LIC launches new pension plan

Hyderabad: Life Insurance Corporation of India (LIC) has introduced a new plan – LIC's New Pension Plus – a non-participating, unit linked, individual pension plan which helps to build corpus by systematic and disciplined savings which can be converted into regular income by purchase of an annuity plan on completion of term.

The product was launched during Insurance Week Celebration in the presence of GN Bajpai, Retired Chairman, LIC & SEBI and TS Vijayan, Retired Chairman, LIC & IRDAI. This plan can be purchased either as single premium or regular premium payment frequency. Under a regular premium policy, the premium shall be payable over the term of the policy.

The policyholder shall have option to choose the amount of premium payable and policy term subject to minimum and maximum limits of premium, policy term and vesting age. An option shall also be available to life assured to extend the accumulation period or deferment period within the same policy with the same terms and conditions as the original policy subject to certain conditions.

The policyholder has a choice of investing premiums in one of the four types of funds and four free switches for change of funds in a policy year. Each premium paid by the policyholder shall be subject to premium allocation charge. The balance amount known as allocation rate constitutes that part of premium which is utilised to purchase the units of the fund chosen by the policyholder in the policy.