Guaranteed Income For Life: LIC International Pension Plan 259

Are you retired or approaching retirement?

Retirement is a time to relax and enjoy the rewards of a life well-lived, but it requires careful financial planning to ensure a stable income. For working professionals, creating passive income can open doors to financial freedom.

The LIC International Immediate Pension Plan offers a guaranteed lifetime income with a single one-time investment, making it an attractive option for retirees and Financial Freedom seekers.

But like any financial product, this plan has its advantages and limitations.

Let’s take a closer look to help you decide if it’s the right fit for your financial goals.

Key Features of the Immediate Pension Plan

1. Immediate Guaranteed Income

Unlike deferred pension plans, this plan begins paying pensions immediately after you make a single premium payment. Whether you’re retired or looking to supplement your income, you’ll receive regular, predictable payments for life.

2. Flexible Annuity Options

The plan allows you to choose an annuity structure that best suits your needs:

• Life Annuity: Receive payments for as long as you live.
• Life Annuity with Return of Purchase Price: Income continues for life, and your initial investment is returned to your nominee after your passing.
• Spousal Income Options: Provide financial security for your spouse:
  • 50% of your pension continues to your spouse after your passing.
  • 100% of your pension continues to your spouse after your passing.
  • 100% of your pension continues to your spouse, and the purchase price is returned to your nominee upon both passing.
• Guaranteed Periods: Lock in pensions for 5, 10, 15, or 20 years, even if you pass away during this time. After the guaranteed period, income continues for as long as you live. 
  
  

Pros of the LIC International Immediate Pension Plan

1. Predictable Lifetime Income

This plan ensures guaranteed income for life, making it ideal for retirees who want financial stability and working professionals seeking passive income.

2. Flexibility in Payment Schedules

You can choose to receive your payments monthly, quarterly, half-yearly, or yearly, depending on your cash flow needs.

Cons of the LIC International Immediate Pension Plan

1. Lack of Liquidity

The plan is designed for long-term income and doesn’t offer flexibility to withdraw your funds. Once invested, your money is locked into the annuity structure you choose.

2. Lower Returns Compared to Market Linked Investments

While the plan offers guaranteed income, the returns are typically lower than what you might earn from market-linked investments like mutual funds, ETFs or stocks.

3. May not Keep Up with Inflation

The annuity payments are fixed, which means their purchasing power may decrease over time as inflation rises. This makes the plan less suitable for those who are concerned about maintaining the value of their income in the long run.

Who Should Consider This Plan?

The LIC International Immediate Pension Plan is best suited for:

• Retirees seeking a reliable income source to cover their expenses during retirement.
• Working professionals looking for passive income and financial security.
• Individuals who prioritize stability over higher returns or liquidity.

However, if you prefer to start receiving income in the future, the LIC International Deferred Pension Plan might be more suitable. Alternatively, for higher income that keeps pace with inflation, consider a diversified portfolio of dividend stocks, ETFs, REITs, and income-distributing mutual funds.

These options may better align with your financial goals by offering potential for growth and inflation protection.

Summary

Ensuring a stable and reliable income during your golden years is crucial. The LIC International Immediate Pension Plan offers guaranteed lifetime income with a single premium payment, providing financial security and peace of mind.

To explore how this plan can fit into your retirement strategy, click here to book a free discovery call now.