As the old adage goes, "Don't put all your eggs in one basket." In financial…
With the increase in life expectancy and evolving retirement needs, pension plans have become an essential part of financial planning. One such instrument gaining popularity is the LIC Jeevan Shanti Pension Plan. For those considering a pension plan investment, the question arises, what are the key benefits?
LIC Jeevan Shanti Pension Plan Benefits
Offered by India’s largest insurance and investment corporation, LIC, the Jeevan Shanti Plan provides guaranteed returns in the form of annuity payments while ensuring life cover. Packed with several benefits, below are some of the main ones.
Contrary to market-linked products, in LIC Jeevan Shanti Pension Plan, the guarantee is at the heart. Upon purchasing, the annuity rates are lock-in. This means, your pension income is determined and fixed, regardless of interest rate fluctuations in the future.
Flexible Annuity Options
With Jeevan Shanti Plan, the investor gets the luxury of flexibility. This plan allows you to choose from nine different annuity options suitable to various life circumstances, giving control over your retirement income. Isn’t that a change of pace?
Immediate or Deferred Annuity
Another significant advantage is the option to choose between immediate or deferred annuity. Can’t wait to get your monthly payout? Go for an immediate annuity. Have some years before you retire? Opt for a deferred annuity option to accumulate a higher pension.
When it comes to taking care of dependents, this plan stands out. Dependent upon the chosen annuity option, in case of any unfortunate incident, a return of purchase price or annuity payment is provided to the nominee, ensuring your loved ones are financially secure.
And the icing on the cake? Tax benefits. As per Section 80CCC, premiums paid towards the Jeevan Shanti plan are deductible from your taxable income, thus reducing your tax liability.
The Final Word
In conclusion, the LIC Jeevan Shanti Pension Plan, with its multidimensional benefits and flexible annuity options, is indeed a tool to consider. The guaranteed benefits offer reliability for those eyeing steady retirement income.