LIC New Pension Plus Plan 867 Calculator

Planning for a secure and comfortable retirement is one of the most important financial goals. The LIC New Pension Plus Plan 867 offers an excellent way to build a retirement corpus while enjoying the benefits of a life insurance policy linked to market investments.

What is LIC New Pension Plus Plan 867?

The LIC New Pension Plus Plan 867 is a unit-linked individual pension plan offered by Life Insurance Corporation of India (LIC). It combines the advantages of insurance and investment in a single plan. The objective of this plan is to help policyholders build a retirement corpus through regular investments and systematic savings.

With this plan, the accumulated fund value can be converted into a regular income (pension) after retirement to secure your financial future.

Key Features of LIC New Pension Plus Plan 867

Here are some important features that make this pension plan stand out:

• Flexible Premium Payment Options: You can choose to pay premiums as a single lump sum or as regular premiums monthly, quarterly, half-yearly, or yearly.
• Multiple Investment Funds: The plan offers four types of investment funds to choose from based on your risk appetite – Pension Growth Fund, Pension Bond Fund, Pension Secured Fund, and Pension Balanced Fund.
• Guaranteed Additions: The plan provides guaranteed additions between 5% to 15.5% (depending on the policy year) on the premiums paid, boosting your fund value over time.
• Lock-in Period: There is a lock-in period of 5 years, during which you cannot withdraw funds.
• Partial Withdrawals: Partial withdrawals are allowed after the lock-in period of 5 years from the fund value.
• Policy Term: Minimum term is 10 years and the maximum term can go up to 42 years.
• Entry and Vesting Age: The minimum entry age is 25 years, and the maximum is 75 years. The vesting age (maturity) ranges between 35 to 85 years.
• Tax Benefits: The plan qualifies for tax benefits under Sections 80C and 10(10D) of the Income Tax Act, 1961.
• Death Benefit: On the unfortunate demise of the insured during the policy term, the higher of the Fund Value or 105% of premiums paid (less withdrawals) is paid to the nominee.
• Maturity Benefit: On survival till the maturity date, 60% of the fund can be commuted (withdrawn as a lump sum) and the remaining 40% is used to purchase an annuity for a regular pension.

How Does the LIC New Pension Plus Plan 867 Work?

This policy works by pooling your premium payments into the investment funds you select. Over time, these investments grow depending on market performance, and you also receive guaranteed additions to increase your fund’s value.

At retirement or maturity, the corpus accumulated is used to provide you with a regular pension (annuity) for your post-retirement life.

LIC New Pension Plus Plan 867 Calculator – What is it?

The LIC New Pension Plus Plan 867 Calculator is an online tool provided by LIC and various financial websites that helps you estimate the future value of your investment in this plan. The calculator factors in:

• Your age at entry
• Premium amount and frequency (single or regular payments)
• Policy term
• Expected rate of return on investment funds
• Guaranteed additions

Using this calculator, you can get an estimate of your fund value at maturity and the potential annual pension.

Why Should You Use the LIC New Pension Plus Plan 867 Calculator?

• Personalized Estimates: It helps you understand how much pension you can expect based on your premium and investment period.
• Financial Planning: Allows you to plan your retirement savings systematically.
• Comparisons: You can compare different premium payment options and terms to find what suits you best.
• Informed Decision: Helps you make informed choices before investing in the plan.

Step-by-Step Guide to Using the LIC New Pension Plus Plan 867 Calculator

1. Enter your Age: Your current age (must be between 25 and 75).
2. Select Premium Type: Choose between single premium or regular premium.
3. Enter Premium Amount: For single premium, minimum Rs. 1,00,000; for regular premium, monthly minimum is Rs. 3,000.
4. Choose Payment Frequency: Monthly, quarterly, half-yearly, or yearly.
5. Select Policy Term: Minimum 10 years, maximum 42 years.
6. Pick Investment Fund: Choose from Pension Growth, Bond, Secured, or Balanced fund.
7. Input Expected Rate of Return: Usually between 4% and 8%, based on fund choice and market assumption.
8. Calculate: The tool will show the estimated fund value at maturity and the expected annual pension amount.

Example Calculation Using LIC New Pension Plus Plan 867 Calculator

Suppose you are 30 years old and choosing the regular premium payment option with an Rs. 30,000 annual premium for 42 years. Assuming an 8% return rate, your estimated benefits would be:

• Total invested amount: Rs. 12,60,000
• Estimated maturity fund value: Around Rs. 59,92,991
• Estimated yearly pension: Rs. 7,06,928

This calculation includes guaranteed additions and fund growth over time.

Benefits of LIC New Pension Plus Plan 867

1. Regular Pension Income: Provides a steady income after retirement, reducing financial worry.
2. Investment Flexibility: Available with multiple fund options according to your risk appetite.
3. Tax Savings: Premiums paid qualify for tax deductions.
4. Market-linked Returns: Potential to earn higher returns than traditional pension plans due to unit-linked investments.
5. Guaranteed Additions: Boosts corpus growth with additions every year.
6. Partial Withdrawals: Access to partial funds after the lock-in period provides liquidity.
7. Death Benefit Protection: Insures your family’s financial security in case of your demise.
8. Extended Policy Terms: Flexibility to extend the policy up to 85 years of age for vesting.

Investment Funds Under LIC New Pension Plus Plan 867

The plan offers four investment fund options:

• Pension Growth Fund: Primarily invests in equities for higher growth, suitable for long-term investors with high-risk appetite.
• Pension Bond Fund: Invests mainly in government and corporate bonds, offering low risk with stable returns.
• Pension Secured Fund: Focuses on secure securities and bonds with low risk.
• Pension Balanced Fund: A mix of equity and debt investments aiming for balanced risk and growth.

You can choose any one fund or mix your premiums across these funds. Switching between funds is allowed up to 4 times a year without extra cost.

Eligibility Criteria for LIC New Pension Plus Plan 867

Tax Benefits of LIC New Pension Plus Plan 867

• Premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act (up to Rs. 1.5 lakh).
• The pension/annuity income received is exempted under Section 10(10D) subject to conditions.
• The maturity proceeds are also tax-exempt if used to purchase an annuity.

Always consult with a tax advisor for detailed and updated advice based on personal circumstances.

How to Buy LIC New Pension Plus Plan 867

You can buy this plan either online through the official LIC website or LIC’s mobile app, or offline by visiting the nearest LIC branch or through authorized LIC agents.

Important Tips Before Investing

• Understand your retirement goals and risk appetite.
• Use the LIC New Pension Plus Plan 867 Calculator to estimate your potential benefits.
• Consider the lock-in period and partial withdrawal terms.
• Choose the investment fund(s) wisely based on your financial goals.
• Review the policy document carefully before buying.
• Consult a financial advisor if needed.

Frequently Asked Questions

Conclusion

The LIC New Pension Plus Plan 867 is a comprehensive unit-linked pension plan designed to provide financial security and a steady pension for your retirement years. It offers flexible premium payment options, diverse investment choices, guaranteed additions, and tax benefits, making it an attractive option for retirement planning.

Using the LIC New Pension Plus Plan 867 Calculator helps you visualize your investment growth and expected pension, enabling you to tailor your plan to fit your retirement goals.