Customers can purchase this plan either by paying a single premium or through regular premium payment frequency. Under the regular premium policy, the premium shall be payable over the term of the policy, according to the information on the LIC website.
After the end of the policy term, the customer can use the entire proceeds to purchase an immediate or deferred annuity at the then prevailing rates from LIC or any other insurance company. They may also commute up to 60% of the fund and buy an immediate or deferred annuity with the remaining amount at the prevailing rates from LIC or any other insurer.
The scheme has four investment options – Pension Growth Fund, Pension Bond Fund, Pension Secured Fund, and Pension Balanced Fund.
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Minimum and Maximum Premium
The minimum amount required for a single premium payment under the New Pension Plus plan is Rs 1 lakh. In the case of regular premium, the minimum monthly contribution required is Rs 3000 whereas the minimum yearly premium is Rs 30,000. There is no maximum limit.
The minimum age required for buying this plan is 25 while the maximum age is 75 years.
The minimum policy term for both single and regular payment frequencies is 10 years while the maximum is 42 years.
Plan 867 Calculator
The LIC website provides an online calculator that can be used by customers to understand what will be their fund’s value after the end of the policy term, depending on the investment option chosen and expected returns on investment.
For example, the LIC calculator shows that the fund value of a monthly premium of Rs 5000 under the Pension Growth Fund will be approx Rs 23 lakh in 20 years, assuming 8% returns. In case of 4% returns, the fund value would be approx. Rs 15 lakh after 20 years.
In 35 years, the fund value could be approx Rs 75 lakh at 8% returns and approx Rs 32 lakh at 4% returns.
For a monthly contribution of Rs 10,000, the fund value will be approx Rs 46 lakh after 20 years, assuming 8% returns and Rs 30 lakh at 4% returns, the LIC calculator shows.
For a monthly contribution of Rs 10,000, the fund value will be approx Rs 28 lakh after 15 years, assuming 8% returns and approx Rs 21 lakh at 4% returns, as per the LIC calculator.
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Similarly, for a monthly contribution of Rs 5,000, the fund value will be approx Rs 14 lakh after 15 years, assuming 8% returns and approx Rs 10 lakh at 4% returns, according to the LIC calculator shows.
The fund value of a single premium of Rs 50 lakh in 10 years will be approx Rs 93 lakh.
Disclaimer: The above content is for information purposes only. Plan details and calculations are based on information available on the LIC website and LIC calculator. Please consult your insurance advisor before buying any policy.