Taxability on pension amount

pension  plans have option at time of maturity to receive pension in lumpsum or uncommuted meaning thereby to receive periodical monthly payments

the periodical monthly payments namely uncommuted pension is always taxable  and commuted pension is exempt 

this is for non govt employee who receives gratuity and also pension then 1/3rd of the commuted pension is taxable has he commuted the 100% of the pension for govt employees this commuted pension is fully exempt

word of caution dont buy these products based on  advertisement  the returns are low as they dont invest in equities  on surrender you loose heavilyand the tax benefits you claimed would also reverse  on maturity you cannot withdraw the entire corpus you have to compulsorily  buy annuity try for NPS or choose PPF which would be your better option 

at the time of maturity you cannot claim the enite amount meaning thereby you have to commute say 60% or 70% of your 100% pension rest you have to buy annuity meaning thereby rest you will get only periodical monthly payments and I think the commuted pension you receive on maturity would be fully exempt  just check with other experts too in this regard

I Know you are going  for LIC Product even then please do evaluvate with other pension products but I have given a general note if you know any good financial planner please take their advises about the return