LIC's New Pension Plus

How it works

LIC's New Pension Plus is a lic & life insurance product from Life Insurance Corporation of India, in the market-linked category: no promised return. A unit-linked pension plan: premiums buy units in a fund, and the corpus is converted into an annuity at vesting.

Because the return type is market-linked, the questions that matter most are: What exactly does this hold, and what would make it fall? Can I leave this money invested if it drops 30%?

• Building a retirement corpus with market exposure
• A pension with a choice of funds

Key facts

What can go wrong

• The corpus can fall before vesting.
• Most of the benefit must be converted to an annuity, at rates available then.
• Charges are deducted from the fund throughout.

Before you decide anything

• The charges and fund options
• The commutation limit at vesting

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

• LIC — plan details↗
• IRDAI — policyholder rights↗

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.