Pension Plus – 867 is a non-linked, single premium, immediate annuity plan from LIC designed to provide guaranteed lifelong income after retirement. A one-time lump-sum investment generates monthly, quarterly, half-yearly, or yearly pension payouts. With flexible annuity options and death benefit provisions, this plan ensures long-term financial security, stability, and peace of mind for retirees.
LIC’s Pension Plus – Plan 867 is designed to offer guaranteed and lifelong income to individuals after retirement, ensuring that they continue to enjoy financial independence even when their regular earnings stop. As a non-linked and non-participating immediate annuity plan, it is completely market-independent and provides predictable returns irrespective of changing economic conditions. The plan requires a one-time lump sum payment, known as a purchase price, after which annuity payments begin immediately based on the option selected. This makes it especially suitable for retirees and individuals approaching retirement who wish to convert their savings into a stable lifelong income.
One of the core strengths of Pension Plus – 867 is its simplicity and reliability. For many individuals, retirement marks a significant lifestyle change. After decades of work, the cessation of regular income can be overwhelming, particularly when weighed against medical expenses, inflation, and day-to-day living costs. LIC Pension Plus addresses this concern by offering a safe, dependable, and guaranteed income stream. Unlike investment-linked pensions that fluctuate with the market, this plan ensures that retirees receive a fixed, predictable annuity amount for life. This stability helps retirees plan their monthly expenses and enjoy retirement without financial stress.
The plan provides a wide range of annuity options tailored to suit different financial needs and family responsibilities. For example, individuals may choose a life annuity option, where the payments continue for as long as the policyholder lives. This is an excellent choice for someone who primarily seeks lifetime financial security. For those who want to ensure that their spouse or dependents continue to receive income after their death, the plan offers joint life annuity options or annuities with return of purchase price. In such cases, the nominee receives the purchase price or continues to receive annuity benefits depending on the selected option, ensuring that insurance coverage extends beyond the policyholder’s lifeline.
The availability of Return of Purchase Price (ROP) options makes Pension Plus – 867 even more attractive. Under these options, at the policyholder’s death, the entire purchase price is returned to the nominee. This feature offers peace of mind to retirees who want to protect their savings and ensure that a significant lump sum passes on to their loved ones. For individuals concerned about legacy planning, this option is extremely valuable. It combines both retirement income and wealth transfer benefits under a single plan.
Pension Plus also offers multiple annuity frequencies such as monthly, quarterly, half-yearly, or annually. This flexibility allows policyholders to align their income flow with their financial needs. Many retirees prefer monthly payouts to meet regular expenses, while others may choose yearly payouts to align with tax planning or large periodic expenses. The ability to customize the payout frequency adds to the plan’s usefulness and personal appeal.
Another significant benefit is the stability of annuity rates throughout life. Once the annuity amount is locked in at the time of purchasing the policy, it remains unchanged, ensuring predictability. This feature protects retirees from the unpredictability of inflation or fluctuating interest rates. Even if market interest rates drop, the pension amount remains the same. Conversely, if interest rates rise, the benefits remain unaffected since the policy continues to ensure the guaranteed amount. This level of security is crucial for individuals who prefer a stable financial foundation during their older years.
Pension Plus – 867 is also designed to be highly accessible. There is no maximum purchase price limit, allowing individuals with substantial retirement savings to invest large amounts and receive a correspondingly higher pension. This feature is particularly beneficial for high-net-worth individuals and retirees looking for a safe and predictable investment option. The minimum age of entry also ensures that younger individuals planning early retirement or financial freedom can invest early and secure lifelong benefits.
In addition, the plan supports individuals who are looking for secure investments after receiving retirement benefits such as provident fund withdrawals, gratuity, or commuted pension amounts. Many retirees search for trusted options to convert their lump sum into monthly income without carrying investment risks. LIC’s credibility, long-standing reputation, and consistent claim settlement record make Pension Plus one of the most reliable choices.
While this plan offers numerous benefits, it is equally important to understand the tax implications. Under current guidelines, the premium may not qualify for deduction under Section 80C because it is categorized as a pension product. However, the annuity income received is taxable based on individual tax slabs. Even with taxation considerations, the predictability and guaranteed nature of income provide significant value for retirees prioritizing stability over high-risk, high-return investments.
Overall, LIC Pension Plus – 867 is a highly dependable retirement solution for individuals seeking steady and guaranteed income. Its immediate annuity structure, comprehensive payout options, death benefits, and flexibility make it a complete package for retirement planning. Whether an individual is looking to secure personal post-retirement income, protect their spouse, or ensure financial continuity for dependents, this plan delivers consistent and lifelong financial support. With rising medical costs, longer lifespans, and increasing uncertainty in economic markets, Pension Plus stands as a robust shield for retirees looking to live their golden years with peace, dignity, and financial independence.