Comprehensive Guide of LIC Pension Plan Single Premium Account
November 5, 2025
A Life Insurance Corporation of India (LIC) Pension Plan Single Premium offers an accessible and effective way for individuals looking to secure their retirement with one-time lump sum payment. With this type of policy from Life Insurance Corporation of India (LIC), policyholders are guaranteed a steady income during retirement years without incurring premium payments regularly.
This guide will walk you through LIC Pension Plan Single Premium features, benefits, and considerations — helping you make an informed decision for your financial future.
What is an LIC Pension Plan Single Premium?
LIC’s Single Premium Pension Plan offers policyholders a one-time payment to receive regular pension payouts either immediately or after a deferral period.
These plans offer a guaranteed income stream post-retirement with no future premium payments required once the initial lump sum payment has been made.
Pension payments remain fixed over time and can be scheduled monthly, quarterly, or annually as defined in your plan’s terms.
They offer an excellent solution for individuals seeking security in retirement without the burden of recurring payments.
Key Features of an LIC Pension Plan Single Premium Plan
When considering an LIC Pension Plan Single Premium policy, it’s essential to be familiar with its various features. Below are some key ones:
| Features | Description |
|---|---|
| Single Lump Sum Payment | The initial lump sum payment at the beginning of the policy. |
| Guaranteed Annuity | A fixed annual pension amount that is paid according to plan. |
| Immediate or Deferred Annuity | Income can start either immediately or after an agreed deferment period. |
| Payout Frequency | The pension can be disbursed monthly, quarterly, half-yearly, or annually. |
| Joint Life Option | After death of policyholder, spouse can continue receiving pension (depending on plan). |
| Tax Benefits | Premiums may qualify for tax deduction under Section 80C of the Income Tax Act. |
| Return of Purchase Price | Some plans offer the nominee the return of purchase price upon the policyholder’s death. |
| Loan & Surrender Facilities | Borrow against or surrender policy in case of financial need. |
Types of LIC Pension Plans Single Premium
LIC offers several single premium pension plans designed to meet diverse retirement needs.
Below are some of the more popular LIC Pension Plan Single Premium options:
| Plan Name | Type | Premium Payment | Key Features |
|---|---|---|---|
| LIC Jeevan Akshay-VII | Immediate Annuity Plan | Single Premium | Pension starts immediately following payment. |
| LIC Saral Pension Plan (862) | Immediate Annuity Plan | Single Premium | Simple payout options with flexible payback schedules for immediate retirement benefits. |
How Does an LIC Pension Plan Single Premium Work?
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One-Time Payment: At the beginning of your policy, a lump sum premium payment must be made.
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Pension Start Date: Choose when your pension begins — immediately or after a deferment period.
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Pension Payments: Receive a set monthly pension based on your chosen plan.
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Pension for Life: Your pension continues for as long as the policy allows; joint life options ensure your spouse receives pension after your death.
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Return of Purchase Price: Some plans return the lump sum premium to your nominee upon your death.
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Estimating Your Investment For an LIC Pension Plan Single Premium
To reach a specific pension amount such as Rs10,000 per month, an appropriate lump sum amount must be invested.
Below is an estimate for an LIC Pension Plan Single Premium:
| Parameter | Assumed Value and Notes |
|---|---|
| Desired Monthly Pension | Rs10,000/month |
| Annuity Rate (approx.) | 6% – 7% per annum |
| Corpus / Purchase Price Requirement | Rs18–20 Lakh (expected to generate Rs10,000/month pension) |
This calculation assumes an annuity rate of 6%. Actual payout may vary based on age, plan selection, and added riders such as joint life options.
Benefits of an LIC Pension Plan Single Premium Plan
| Benefit | Description |
|---|---|
| Simplified Payment | Single one-time payment with no recurring premiums. |
| Guaranteed Income | Ensures financial security during retirement. |
| Tax Savings | Premiums qualify for deductions under Section 80C. |
| Flexible Payouts | Choose monthly, quarterly, or annual payouts. |
| Joint Life Protection | Pension continues for your spouse after your death. |
| Easy Management | No tracking of multiple payments or renewals. |
Things to Consider Before Selecting an LIC Pension Plan Single Premium
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Inflation Risk: Fixed payouts may not keep up with inflation.
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Large Lump Sum: Substantial one-time investment may be required.
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Start Date of Pension: Decide whether you want an immediate or deferred annuity.
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Liquidity: Funds are locked-in, making emergency access limited.
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Return of Purchase Price: Offers peace of mind for your nominee.
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Pension Amount Flexibility: Once set, monthly pension cannot be changed.
Conclusion
An LIC Pension Plan Single Premium provides a simple and guaranteed way to secure your retirement income. Pay once and enjoy regular pension payments throughout your golden years.
However, before committing, consider inflation, liquidity, and start date factors carefully.
For optimal results, select an LIC Pension Plan that matches your retirement goals, investment capacity, and income needs — whether it’s Jeevan Akshay-VII for immediate income or Jeevan Shanti for deferred annuities.
Take the right step today toward a financially secure future.