LIC New Pension Plus Plan 867 Calculator
Unit Linked, Non-Participating, Individual Pension Plan (UIN: 512L347V01)
Plan Details
Calculation Results
Key Features of LIC New Pension Plus Plan 867
- Plan Type: Unit Linked, Non-Participating, Individual Pension Plan
- Entry Age: Minimum 18 years, Maximum 65 years
- Vesting Age: 60, 65, 70, or 75 years
- Premium Payment: Annual, Half-yearly, Quarterly, Monthly
- Minimum Premium: ₹12,000 per annum
- Lock-in Period: 5 years from date of commencement
- Fund Options: Multiple fund options available
- Tax Benefits: Premium paid eligible for tax deduction under Section 80C
- Annuity Options: Various annuity options available at vesting
- Partial Withdrawals: Allowed after lock-in period subject to conditions
Planning for a secure and comfortable retirement is a priority for many. The Life Insurance Corporation of India (LIC) offers various pension plans, and LIC New Pension Plus Plan 867 is one of the popular choices designed to help build a retirement corpus through disciplined savings. Alongside this plan, the LIC New Pension Plus Plan 867 calculator helps you estimate your returns and pension benefits, making retirement planning clearer and easier.
What is LIC New Pension Plus Plan 867?
LIC New Pension Plus Plan 867 is a unit-linked, non-participating individual pension plan launched by LIC. It combines systematic savings with investment in diversified funds to help policyholders accumulate sufficient corpus for their retirement.
Unlike traditional pension plans that offer fixed returns, this plan invests your premiums in various investment funds with the potential for higher long-term growth, along with guaranteed additions to the fund value.
- Unit-linked means your money is invested in market-linked funds (equity, bonds, etc.).
- Non-participating means policyholders do not participate in the profits or losses beyond the fund value and guaranteed additions.
- Provides the option of single premium or regular premium payments.
- Offers a flexible policy term ranging from 10 to 42 years.
Key Features of LIC New Pension Plus Plan 867
Understanding the key features will help you decide if this plan fits your retirement goals.
- Entry Age: 25 to 75 years
- Vesting Age (Maturity Age): Between 35 to 85 years
- Policy Term: Minimum 10 years, Maximum 42 years
- Premium Payment Options: Single premium or regular premiums (monthly, quarterly, half-yearly, yearly)
- Minimum Premium Amount:
- Single Premium: Rs 1,00,000
- Regular Premium: Rs 3,000 monthly, Rs 9,000 quarterly, Rs 16,000 half-yearly, Rs 30,000 yearly
- No maximum premium limit
- Lock-in Period: 5 years (you cannot withdraw funds before this period)
- Investment Funds: Pension Growth Fund, Pension Bond Fund, Pension Secured Fund, Pension Balanced Fund
- Guaranteed Additions: LIC adds guaranteed additions every year based on your premium paid
- Tax Benefits: Available under Section 80C and Section 10 (10D)
Benefits of LIC New Pension Plus Plan 867
This plan provides various benefits that make it attractive for retirement planning:
1. Accumulation of Retirement Corpus
Your premiums are invested in funds that grow over time. The corpus you build can be used for generating a pension during retirement.
2. Guaranteed Additions
Besides market-linked returns, LIC provides guaranteed additions to your policy fund value every year, enhancing your final corpus.
3. Flexibility in Premium Payments
You can choose to pay premiums as a lump sum (single premium) or as regular premiums (monthly, quarterly, etc.) based on your convenience.
4. Regular Pension
At maturity, the corpus can be converted into a regular pension (annuity). You can choose immediate or deferred annuities from LIC or any other insurer.
5. Partial Commutation
You can withdraw up to 60% of the maturity amount as a lump sum tax-free amount and use the remaining corpus to buy an annuity for regular pension income.
6. Death Benefits
In case of death during the policy term, your nominee receives the higher of the fund value or 105% of total premiums paid, ensuring financial security for your family.
Understanding the LIC New Pension Plus Plan 867 Calculator
The LIC New Pension Plus Plan 867 calculator is an online tool provided by LIC and other trusted financial websites that helps you estimate the maturity value and pension benefits based on your age, investment amount, premium payment frequency, and chosen policy term.
Why Use the Calculator?
- To plan your pension amount realistically based on different premium options and terms.
- To compare expected corpus growth under different investment fund options.
- To understand the impact of guaranteed additions and market returns on your corpus.
How to Use the LIC New Pension Plus Plan 867 Calculator?
Using the calculator is straight forward. Here are the typical inputs and what they mean:
- Age at Entry: Your age when you start the policy (must be between 25 and 75).
- Policy Term: Number of years you want to continue the plan (between 10 and 42 years).
- Premium Amount: The amount you will pay regularly or as a lump sum.
- Premium Payment Frequency: Monthly, quarterly, half-yearly, yearly, or single premium.
- Investment Fund Choice: You can select the fund type based on your risk appetite (growth, balanced, secured, or bond fund).
- Expected Rate of Return: Some calculators allow you to input an assumed rate of return (e.g. 8%).
Once you enter these values, the calculator shows:
- Estimated accumulation (fund value) at maturity.
- Projected annual pension you can receive after vesting.
- Guaranteed additions included in the corpus.
Example: Calculating Pension Benefits
Suppose you are 30 years old and decide to invest Rs 30,000 annually for 42 years in the plan with an expected return of 8%.
- Your total investment will be Rs 12,60,000 (30,000 x 42).
- The maturity amount projected by the calculator might be around Rs 59,92,991.
- The calculator estimates an annual pension of approximately Rs 7,06,928.
This example highlights how the plan can help build a substantial retirement corpus with disciplined savings and compounding growth over time.
Investment Fund Options Explained
LIC New Pension Plus Plan 867 offers four types of funds to suit different risk profiles:
- Pension Growth Fund: High-risk fund investing majorly in equities with potential for higher long-term returns.
- Pension Bond Fund: Low-risk fund investing primarily in government and corporate bonds.
- Pension Secured Fund: Conservative fund focused on secure debt instruments.
- Pension Balanced Fund: Moderate-risk fund with a mix of equities and debts.
Choosing the right fund depends on your risk tolerance and retirement horizon. Younger investors may opt for growth funds, while near-retirement investors may prefer balanced or bond funds to reduce risk.
Guaranteed Additions: How They Work
LIC adds guaranteed additions every year based on your policy year and premium type. These are fixed percentages added to your fund value to boost growth.
| Policy Year | Guaranteed Additions (Annual Premium %) | Guaranteed Additions (Single Premium %) |
|---|---|---|
| 6 | 5% | 4% |
| 10 | 10% | 5% |
| 11-15 | 4% | 1.25% |
| 16-20 | 5.5% | 1.5% |
| 21-25 | 7% | 2% |
| 26-30 | 8.75% | 2.5% |
| 31-35 | 10.75% | 3% |
| 36-40 | 13% | 3.75% |
| 41-42 | 15.5% | 4.5% |
These percentages enhance the fund’s value over the years, providing extra security and better retirement benefits.
Tax Benefits of LIC New Pension Plus Plan 867
Investing in LIC New Pension Plus Plan 867 provides tax advantages under Indian tax laws:
- Section 80C: Premiums paid up to Rs 1.5 lakh per year qualify for deduction from taxable income.
- Section 10(10D): Maturity proceeds (including pension commutation) are exempted from tax, subject to conditions.
- Partial commutation (up to 60%) is tax-free, while the remaining annuity income is taxable as per slab rates.
Always consult a tax advisor for updated rules and personal tax planning.
Who Should Buy LIC New Pension Plus Plan 867?
This plan is suitable for:
- Individuals aged 25 to 75 years looking to build a retirement corpus.
- Those willing to invest for a period ranging from 10 to 42 years.
- Investors seeking a mix of market-linked growth with guaranteed additions.
- People wanting flexibility in premium payment options and annuity choices.
- Those wanting tax benefits while saving for retirement.
- Policyholders who desire death benefits to secure their family’s future.
Important Considerations Before Buying
- The plan depends on market performance, as it’s linked to unit funds; returns are not guaranteed except for the additions.
- The lock-in period of 5 years means withdrawals are restricted initially.
- Consider your risk tolerance and retirement goal when choosing the fund type.
- Premium payment discipline is essential to maximize benefits.
- Visit LIC official website or use the LIC New Pension Plus Plan 867 calculator for personalized estimates before purchasing.
How to Access the LIC New Pension Plus Plan 867 Calculator?
You can use the official LIC website or trusted financial portals to access the calculator. Simply search for “LIC New Pension Plus Plan 867 calculator,” fill in the necessary details, and get your personalized pension estimate online.
Frequently Asked Questions
What is LIC New Pension Plus Plan 867?
It is a unit-linked pension plan by LIC designed to help you accumulate a retirement corpus by investing premiums in diversified funds with guaranteed additions.
Who can buy LIC New Pension Plus Plan 867?
Anyone aged between 25 and 75 years can buy this plan, with a policy term ranging from 10 to 42 years.
What is the minimum premium amount?
For regular premium, it starts from Rs 3,000 monthly, and for single premium, the minimum is Rs 1,00,000.
What are guaranteed additions?
Guaranteed additions are fixed percentages of your premiums added by LIC every year to enhance your fund value.
Can I choose where my premiums get invested?
Yes, you can select from Pension Growth Fund, Pension Bond Fund, Pension Secured Fund, or Pension Balanced Fund according to your risk appetite.
Is there a lock-in period?
Yes, there is a 5-year lock-in period during which you cannot withdraw your funds.
What happens if I die during the policy term?
Your nominee will receive the higher of the fund value or 105% of premiums paid, ensuring their financial security.
Conclusion
The LIC New Pension Plus Plan 867 offers a flexible, disciplined, and potentially rewarding way to create a steady pension income for retirement.
With the aid of the calculator, anyone can plan their contributions realistically according to their needs and visualize the benefits they can expect. Remember, early and regular investment helps in building a larger retirement corpus with the power of compounding and guaranteed additions.