LIC Pension Plus 803 was a unit-linked deferred pension plan sold from 2 September 2010 to 1 January 2012. At vesting you get the higher of the fund value or the guaranteed amount, may commute up to one-third, and buy a pension with the rest. ₹30,000 a year from age 35 to 60 at 6.5% projects to about ₹18.8 lakh.
Pension Plus 803 Vesting Value & Pension Calculator
Your estimate
higher of fund value and guaranteed amount
- Monthly pension
- ₹21,847
- Estimated fund value
- ₹27,59,677
- Guaranteed maturity amount
- ₹19,12,572
- Total premium paid
- ₹9,00,000
- Premium per instalment
- ₹30,000
- Death benefithigher of fund value or 105% of premiums paid
- ₹27,59,677
- Policy term
- 30 years
- Total premium paid₹9,00,00033%
- Estimated returns₹18,59,67767%
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What is LIC Pension Plus Plan 803?
LIC Pension Plus (Plan 803) was a unit-linked deferred pension plan. Premiums were invested in pension funds, the policy accumulated a corpus until the chosen vesting age, and that corpus then bought a lifelong pension from LIC. It was launched on 2 September 2010 and withdrawn from sale on 1 January 2012.
A key feature was the guarantee: at vesting the policyholder receives the higher of the fund value and a guaranteed amount based on premiums paid. The plan summary we used describes this as a minimum return of 4.5% a year on premiums; your policy bond is the final word.
For new retirement savings, LIC’s current unit-linked option is New Pension Plus Plan 867, and for a guaranteed deferred pension there is New Jeevan Shanti Plan 758.
Plan 803 at a glance
| Feature | Details |
|---|---|
| Plan type | Unit-linked deferred pension |
| Sold | 2 Sep 2010 to 1 Jan 2012 (withdrawn) |
| Entry age | 18 to 75 years |
| Vesting age | 40 to 85 years |
| Minimum deferment | 10 years |
| Regular premium | From ₹15,000 a year (₹1,500 a month) |
| Single premium | From ₹30,000 |
| Fund options | Debt fund and mixed fund |
| At vesting | Up to one-third commuted; rest buys an annuity |
| Death benefit | Higher of fund value or 105% of premiums paid |
How the calculator works
- It grows your premiums at the expected net fund return (premium paid at the start of each year) to get the fund value.
- It grows the same premiums at the guaranteed rate (default 4.5%) to get the guaranteed amount.
- The vesting value is the higher of the two.
- If you commute, one-third is paid as cash.
- The remainder is turned into a pension using the source’s illustrative annuity rates by vesting age (for example about 9.5% a year at 60). Annuity rates actually offered at vesting may be lower, so treat the pension as an upper estimate.
No GST is included; individual life policies are GST-exempt from 22 September 2025.
Worked example
A policyholder who joined at 35, pays ₹30,000 a year and vests at 60 (25 years):
| Item | Without commutation | With 1/3 commutation |
|---|---|---|
| Premiums paid | ₹7,50,000 | ₹7,50,000 |
| Fund value at 6.5% | ₹18,81,461 | ₹18,81,461 |
| Guaranteed amount at 4.5% | ₹13,97,119 | ₹13,97,119 |
| Lump sum | – | ₹6,27,154 |
| Yearly pension | ₹1,78,739 | ₹1,19,159 |
| Monthly pension | ₹14,895 | ₹9,930 |
If the fund earns only 4%, it grows to about ₹12,99,352. The guarantee then takes over and the vesting value becomes ₹13,97,119, giving a pension of about ₹1,32,726 a year. This is where the guarantee earns its keep.
Tip: request the latest unit statement from LIC and compare the current fund value with our projection. If you are close to vesting, the actual NAV matters far more than any assumed return.
Options at vesting
You can commute up to one-third of the vesting value as a lump sum and must use the rest to buy an annuity from LIC. The annuity type (life only, with return of purchase price, joint life and so on) affects the pension amount. The LIC pension calculator helps compare annuity choices.
Death benefit and withdrawals
If the policyholder dies before vesting, the nominee receives the higher of the fund value or 105% of premiums paid. After the five-year lock-in, up to three partial withdrawals of up to 25% of the fund were allowed; each one lowers the final pension.
How to use this calculator
- Enter age at entry and vesting age.
- Choose regular or single premium and the amount.
- Set the fund return and guaranteed rate as per your policy.
- Switch commutation on or off and read the vesting value, pension and death benefit. All figures are estimates; LIC’s vesting quotation is final.
Frequently asked questions
Can I buy LIC Pension Plus 803 now?
No. Plan 803 was on sale from 2 September 2010 until 1 January 2012. Existing policies continue under their original terms until vesting, and this calculator is meant to help those policyholders plan.
How is the vesting benefit of Pension Plus 803 decided?
At vesting you receive the higher of the unit fund value and the guaranteed amount built from your premiums. In our example of ₹30,000 a year for 25 years, the fund at 6.5% is about ₹18.81 lakh against a guaranteed amount of about ₹13.97 lakh.
How much can I commute from LIC Pension Plus 803?
You can take up to one-third of the vesting value as a lump sum. The balance must buy an annuity from LIC. In our example, commuting gives about ₹6.27 lakh in cash and reduces the yearly pension from about ₹1.79 lakh to about ₹1.19 lakh.
What happens if the policyholder dies before vesting?
The nominee receives the higher of the fund value or 105% of premiums paid. The nominee can take the money or use it to buy an annuity.
Can I withdraw money from Pension Plus 803 before vesting?
After the five-year lock-in, partial withdrawals of up to 25% of the fund value were allowed, with a maximum of three withdrawals over the policy term. Each withdrawal reduces the corpus available for pension.
Is the pension from Pension Plus 803 taxable?
Yes. Annuity instalments are added to your income and taxed at your slab rate in the year you receive them. The commuted lump sum is treated under the tax rules applicable at vesting.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.