LIC To Launch Pension Plus Scheme With Guaranteed Return

Life Insurance Corporation (LIC) has launched a unit-linked pension scheme with a minimum guaranteed return of 4.5 per cent, called Pension Plus.

"The new scheme, which comes with host of benefits, would be launched tomorrow," LIC Senior Divisional Manager (Delhi Zone) T S Ramakrishnan said.

This is a unique pension plan where a minimum rate of interest of 4.5 per cent is guaranteed, he said, adding that after maturity, one-third of the corpus can be withdrawn as a lumpsum amount.

The remaining two-thirds would be paid in either monthly or half-yearly installments after maturity, which would be decided by the policy holders, he said.

The Pension Plus policy is in line with the Insurance Regulatory and Development Authority's latest ULIP guidelines, which became effective on 02-09-2010, he said.

The Pension Plus plan would be available in two options -- debt fund and mixed fund. Under the debt fund, not less than 60 per cent of the corpus would be invested government securities, while the remaining 40 per cent would go into money market instruments, he said.

In the case of the mixed fund plan, he said the investment in government securities would not be less than 45 per cent, while 40 per cent would go into money market instruments and 15-35 per cent into equities.

This plan can be subscribed by any one between 18-75 years of age and the minimum maturity period is 10 years.