Greetings! Make clear plans by using our LIC’s New Pension Plus (Plan 867) Premium and Maturity Calculator to get an instant estimate of your potential retirement corpus. You can enter your age, premium, tenor, and fund preference with this robust tool and view expected results. You can now make informed decisions about your pension future based on data.
LIC New Pension Plus (Plan 867)
ULIP Individual Pension Plan – Project Future Corpus
Why Choose LIC’s New Pension Plus (Plan 867)?
On September 5, 2022, LIC introduced its New Pension Plus (Plan No. 867, UIN: 512L347V01), a unit-linked individual pension plan. By giving you flexibility in choosing your premium, term, and fund, it combines investment and insurance by enabling you to accumulate a retirement corpus that can eventually be converted into a lifetime pension (an annuity).
Here are its core selling points:
| Feature | Description |
|---|---|
| Flexible Premiums | Regular premiums (monthly, quarterly, half-yearly, or annual) or a single premium are your options. |
| Wide Entry / Maturity Age | Entry age: 25 to 75 years (last birthday) Policy term: 10 to 42 years (vesting at age up to 85) |
| Guaranteed Additions | LIC credits guaranteed additions (a percentage of the annualised premium) to your fund during specific policy years. |
| Fund Choice & Switching | Bond, Secured, Balanced, and Growth are the four fund types from which you can select and switch between (subject to limits). |
| Partial Withdrawals | Limited partial withdrawals are permitted after five policy years (subject to conditions). |
| Death Benefit / Vesting | The nominee receives the greater of the fund value or 105% of the premiums paid (less withdrawals) upon death prior to vesting. You can commute up to 60% of vesting and use the remaining funds to buy an annuity. |
| Charges & Risks | The policyholder bears the investment risk because it is a ULIP pension product. According to the policy document, a number of fees are applicable, including premium allocation, policy administration, fund management, and discontinuance. |
Real-World Illustrations & Data
Here are some sample projections to help you understand how LIC’s New Pension Plus (Plan 867) might actually operate (for illustration only — not guaranteed). These are based on two fictitious return rates that are representative of the illustrative rates provided by IRDAI.
| Scenario | Age / Term / Premium | Fund Type | Projected Corpus (at Vesting) |
|---|---|---|---|
| Young Investor | Age 30, 30-year term, ₹50,000 yearly premium | Growth | ~ ₹75 lakhs @ ~4% ~ ₹1.2 crores @ ~8% |
| Mid-Age Starter | Age 40, 20-year term, ₹1 lakh yearly | Balanced | ~ ₹74 lakhs @ lower rate, ~ ₹1.05 crore @ higher rate |
| Late Starter | Age 50, 15-year term, ₹3 lakh yearly | Secured / Balanced | ~ ₹70 lakhs to ₹95 lakhs depending on fund / return assumptions |
These figures demonstrate how long-term, disciplined investing combined with exposure to debt and equity can produce a sizeable retirement fund. However, actual market performance and expenses will determine net returns.
Comparison with National Pension System (NPS)
A lot of investors contrast NPS and ULIP pension plans. A well-managed ULIP pension plan, such as LIC’s, with guaranteed additions and life assurance offers a more integrated solution (investment + annuity), even though NPS is inexpensive and has equity exposure. ULIPs, however, usually have higher fees, which can reduce net returns.
Expert Opinion
“LIC’s New Pension Plus bridges the gap for investors who want both market participation and the security of annuity income — provided they stay invested for the long term.” — Independent financial planner, Mumbai
“ULIP pension plans are best suited for disciplined investors who understand and accept market risk; beware of charges eroding long-term gains.” — Retirement consultant, Delhi
Use our tool above to input your own assumptions and compare fund options, term lengths, and projected outcomes.
Frequently Asked Questions (FAQs)
Launched by LIC in 2022, this individual unit-linked pension plan (ULIP) enables you to build up a retirement corpus that you can later convert into an annuity.
Entry age: 25 to 75 years (last birthday)
Vesting age: minimum 35, maximum 85 years
For regular premium: ₹3,000/month (via NACH), ₹9,000 (quarterly), ₹16,000 (half-yearly), ₹30,000 (yearly)
For single premium: ₹1,00,000 (multiple of ₹10,000)
After five policy years, partial withdrawals are permitted, subject to restrictions and conditions.
The nominee will get the greater of (a) the unit fund value or (b) 105% of the total premiums paid (less partial withdrawals) if the life assured passes away before vesting.
Up to 60% of the total corpus may be commuted as a lump sum, and the remaining sum must be used to purchase an annuity (pension).
No, the policyholder bears the investment risk, and returns are correlated with the market.
There are several fees, including fund management, policy administration (particularly in the early years), premium allocation, discontinuance fees, switching fees, etc.
Yes, you can manage risk and returns by switching between the four fund types (within certain bounds).
The policy may become “paid-up” or be surrendered (subject to discontinuance rules) if premiums are stopped. As a result, the benefit will decrease.
Annuity income is taxable according to your income slab, and premiums paid may qualify under Section 80C (subject to current tax laws). (Review the most recent tax laws.)
Tips & Considerations for Prospective Investors
- Maintain your investment over time. The longer your investment horizon, given market volatility, the greater the likelihood of positive results.
- Make an informed choice about your fund mix. Secured or bond funds are better if you’re close to retirement; younger investors can take on more risk with growth or balanced funds.
- Charge the watch. Early on, higher expenses reduce returns. To compare net gains to gross estimates, use our calculator.
- If necessary, extend the vesting. Under certain circumstances, LIC permits you to postpone the vesting (accumulation) period.
- Review as life changes. If your income or risk tolerance changes, you can change your strategy or switch money.