Life Insurance Corporation of India ie LIC operates various types of insurance plans. In this episode, LIC has launched New Pension Plus plan. Under this scheme, LIC will give the benefit of pension for life to its insurer. It is a non-participating, unit linked individual pension plan, which helps in building a corpus i.e. a large corpus through systematic and disciplined savings. This fund can be converted into regular income at the end of the term by buying an annuity plan. This policy is effective from 5th September.

Users can buy this plan in 2 modes, single premium payment policy or as a regular premium payment plan. In the regular payment option, the premium has to be paid during the entire term of the policy.

The policyholder will have the option to choose the amount of premium payable and the term of the policy, minimum and maximum limit of premium and age. An option to extend the accumulation period or the deferment period will also be available within the same policy with the same terms and conditions as the original policy, subject to certain conditions. Deferment period means the estimated time that the policyholder expects to be incapable of working.

The policyholder gets the option to invest the premium in one of the 4 types of funds available. Premium allocation charges will be levied on every installment paid by the policyholder. The rest of the amount is known as the allocation rate, which is used to buy the units of the fund chosen by the policyholder. Four free switches are available for change of funds in a policy year.