Which LIC policy to invest in for guaranteed pension?

Jun 28, 2019

I want to invest in LIC policy. I can give yearly premium Rs 10 lakhs. I want insurance with pension and with security please guide which policy is give us better return with security and yearly return after 15 years.

1 Answer
Jun 29, 2019

Note: This response does not give the name of any policy, LIC or otherwise.

Many people in India miss a very important factor about the structure of pension products in  India.  The product that actually gives you the pension is called an annuity. This is given by life insurance companies. Anyone can walk in with a cheque, buy the annuity, and then get the 'pension'.    There is no need to invest in a specific product to be able to buy the annuity. You definitely don't need to 'invest' in any LIC policy to buy a pension product.

Since you have a timeframe of 15 years and have a large investible amount, please select the most appropriate product. Often a pure term insurance plus PPF would be better than an investment-cum-insurance policy.

Share this answer

Like Srinivasan’s answer? Contact Srinivasan for consultation

Contact Srinivasan
Browse All Q&As
Financial Planning for a 30 year old salaried employee

Sachin Shah is a 30 year old Senior Software Engineer, working at an IT services company in Bengaluru. He and his wife want to plan for their retirement and also want to save for their child's education, wedding and for buying a car.

View Case Study
Browse All Q&As