LIC Retirement Plans – How to Buy LIC Policy Online without Agent?

Retirement Plans From LIC

If planning for retirement seems like it might be challenging, think again. It’s your chance to consider your goals for the future and shape a new life lived on your terms. However, the people of India often don’t start thinking about retirement till they are about to stop working.
In fact, It’s simple to put off thinking about retirement when reaching the correct age seems like a distant dream, but as each year passes by it starts to become more and more of a reality.
As experts in retirement, a Life Insurance Corporation of India (i.e. LIC) can help you understand your options and put your plan in place.
In our article, we will discuss retirement plans from LIC and we outline, how to buy the LIC retirement plans through online.

Here are a few questions to get your retirement planning underway. However, you should ask these questions yourself so that you can choose the perfect product for retirement.

  • How much amount will you need for your retirement plan?
  • How long will you expected spend in retirement?
  • Where will the amount come from?
  • Where will you live when you’re retired?

Now scroll down and make the best choice for your future.

Also Read National Pension System : A Complete Guide for Retirement Plan

What are the Different Types of LIC’s Retirement Plans?

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Currently, LIC offers best 4 retirement plans to help prospective buyers plan their retirement smoothly.

Let’s try and understand the basics of the below retirement plans and help you make a call on the one that’s best suited to your individual income and requirement.

What are Annuities?
Annuities are investment plans that provide regular payment in return of a lump sum investment.
These annuities help offer a steady form of income in retirement.

Different types of annuities:
Immediate Annuities: You can buy the annuity plan with a lump sum amount for a limited tenure or for a lifetime. Once you make this investment, your annuity payment starts immediately.
Deferred Annuities: Your annuity payment starts after a certain date.However, This is further divided into Accumulation & Vesting Phase.

LIC Saral Pension Plan – Single Premium

  • The Saral Pension Scheme is a non-linked, non-participating, single premium, individual immediate annuity plan.
  • A policy holder can pay a lump sum and get a fixed payment at regular intervals for the rest of the life.
LIC Retirement Plans #1Details
Annuity The two options are as follows:
1 : Life Annuity with return of 100% of purchase rate.
2: Joint life last survivor annuity with return of 100% of purchase price on death of the last survivor.
Modes of AnnuityMonthly, Quarterly and Half-Yearly and Yearly
Minimum and Maximum Monthly AnnuityThe minimum monthly annuity available in this plan is INR 1,000, quarterly INR 3,000, half-yearly INR 6,000 and yearly INR 12,000. However, there is no cap on the maximum limit.
EligibilityAged between 40 years to 80 years.
Mortgage facilityThe scheme offers mortgage facility to the policy holder after 6 months of the purchase.

The maximum amount of mortgage that can be granted under the policy shall be such that the effective annual interest amount payable on the mortgage does not exceed 50% of the annual annuity amount payable under the policy. However, Mortgage interest will be recovered from the annuity amount payable under the policy.

Also Read Tax Benefit on NPS Scheme – Tier 1 & Tier 2 | Is Employer Contribution to NPS Taxable?

LIC Jeevan Shanti Plan

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  • The Jeevan Shanti Plan provides you pension benefits after a certain period of time. However, If you have any issue related to the plan, then you can surrender anytime after three months.
  • No medical certificate will be required for this plan.
  • You have the choice to get pension immediately or start a pension anytime between 1 to 20 years as per your wish.
  • Ensured annuity rates will be given at the time of taking the policy for both immediate and deferred annuity options.
  • The option once selected cannot be modified.
  • Various annuity options and modes of annuity payment are available under the plan.
LIC Retirement Plans #2Detail
Modes of AnnuityMonthly, Quarterly and Half-Yearly, Yearly
Minimum and Maximum Monthly AnnuityThe minimum monthly annuity available in this plan is INR 1,000, quarterly INR 3,000, half-yearly INR 6,000 and yearly INR 12,000. However, there is no cap on the maximum limit.
EligibilityAged between 30 years to 85 years.
Mortgage facilityMortgage facility shall be available after completion of 1 policy year.

Annuity Options of Jeevan Shanti

#1 Immediate Annuity – The LIC’s Jeevan Shanti plan comes out with 10 annuity options that include immediate annuity for life, an immediate annuity with guaranteed period and life, immediate annuity for life with return of purchase price, etc.

Immediate Annuity – OptionDetails
AImmediate returns for a lifetime
BYou will receive guaranteed period of 5 years and life thereafter.
CYou will receive guaranteed period of 10 years and life thereafter.
DYou will receive guaranteed period of 15 years and life thereafter.
EYou will receive guaranteed period of 20 years and life thereafter.
FImmediate Annuity for life with Return of Purchase Price.
GImmediate Annuity for life increasing at a simple rate of 3% per annum.
HJoint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant.
IJoint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives.
GJoint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

#2 Deferred Annuity

Deferred Annuity OptionDetails
ADeferred annuity for Single life.
BDeferred annuity for Joint life

Also Read Atal Pension Yojana SBI : Eligibility | Features | Online & Offline | Chart

LIC’s Jeevan Akshay – VII

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  • This is an Immediate Annuity plan wherein the Policyholder has an option to choose type of annuity from 10 available options on payment of a lump sum amount.
  • The annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the lifetime of Annuitant(s).
  • The option once selected cannot be modified.
LIC Retirement Plans #4Details
Modes of AnnuityMonthly, Quarterly, Half-Yearly and Yearly
Minimum and Maximum Monthly AnnuityThe minimum monthly annuity available in this plan is INR 1,000, quarterly INR 3,000, half-yearly INR 6,000 and yearly INR 12,000. However, there is no cap on the maximum limit.
EligibilityAged between 30 years to 80 years.
Mortgage facilityMortgage facility will be available after 3 months from the date of issuance of the policy or after the expiry of the free-look period, whichever is later.
Purchase priceMinimum: Rs.1 lakh
Maximum: No-limit

Annuity Options of Jeevan Akshay

Immediate Annuity – The LIC’s Jeevan Akshay – VII plan comes out with 10 annuity options that include immediate annuity for life, an immediate annuity with guaranteed period and life, immediate annuity for life with return of purchase price, etc.

Immediate Annuity – OptionDetails
AImmediate returns for a lifetime
BYou will receive guaranteed period of 5 years and life thereafter.
CYou will receive guaranteed period of 10 years and life thereafter.
DYou will receive guaranteed period of 15 years and life thereafter.
EYou will receive guaranteed period of 20 years and life thereafter.
FImmediate Annuity for life with Return of Purchase Price.
GImmediate Annuity for life increasing at a simple rate of 3% per annum.
HJoint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant.
IJoint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives.
GJoint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

Also Read Sovereign Gold Bond : Best Returns on Gold Investment | 2021 Dates

LIC PMVVY Retirement Plan

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  • The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is now extended up to 31st March, 2023 for a further period of three years over and above 31st March, 2020.
  • The scheme provides initially an assured rate of return of 7.40 % p.a. for the year 2020-21 p.a. and thereafter to be reset every year.
  • On the death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.
  • The scheme also allows for premature exits for the treatment of any critical illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.
  • The scheme is exempted from GST.
  • If a policyholder is not satisfied with the T&C of the policy, holder may return the policy to the LIC within 15 days (30 days if this policy is purchased through online) from the date of receipt of the policy stating the reason of objections.
LIC Retirement Plans #3Details
Policy Term10 Years
Investment limitINR 15 lakh per senior citizen
Minimum PensionINR 1,000/- per month,
INR 3,000/- per quarter, INR 6,000/- per half-year, INR 12,000/- per year.
Maximum PensionINR 12,000/- per month, INR 30,000/- per quarter
INR 60,000/- per half-year, INR 1,20,000/- per year
EligibilityMinimum Entry Age – 60 years (completed)
Mode of pension paymentThe modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be via NEFT or Aadhaar Enabled Payment System.
Mortgage facilityMortgage facility is available after completion of 3 policy years. However, the maximum loan that can be granted shall be 75% of the purchase price.

Payment of Purchase Price

The PMVVY scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.

Mode of PensionMinimum Investment(INR)Maximum Investment(INR) Minimum Pension(INR) Maximum Pension(INR) 
Yearly1,56,65814,49,08612,0001,11,000
Half-yearly1,59,5714,76,0646,00055,500
Quarterly1,61,07414,89,9333,00027,750
Monthly1,62,16215,00,0001,0009,250

Now, let us learn how to buy LIC Policy through online

Also Read NPS Registration : Step-by-Step Guide for Online and Offline Process

How to Buy LIC Policy Online without Agent?

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Time needed: 10 minutes.

To buy any LIC policy online without an agent, you will have to go through some easy and simple steps provided in this paragraph below.

  1. LIC website

    Visit the official website LIC.
    Scroll down to find the ‘Buy Policy Online‘ section and choose the Policy based on above retirement plans.
    Best Retirement Plans From LIC1

  2. Buy Online

    Click on the tab ‘Buy Online‘ under LIC’s Policy.
    LIC online 1

  3. Click to Buy Online

    Scroll down and click on the tab ‘Click to Buy Online‘.
    Online4

  4. Contact Details

    Submit the required details such as your name, DOB, number, among others.
    Confirm the details and click on the tab ‘Calculate Premium‘.
    DetailsLIC5

  5. OTP

    Submit the OTP that you received on the registered mobile number.
    OTPlic6

  6. Calculate Premium

    Provide some more details and click on the tab ‘Calculate Premium’.
    lic8

  7. Registered User

    If you are a registered user of LIC, click on ‘Yes’. If you aren’t, click on ‘No’.
    Save7

  8. Proceed

    Click on the tab ‘Proceed’.
    lic9

  9. Proceed without e-KYC

    Again click on the tab ‘Proceed’.
    lic12

  10. Address Details

    Provide address details. Click on the tab ‘Next’.
    lic13

  11. Bank and Nominee

    Provide bank and nominee details. Click on the tab ‘Next’ then choose ‘Proceed to Pay’.
    lic14

  12. Payment

    Make the payment using the available payment mode.
    The company will share the policy documents on the registered email address.

Also Read National Pension Scheme with SBI : A Complete Guide

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