheme, which is way better than it, if we ignore the insurance factor in the policy.
In my opinion, one should NOT buy such expensive products and waste his/her hard earned money.
Rather buy high life insurance cover plan such as LIC Term Plan and invest in mutual funds.
