LIC Pension Plan for NRI

What is LIC International?

LIC (International) BSC (C) was started on 20 July 1989 in Bahrain to serve the Indian diaspora in GCC countries. Over the years, it has grown into a billion-dollar company with operations in Bahrain, the UAE (Dubai and Abu Dhabi), Kuwait, and Qatar.

The company mainly focuses on offering life insurance and pension solutions to NRIs. While it was founded to cater to Indian expats, today, LIC International also sells policies to residents of other nationalities in some countries.

Key Facts about LIC International:

• Strong presence in GCC with trust from thousands of NRIs.
• Rated “B (Fair)” in financial strength by AM Best, with a stable outlook.
• Winner of awards like MEIF 2012 (from Central Bank of Bahrain) and Excellence in Insurance Dispute Resolution (2020) from the UAE Insurance Authority.

So, when you look for the best LIC policy for NRI, LIC International is often the first choice because of its strong reputation and reliability.

Why Should NRIs Choose LIC Pension Plans?

Planning for retirement is important, especially if you live abroad. As an NRI, you may not always get the same pension benefits as residents in your country of stay. LIC pension plans help fill this gap.

Here’s why LIC pension plans are good for NRIs:

• Guaranteed Income: Regular pension after retirement.
• Security for Family: Life cover ensures financial support for your loved ones.
• Flexible Options: Choose between an immediate pension or a deferred pension.
• Trust of LIC: A brand trusted by millions of Indians worldwide.

Best LIC Pension Plans for NRIs

LIC International mainly offers two types of pension plans for NRIs —

1. New Deferred Future Secure Pension Plan (Plan 260)
2. New Immediate Future Secure Pension Plan (Plan 259)

Let’s understand each in detail.

1. New Deferred Future Secure Pension Plan (Plan 260)

This is a deferred annuity plan, where you invest once, but your pension (annuity) starts only after a few years (3 to 10 years). It’s suitable for those who are still in their working years and want to build retirement income for the future.

• Entry Age: 35 to 72 years
• Vesting Age: 40 to 75 years
• Purchase Price (min): USD 15,000 (no upper limit)
• Deferment Period: 3 to 10 years
• Premium: Single (one-time)
• Payout Modes: Yearly, Half-yearly, Quarterly, Monthly

Options Available

• Option 1: Single life with Return of Purchase Price (pension stops on death, nominee gets purchase price + % extra).
• Option 2: Joint life with Return of Purchase Price (pension continues to spouse after your death, then the nominee gets benefits).

Benefits

• Annuity Benefits: No payouts during deferment. Pension starts after the deferment ends. Paid as long as you live (or to your spouse, if the joint option).
• Death Benefits:
   
  • During deferment: The nominee receives the purchase price and  1% per year of deferment.
  • After deferment: Nominee gets 105% to 110% of the purchase price (depending on deferment length).
     
• Return of Purchase Price: Available in both options.
• Surrender Value: Allowed from 2nd year onwards (95% of purchase price, increases each year).

2. New Immediate Future Secure Pension Plan (Plan 259)

This is an immediate annuity plan, which means your pension begins immediately after a single premium payment. It’s ideal for those nearing retirement or already retired who want an instant, regular income.

• Entry Age: 40 to 75 years
• Purchase Price (min): USD 15,000 (no upper limit)
• Premium: Single (one-time)
• Maturity Benefit: Not available
• Payout Modes: Yearly, Half-yearly, Quarterly, Monthly

Options Available

• Life annuity (for life only)
• Life annuity with Return of Purchase Price
• Life annuity with 50% or 100% to the spouse
• Life annuity with 100% to spouse + Return of Purchase Price
• Life annuity that guarantees payments for 5, 10, 15, or 20 years, and continues for as long as you live thereafter

Benefits

• Annuity Benefits: Pension starts immediately, continues as per chosen option ( you, you and spouse, with or without return of purchase price).
• Death Benefits:
   
  • Some options pay nothing on death (life-only)
  • Some options return the purchase price to the nominee
  • Some options transfer pension to spouse (50% or 100%)
     
• Return of Purchase Price: Available only under specific options (with ROP)
• Surrender Value: Allowed only under ROP options (C & F) after 1 year (90–95% of purchase price)

Quick Comparison – Plan 260 vs Plan 259

Which is the Best LIC Pension Plan for NRI?

When choosing the best LIC pension plan for NRI in UAE or other GCC countries, it depends on your life stage and needs —

• If you are younger (35–50 years): Go for the New Deferred Future Secure Pension Plan to build a pension fund for the future.
• If you are closer to retirement (50+ years): Go for the New Immediate Future Secure Pension Plan to start pension right away.

Final Thoughts

To stay in the UAE and other GCC countries, LIC pension plans for NRIs are a safe and reliable way to plan for retirement. They not only provide regular pensions but also protect your family with death benefits. By investing in the best LIC pension plan for NRI in UAE, you can secure your retirement years and ensure peace of mind for your loved ones.

Platforms like Policybazaarinsurance.ae make it even easier for NRIs in the UAE to explore LIC International pension plans, compare options, and buy policies online without the hassle of visiting a branch.