LIC – Life Insurance Products

Pension Plans

Insurance-based solutions designed to support retirement income needs.

How we help

Pension plans from insurers build a corpus while you work and convert it into an annuity, a regular income, when you retire. Immediate annuity plans start that income straight away in return for a single premium.

The choices that matter are when the income starts, whether it continues to your spouse after your death, and whether the purchase price is returned to your nominee. Each option changes the income you receive.

We compare the annuity options available to you and show how this income would sit alongside your other retirement savings.

What it covers

Retirement-focused benefits
Options subject to product availability
Terms vary by policy

Policy benefits, eligibility, premiums, and terms vary by insurance product.

Before you decide

Points to check

01Whether you need a deferred annuity, which builds a corpus first, or an immediate one
02The annuity option: for your life only, joint life with your spouse, with or without return of the purchase price
03The annuity rate offered and how often income is paid
04How the annuity income will be taxed in your hands

Common questions

What people ask us about Pension Plans

Is annuity income taxable?

Yes. Annuity income is added to your total income and taxed at your slab rate in the year you receive it.

Can I change the annuity option later?

Generally not. The option is fixed when the annuity starts, so it is worth choosing carefully, with your spouse's needs in mind.

What does return of purchase price mean?

The amount you used to buy the annuity is paid to your nominee on your death. In exchange, the regular income is lower than under a life-only annuity.