LIC Introduced Smart Pension Plan: LICs Newly Launched Pension Scheme
The Life Insurance Corporation of India (LIC) has introduced the Smart Pension Plan, a new pension scheme to provide stable income to retirees and their families.
LICs Smart Pension plan is a Non-Par, Non-Linked, Individual/Group, Savings, Immediate Annuity plan that offers a wide range of annuity options for single life as well as joint Life type of annuities to allow individuals to achieve their financial goals and fulfil their retirement need.
This is a non-par annuity plan that guarantees to give a fixed amount of money whether you are still alive or have passed away. The amount you receive depends on the annuity option that you have selected. Individuals can opt for an option that aligns with their financial goals.
How to purchase a Smart Pension Plan?
The scheme can be bought directly from their website, i.e. www.licindia.in. Or can be purchased offline through agents or Common Public Service Centers (CPSC-SPV) or Other
Intermediaries, including Point of Sales Persons-Life Insurance (POSP-LI).
Features of the LIC Smart Pension Plan
1. Mode of Annuity payment:
Individuals can choose their payment mode, including Monthly, Quarterly, Half-Yearly, or Yearly basis.
2. Benefits to existing policyholders
Incentives are offered for existing Policyholder and Nominee/ Beneficiary of the deceased Policyholder.
3. Withdrawal option
The policy allows partial or full withdrawal when needed but under certain conditions.
4. Annuity options
Policyholders can choose between Single Life Annuity and Joint Life Annuity.
- Single Life Annuity provides lifetime annuity payment for the annuitant.
- Joint Life Annuity provides annuity payment for both the primary annuitant and secondary annuitant.
5. Age criteria
- The minimum age: The minimum age is 18 years, which encourages young individuals to start their investment at an early stage.
- Maximum age: It Ranges from 65 years to 100 years (Depending on the chosen annuity option)
6. Beneficial for dependent persons with Disabilities (Divyangjan)
The plan offers financial benefits for dependent persons with Disabilities (Divyangjan), which ensures their financial security.
7. Purchase price
- Minimum purchase price: Rs. 1,00,000
- Maximum Purchase Price: There is no limit on the maximum purchase price. However, It depends on the approval of the Board’s underwriting policy.
8. Annuity amount
- Minimum Annuity amounts
The Minimum Annuity amounts depend on the chosen mode of annuity payment
monthly: Rs 1,000
Quarterly: Rs 3,000
Half-yearly: Rs 6,000
Annual: Rs 12,000 - Maximum annuity: No limit
Survival and Death benefits
- On Survival of the policyholder
The benefits associated with the survival of the annuitant depend on the selected annuity option. Some annuity options offer benefits, which include regular payouts for life or other specific benefits as per the plan.
- On the death of the policyholder
The payout that the nominee will receive in case the annuitant passes away will depend on the annuity option chosen. The options available for payment of death benefit are lumpsum, annuitisation, or in instalments
