The latest news is that Life Insurance Corporation (LIC) said that it is all set to launch a unit linked pension scheme which will offer a minimum guaranteed return of 4.5 percent. The new plan will be called the Pension Plus.

LIC Senior Divisional Manager (Delhi Zone) T S Ramakrishnan said that the new scheme LIC Pension Plus will have a lot many benefits. This is a unique pension plan where a minimum rate of interest of 4.5% is confirmed and guaranteed. Also after maturity, one third of the corpus can be withdrawn as a lumpsum amount. He said the remaining two-thirds would be paid in either monthly or half-yearly installments after maturity, which would be decided by the policy holders.

The Pension Plus policy is in line with the Insurance Regulatory and Development Authority’s (IRDA) latest ULIP guidelines, which became effective.

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 be into money market instruments.

Lastly he added that in case of the mixed fund plan, the investment in government securities would not be less than 45% and 40% would go into money market instruments, whereas 15-35% will go into equities.

The Minimum maturity period of Pension Plus plan of LIC is 10 years and can be subscribed by anyone between the age of 18 to 75 years.

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