Planning for a stress-free retirement is one of the biggest financial goals for Indian families. To support this need, Life Insurance Corporation of India (LIC) has introduced a special pension-oriented scheme that allows policyholders to receive a fixed monthly pension for life, which can go up to ₹20,000 per month, depending on investment amount and plan choice.
If you are looking for guaranteed income after retirement, this LIC pension scheme may be worth understanding in detail.
What Is LIC’s Special Lifetime Pension Scheme?
LIC’s pension plans are designed to provide regular income after retirement in exchange for a one-time lump sum investment.
Under this type of scheme:
You invest a lump sum amount once
LIC pays you a fixed pension every month for life.
Pension amount depends on:
Your age
Investment amount
Pension option selected
Some pension options also offer return of purchase price to the nominee after the policyholder’s death.
Can You Really Get ₹20,000 Pension Per Month?
Yes, ₹20,000 monthly pension is possible, but it is not automatic. It depends on how much you invest.
Example (Illustrative):
If an individual invests a higher lump sum amount
Chooses a lifetime monthly annuity option
Starts pension at the eligible age
Then the pension payout can reach ₹15,000 to ₹20,000 per month or more
⚠️ Important: The exact pension amount varies based on LIC’s prevailing annuity rates.
Key Features of LIC Pension Scheme
✔ Monthly, quarterly, half-yearly, or yearly pension options
✔ Guaranteed income for life
✔ One-time investment
✔ Option for spouse pension after death
✔ Nominee can receive invested amount (in selected plans)
✔ Backed by LIC’s trust and stability
Who Can Invest in This LIC Scheme?
Minimum entry age: Usually 30 years
Maximum entry age: Up to 85 years (varies by plan)
Suitable for:
Retired individuals
Employees nearing retirement
Self-employed professionals
Anyone seeking stable post-retirement income
Tax Benefits You Should Know
Investment may qualify for tax benefits under Section 80C
Pension income is taxable as per your income slab.
Tax rules may change, so consulting a financial advisor is recommended
Why This LIC Scheme Is Gaining Attention
In today’s uncertain market conditions, many people prefer safe and guaranteed income over high-risk investments. LIC’s pension plans attract attention because they offer:
Predictable monthly cash flow
No market risk
Long-term financial security
Peace of mind for retirees
Things to Consider Before Investing
Before purchasing any pension plan, always:
Compare different LIC pension options
Understand annuity rates
Check return of purchase price conditions
Assess inflation impact on fixed pension
A higher pension requires a higher upfront investment, so financial planning is essential.
Final Thoughts
LIC’s lifetime pension scheme is a reliable option for retirement income, especially for those who prioritize safety over market-linked returns. While ₹20,000 monthly pension is achievable, it depends entirely on the amount invested and the chosen annuity plan.
FAQs
- Is ₹20,000 monthly pension guaranteed under LIC?
No fixed amount is guaranteed for everyone. The pension depends on your investment amount, age, and annuity option. - Is this LIC pension scheme safe?
Yes, LIC is a government-backed institution, making its pension schemes among the safest in India. - Can my spouse receive pension after my death?
Yes, selected pension options allow the spouse to receive pension for life after the policyholder’s death.