Give your retirement the peace of mind and consistent income it so richly deserves. This page is intended for Indians who are looking for concise, useful information about LIC pension and annuity plans, including what they are, how they pay, and which LIC products are most frequently selected by pre-retirees and retirees.
| Sr. No. | Product Name | Plan No. | UIN No. | Brochure PDF |
|---|---|---|---|---|
| 1 | LIC New Pension Plus | 867 | 512L347V01 | Download |
| 2 | LIC Jeevan Akshay-VII | 857 | 512N337V06 | Download |
| 3 | LIC New Jeevan Shanti | 758 | 512N338V07 | Download |
| 4 | LIC Saral Pension | 862 | 512N342V05 | Download |
| 5 | LIC Smart Pension | 879 | 512N386V01 | Download |
Why choose an LIC pension / annuity?
- Lifetime income guarantee: turn a lump sum into a lifetime of regular pension payments without worrying about the market.
- There are several options for payout, including return-of-purchase-price options, increasing annuity (such as simple 3% p.a. increases), single life, joint life, and various payment frequencies.
- India’s public life insurer, LIC, is regulated and trusted. Each plan has official brochures and policy documents.
Featured LIC Pension Plans
| Sr. No. | Product Name | Plan No. | UIN No. | What it is (short) |
|---|---|---|---|---|
| 1 | LIC’s New Pension Plus | 867 | 512L347V01 | Unit-linked / pension accumulation and annuity options. |
| 2 | LIC’s Jeevan Akshay-VII | 857 | 512N337V06 | Single-premium immediate annuity (many payout options incl. increasing 3% p.a.). |
| 3 | LIC’s New Jeevan Shanti | 758 | 512N338V07 | Deferred annuity / purchase-price return options and lifetime payouts. |
| 4 | LIC’s Saral Pension | 862 | 512N342V05 | Standard immediate annuity (IRDAI standard product). |
| 5 | LIC’s Smart Pension | 879 | 512N386V01 | Flexible annuity choices (single/joint life, multiple modes). |
(All plan pages and official brochures are available on LIC’s site — always read the brochure for exact terms.)
Real-world example
Situation: A 60-year-old pays ₹5,00,000 for a single-premium immediate annuity under Jeevan Akshay-VII (Option: “Annuity for life”).
The annuity rate for some options under Jeevan Akshay-VII at age 60 is approximately 8.325% p.a., according to published annuity tables (example rates).
Calculation (clear):
- Annual pension = ₹5,00,000 × 8.325% = ₹41,625 per year.
- Monthly pension = ₹41,625 ÷ 12 = ₹3,468.75 per month.
Note: rates and options differ depending on the annuitant’s age, purchase price bands, and the specific annuity choice (Option F, G, H, I, etc.). For a precise quote, consult the official brochure or LIC-calculators.
Short expert viewpoint
“Annuities give retirees the certainty of lifelong income and should form a core component of retirement portfolios — experts often recommend allotting a meaningful portion to annuity-like instruments for income stability.” — financial experts quoted in national publications. (For example: Vivek Jain on retirement allocations.)
How to pick the right annuity for you
- Choose between deferred (start later) and immediate (start now) income timing.
- Joint vs. single: joint lowers the first annuity amount but offers spouse coverage.
- Choose between increasing (inflation protection; for example, simple 3% annually) or fixed (higher initial payout) annuity options.
- When it comes to healthcare, dependents, and legacy plans, many annuities sacrifice liquidity in exchange for guaranteed lifetime payments.
- To determine which option best meets your cash flow needs, compare net effective return by looking at annuity rate tables and calculating annual payout versus lump sum.
FAQs
A: Pension/annuity tax treatment depends on the plan and mode of payout. Part of the annuity may be taxable as income — consult a tax advisor for your situation. (Refer to latest tax rules.)
A: Yes — some options (e.g., “increasing annuity”) increase payouts by a simple fixed rate (LIC has options with 3% p.a. simple increase). This is different from compounded inflation indexing.
A: Minimum single premium/purchase price varies by plan and age band (examples: Jeevan Akshay/ New Jeevan Shanti have minimums; check the brochure).
A: Depends on the annuity option — some options return purchase price on death or continue a reduced annuity to spouse. Read option specifics in the brochure.
A: LIC’s official site hosts the sales brochures and policy documents for each plan (links and UINs listed on LIC pages). Always download the brochure before buying.
Short analysis
- Security > high returns: many retirees prioritize guaranteed lifetime cashflow over potentially higher but volatile returns.
- Choice matters: Option selection (return-of-purchase, increasing annuity, joint life) changes effective payouts materially — run scenarios before committing.
- Shop with facts: use official LIC brochures and a trusted annuity calculator (or adviser) to compare options and compute monthly cashflows for your exact age & premium.
Ready to take the next step?
- Download the official brochures for each plan (the PDFs for Saral Pension, Jeevan Akshay-VII, New Jeevan Shanti, New Pension Plus, and Smart Pension are available on the LIC website).
- Get a customised annuity estimate by preparing your anticipated age and purchase price. LIC partners’ websites have calculators that provide immediate examples.
- For advice specific to your tax, legacy, and healthcare needs, speak with a certified financial planner or licensed LIC agent.
The information above is specific to India and is based on official LIC brochures, as well as current annuity tables and publicly available expert commentary. Before making a purchase, always check the most recent LIC brochure for precise terms, annuity rates and minimums, and speak with a tax or financial advisor.