LIC Monthly Income Plan

LIC Monthly Income Plan

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Overview of LIC Monthly Income Plan

Investing in an LIC life insurance plan ensures financial stability for your loved ones against any unforeseen contingencies in exchange for paying a definite premium. Various LIC insurance policies meet long and short-term life goals, such as life risk protection, savings and investment, retirement planning, etc.

Do you want to ensure a consistent cash flow and a supplemental income source for your beneficiaries? Or maybe you are looking to streamline a source of income for the golden days of your life. In such conditions, investment in a monthly income plan offered by LIC can work best for you. This article discusses LIC monthly income plans, benefits, eligibility criteria, and other important details.

Table of Content

What is the LIC Monthly Income Plan?
Why Should You Invest in LIC Monthly Income Plan?
Key Features of LIC Monthly Income Scheme
List of LIC Monthly Income Plan
How Does LIC Monthly Income Scheme Work?
Who Can Invest in LIC Monthly Income Plan?
Documents Required to Buy LIC Monthly Income Plan
Facts to Consider Before Investing in LIC Monthly Income Plan
Policy Exclusions Under LIC Monthly Income Plan
Frequently Asked Questions

What is the LIC Monthly Income Plan?

LIC monthly income plan is a financial product designed to ensure a regular, guaranteed monthly income after a specified period. LIC investment plans for monthly income promise to pay a regular income benefit as determined at the time of policy inception in the following conditions:

In some LIC plans, there’s a settlement option available, through which you or the beneficiaries can receive the death or maturity benefits in monthly instalments instead of a lump sum amount.

This way, you and/ or your family members can enjoy guaranteed monthly income benefits for certain years. The regular cash flow works as a safety net for you and the beneficiaries nominated.

Why Should You Invest in LIC Monthly Income Plan?

Investing in the LIC monthly income scheme ensures the financial stability of the policyholders by providing the dual benefit of income and insurance. Here are the reasons why investing in an LIC monthly income plan is a good idea:

01

Regular Income Stream

Based on the sum insured, you or the beneficiaries receive a regular and predictable source of income. The income can benefit a retiree or anyone needing supplemental income.

02

Capital Protection

Investing in LIC regular income plans offers a degree of capital protection, ensuring that the invested amount is safe and will yield assured benefits.

03

Dual Benefit

LIC monthly income plans combine the dual benefits of investment and life risk cover. If the policyholder dies, they can ensure a regular income and financial security for their loved ones.

04

Retirement Planning

For retirees, the LIC guaranteed monthly income plans can work as a supplementary pension, providing a regular income source and covering living expenses without dipping into other savings.

05

Diversification

Many LIC monthly income plans invest in a mix of debt and equity instruments, providing diversification that can help manage risk while aiming for steady returns.

06

Ease of Management

The LIC monthly income plan requires minimal active engagement once set up. However, you need to make premium payments regularly. Some monthly income policies have a single or limited premium payment option. Hence, you can secure regular income benefits from a one-time investment. Also, by logging into the LIC customer portal, you can keep track of LIC policy details and status.

07

Tax Benefits

The premium paid towards the LIC monthly income plan receives tax benefits under Section 80C of the Income Tax Act. Also, the benefits received at the time of maturity or death of the policyholder are tax-free under Section 10 (10D) of the IT Act.

Learn about the registration process on LIC customer portal.

Also explore the features and benefits of LIC e-services.

Key Features of LIC Monthly Income Scheme

LIC monthly income plan comes with a host of features, including the following:

01

Affordability

Affordability is the prime feature of LIC monthly income plans. Since the plans come with different premium payment options, you can pay according to your suitability. Hence, you can make a balance between the current requirements and future financial goals.

02

Investment Benefit

Regular LIC monthly income plan investments help investors benefit from the power of compounding. Earnings on investments lead to exponential growth of the initial capital over time.

03

Flexible Income

LIC regular income plans allow you to select how long you want to receive the income. You can opt for a 5, 10, or 15-year instalment income option. Some plans even provide the option to streamline lifetime income.

04

Life Risk Coverage

The LIC monthly income plans cover you and your family against life uncertainty with life insurance coverage during the policy term.

05

Flexible Premium Payment

Depending on your financial suitability, you can pay the premiums monthly, quarterly, half-yearly, or annually. Some LIC monthly income plans also offer a one-time premium payment option.

06

Additional Coverage

LIC monthly income plans allow you to attach riders to the policy and enhance the base coverage. Riders are optional benefits you can add at the time of policy inception or on any policy anniversary during the policy year. Some add-on riders available are accidental benefit riders, accidental death benefit riders, waiver of premium, etc.

07

Incentive on High Premium

The LIC monthly income plans offer you an incentive or discount for the higher purchase price. The discount increases as the purchase price moves from a lower to a higher slab.

08

Free Look Period

The LIC monthly income schemes offer a free look period of 30 days during which you can review and evaluate the policy. You can cancel the policy if you are not satisfied with its terms and conditions by stating the reasons for the objection.

Learn how to make LIC premium payments.

List of LIC Monthly Income Plan

Here’s the list of LIC monthly income plans:

Plan Type: LIC Pension or Retirement Plan

Plan Type: Endowment plan

Plan Type: LIC Money Back Plan

Plan Type: LIC Child Plan

Plan Type: LIC Term Assurance Plan

Plan Type: LIC Whole Life Plan

How Does LIC Monthly Income Scheme Work?

The LIC monthly income scheme is a structured financial product that provides the combined benefit of investment and insurance. Here’s a detailed process of how the LIC monthly income plan typically works:

01

Application and Premium Payment

You can select any of the above plans based on your suitability and financial goals. Submit all the important documents as required and select the preferred sum assured, policy term, premium payment term, etc.

02

Policy Accumulation

During the policy term, you can make a regular premium payment, contribute to the corpus, and generate monthly income after policy completion. The premium payment can be a one-time single premium, regular premium, or limited term.

03

Payout Phase (Income Payment Period)

After the completion of policy period, you receive the regular monthly income as opted for lifetime or limited years (based on the policy terms). If the policyholder dies during the policy term, the nominee receives the death benefit at the payment frequency selected.

04

Loan Facility

Some LIC monthly income plans offer the option of taking loans against the policy after the completion of definite policy years as per terms. Hence, you can fulfil your liquidity needs without surrendering the policy.

Know more about the LIC housing loan in detail.

Who Can Invest in LIC Monthly Income Plan?

Investing in a LIC monthly income plan benefits individuals looking for long-term financial stability, streamlining a regular income, and safeguarding from life risks. Here’s the list of individuals who can invest in an LIC monthly income plan:

01

Working Professionals

Working professionals in their 30s, 40s, or 50s can invest in LIC monthly income plans to build a corpus that will generate a regular income in the future and work as supplemental income in later stages of life.

02

Retiree and Near-Retiree

Individuals approaching retirement or already retired can invest in an LIC monthly income plan to ensure a steady stream of income to cover their living expenses. Those who want to provide a sense of financial security and stability post-retirement can invest in these plans.

03

Self-Employed Individuals and Business Owners

Those with irregular incomes can invest in and benefit from monthly income plans. These payouts work as a financial cushion in times of business downturns.

04

Individuals Planning Future Financial Goals

LIC monthly income plan can help generate a regular income for those planning for significant future financial goals, such as buying a home, starting a business, or travelling.

Eligible Individuals:

  • Anyone with a regular stream of income (or dependent)
  • Entry age between 18 to 50

However, the maximum entry age can range up to 60, depending on the specific eligibility criteria of the LIC monthly income plans.

Documents Required to Buy LIC Monthly Income Plan

Below are the documents required to buy the LIC regular income plan:

  • Age proof: PAN card, Aadhaar, Passport, or Driving License
  • Address proof: Voter ID, Passport, Bank Passbook, Ration Card, or Rental Agreement
  • Income proof: Form 16, Income Tax Returns, Salary Slip, Pension Passbook
  • Photo ID proof: Bank passbook with proposer photograph, PAN card, Aadhaar, Passport, or Ration Card

Learn about how you can revive lapsed LIC policy.

Facts to Consider Before Investing in LIC Monthly Income Plan

Before investing in a LIC monthly income plan, you can consider the following points:

  • Critically evaluate your long-term and short-term financial goals.
  • Assess your current expenses with your future requirements.
  • Policy years should be at your convenience and according to future financial requirements.
  • The payment frequency and premium payment amount should match your financial affordability.
  • LIC monthly income policy you select should be able to achieve your wealth management scope by beating inflation.

Want to surrender your LIC policy? Get to know the eligible benefits.

Policy Exclusions Under LIC Monthly Income Plan

Suicide is considered an exclusion under the LIC monthly income plan, and the predefined benefits are not payable except for the following:

  • If the life assured commits suicide at any time within 12 months from the date of commencement of risk, the nominee may receive 80% of the total premium paid, excluding any taxes or extra premium.
  • If the life assured commits suicide at any time within 12 months from the date of revival, the nominee may receive the higher of 80% of the total premium paid till the date of death or the surrender value.

Final Words

Investing in an LIC monthly income plan is more than just a financial decision—it's a step towards a secure and stable future with a regular income stream. Whether you're planning for retirement, looking for a dependable source of supplementary income, or seeking a safe investment with guaranteed returns, LIC regular income plan offers a reliable solution tailored to your needs.

Don't wait; connect with one of our RenewBuy POSP advisors today for more details on LIC monthly policy information and details.