19 January, 2021

What Sort Of Pension Is This?

The much-hyped new LIC scheme actually gives less insurance benefits to the aged

What Sort Of Pension Is This?
outlookindia.com
-0001-11-30T00:00:00+05:53

WHEN Jeevan Suraksha, the new LIC pension scheme for the elderly, was announced in Finance Minister P.Chidambaram’s maiden Budget speech, it was seen as one of the very few concessions extended in an otherwise harsh budget. It was also seen as a welcome move; very few people, after all, are unconcerned about the uncertainties that old age brings with it. Strangely, the scheme has pleased few. Then again, when you read the fine print, it isn’t all that strange.

For, Jeevan Suraksha is actually rather less attractive than the pension schemes that LIC already offers. Indeed, the new scheme is even being described by some as a disguised move by the Government to withdraw the better benefits that are now available to this class of people.

The scheme as such is simple: You contribute Rs 250 per month for 30 years and from your 55th year onwards, you receive a monthly pension of about Rs 3,505. But LIC has two earlier schemes—Jeevan Dhara and Jeevan Akshay —which give perhaps better pension options and also provide for a...

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