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.
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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
