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Life Insurance Corporation of India

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Life Insurance Corporation of India

Overview
Life Insurance Corporation of India is one of the largest insurers in India, having impacted over 250 million customers and counting. The company started its journey 5 decades earlier and is one of the most trusted and reputed brands in the country. The company came into being on the 1st of September, 1956 once the Life Insurance Corporation Act was passed by the Parliament on the 19th of June, 1956.

LIC has a gargantuan network of 2, 048 branch offices, 1, 381 satellite offices, 8 zonal offices and 113 divisional offices apart from its Corporate office. The Wide Area Network covers the divisional offices. There are ECS and ATM facilities for customers along with term, money back, health, pension and other plans. LIC has already issued more than 1 crore policies annually.

Life Insurance Corporation of India at a glance
  • The most popular public sector life insurance company in India
  • Formed in 1956 after merging 245 insurance companies and societies
  • Works on the motto from The Bhagavat Geeta “Yogakshemam Vahamyaham”
  • Wide network of 2048 branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices and the corporate office.
  • Awarded the Fame Excellence Awards 2016

Life Insurance Corporation of India Pension Plans
There are several Life Insurance Corporation of India pension plans that are available for customers. These pension plans help in safeguarding senior citizens and their families post retirement. This helps in obtaining a more secure future for everyone. The plans available include New Jeevan Nidhi, Pradhan Mantri Vaya Vandana Yojana and Jeevan Akshay.

Documentation needed to apply for Life Insurance Corporation of India
  • Age proof - (Any One)
    Driving License, Passport, Voter ID Card, Birth Certificate, etc
  • Identity proof – (Any One)
    Driving License, Passport, Voter ID card, PAN Card, Aadhar Card, or any document which proves citizenship
  • Income proof
  • Address proof – (Any One)
    Driving License, Passport and Utility Bill should clearly mention the permanent address
  • Income proof – (Any One)
    Salary Slip, Form 16, ITR
  • Recent passport size photograph

LIC Pension Plans
  • LIC Pradhan Mantri Vaya Vandana Yojana: Pradhan Mantri Vaya Vandana Yojana for citizen age 60 years and above. Launched on 4th May 2017.The scheme shall be available for one year from date of launch and is available exclusively from LIC.
  • LIC Jeevan Akshay-VI: A pension plan tailor made to suit the financial requirement of post active working years. The plan provides for annuity payments for life at a uniform rate.
  • LIC's New Jeevan Nidhi: A traditional pension plan with a combination of protection and saving. The policy provides for Guaranteed Additions @ Rs.50/- per thousand Basic Sum Assured for each completed year, for the first five years.

1: LIC Pradhan Mantri Vaya Vandana Yojana: A pension plan offered exclusively by Life Insurance Corporation of India. The plan offers maturity benefits on survival of the pensioner to the end of the policy term of 10 years. The purchase price along with final pension installment shall be payable.

Advantages and Benefits
  • Available only for one year from date of launch i.e 4th May 2017.
  • Open for citizens aged 60 years and above.
  • Loan facility is available after completion of 3 policy years.
Features Description
Minimum Entry Age 60 years (completed)
Maximum Entry Age No limit
Policy Term 10 years
Minimum Pension Rs. 1,000/- per month
Rs. 3,000/- per quarter
Rs.6,000/- per half-year
Rs.12,000/- per year
Maximum Pension Rs. 5,000/- per month
Rs. 15,000/- per quarter
Rs. 30,000/- per half-year
Rs. 60,000/- per year 
Minimum Purchase Price Yearly Rs. 1,44,578/-
Half-yearly Rs. 1,47,601/-
Quarterly Rs. 1,49,068/-
Monthly Rs. 1,50,000/-
Maximum Purchase Price Yearly Rs. 7,22,892/-
Half-yearly Rs. 7,38,007/-
Quarterly Rs. 7,45,342/-
Monthly Rs. 7,50,000/-

2: LIC Jeevan Akshay-VI: A popular pension plan from the house of Life Insurance Corporation of India. The plan offers Annuity payable for life at a uniform rate making it suitable for pensioners to receive income after their active working years.

Advantages and Benefits
  • No medical examination is required under the plan.
  • Options to choose annuity payout options as per personal preference
  • For policies sold online, a rebate of 1% by way of increase in the annuity rate is made available.
Annuity options available (Option once selected cannot be altered)
  • Annuity payable for life at a uniform rate.
  • Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
  • Annuity for life with return of purchase price on death of the annuitant.
  • Annuity payable for life increasing at a simple rate of 3% p.a.
  • Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
  • Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
  • Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of last survivor.
Features Description
Minimum Entry Age 30 years (completed)
Maximum Entry Age 85 years (completed)
Minimum Purchase Price Rs.100, 000/- for all distribution channels except online.
Rs.150, 000/- for on line sale.
Premium Payment To be made in a lump sum

3: LIC's New Jeevan Nidhi: A popular traditional pension plan offering financial cushion after the active working years. The plan pays out on vesting an amount equal to the Basic Sum Assured along with accrued Guaranteed Additions, vested simple reversionary bonuses and any final additional bonuses if applicable.

Advantages and Benefits
  • Offers a death cover during the deferment period and offers annuity on survival to the date of vesting.
  • Policy provides for Guaranteed Additions @ Rs.50/- per thousand Basic Sum Assured for each completed year for the first five years.
  • Option to choose LIC’s Accidental Death and Disability Benefit Rider.
Features Description
Minimum Basic Sum Assured Rs.1,00,000 under Regular Premium policies Rs.1, 50,000 under Single Premium policies
Maximum Basic Sum Assured No Limit (The Basic Sum Assured shall be in multiples of Rs.5000/-) (in years)
Minimum Age at entry 20 (nearest Birthday)
Maximum Entry Age 60 (nearest Birthday) under Single Premium 58 (nearest birthday) under Regular Premium
Deferment period 5 to 35 under Single Premium & 7 to 35 under Regular Premium
Minimum Vesting Age 55 (nearest birthday)
Maximum Vesting Age 65 (nearest Birthday)