Life Insurance Corporation of India (LIC) has launched a single-premium ‘Smart’ pension scheme. This scheme offers multiple pension options for individuals as well as joint applicants. Financial Services Secretary M. Nagaraju and LIC CEO & Managing Director Siddharth Mohanty introduced the scheme in the presence of senior officials from the Finance Ministry and LIC.
According to LIC, this scheme provides several cash options for partial or full withdrawal, as per policy terms. The minimum purchase price for this pension scheme is Rs 1 lakh. Let’s understand all the details of this new pension scheme.
Details of LIC Smart Pension Plan
- Minimum Purchase Price: Rs. 1,00,000
- Maximum Purchase Price: No limit (Subject to approval as per the Board’s underwriting policy)
Minimum Annuity: The minimum annuity amounts are as follows:
- Rs. 1,000 per month
- Rs. 3,000 per quarter
- Rs. 6,000 per half-year
- Rs. 12,000 per year (depending on the chosen payment mode)
Maximum Annuity: No limit
Mode of Premium Payment: Single premium
Key Features of the Pension Scheme:
- Single premium annuity plan
- Wide range of annuity options to meet customer needs
- The minimum entry age is 18 years, and the maximum entry age ranges from 65 to 100 years, depending on the annuity option
- Flexibility to choose between a Single Annuity Plan and a Joint Annuity Plan
- Incentives at an enhanced annuity rate for existing policyholders and nominees/beneficiaries of the deceased policyholder
- Multiple liquidity options for partial/full withdrawal as per policy terms
- Minimum purchase price is Rs. 1,00,000, with incentives for higher purchase prices
- Annuity payment options: yearly, half-yearly, quarterly, or monthly
- Annuity instalments will be calculated based on the chosen payment mode
- Immediate annuity option is available, especially for NPS subscribers
- The plan can be purchased online at www.licindia.in
- Policy loans are available under specific annuity options after three months from the policy issuance or after the expiry of the free-look period.
What is an Annuity Plan?
An annuity plan is a retirement plan that provides regular income during retirement after investing in the plan over time or with a lump sum amount.
Special Benefits of the LIC Smart Pension Plan
Benefits on Death of the Annuitant (Primary/Secondary)
- The amount payable after the annuitant’s death will be based on the option selected at the start of the policy.
- The nominee can choose from the following payout options:
- Lump Sum Payment – The entire amount is paid at once.
- Annuitisation of Death Benefit – The death benefit is converted into an annuity.
- Installment Payment – The amount is paid in regular instalments.
- Liquidity Option – Allows partial withdrawals based on policy terms.
- Advanced Annuity Option – Provides higher annuity payments.
- Annuity Accumulation Option – Enables the annuity to grow over time.