LIC Senior Citizen Schemes (Top 5 Schemes)
Our elders are our jewels, we need to do everything possible to ensure a smooth post-retirement for our elders. The Government of India in tandem with LIC has initiated a variety of senior citizen schemes that the elderly can avail of and make their life easier.
We will have a detailed look at some of the primary LIC senior citizen schemes below.
- Pradhan Mantri Vaya Vandana Yojna
- LIC Varishtha Pension Bima Yojna
- LIC New Jeevan Shanti
- LIC Jeevan Akshay 7
- LIC New Jeevan Nidhi
Pradhan Mantri Vaya Vandana Yojana (Plan No. 856 )
The Pradhan Mantri Vaya Vandana Yojana is a pension scheme subsidized by the Government of India and managed by the LIC. Under the terms of this scheme, a senior citizen can pay a single one-time premium to the LIC and avail of a continuous monthly pension at a rate of 7.4% P.A.
Features of Pradhan Mantri Vaya Vandana Yojana
Only seniors over the age of 60 can avail of this scheme
- Maximum investment of 15 lakhs per senior citizen
- Maximum term of 10 years
- Pension can be availed monthly, quarterly, half-yearly, and yearly (ROI will be 7.4% for monthly, 7.45% for quarterly, 7.55% for half-yearly, and 7.66% for yearly)
- Policy can be prematurely surrendered after paying a 2% penalty on the purchase price
- A person can also avail of a loan on this policy at 75% of policy value
- The policy comes with a 15 day free-look period
LIC New Jeevan Shanti (Plan No.858)
This is another single premium annuity plan provided by the LIC. The person has to pay a single premium throughout the policy tenure to enjoy its benefits. The plan comes in 2 variants:
- Option 1: Deferred annuity for Single life
- Option 2: Deferred annuity for Joint life
Let us understand both options clearly.
Option 1: Deferred annuity for Single life
- In this plan, the policyholder will not be paid a maturity amount on survival.
- The nominee will be paid the lump sum amount in the event of the policyholder’s demise
- The Annuitant will continue to receive his annuity as long as he lives
Option 2: Deferred annuity for Joint life
- Here too there will be no maturity amount payable upon the survival of the annuitant
- The nominee will be paid the death benefit upon the demise of the last joint annuitant
- Both joint annuitants shall continue to receive their annuity as long as they live
Features of LIC New Jeevan Shanti
- Nominee will receive the purchase price along with the additional death benefit payable on the annuitant’s demise
- Minimum purchase price of this plan is Rs.1.5 Lakhs. There is no upper limit.
- Minimum age requirement for participation is 30 years.
- Annuity can be paid to the annuitants via monthly, quarterly, half-yearly, or yearly annuity.
- Annuitant can avail a loan on this plan.
- Free-look period of 15 days.
LIC Jeevan Akshay 7 (Plan No. 857)
LIC’s Jeevan Akshay 7 is another single premium immediate annuity plan. This plan provides 10 different annuity options that an annuitant can choose from. This provides more flexibility than some of the above plans. Let us understand all of the annuity options below:
- Option A: Annuity is paid to the annuitant immediately for life.
- Option B: Annuity is paid for a period of 5 years guaranteed, and life thereafter.
- Option C: Annuity is paid for a period of 10 years guaranteed, and life thereafter.
- Option D: Annuity is paid for a period of 15 years guaranteed, and life thereafter.
- Option E: Annuity is paid for a period of 20 years guaranteed, and life thereafter.
- Option F: Annuity is paid immediately and the purchase price is returned to the nominee at the annuitant’s death.
- Option G: Immediate annuity payment (increasing at 3% simple interest)
- Option H: Immediate annuity with half the annuity payable paid to the spouse in case of annuitant’s death.
- Option I: Immediate annuity with the entire annuity payable paid to the spouse in case of annuitant’s death.
- Option J: Immediate annuity with the entire annuity payable paid to the spouse in case of annuitant’s death. The purchase price will be returned to the nominee on the demise of the last annuitant.
LIC New Jeevan Nidhi
The New Jeevan Nidhi Plan is LIC’s deferred annuity plan. Unlike the above plans, this plan is not a compulsory single premium plan and the annuitant has the option of making regular premium payments. The advantage of this is that the annuitant can participate in this plan with a relatively low amount, he does not need to make a large upfront payment in the way of a single premium.
Features of LIC New Jeevan Nidhi
Premium can be paid once or through the policy tenure
- Individuals above the age of 20 are eligible for participation in this scheme
- Availability of premium discounts (2% discount if paid annually. 1% discount if paid half-yearly)
- Death benefit will be paid to the nominee in case the annuitant passes away
- Guaranteed additions for the first 5 years
- Bonus’s from the 6th year onwards
- Annuitant can avail an additional Accidental Death and Disability Benefit Rider