Any Indian citizen above age of 60 years can enroll for this scheme.
No upper limit for age.
What is the policy term?
The policy tenure is for 10 years.
Where to get it?
The scheme can be bought online or offline from LIC, which is the sole operator of the scheme.
What are the returns?
There is an assured return of 8% per annum.
The policyholder can get a minimum pension of rupees 1000 per month or a maximum of rupees 5000 per month.
| Mode of Pension | Minimum Purchase Price | Maximum,Purchase Price | Minimum Pension amount | Maximum Pension amount |
|---|---|---|---|---|
| Yearly | Rs. 1,44,578/- | Rs. 7,22,892/- | Rs. 12,000/- | Rs. 60,000/- |
| Half-yearly | Rs. 1,47,601/- | Rs. 7,38,007/- | Rs. 6,000/- | Rs. 30,000/- |
| Quarterly | Rs. 1,49,068/- | Rs. 7,45,342/- | Rs. 3,000/- | Rs. 15,000/- |
| Monthly | Rs. 1,50,000/- | Rs. 7,50,000/- | Rs. 1,000/- | Rs. 5,000/- |
The pension is for whole family and includes policy holder, spouse and dependants.
The corporation is authorized to all for life certificate ‘Jeevan praman’ from time to time for further releasing pensions to policy holders account.
Mode of payment
Mode of payment can be monthly quarterly half yearly or early based on the option chosen by policy holder. The payment will be made through NEFT or Aadhar enabled payment system into the account of the policy holder.
Premature withdrawal
Premature withdrawal is allowed for treatment of any terminal or critical illness for self or spouse. 98% of the invested value ( surrender value) will be refunded in such cases at policy holders request.
Documents required for premature withdrawal:
Discharge form along with the original policy document
Proof of medical treatment of self/spouse and
Proof of age, if the age is not admitted earlier.
Death of policy holder
In case of death (including suicide as cause of death) of policy holder the invested amount would be returned in full to the nominee.
Documents for claim in case of death of policy holder
Claim forms, as prescribed by the corporation,
Original policy document,
proof of title,
proof of death,
Maturity
On maturity that is after 10 years of policy completion final installment of pension along with the original amount invested would be returned to the policyholder.
Documents required on maturity
Discharge form along with the original policy document
Proof of age, if the age is not admitted earlier
Where a policyholder dies after the maturity of the policy but the proceeds and benefit of his policy has not been made to him because of his death, in such a case, his nominee shall be entitled to the proceed and benefit of his policy.
Loan
A facility for loan on the amount invested is also available after 3 years. Loan upto 75% of purchase price shall be allowed (to meet the liquidity needs). Loan interest (presently @10% per annum) shall be recovered from the pension installments and loan to be recovered from outstanding proceeds at the time of exit.
Cancellation of policy
If it is found that the policy holder is un-insurable due to terms and conditions of policy then the policy would be cancelled and surrender value will be paid as on the date of such cancellation.
Tax treatment
The proceeds from the policy are taxable in the hands of the policyholder commensurate with their tax bracket. It is however exempted from GST.
Free look period
If a policyholder is not satisfied with the the policy, he/she may return the policy to the corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason of objections. The amount to be refunded within free look period shall be the purchase price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.
Grievance Redressal Mechanism
(taken directly from policy document)
The Corporation has Grievance Redressal Officers at Branch/Divisional/Zonal/Central Office to redressgrievances of customers. For ensuring quick redressalof customer grievances LIC has introduced Customer friendly Integrated Complaint ManagementSystem through their Customer Portal (website) which is http://www.licindia.in, where a registered policyholder can directly register complaint / grievance and track its status. Customers can also contact at e-mail idco_crmgrv@licindia.com for redressal of any grievances.
In case the customer is not satisfied with the response or does not receive a response from LIC within 15 days, then the customer may approach the Grievance Cell of the IRDA through any of the following modes:
• Calling Toll Free Number 155255 / 18004254732 (i.e. IRDAI Grievance Call Centre)
• Sending an email to complaints@irda.gov.in
• Register the complaint online at http://www.igms.irda.gov.in
• Address for sending the complaint through courier/letter:
• Sending the complaint by Fax to 040-66789768
Claimants not satisfied with the decision of death claim repudiation have the option of referring their cases for review to Zonal Office Claims Dispute Redressal Committee or Central Office Claims Dispute Redressal Committee. A retired High Court / District Court Judge is member of each of the Claims Dispute Redressal Committees. For redressal of Claims related grievances, claimants can also approach Insurance Ombudsman who provides for low cost and speedy arbitration to customers.