What is a 'LIC Pension Plan'
“LIC pension plan is a method in which the policyholder transfers portion of his or her present income flow toward retirement income. There are actually two primary types of LIC pension plans: defined-benefit plans and defined-contribution plans”.
A LIC pension plan is a policy for retirement plan, wherein the policyholder makes contributions toward a pool of money put aside for his / her future benefit. The pool of money is then invested on the policyholder’s behalf, letting the annuitant to get benefits upon retirement.
What are the plans LIC offer for retirement?
LIC offers two kinds of retirement plans — one is LIC Jeevan Akshay VI immediate annuity plan and New Jeevan Nidhi deferred annuity plan.
While in the first above mentioned type , the retirement corpus saved by a person has over his life time is utilized to give a pension on his retirement. A lump sum amount is invested in immediate annuity plan so as to start quick monthly pension payments to the person.
However, a LIC New Jeevan Nidhi deferred annuity method allows you to invest on a regular basis to first build a corpus and once you stop working (retire), you get a regular pension from this sum.
What is income tax on pension income.
An amount received from insurer is extremely tax inefficient as the total amount is added to your taxable income and is taxable as per the pensioner’s tax slab, therefore discouraging an investor from buying an annuity.
- Child Plan
- Discontinued Plan
- Endowment Plan
- Financial Planning
- Money Back Plans
- Pension Plan