LIC Pension Plus is a retirement-focused product that helps you accumulate a pension corpus and convert it into a steady income stream when you retire. Designed for disciplined savers, the plan blends guaranteed features with options that let you tailor the payout style, helping ensure predictable post-retirement cash flow.
You pay premiums during the accumulation phase (single, limited or regular premium options may be available), which build the retirement fund. At vesting, the accumulated value is used to provide a pension — either through annuity purchase or plan-specific payout options. Multiple annuity or pension payout variants are offered to match different retirement needs and legacy goals.
• Flexible Premium Modes: Choose single, limited or regular premium payment schedules to suit cash-flow.
• Customisable Vesting Options: Decide how and when the pension commences—deferred vesting allows your corpus to grow longer for higher payouts.
• Multiple Annuity Variants: Options commonly include lifetime annuity, guaranteed period + lifetime, joint life options, or return-of-purchase-price variants so you can prioritise income, family protection or capital return.
• Death Benefit Protection: If the life assured dies during the accumulation phase, nominee benefits (lump sum or other defined options) protect dependants.
• Simple Structure: Non-market linked variants reduce exposure to equity volatility, making this suitable for conservative retirement planning.
• Entry age and maximum vesting age vary by product variant—check plan rules when buying.
• Minimum purchase premium and policy term requirements apply; pension options may have minimum vesting ages.
• Lock-in characteristics: pension products are long-term commitments; surrender or exit options are limited and may attract penalties or reduced benefits.
• Lifetime annuity: Highest stability — fixed payments for life.
• Guaranteed period + lifetime: Ensures payments for a minimum period even if the annuitant passes away early — useful when heirs need protection.
• Joint life: Payments continue while either spouse survives, prioritising household continuity.
• Consider inflation, legacy needs and health when selecting — increasing annuities or return-of-purchase-price options may fit specific goals.
Pros:
• Predictable, reliable income in retirement — reduces market-risk exposure.
• Multiple payout choices let you prioritise income, family protection or capital return.
Cons:
• Limited liquidity — pension plans are long-term and early exits can reduce benefits.
• Payouts may not be inflation-linked unless you choose an escalating option; purchasing power can decline over many years.
• Clarify the premium mode and total cost of accumulation before buying.
• Compare annuity/payout illustrations across variants — request sample projections for different deferment lengths.
• If you need legacy protection, prioritise guaranteed-period or return-of-purchase-price options.
• Factor in expected inflation and consider combining pension plan with inflation-beating assets for growth portion of retirement corpus.
LIC Pension Plus (Plan No. 867) is structured to deliver disciplined retirement savings and dependable pension income. It suits savers who prioritise certainty and a predictable post-retirement cash flow over market-linked upside.
Decide your desired retirement income, choose the payout variant that matches family and legacy needs, and remain invested to enjoy a steady pension when you retire.