What are LIC Monthly Income Plans ?
Monthly Income Plans 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 saving bank account where the regular income goes.
In simple words, MIPs are deposits wherein the investors receives the interest or gains regularly on a monthly basis.
Know about LIC Monthly (Pension) Plans
Life Insurance Corporation of India is one of the finest and oldest insurance companies across the nation. The entity was founded in the year 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, LIC monthly income plan 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 Monthly Income Plans (LIC Monthly Investment Plan)
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, the returns are not given to the investors at repeated installments rather it is given together at the end of tenure with the capital.
Dividend Based Monthly Income Plan:
Here, monthly payments at regular installments go out in the form of income or dividends to the investors.
Monthly Pension Plan Offered by LIC
LIC Pradhan Mantri Vaya Vandana Yojana:
This plan by LIC is designed to offer an assured return of 7.4% per annum payable monthly for 10 years. This plan gives the flexibility to opt from monthly/quarterly/half-yearly or yearly mode of regular income. This policy is exclusively for senior citizens.
The eligibility criteria are the individual need to be over 60 years of age. The policy term is 10 years and the minimum pension in case of 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 plan are:
Maturity benefits
On survival of the policyholder during the tenure of 10 years, purchase price clubbed with the final pension installments will be given.
Regular Payments:
In case of survival of the policyholder during the tenure, you will receive the installment in arrears.
Death Benefits:
In case of the unfortunate demise of the policyholder during the tenure, the purchase price will be given back.
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 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 plan are:
Two Annuity option:
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:
Loan facility shall be available at any time after 3 months from the date of issuance of policy.
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 plan are the individual must be between 30 years to 85 years of age, the minimum purchase price is Rs. 1,00,000 while 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 plan are:
- 10 varied annuity options 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 Plan (LIC Monthly Investment Plan)
Guaranteed Regular Income:
The prime benefit of this 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 the investors in times of need.
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.
Tax benefits:
These 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.
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.
Also Read:
LIC New Jeevan Anand Plan
LIC’s New Endowment Plan
Unit Linked Insurance Plans
Importance of Health Insurance
LIC Tech Term Plan
LIC Jeevan Akshay Policy VII
LIC Term Insurance Plans
LIC Jeevan Amar Plan
LIC Jeevan Lakshya Plan
What is Fixed Deposit
Kisan Vikas Patra Scheme