LIC smart pension plan EXPLAINED: Check eligibility, annuity options and more

The LIC Smart Pension Plan is designed for post-retirement benefits. It ensures guaranteed benefits regardless of market conditions. This plan caters to a wide range of retirement goals.

LIC Smart Pension Plan

The Life Insurance Corporation of India (LIC) has introduced its latest offering, the Smart Pension Plan, primarily designed for post-retirement benefits. Catering to diverse financial needs, the plan suits both individuals and groups seeking a fixed income post-retirement.

The Smart Pension Plan is an immediate annuity plan ensuring guaranteed benefits on survival or death, irrespective of market fluctuations. With its varied annuity options and unique features, the plan is crafted to meet a wide array of retirement goals and financial circumstances.

Features of LIC Smart Pension Plan

1. Eligibility Age

Minimum Entry Age: 18 years, helping young investors start planning for retirement early.

Maximum Entry Age: 65 to 100 years depending on the chosen annuity option, making the plan accessible to a wider audience.

2. Flexible Annuity Options

Policyholders can choose one of the following:

Single Life Annuity: Lifelong annuity payments for the policyholder.
Joint Life Annuity: Continued annuity payments for both primary and secondary annuitant (e.g., spouse).

3. Loyalty Incentives

Existing LIC policyholders and beneficiaries of deceased policyholders are eligible for higher annuity rates, rewarding customer loyalty.

Flexible Annuity Payment Modes

4. Liquidity and Surrender Options

Partial or full surrender is allowed under certain conditions, providing policyholders with financial flexibility during emergencies.

5. Flexible Annuity Payment Modes

Policyholders can choose from multiple payment modes: monthly, quarterly, half-yearly, yearly. The installment amount is calculated based on the chosen mode.

6. Special Provisions for NPS Subscribers

National Pension Scheme (NPS) subscribers can opt for immediate annuity, ensuring a smooth transition to a steady retirement income.

Available Facilities

7. Support for Dependents with Disabilities

The plan includes provisions for dependents with disabilities to receive long-term financial benefits, ensuring their well-being.

8. Policy Loan Facility

Loans can be availed after three months from the policy issuance date or after the free-look period, subject to the chosen annuity options.

Plan Details

Minimum Purchase Price: ₹1,00,000

Maximum Purchase Price: No Limit

Minimum Annuity Amount:

Monthly: ₹1,000

Quarterly: ₹3,000

Half-Yearly: ₹6,000

Yearly: ₹12,000

Maximum Annuity: No Limit

Premium Payment Mode: Single Premium

Death and Survival Benefits

On survival of the annuitant

Benefit payouts depend on the annuity option chosen at the start of the policy. These options include regular payments for life or other benefits specified under the plan's terms.

On death of the annuitant (primary/secondary)

Upon the annuitant's death, the nominee or beneficiary receives funds based on the chosen option:

Lump-sum payment

Annuity installments

Liquidity or early annuity options

Annuity accumulation options

How to purchase the LIC Smart Pension Plan

The plan is easily accessible through multiple avenues:

Offline: Apply through LIC agents, intermediaries, Point-of-Sale Persons-Life Insurance (POSP-LI), and Common Public Service Centers.

Online: Directly through LIC's official website: www.licindia.in