For many people, the dream after decades of work is simple — peace of mind, dignity, and enough income every month to live comfortably without worries.
The idea of getting a fixed ₹15,000 every month from LIC might sound bold, but with the right plan, it’s possible to design a solid retirement income stream. In this article, we will explore how LIC’s pension (annuity) plans work, whether ₹15,000/month is feasible, which plans are suitable, and how you can plan for it.
How LIC Pension or Annuity Plans Work
LIC does not promise a fixed ₹15,000 in all cases — the payout depends on:
- The lump sum (purchase price or premium) you invest
- Your age at entry and when you start the annuity
- The annuity option you choose (life only, joint life, return of purchase price, etc.)
- The mode of payment (monthly, quarterly, annually)
- Current annuity rates at time of purchase
LIC offers multiple pension/annuity plans including New Jeevan Shanti (an annuity / deferred or immediate plan) Saral Pension (immediate annuity plan) and newer ones like LIC Smart Pension with flexible options.
In these plans:
- You pay a lump sum (or a premium schedule) to LIC.
- After a deferment if applicable, LIC starts paying you a fixed amount (annuity) periodically (monthly, quarterly, etc.) for your lifetime or joint lifetime based on your chosen option.
- Some options may return the purchase price to the nominee on death (“return of purchase price”) or give annuity to spouse, or combine other riders.
- Once you choose an annuity option, it generally cannot be changed.
For example, in LIC Saral Pension Plan (No. 862), you pay a single premium and start receiving a guaranteed pension (monthly / quarterly / half-yearly / yearly) for life.
Is ₹15,000/month Possible? Sample Estimate & Conditions
To see if ₹15,000 / month is viable, consider this:
- You need a sufficiently large lump sum investment.
- The older you are when you start, the larger the annuity rate generally (because fewer years of payment).
- The annuity rates will vary with market conditions, interest rates, and LIC’s internal calculations at the time of purchase.
Let’s imagine a scenario:
- Suppose you are aged 60 and invest a lump sum of ₹20,00,000 in an annuity plan
- If the annuity rate (for monthly mode) is, say, 7% per annum equivalent (for illustrative purpose)
- Then 7% of ₹20,00,000 = ₹1,40,000 per year, which is ~ ₹11,667/month
- To hit ₹15,000/month (i.e. ₹1,80,000/year), you may need ~ ₹25,00,000 at that same rate (with some buffer)
So, under favorable annuity rates, ₹15,000/month is possible with a sufficiently large corpus. But it depends heavily on:
- The prevailing annuity rate LIC offers
- Your age and health
- The annuity option (life only, joint life, etc.)
- Any deductions or commission factors
Thus, ₹15,000/month is not automatically guaranteed — you must build the required corpus and pick the best annuity plan and timing.
Key LIC Pension Plans to Consider
Here are some key LIC plans you should explore:
| Plan | Type / Feature | Key Benefits & Notes |
|---|---|---|
| LIC New Jeevan Shanti | Deferred or immediate annuity | It’s a popular annuity plan to generate lifelong income. |
| LIC Saral Pension (Plan No. 862) | Immediate annuity | Pay once, get regular lifetime pension. |
| LIC Smart Pension | Flexible annuity with increasing options | Offers options with increasing annuity (e.g. 3% or 6%) annually. |
Each plan has multiple annuity options (for life, joint life, return of purchase price, etc.). Choosing wisely matters.
Pros, Risks & Things to Check
Pros:
- Lifetime income, so no worry of outliving money
- Predictability and peace of mind
- Backed by LIC — a trusted and large insurer
- Options for annuity types, spouse benefit, return of investment
Risks / Caution Areas:
- Annuity rates may change over time, and future rates may not be as generous
- Once selected, you cannot typically change the annuity option
- If you choose a “life only” option and have no return-of-purchase-price, your family may not get anything after death
- Inflation risk: ₹15,000 today may lose value over time
- For joint-life or return-of-price options, your monthly payout may be lower compared to simple life-only option
- Premiums are taxed or annuity receipt might be taxable (consult a tax advisor)
- Health and age: older age may help increase an annuity rate, but very advanced age might reduce options or require medical checks
How to Plan & Obtain ₹15,000 Monthly from LIC
- Estimate your target corpus
Use annuity rate benchmarks or LIC’s calculator to find how much you need to invest to get ₹15,000/month with your age. - Choose the right LIS pension/annuity plan
Compare options like New Jeevan Shanti, Saral Pension, Smart Pension. - Choose best annuity option
Decide on life only, joint life, return-of-price, or increasing annuity. - Make the payment / purchase
You may pay a lump sum premium (or according to plan) to LIC. - Get policy and documentation
Ensure you receive the annuity commencement letter and clear terms. - Start receiving pension
Once the annuity begins (immediately or deferred), you receive ₹X (e.g. ₹15,000) monthly (or chosen mode) for life.
The idea of ₹15,000 monthly income through LIC’s pension/annuity plan is aspirational yet realistic — if you plan well, pick the right scheme, build a large enough corpus, and choose the right annuity option.
If you are approaching retirement or want to secure your elder years, it makes sense to explore LIC’s annuity plans, get quotes for your age and preferred payout, and see what corpus you need.