Established as a prominent name in the insurance sector, the Life Insurance Corporation of India (LIC) has an extensive range of insurance and investment solutions tailored to the diverse needs of its customers.
Recognising the significance of financial security in the golden years, LIC has brought policies crafted especially for senior citizens. For those searching for the best LIC policy for above 60 years, LIC has curated plans to ensure that even those above 65 years can relish the benefits of a steady pension post-retirement.
Whether you're nearing retirement or have already stepped into this phase, understanding these LIC policies for senior citizens will equip you with insights to make an informed decision for a comfortable future.
Let’s take a closer look at the LIC policies for age above 60 years.
Best LIC Policies for Above 60 Years
The twilight years of life bring with them the desire for security and the comfort of stable financial backing. Understanding this requirement, LIC offers a range of policies tailored for those aged above 60. These plans not only provide the assurance of financial security but also come loaded with numerous benefits.
Let's dive into some of the best LIC policies for individuals above 60 years and break down their key features and advantages.
1. LIC New Jeevan Shanti Plan
The LIC New Jeevan Shanti is a single premium annuity plan. Designed for those who have a substantial amount ready for investment, this policy only requires a one-time payment, minimally set at INR 1.5 lakh. Policyholders can start reaping the benefits after a predetermined period which they can select as per their convenience—be it a month, 3 months, 6 months, or an entire year.
The shining aspect of this plan is the promise of a guaranteed annuity for the policyholder's entire life. Depending on the buyer's preference, the policy can be structured for a Single Life or a Joint Life deferred annuity. Moreover, it provides the flexibility of having a single purchaser with multiple beneficiaries.
Salient Features of LIC New Jeevan Shanti
Flexible Surrender Options: Policyholders have the liberty to surrender the policy at any point during its tenure.
Annuity Payment Choices: The annuity can be availed in intervals of 1 month, 3 months, 6 months, or 1 year. However, it's worth noting that if annuity payments are not made annually, deductions will apply. The annuity amount is reduced by 2% for half-yearly, 3% for quarterly, and 4% for monthly payments.
Loan Facility: After 12 months from the policy's commencement (or after the specified 'look out' period), policyholders can apply for a loan against the policy.
Death Benefits: In case of the policyholder's demise, the beneficiaries receive either 105% of the Purchase Price or the Purchase Price plus Accrued Benefits minus any Annuity already paid out.
Uniform Death Benefits: Regardless of the policy variant chosen, the death benefits remain consistent.
Entry Age: Individuals between the ages of 30 and 79 years are eligible to purchase this policy.
Vesting Age: 31 to 80 years
Purchase Price Parameters: The minimum purchase price is INR 1,50,000, with no upper cap set on the maximum amount.
2. LIC Jeevan Akshay – VII
The 'Single Premium Policy' system was introduced to simplify insurance practices. In such a design, the policyholder pays a singular substantial amount upfront.
Jeevan Akshay - VII by LIC, a single premium plan, ensures annuity payouts for the policyholder's lifetime. These policies have changed over time to offer a spectrum of features. Some allow the investor to predetermine the annuity amount and have the plan extend anywhere between 5 to 20 years. Additionally, certain plans offer deferred interest rates and bonus amounts upon maturity.
Available Annuity Options
Option A: Lifetime annuity
Option B: Minimum 5-year annuity payout. If the policyholder is alive, it continues for a lifetime.
Option C: 10-year guaranteed annuity, followed by lifelong payouts if the annuitant survives
Option D: 15-year guaranteed annuity, followed by lifelong payouts if the annuitant survives
Option E: 20-year guaranteed annuity, followed by lifelong payouts if the annuitant survives
Option F: Lifelong annuity with the return of 'Purchase Price' posthumously
Option G: Lifelong annuity that sees a 3% annual increase
Option H: Lifelong annuity, followed by a 50% annuity to a beneficiary after the primary holder's demise
Option I: Lifetime annuity for the main holder, with a 100% annuity for surviving beneficiaries
Option J: Lifelong annuity for the primary holder, 100% annuity for beneficiaries, and a return of 'Purchase Price' upon the last survivor's death
Key Features of LIC Jeevan Akshay - VII
Free-Look Period: A 30-day window allows the policyholder to review the terms. Return of the policy is permitted for options F and J.
Loan Facility: After 3 months or the completion of the free-look period (whichever is later), a loan can be secured against the policy.
Annuity Payout Frequency: You can choose from monthly, quarterly, half-yearly, or yearly payouts.
Age Bracket: Suitable for those aged between 30 and 85 years
Purchase Price Range: The minimum price is set at INR 1,00,000 to qualify for the base annuity. Note that there's no upper limit.
Minimum Annuity Amounts: Fixed at INR 1,000 monthly, INR 3,000 quarterly, INR 6,000 half-yearly, and INR 12,000 yearly.
3. Pradhan Mantei Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana stands as a testament to the government's commitment to safeguarding the interests of its elderly. The scheme, active until 31st March 2023, offers a fixed return of 7.4%.
Designed exclusively for senior citizens residing in India, the policy has an investment cap, termed the 'Purchase Price,' of INR 15 Lakh.
Salient Features of PMVVY
Pension Payment Flexibility: Pensioners can opt for monthly, quarterly, half-yearly, or yearly payouts.
AADHAAR Enabled Payouts: Ensures secure pension disbursements via NEFT
Investment Ceiling: The maximum permissible investment is capped at INR 15 Lakh.
Policy Liquidation: Policyholders can liquidate only after completing 3 years.
Loan Provision: After 3 years from the start of premium payment, a loan amounting to 75% of the 'Purchase Price' can be availed.
Surrender Clause: If the policyholder or their spouse faces terminal illness, the policy can be surrendered, fetching 98% of the 'Purchase Price'.
Survival Benefit: On surviving the term, the policyholder receives the 'Purchase Price' alongside the final pension installment.
Death Benefit: In case the policyholder passes away during the policy's tenure, the 'Purchase Price' is conferred upon the designated beneficiary.
Entry Age: The plan is open to individuals aged 60 and above.
Age Limit: There's no upper age limit under this plan, which allows wider accessibility.
Policy Tenure: The scheme is active for a span of 10 years.
Pension Bracket: The minimum monthly pension is INR 1,000, while the maximum stands at INR 9,250.
Advantages of LIC Policies for Senior Citizens
Let’s take a look at some of the key benefits of LIC senior citizens plans –
A Pillar of Financial Stability: LIC policies play a crucial role in ensuring consistent monetary support, especially after retirement. With these plans, the policyholder and their family can lead a life of comfort even when regular income ceases.
Enhanced Health Security: As one ages, health issues can crop up unexpectedly. With an LIC policy, senior citizens can rest easy knowing that their health and well-being are financially covered.
Educational Support for Offspring: Unexpected or substantial educational expenses for a senior citizen's children or grandchildren can be daunting. With LIC policies, such expenses can be effortlessly managed, securing the future of the next generation.
A Comprehensive Savings Mechanism: LIC policies act not just as insurance but also as a savings instrument. Even if one occasionally misses premium instalments, the underlying principal pushes the policyholder towards disciplined savings, which can be a boon during post-retirement years.
Collateral for Loans: An added advantage of LIC policies is their acceptability as collateral. Senior citizens can leverage their policy for a loan shortly after its issuance, enhancing their financial flexibility.
A Buffer against Uncertainties: While life is riddled with uncertainties, you can be assured of a shield against these vagaries through these LIC policies. By mitigating risks, these policies protect you against financial stress and ambiguity.
Over to You
LIC, as one of India's trusted insurance providers, offers various policies tailored to the unique needs of senior citizens. For those over 60, and even for individuals who are above 65, LIC offers policies that ensure financial steadiness, allowing for a relaxed and well-prepared retirement phase.
Whether one is approaching retirement or has already transitioned into this phase, LIC's offerings for senior citizens can be beneficial in fulfilling one’s varied financial requirements that come with advancing age.
National Pension Scheme (NPS), a government-backed retirement savings plan designed to provide Indian citizens with a stable post-retirement income. Check out its features, benefits, operative steps, and more.
Sukanya Samriddhi Yojana: Know the interest rates, features, benefits and eligibility criteria of this government funded programme! Sukanya Samriddhi Yojana interest rate is determined by the Government of India and is revised every quarter.
Explore the comprehensive features and benefits of the LIC Jeevan Shanti Annuity Plan, highlighting how it can help secure your financial future and provide a stable income stream during your retirement years.
Find out LIC Jeevan Labh 836 surrender value in just a few simple steps with our handy surrender value calculator! It also highlighted the factors you should keep in mind while surrendering your policy.
To check your LIC policy status through SMS, type ASKLIC followed by the specific code for the desired function (check the list in the next section for details) and send it to 9222492224 from your registered mobile number.
LIC policies for 5 years - Explore the various LIC plans available for a 5-year duration, highlighting their features, benefits, and the points individuals should keep in mind while selecting a suitable plan to secure their financial future.
LIC New Jeevan Anand Plan - We will explore one of LIC's flagship plans called the LIC New Jeevan Anand Plan. Designed to provide financial protection and savings benefits, this plan offers a unique combination of life coverage and maturity benefits.