Life after retirement should be stress-free and financially secure. That’s exactly what LIC New Pension Plus Plan 867 aims to provide. Launched by LIC of India on 5th September 2022, this is a Unit Linked Insurance Plan (ULIP) specifically designed for long-term retirement savings. Whether you’re just starting your career or are closer to retirement, this plan can help you systematically build a retirement corpus while enjoying the benefits of life cover.
✅ What is LIC New Pension Plus Plan 867?
LIC’s New Pension Plus (Plan No. 867) is a non-participating, unit-linked, individual life insurance plan that works on two fronts:
- Builds a retirement corpus through investments in market-linked funds.
- Provides life insurance cover during the policy term.
This plan is suitable for anyone looking to secure their golden years with a mix of investment and protection.
🔑 Key Features of LIC New Pension Plus 867
- Available in Single and Regular Premium options
- Choose from Monthly, Quarterly, Half-Yearly, or Yearly premium payments for regular plans
- Option to invest in 4 fund types: Bond, Secured, Balanced, and Growth Fund
- Partial withdrawal allowed after 5 years
- Switching between funds allowed up to 4 times a year (free of charge)
- Guaranteed Additions ranging from 4% to 15.5% of premium
- Lock-in period of 5 years
- Provides retirement benefits, death benefits, and guaranteed returns over time
📋 Eligibility & Parameters
| Parameter | Details |
|---|---|
| Minimum Entry Age | 25 years |
| Maximum Entry Age | 75 years |
| Minimum Maturity Age | 35 years |
| Maximum Maturity Age | 85 years |
| Policy Term | 10 to 42 years |
| Lock-in Period | 5 years |
| Minimum Premium (Single) | ₹1,00,000 |
| Minimum Premium (Regular) | ₹3,000/month, ₹9,000/half-year, ₹16,000/quarter, ₹30,000/year |
| Maximum Premium | No Limit |
📈 Investment Fund Options
LIC New Pension Plus Plan gives you the flexibility to choose your investment style based on risk appetite.
| Fund Type | Composition | Risk Profile |
|---|---|---|
| Bond Fund | 60–100% in Govt/Corporate Debt, 0–40% in money market instruments | Low |
| Secured Fund | 45–85% in Debt, 15–55% in Equity | Low to Medium |
| Balanced Fund | 30–70% in Debt, 30–70% in Equity | Medium |
| Growth Fund | 20–60% in Debt, 40–80% in Equity | High |
You can switch between these funds up to 4 times per year free of cost, depending on market conditions or personal preference.
💰 Benefits Under LIC New Pension Plus 867
1️⃣ Death Benefit
In case of the unfortunate death of the policyholder after the commencement of risk:
The nominee will receive the higher of the following:
- Fund Value, OR
- 105% of total premiums paid (excluding partial withdrawals)
This ensures that the nominee receives a minimum guaranteed payout irrespective of market performance.
2️⃣ Maturity Benefit
When the policyholder survives the entire policy term:
- 60% of the fund value can be withdrawn (commuted)
- The remaining 40% must be used to buy an annuity (regular pension)
This helps ensure you receive a lump sum at retirement and regular income thereafter.
3️⃣ Guaranteed Additions
LIC rewards long-term commitment by adding guaranteed amounts to your fund based on the duration and premium type.
For Regular Premium Policies:
| Policy Year | Guaranteed Addition (of Annual Premium) |
|---|---|
| 6th | 5% |
| 10th | 10% |
| 11th to 15th | 4% annually |
| 16th to 20th | 5.5% annually |
| 21st to 25th | 7% annually |
| 26th to 30th | 8.75% annually |
| 31st to 35th | 10.75% annually |
| 36th to 40th | 13% annually |
| 41st to 42nd | 15.5% annually |
For Single Premium Policies:
| Policy Year | Guaranteed Addition (of Single Premium) |
|---|---|
| 6th | 4% |
| 10th | 5% |
| 11th to 15th | 1.25% annually |
| 16th to 20th | 1.5% annually |
| 21st to 25th | 2% annually |
| 26th to 30th | 2.5% annually |
| 31st to 35th | 3% annually |
| 36th to 40th | 3.75% annually |
| 41st to 42nd | 4.5% annually |
📊 LIC New Pension Plus Plan 867 – Example
Let’s say Mr. Amit (Age 30) chooses LIC New Pension Plus Plan 867 with the following details:
- Annual Premium: ₹1,00,000
- Policy Term: 21 Years
- Investment Fund: Balanced Fund
- NAV starts at: ₹10
Here’s a simplified year-by-year table:
| Age | Premium Paid | NAV | Fund Value | Surrender Value (After Lock-in) |
|---|---|---|---|---|
| 30 | ₹1,00,000 | ₹10 | ₹10,00,000 | 0 |
| 31 | ₹1,00,000 | ₹11 | ₹11,00,000 | 0 |
| 32 | ₹1,00,000 | ₹12.1 | ₹12,10,000 | 0 |
| 33 | ₹1,00,000 | ₹13.31 | ₹13,31,000 | 0 |
| 34 | ₹1,00,000 | ₹14.64 | ₹14,64,000 | 0 |
| 35 | ₹1,00,000 | ₹16.10 | ₹16,10,000 | ₹7,21,791 |
| 36 | ₹1,00,000 | ₹17.71 | ₹17,71,000 | ₹8,95,970 |
| 37 | ₹1,00,000 | ₹19.48 | ₹19,48,000 | ₹10,82,517 |
| 38 | ₹1,00,000 | ₹21.43 | ₹21,43,000 | ₹12,87,880 |
| 39 | ₹1,00,000 | ₹23.57 | ₹23,57,000 | ₹15,13,487 |
| 40 | ₹1,00,000 | ₹25.93 | ₹25,93,000 | ₹17,72,029 |
| 41 | ₹1,00,000 | ₹28.52 | ₹28,52,000 | ₹20,46,027 |
| 42 | ₹1,00,000 | ₹31.37 | ₹31,37,000 | ₹23,47,486 |
| 43 | ₹1,00,000 | ₹34.51 | ₹34,51,000 | ₹26,79,459 |
| 44 | ₹1,00,000 | ₹37.96 | ₹37,96,000 | ₹30,44,327 |
| 45 | ₹1,00,000 | ₹41.76 | ₹41,76,000 | ₹34,61,081 |
| 46 | ₹1,00,000 | ₹45.94 | ₹45,94,000 | ₹39,04,520 |
| 47 | ₹1,00,000 | ₹50.53 | ₹50,53,000 | ₹43,91,632 |
| 48 | ₹1,00,000 | ₹55.58 | ₹55,58,000 | ₹49,27,535 |
| 49 | ₹1,00,000 | ₹61.14 | ₹61,14,000 | ₹55,17,466 |
| 50 | ₹1,00,000 | ₹67.25 | ₹67,25,000 | ₹61,85,851 |
➡ At Maturity (Age 51): Mr. Amit receives a total maturity amount of ₹61,85,851.
From this:
- Up to 60% (i.e., ₹37,11,510) can be withdrawn as lump sum
- At least 40% (i.e., ₹24,74,340) must be converted into annuity to provide monthly pension
🔁 Partial Withdrawal
Allowed after completion of 5 years. The partial withdrawal:
- Must be in fixed rupee amount or units
- Can be between 10% to 25% of the Fund Value
- Minors can withdraw only after turning 18
🔄 Surrender Value
You may surrender the policy:
- Before 5 years: Fund value after deducting Discontinuance Charges is moved to a “Discontinued Policy Fund” and paid after 5 years
- After 5 years: Entire Fund Value is paid without any deduction
⚠️ Important Clauses
- No Loan Facility under this plan
- No Top-Up Premiums allowed
- Suicide Clause: If death occurs within 12 months of policy commencement, only fund value is paid
- Compulsory Termination: If fund value is not sufficient to deduct charges after 5 years, policy may be terminated
🎯 Why You Should Choose LIC New Pension Plus Plan 867?
- Ideal for young professionals planning long-term retirement goals
- Combines market-linked returns with life insurance
- Offers guaranteed additions year after year
- Can secure your retirement while protecting your family
- Option to invest based on your risk appetite
- Comes with tax benefits under Section 80C and 10(10D) of Income Tax Act
📝 Final Thoughts
LIC New Pension Plus Plan 867 is a powerful tool for retirement planning. It gives the dual benefits of insurance and investment, while rewarding long-term savings through guaranteed additions. With flexible fund choices, partial withdrawals, and tax savings, it’s an excellent plan for anyone looking to build a stable and happy retired life.
