Lic Scheme: Earn Thousands Every Month with the Smart Pension Scheme, Know How”

New Delhi: Numerous schemes are currently operational in India, all dedicated to the welfare of the people. Some of these schemes specifically offer benefits such as pensions, retirement funds, and various other entitlements. The schemes administered by the Life Insurance Corporation of India (LIC) are particularly excellent. As the country’s largest insurance provider, the corporation endeavours to offer schemes tailored to every segment of society.

While some schemes provide insurance coverage exclusively, others offer a substantial financial corpus in addition to insurance protection. You have likely heard of LIC’s Smart Pension Plan; it is a highly popular pension scheme. Classified as an immediate annuity plan, it allows you to commence receiving a regular income—in the form of a pension—following a single, lump-sum investment.

Key Features of the Smart Pension Plan

LIC’s Smart Pension Plan is truly unique. It is considered an ideal choice for investors who wish to avoid the volatility of the stock market and instead seek to invest for a guaranteed, regular income. This is a “non-linked” and “non-participating” LIC plan.

Consequently, the market-related risk associated with this plan is zero. One can purchase an annuity under this scheme with a minimum investment of ₹1 lakh. A particularly noteworthy feature is that there is no upper limit on the maximum investment amount; you are free to invest as much capital as you desire in this scheme.

Does the Pension Begin Immediately Upon Purchasing the Policy?

Under LIC’s Smart Pension Policy, the pension amount is fixed at the very moment the policy is purchased. This fixed pension then continues to be paid throughout the policyholder’s lifetime. The policy can be opened on an individual basis (single life) or jointly with a spouse (joint life). Policyholders also have the flexibility to choose their preferred pension payout frequency—monthly, quarterly, half-yearly, or annually—based on their specific requirements.

The scheme also offers additional options, such as an annual escalation of the pension amount at a rate of 3% to 6%, or the return of the invested capital to the nominees upon the policyholder’s demise. This scheme proves particularly beneficial for retired employees, private-sector professionals, and senior citizens, as they typically require a steady monthly income stream following their retirement.

How to Receive a Monthly Pension of ₹10,880

Under the LIC Smart Pension Plan, investors are required to make a one-time lump-sum investment of ₹20 lakh at the time of purchasing the policy. According to the LIC calculator, doing so will yield an annual return of ₹1,36,000. In total, this translates to an income of ₹66,640 on a half-yearly basis and ₹ 32,980 every quarter. When calculated on a monthly basis, the investor will comfortably receive ₹10,880 every month.