3 New LIC Plans: Is Your Retirement Income Covered?

LIC has launched three new plans covering retirement income through a deferred annuity, plus fixed-benefit payouts for general health and cancer conditions. Here is what these plans actually mean for your wallet before you sign up.

Here's what happened: LIC launched a deferred annuity plan that converts savings built during working years into a guaranteed monthly income stream starting at retirement.. Two new health-focused plans offer fixed financial benefit payouts — one for general hospitalisation events and one specifically for cancer diagnosis and treatment stages.. These plans carry waiting periods and fixed payout schedules, meaning benefits are capped regardless of actual medical expenses incurred by the policyholder..

What you should do: Compare LIC's annuity payout rate against current senior citizen FD rates (some banks offer 7.5–8%) before locking any lump sum into a deferred annuity.. Check the waiting period clause in any new health plan before buying — ask specifically how many days must pass before a hospitalisation or cancer claim becomes valid.. Calculate whether the fixed benefit amount on the health plan covers at least 60% of real hospitalisation costs in your city, or top up with a standard indemnity health policy..

LIC annuity income is taxed as regular income every year — unlike PPF or Sukanya maturity. If you are in the 30% slab at retirement, a ₹20,000/month annuity nets you only ₹14,000 after tax.