LIC Monthly Income (Investment) Plans

LIC Monthly Income Plans or investment plan are a type of annuity or pension plan where you invest a fixed amount at the start and then later the interest earned is credited back into the investor’s account on a monthly basis. This signifies that these funds work in such a way that the fixed income goes towards a regular monthly revenue and this is the reason why these types of plans are popular and seem attractive, especially for people planning for their post-retirement life. This is most often linked to a savings bank account where the regular income goes. 

In simple words, LIC Monthly Income Plans are deposits wherein the investors receive the interest or gains regularly on a monthly basis. 

What is LIC Monthly Income (Investment) Plan?

LIC (Life Insurance Corporation of India) Monthly Investment Plans are financial products designed to help individuals invest small amounts regularly, typically on a monthly basis, to build a corpus over time. These plans combine the benefits of insurance and investment, offering both financial protection and growth opportunities. With LIC Monthly Investment Plans, policyholders can choose from a variety of options that cater to different financial goals, such as wealth creation, retirement planning, and children's education. These plans usually feature systematic investment strategies, where a portion of the premium is invested in market-linked or fixed-income instruments, while the remaining part provides life insurance coverage. This dual benefit ensures that investors not only accumulate savings but also secure their family's financial future in case of unforeseen events.

Know about LIC 

Life Insurance Corporation of India is one of the finest and oldest insurance companies across the nation. The entity was founded in 1956 to secure lakhs of lives through insurance. The company addresses almost all life insurance needs of the consumers. It has various plans for different stages of life starting from savings plans, child insurance, and LIC monthly income plans among others. As of today, they have 2050+ branch offices, 110+ divisional offices, 8 zonal offices, and 1380+ corporate and satellite offices. The best thing about them is trust and goodwill among people and the best claim settlement ratio in the industry.

Types of LIC Monthly Income (Investment) Plan

Here are the two types of LIC Monthly income plans or investment plans in India.

Growth Based Monthly Income Plan:

In this, the profit made on the capital invested keeps getting clubbed with the capital. Here the thing to note is, that the returns are not given to the investors in repeated installments rather it is given together at the end of tenure with the capital.

Dividend-Based Monthly Income Plan:

Here, monthly payments in regular instalments go out in the form of income or dividends to the investors.

Best LIC Monthly Income (Investment) Plan List

1.) LIC Pradhan Mantri Vaya Vandana Yojana:

This LIC monthly income plan is designed to offer an assured return of 7.4% per annum payable monthly for 10 years. This plan gives the flexibility to opt for monthly/quarterly/half-yearly or yearly mode of regular income. This policy is exclusively for senior citizens. 

The eligibility criteria are the individual needs to be over 60 years of age. The policy term is 10 years and the minimum pension in case of a monthly option which can be received is Rs. 1,000 per month while the maximum pension is capped at Rs. 9,250 per month. 

The key features of this LIC monthly income plan are:

> Maturity benefits

On survival of the policyholder during the tenure of 10 years, the purchase price clubbed with the final pension instalments will be given. 

> Regular Payments:

In case of survival of the policyholder during the tenure, you will receive the instalment in arrears. 

> Death Benefits:

In case of the unfortunate demise of the policyholder during the tenure, the purchase price will be given back. 

2.) LIC New Jeevan Shanti Plan :

LIC has recently launched this new non-participating, non-linked, single premium, individual, deferred annuity scheme. The annuity rates are guaranteed at the initiation of the policy and annuities are paid post-deferment tenure throughout the life of the policyholder. 

The eligibility criteria for this monthly income plan are the individual needs to be at least 30 years old. The deferred period is 1 to 12 years with a vesting age of 31 to 80 years. The mode of an annuity can be monthly/quarterly/half-yearly or yearly. 

The key features of this LIC monthly investment plan are:

> Two Annuity options:

There are 2 annuity options available which are deferred annuity for joint life and deferred annuity for single life.

> Lifetime Income:

In return for a one-time invested fund, this plan offers guaranteed lifelong income.

> Loan Facility:

The loan facility shall be available at any time after 3 months from the date of issuance of the policy.  

3.) LIC Jeevan Akshay Policy: 

LIC has launched its Jeevan Akshay VII Pension Plan which is an immediate annuity plan. LIC is a reliable and trusted brand and many would opt for pension and insurance products as these are lifetime commitments.

The eligibility criteria for this monthly investment plan are the individual must be between 30 years to 85 years of age, the minimum purchase price is Rs. 1,00,000 and there is no maximum price. The minimum annuity is 1,000 per month with the availability of 4 payments more of monthly, quarterly, half-yearly, and yearly. 

The key features of this LIC monthly income plan are: 

• 10 varied annuity options are available for all types of investors to opt from.
• The loan facility will be available after the free-look period or after 3 months of the date of issuance of the policy, whichever is later.
• The annuity rates are guaranteed at the inception of the plan and annuities are payable throughout the lifetime of the annuitant(s).
• An incentive for a purchase price of Rs. 5 lacs & more is available. It will increase the annuity rate.

Benefits of LIC Monthly Income/ Investment Plan 

1.) Guaranteed Regular Income:

The prime benefit of this monthly investment plan is regular monthly income. Policyholders or their nominees are entitled to receive a fixed amount no matter what. In uncertain times, where the market is volatile and the economy is not going up, these plans can assist investors in times of need. 

2.) Increased overall payout:

Most of the plans often offer bonus amounts. At the end of the tenure, the overall amount includes the interim bonus, reversionary bonus, and terminal bonus. These bonuses are declared by the entity at the end of each year as a percent of the sum assured. 

3.) Tax benefits:

These monthly income plans offer tax benefits under section 80C and Sec 10(10D) of the Income Tax Act 1961. This means that your income is considerably reduced and it may result in a change of your income slab rate to a lower one. 

4.) Get Insurance Cover:

The LIC’s MIPs offer a certain cover for the policyholders in addition to a number of additional perks or riders. This gives the holders and their nominees a secure cover in case of an unforeseen event. Optional cover is also offered to offer protection against any loss of income from an accident, critical illness, and disability among others. 

Conclusion

In conclusion, LIC Monthly Income Plans offer a promising avenue for investors seeking steady returns. With the assurance of regular income and the potential for wealth accumulation, these monthly investment plans cater to diverse financial needs. Whether you're looking for a monthly investment plan or a reliable source of income, LIC's offerings provide stability and growth potential. However, it's crucial to analyze your financial objectives and risk appetite before choosing the most suitable LIC monthly income plan. With perfect decision-making and strategic planning, investors can leverage these monthly plans to secure their financial future effectively.