LIC has launched the Smart Pension Plan, which provides flexible income options and a secure way to earn money after retirement. The plan is available for both individuals and groups, offering features like higher rates for loyal customers, options for easy access to funds, and special benefits for dependents with disabilities.
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LIC’s Smart Pension Plan is a savings and immediate annuity plan, designed for individuals and groups, to meet different retirement needs. It offers various options for annuities, both for single life and joint life, providing flexibility and security to the policyholders.
This is a non-participating plan where the benefits paid out on death or survival are guaranteed and fixed, based on the chosen annuity option, regardless of any changes in the market. The plan offers several annuity options to meet different financial needs and retirement goals. Customers can select the option that works best for their long-term financial plans.
Age Eligibility
The plan is available for people starting from 18 years old, so young investors can begin planning early. The maximum entry age ranges from 65 to 100 years, depending on the chosen annuity option, making it available to many people.
Flexible Annuity Options
Policyholders can choose from two options:
- Single Life Annuity: Payments are made for the lifetime of the policyholder.
- Joint Life Annuity: Payments continue for both the policyholder and their partner (like a spouse).
Incentives for Existing Policyholders and Beneficiaries
LIC offers higher annuity rates to current policyholders and beneficiaries of deceased policyholders, making it more rewarding for loyal customers.
Liquidity Options for Withdrawals
The policy allows partial or full withdrawals under certain conditions, giving policyholders financial flexibility when they need it.
Flexible Annuity Payment Modes
Policyholders can choose how they want to receive their payments:
- Monthly, Quarterly, Half-Yearly, or Yearly
The annuity payment amount depends on the chosen frequency.
Special Feature for NPS Subscribers
Subscribers of the National Pension System (NPS) can choose an immediate annuity, making it easy to start receiving a retirement income.
Option for Dependent Persons with Disabilities
The plan offers an option to provide financial support for dependents with disabilities, ensuring they have financial security.
Policy Loan Availability
Policyholders can take a loan after three months from the issue date or after the free-look period, whichever is later. Loans depend on the annuity options and specific terms.
LIC Smart Pension Plan Details
Minimum Purchase Price
The minimum amount to start the plan is Rs. 1,00,000.
Maximum Purchase Price
There is no limit on the maximum purchase price. However, it will depend on the underwriting policy approved by the board.
Minimum Annuity
The minimum annuity amounts based on the chosen payment mode are:
- Rs. 1,000 per month
- Rs. 3,000 per quarter
- Rs. 6,000 per half-year
- Rs. 12,000 per year
Maximum Annuity
There is no limit on the maximum annuity amount.
Mode of Premium Payment
The plan requires a single premium payment.
On Death of the Annuitant (Primary/Secondary)
If the annuitant (primary or secondary) passes away, the payout to the nominee or beneficiary will depend on the option chosen when the plan was purchased. The available options for the death benefit are:
- Lumpsum payment
- Annuitisation of Death Benefit
- Payment in Installments
- Liquidity option
- Advanced Annuity option
- Annuity Accumulation option
How to Buy LIC’s Smart Pension Plan
You can buy the LIC Smart Pension Plan through different channels:
- Offline: Available through LIC agents, intermediaries, Point of Sales Persons-Life Insurance (POSP-LI), and Common Public Service Centers (CPSC-SPV).
- Online: You can also buy it directly from the LIC website at www.licindia.in.
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