Life Insurance Corporation of India (LIC), one of India’s most trusted insurance companies, offers several pension and retirement plans tailored to investors’ diverse needs. One such plan is the LIC Smart Pension Plan, which is ideal for those seeking regular, risk-free income after retirement. It’s an immediate annuity plan that provides immediate pension accrual once the investment is made and continues for life.
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What is the LIC Smart Pension Scheme?
This LIC plan falls under the non-linked and non-participating category, meaning it’s unaffected by the stock market or any other market fluctuations. The investor is clear on the first day of their pension payment. This is why it’s also known as the zero-risk pension plan. This plan is beneficial for those who prioritize stable income with safe investments.
Investment Limit and Eligibility Information
The minimum investment for purchasing an annuity under the LIC Smart Pension Plan is ₹1 lakh. There is no maximum investment limit, meaning investors can invest a larger amount according to their needs and capabilities. This scheme can be purchased as a single life or joint life plan, providing pension benefits to both husband and wife.
Pension is Fixed Upon Policy Purchase
The special feature of this plan is that the pension amount is fixed at the time of policy purchase. Once fixed, it remains available for life. Investors can choose monthly, quarterly, half-yearly, or annual pension options as per their convenience. This makes planning for post-retirement expenses easier.
Pension Increasing and Return Options
The LIC Smart Pension Plan also offers several additional options. Investors can choose to increase their pension by 3% or 6% annually. Furthermore, there is also an option to return the principal amount invested to the nominee upon death. This feature provides relief to families worried about their future financial security.
Who is it beneficial for after retirement?
This plan is especially useful for retired government and private employees, senior citizens, and those who have a lump sum and want a steady monthly income from it. This plan is considered a reliable option for investors who seek safe returns while staying away from the stock market.
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How much pension will be received on an investment of Rs 20 lakh?
If an investor invests Rs 20 lakh in the LIC Smart Pension Plan, according to LIC’s calculations, he or she can receive an annual pension of approximately Rs 136,000. This comes to approximately Rs 66,640 on a half-yearly basis and approximately Rs 32,980 every quarter. The monthly pension comes to approximately Rs 10,880. However, the actual pension amount depends on the investor’s age and the options chosen.
Rohit P
My name is Rohit Pal, and I have been working in the field of journalism for the past five years. During this time, I have written on a variety of topics, including business, automobiles, technology, and politics. I have worked with several major organizations and am currently working with Timesbull.
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