LIC Jeevan Suraksha 1 Plan: Secure Your Retirement with a Pension Plan

LIC Jeevan Suraksha 1 (Table No. 147) was a popular pension plan designed to provide a steady income post-retirement. It offered flexible premium payment options and various annuity choices upon vesting. Although this plan has been discontinued, it remains a noteworthy example of LIC’s pension offerings.

Key Highlights of Jeevan Suraksha 1 Plan

• Plan Type: Pension plan with bonuses and flexible annuity options.
• Premium Payment Modes: Annual, half-yearly, quarterly, monthly, salary deduction, or a single premium.
• Eligibility: Suitable for individuals planning their retirement.
• Tax Benefits: Significant tax relief under Section 80CCC of the Income Tax Act.
• Bonuses: Participates in LIC’s profit-sharing, offering regular bonuses.

For the latest pension plans, explore LIC Pension Plans.

Tax Benefits of LIC Jeevan Suraksha 1

This plan offered attractive tax benefits:

1. Tax Relief on Premiums: Premiums paid qualified for tax deduction under Section 80CCC, up to Rs.10,000 annually.
2. Exempt Income: The fund’s income was exempt under Section 10(23AAB) of the Income Tax Act.
3. Individual Eligibility: Only individuals (not HUFs) could claim deductions.

For more on tax-saving plans, read LIC Tax Benefits.

Bonuses in Jeevan Suraksha 1

The plan participated in LIC’s profit-sharing and provided the following:

• Simple Reversionary Bonuses: Declared annually and added to the policy.
• Final (Additional) Bonuses: Paid on maturity or vesting, depending on the policy duration.

Benefits on Vesting

On reaching the vesting date, policyholders could choose from the following annuity options:

1. Life Annuity: Pension for life.
2. Guaranteed Period Annuity: Pension for life with guaranteed payouts for 5, 10, 15, or 20 years.
3. Joint Life Annuity: Pension for the policyholder and 50% pension for the spouse after the policyholder’s demise.
4. Life Annuity with Return of Purchase Price: The purchase price is refunded to the nominee after the policyholder’s demise.
5. Increasing Annuity: Pension increases at 3% annually.

The annuity rates were based on the New Jeevan Akshay Plan at the time of vesting.

Benefits During Deferment

1. With Term Rider Option:
   • On the policyholder’s death, the nominee received:
     • Term Assurance Sum Assured.
     • Premiums (excluding term rider premiums) accumulated at 5% p.a.
2. Without Term Rider Option:
   • The nominee received accumulated premiums with interest.

The Term Rider Option was available only with annual premium policies.

Eligibility and Restrictions

• Minimum Entry Age: 18 years.
• Maximum Entry Age: 65 years.
• Minimum Vesting Age: 50 years.
• Maximum Vesting Age: 79 years.
• Deferment Period: 2 to 35 years.
• Minimum Premium: Rs.2,500/year for regular premiums; Rs.10,000 for single premium policies.
• Minimum Notional Cash Option: Rs.50,000 for regular premium policies.

Why Jeevan Suraksha 1 Was Popular

1. Retirement Security: It provided a steady pension, ensuring financial stability in later years.
2. Flexibility: Multiple premium payment modes and annuity options to suit individual needs.
3. Tax Savings: Significant tax benefits under various sections of the Income Tax Act.

What to Do Now?

Since Jeevan Suraksha 1 is no longer available, you can explore alternative LIC pension plans that offer similar benefits. Check out:

• LIC Jeevan Akshay Plan.
• LIC New Jeevan Shanti Plan.

Final Thoughts

Planning for retirement is crucial to ensure a stress-free and financially secure future. While LIC Jeevan Suraksha 1 was an excellent plan during its time, LIC continues to offer updated and feature-rich pension plans tailored to meet your retirement needs.

For personalized advice and the latest LIC pension plans, visit mypaisa.in.