LIC Senior Citizen Scheme: 5 Retirement Saving Plans by LIC | PayBima

LIC has come up with 5 different plans to protect the interest of senior citizens. Through these arrangements, senior citizens can enjoy a fixed monthly, quarterly, six-monthly, or yearly pension. Read on to know more about LIC Senior Citizen Scheme.

One of the factors that led to the increase in interest rates that affected our citizens the most was the reduction in interest rates on fixed deposits or FDs. Therefore, the Government of India came up with a pension scheme only for the elderly which promises a fixed return of 8% interest to them every year for 10 years.

This government scheme has been established under the name of Senior Citizen Pension Scheme and is a part of Life Insurance Corporation of India or LIC. This retirement plan allows seniors to have the benefit of choosing a pension plan at any time, for example, monthly, quarterly, semi-annually, or annually. All these retirement plans are designed for people over 60 years of age.

Also Read: How to Get LIC Premiums Tax Free

Lic’s 5 Retirement Planning for Senior Citizens:

1. LIC New Jeevan Shanti

This is a great way to make money that only requires one payment. Some of the benefits of this plan include:

  • Availability of rental property after a year, depending on the financing option
  • A fixed pension is paid regularly for life and is paid in one lump sum
  • Payments eligible for tax refund under Section 80CCC of the Income Tax Act

Eligible Plan Requirements: The minimum age for entry under the scheme is 30 years and the maximum age is 79 years. The minimum amount to be invested under the scheme is a minimum of Rs. 1.5 lakh and there is no investment limit.

2. Pradhan Mantri Atal Pension Yojana

This system is specifically designed by the government to support the unorganized sector of the population, which includes domestic workers, wage workers, or the self-employed. This policy ensures financial security for all these people in their old age. The system requirements are as follows:

  • On attaining the age of 60 years, the holder will be entitled to a fixed pension of his choice between Rs. 1,000 and Rs. 5,000.
  • The period of service must be chosen by the owner of the plastic or the investor on the basis of the total amount of the pension that has been chosen for at least 20 years.

What to do on the plot: The minimum age to enter the scheme is 18 years and the maximum age is 40 years. People of this age can choose to invest in the scheme for at least 20 years, then they will have the right to benefit when they turn 60 (old age).

3. Pradhan Mantri Vaya Vandana Yojana

This pension plan was launched by LIC for senior citizens in 2017. This government plan is designed for those who are above 60 years of age, guaranteeing them an interest rate of 8% for a total of 10 years (which is 8.3% per annum). According to LIC Senior Citizen Pension Scheme 2022, the total amount invested in the scheme is called the purchase price. Some of the key benefits of this plan are:

  • Guaranteed pension for senior citizens up to 10 years
  • An excess of Rs. 15 lakh allowed for each adult compared to Rs 7.5 lakh earlier
  • Guaranteed return of 8% interest per annum on sales made

What to do on the plan: There is no age limit to enter the scheme. The government allows anyone over the age of 60 to use the program.

4. LIC New Jeevan Nidhi

A special retirement plan that not only guarantees pension payments in old age but also provides additional cash benefits to the elderly. Some of the main features of the plan are:

  • Maximum guaranteed cashback of Rs. 3 lakh etc
  • Bonus benefits for investors who participate financially in the scheme
  • A guaranteed increase of 5% for the first 5 years, after which a simple transfer bonus and a final bonus are included from the 6th year onwards.
  • Investors’ choice between fixed premiums or single payments
  • A way to increase the coverage of the plans are additional riders such as disability benefits and accidental riders

Eligible Plan Requirements: The minimum age to join the plan is 20 years and the maximum age is 58 years (if paid regularly) and 60 years (if paid once).

5. LIC Varishtha Pension Bima Yojana

Another government plan for the elderly that promises regular pension payments – monthly, quarterly, semi-annually, or annually. Some of the advantages of this system are:

  • This plan can easily be combined with other similar pensions to create a fixed monthly income. A few examples are mutual funds, endowment plans, provident funds, etc.
  • The plan allows for refund of the purchase price to the beneficiary of the plan in case of death of the retiree.
  • Tax exemption is also given on the amount paid, as per Section 80CCC of the Income Tax Act.

What to do on the plan: The minimum age to opt for this scheme is 60 years and there is no age limit for entry. The scheme offers a minimum annuity payment of Rs. 6,000 and a maximum annuity payment of Rs. 60,000.

Finally

The Indian government provides pension benefits to senior citizens by introducing several pension schemes. LIC India Senior Citizen Scheme is one such example. Most of these plans come with the option of monthly, quarterly, half-yearly, and annual pension payments. For example, the LIC Senior Citizen Monthly Income Scheme, guarantees a good monthly income to senior citizens during their retirement. You can choose the plan that suits your needs after carefully considering each of them as described on this page.

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