LIC Launches Smart Pension Plan: How It will Benefit You?

Pension plans are vital for securing financial independence and a stress-free life after retirement. They offer numerous benefits, including guaranteed income, potential for higher returns, and tax advantages. With the rising cost of living and limited social security for senior citizens, starting retirement planning early through pension plans is crucial. These plans provide a financial safety net, ensuring funds for necessities, emergencies, and long-term goals, while also minimizing health risks and promoting peace of mind.

LIC Smart Pension Plan

Recently, Life Insurance Corporation of India (LIC) launched the LIC Smart Pension Plan, a non-participating, non-linked, individual/group, savings, and immediate annuity plan designed to provide financial stability and flexible retirement solutions. The plan reinforces LIC’s commitment to securing the financial futures of policyholders across India.

The Smart Pension Plan was launched in New Delhi by M. Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance, with company CEO and Managing Director Siddharth Mohanty also in attendance.

LIC pension plans are essentially insurance policies aimed at giving you a regular income after you retire. They help you build a corpus while you’re working, which then turns into a steady income stream when you retire. LIC offers different pension schemes to match various financial goals, risk levels, and personal preferences. You can explore immediate or deferred annuity plans, as well as single premium annuity plans.

Key Features of the LIC Smart Pension Plan

Financial Security: Provides financial security post-retirement through a single premium, immediate annuity structure.
Annuity Options: Policyholders can choose from a variety of annuity options to suit their financial needs, with flexibility for both single-life and joint-life annuities.

Age Criteria: Open to individuals aged 18 and above, with the maximum entry age varying between 65 to 100 years, depending on the chosen annuity option.

Incentives: Existing LIC policyholders and nominees of deceased policyholders will receive an incentive in the form of an enhanced annuity rate.

Liquidity: Offers partial or full withdrawals under specific terms.

Minimum Investment: The minimum purchase price is Rs 1 lakh, with additional incentives for higher investments.

Payment Options: Annuity payments can be received annually, half-yearly, quarterly, or monthly, based on the policyholder’s preference.

NPS Subscribers: Provides a special feature for National Pension System (NPS) subscribers to opt for immediate annuity.

Inclusivity: Offers annuity options catering to dependent persons with disabilities (Divyangjan).

Loan Facility: Allows for loans after three months from issuance or after the free-look period, whichever is later.

Death Benefits: In the event of death, benefits will be disbursed based on the selected option, which includes lump sum payments, annuitization, installment-based payouts, liquidity benefits, advanced annuity, or annuity accumulation options.

Accessibility

The LIC Smart Pension Plan is accessible both online and offline. In addition to agents, intermediaries, Point of Sale Persons-Life Insurance, and Common Public Service Centres, customers can buy this pension plan on the LIC’s official website.

FAQs

1. What is the LIC Smart Pension Plan?

The LIC Smart Pension Plan is a non-participating, non-linked, individual/group, savings, and immediate annuity plan offered by the LIC. It’s designed to provide financial security and flexible retirement solutions, offering various annuity options.

2. Who is eligible for the LIC Smart Pension Plan?

The plan is open to individuals aged 18 and above. The maximum entry age varies between 65 to 100 years, depending on the specific annuity option selected.

3. What are some key features of the LIC Smart Pension Plan?

Key features include:

Financial security post-retirement.
Various annuity options for single and joint life.
Incentives for existing LIC policyholders and nominees.
Liquidity options with partial or full withdrawals under specific terms.
Special features for NPS subscribers.
Annuity options for dependent persons with disabilities (Divyangjan).
Loan facility after three months.

4. How can I purchase the LIC Smart Pension Plan?

You can purchase the LIC Smart Pension Plan both online and offline through LIC’s official website, LIC agents, intermediaries, Point of Sales Persons-Life Insurance, and Common Public Service Centres.

5. What happens in the event of the annuitant’s death?

In the event of death, benefits will be disbursed based on the selected annuity option. This can include lump sum payments, annuitisation, installment-based payouts, liquidity benefits, advanced annuities, or annuity accumulation options.

Disclaimer: The above information is for educational purposes and based on the latest research and development available. However, it may not fully reflect all the current aspects of the subject matter. Moneydaily.in advises readers to visit the LIC’s website for further information.