Life Insurance Corporation of India (LIC) has created a pension method to maintain financial security for the aged. According to the LIC Pension Yojana, subscribers may reckon upon an assured monthly pension of up to ₹15,000. This money will help them go through stress-free days and a trouble-free neat life after retirement. The scheme is for individuals who would need a regular source of income for their living after retirement.
Overview of LIC Pension Scheme
LIC Pension Yojana is a central government pension scheme that provides a fixed monthly income to policyholders upon retirement. It is not a typical investment plan that focuses on steady income as a post-retirement benefit. Rather, the investor makes monthly contributions during their working years, and on reaching the maturity period or retirement age, they begin to receive monthly pension payments.
How the Scheme Works
This scheme provides for the individual to choose the amount of premium, term of policy, and amount of monthly pension. LIC bases the premium contribution under the plan on the amount of expected pension, age at entry, and term of policy entered into.
Hence, a specified amount paid by a person over a period of time may entitle him to a monthly pension of ₹15,000, giving retired persons security against any financial strain in old age. The scheme provides the flexibility to receive pension either monthly, quarterly, half-yearly, or annually.
Funding Key Benefits of LIC Pension Yojana
Assured income till the life of a policyholder is the prime advantage that comes with this particular plan. A policyholder will be assured an income for lifetime, therefore, having much less worry about medical bills, inflation, or any other costs that arise after retirement.
Moreover, one can avail of tax deductions against the contribution under the Income Tax Act, thus making this a remunerative and tax-effective plan. LIC also provides riders for a few benefits like extra pension for the spouse or dependent family members of the policyholder after his/her demise.
Why choose LIC Pension Yojana
With rising inflation and uncertainty about future financial needs, the LIC Pension Yojana stands out as a safe and sound retirement planning option. A retiree receiving ₹15,000 a month can carry on with a comfortable life covering essential expenses while enjoying a worry-free old age.