LIC Jeevan Suraksha plan is Deferred Annuit plan from LIC allows the policy holder to get a fixed annual income after the selected term. This non-unit linked pension plan creates the provision of pension for old age after certain vesting date. This is one of the best pension plan from Life insurance corporation of India.
Benefits and Premium Chart of LIC Jeevan Suraksha Plan
In LIC Jeevan Suraksha plan, the pension of the policy holder starts from the vesting date and the premium is paid till the end of the policy term. At the starting of the policy, the policy holder choose a notional cash option. The maturity amount is this notional cash along with the bonuses accrued. In this plan, policy holder can withdraw 25% of the entire maturity proceeds+ bonus and a lump sum amount will be paid on the vesting date. The remaining 75% amount of the maturity proceeds+ bonus will be converted into the deferred annuity.
Key Features of LIC Jeevan Suraksha Plan
- This is a deferred annuity bonus plan.
- Death benefits depend upon the annuity option chosen in the starting of the plan.
- The policy holder may choose both of the options.
- He can withdraw 25% of the corpus and avail pension on the rest 75%.
- He can avail pension on the total corpus amount.
- At the time of vesting, an additional 3% rebate will be offered on the purchase price of the annuity.
- Large cash rebate option is available on this scheme.
- The annuity rates of immediate Pension Plan Jeevan Akshay VI will be considered at the time of vesting.
- This policy holds the option for 5 pension plans. One can choose plan according to his choice.
Options Available with Jeevan Suraksha
- Annuity for life: In this plan, the pension is paid till the person is alive and no sum is provided at the time of death.
- Annuity Guaranteed for Certain periods: In this plan, pension is paid for fix 5/10/15/20 years, as chosen, whether the policy holder is alive or not,
- Annuity with return of Purchase Price on Death: In this plan, pension is paid till the pension holder is alive and after his death remaining amount of corpus is paid to the nominee as death benefit.
- Increasing annuity: pension is paid till the policy holder survives but it is paid with an increasing rate of 3% p.a.
- Joint Life Last Survivor Annuity: pension is paid to the policy holder till he survives and after his death 50% of the pension will be paid to the spouse of the policy holder, till he survives.
Benefits of LIC Jeevan Suraksha Plan
- Death Benefit: in case of the death of the policy holder before the vesting date, the nominee will be paid the entire corpus + term rider plan if chosen and the amount according to the pension plan chosen.
- Maturity Benefit: At the time of maturity, the policy holder can withdraw 25% of the corpus and take the annuity pension as per the policy plan.
- Income Tax benefit: Premiums paid for the policy is exempted under section 80 C. the pension amount received is taxable.
Special Case in LIC Jeevan Suraksha Plan
- If premium is not paid: In case the policy holder stops paying premiums after 3 years, the policy will lapse and all the benefits will cease. The policy can be revived by paying all the due premiums with the interest.
- Policy Surrender: Guaranteed surrender value after 2 years of the policy. That means 90% of all the regular paid premiums and 1st year’s premium or single premium is paid.
- Loan: Under this policy. Loan facility is not available.
Comparison of LIC Jeevan Suraksha Plan With other Lifelong Pension Plans
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