Life Insurance Corporation of India (LIC) has introduced a new non-participating, unit-linked pension plan called ‘New Pension Plus’. According to LIC, the scheme will ‘help build corpus by systematic and disciplined savings which can be converted into regular income by purchase of an annuity plan on completion of terms’.
This new pension plan came into effect from September 5, LIC said in a tweet. Here’s all you need to know about the scheme:
(1.) It can be purchased either as a single premium payment policy or regular premium payment. Under the regular policy, the amount shall be payable over the term of the policy.
(2.) Subject to policy term, vesting age, and the minimum and maximum limits of premium, the policyholder will have the option to choose the premium amount payable and policy term.
(3.) An option to extend the accumulation period or deferment period within the same policy, with the same terms and conditions as in the original policy, will also be available (under certain conditions).
(4.) To invest the amount, the policyholder will have the choice to select a fund from a total of four; each premium shall be subject to a ‘Premium Allocation Charge.’
(5.) Guaranteed additions offered by LIC shall be payable as 5% to 15.5% on regular premium, and up to 5% on single premium. In both cases, these have to be paid on the completion of a policy year.
(6.) The plan is, in the words of LIC, ‘suitable for young persons to make provisions for post-retirement life’, and can be purchased both offline (through agents/intermediaries) and online (from licindia.in). Its Unique Identity Number (UIN) is 512L347V01.