LIC’s Pension Plus

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LIC’s Pension Plus is a unit linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover.

LIC’s Pension Plus provide option of investing premiums in one of the two types of investment funds available. Premiums paid after deduction of allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).

1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or   quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can be paid.

A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums.

2 . Eligibility Conditions And Other Restrictions for LIC’s Pension Plus:

a)  Minimum Entry Age – 18 years (last birthday)

b)  Maximum Entry Age – 75 years (nearest birthday)

c)  Minimum Vesting Age  – 40 years (completed)

d)  Maximum Vesting Age –  85 years (nearest birthday)

e)  Minimum Deferment Term  –  10 years

f)   Sum Assured – NIL

g)  Minimum Premium –

Regular premium (other than monthly (ECS) mode) : Rs. [15,000] p.a.

Regular premium (for monthly (ECS) mode) : Rs. [1,500] p.m.

Single premium:  Rs. [30,000]

h)  Maximum Premium –

Regular premium : Rs. [1,00,000] p.a.

Single premium: No Limit


Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-.


3. Charges under LIC’s Pension Plus:

A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:

For Single premium policies:  3.3%

For Regular premium policies:

Premium             Allocation Charge

First Year                6.75%

2nd to 5th Year     4.50%

Thereafter             2.50%

Allocation charge for Top-up: 1.25%


B) LIC’s Pension Plus  Other Charges: The following charges shall be deducted during the term of the policy:


Policy Administration charge:  Rs. 30/- per month during the first policy year and Rs 30/- per month escalating at 3% p.a. thereafter, throughout the term of the policy shall be levied.

Fund Management Charge –It is a charge levied as a percentage of the value of units at following rates:

0.70% p.a. of Unit Fund for “Debt” Fund

0.80% p.a. of Unit Fund for “Mixed” Fund

Fund Management Charge shall be appropriated while computing NAV.

Switching Charge –This is the charge levied on switching of monies from one fund to another. Within a given policy year 2 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.

Bid/Offer Spread – Nil.

LIC’s Pension Plus Discontinuance Charge – The discontinuance charge for regular premium policies is as under:

the policy is discontinued during the policy year Discontinuance charges for the policies having annualized premium up to Rs. 25,000/- Discontinuance charges for the policies having annualized premium above Rs. 25,000/-
1 Lower of 10% * (AP or FV) subject to a maximum of Rs. 2500/- Lower of 6% * (AP or FV) subject to maximum of Rs. 6000/-
2 Lower of 7% * (AP or FV) subject to a maximum of Rs. 1750/- Lower of 4% * (AP or FV) subject to maximum of Rs. 5000/-
3 Lower of 5% * (AP or FV) subject to a maximum of Rs. 1250/- Lower of 3% * (AP or FV) subject to maximum of Rs. 4000/-
4 Lower of 3% * (AP or FV) subject to a maximum of Rs. 750/- Lower of 2% * (AP or FV) subject to maximum of Rs. 2000/-
5 and onwards NIL NIL


AP – Annualised Premium

FV – Policyholder’s Fund Value excluding the fund value in respect of Top-up premiums paid, if any, on the date of discontinuance.

There shall not be any discontinuance charge under Single Premium

Service Tax Charge – A service tax charge, if any, will be as per the service tax laws and rate of service tax as applicable from time to time.

Miscellaneous Charge – This is a charge levied for change in premium mode, if opted for by the policyholder during the deferment term. An alteration may be allowed subject to a charge of Rs. 50/-.

C)  Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the premium allocation charge, with the prior approval of IRDA.

Although the charges are reviewable, they will be subject to the following maximum limit:


– Policy Administration Charge Rs. 60/- per month during the first policy year and Rs. 60/- per month escalating at 3% p.a. thereafter, throughout the term of the policy



– Fund Management Charge: The Maximum for each Fund will be as follows:

Debt Fund: 1.20% p.a. of Unit Fund

Mixed Fund: 1.30% p.a. of Unit Fund

– Switching Charge shall not exceed Rs. 200/- per switch.

– Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested.

In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s fund value which shall be utilised to provide an annuity.


4. Discontinuance of Premiums: If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:

LIC’s Pension Plus is a Unit Linked Life Insurance product which is different from the traditional insurance products and is subject to the risk factors.

The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.

Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Pension Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.


Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.

The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

9. Cooling off period:

If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:

Value of units in the Policyholder’s Fund

Plus unallocated premium.

Plus PolicyAdministration charge deducted

Less charges @ Rs. 0.20 per thousand of Total Premiums payable during entire term of policy

10. Loan:No loan will be available under this plan.

11. Assignment: Assignment shall not be allowed under this plan.



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