The Life Insurance Corporation of India (LIC) has unveiled its latest pension scheme, the Smart Pension Plan. This plan guarantees a consistent income stream for retirees and their families by providing a complete, adaptable, safe pension solution for various financial circumstances.
LIC’s Smart Pension Plan is a non-par, non-linked, individual or group savings and instant annuity plan designed to meet a range of retirement demands. It guarantees policyholders freedom and security by providing a selection of annuity choices for both single-life and joint-life annuities.
How can LIC pension holders submit digital life certificates?
This is a non-par product under which benefits due on death or survival are guaranteed and fixed (as per the chosen annuity option), irrespective of experience.
The scheme provides several annuity choices to meet retirement objectives and financial requirements. Consumers can select a solution appropriate for their long-term financial situation.
Important elements of the LIC Smart Pension Plan
Age eligibility:
- The minimum entry age is eighteen, so young investors can begin early in their planning process.
Depending on the annuity choice, the maximum entrance age ranges from 65 to 100 years, so the plan is open to a broad spectrum of people.
Policyholders have flexible annuity options:
- Designed to pay annuities throughout the lifetime of the annuitant, single-life annuities.
Joint life annuities ensure annuity payments for both the primary and secondary annuitant, such as a spouse.
Incentives for existing policyholders and beneficiaries:
- Higher annuity rates are granted to existing LIC policyholders and nominees/beneficiaries of deceased policyholders, making the plan more profitable for loyal clients.
Under specific criteria,
- The policy offers partial or full withdrawal possibilities, giving policyholders financial flexibility when necessary.
- Policyholders may select monthly, quarterly, half-yearly, or yearly as their preferred payment method.
The selected mode dictates the annuity installment value.
- National Pension System (NPS) subscribers can choose an instant annuity, guaranteeing a smooth transfer to a retirement income stream.
- The plan includes a provision to ensure the long-term financial well-being of dependents with disabilities through a financial benefit security option.
Policy loan availability:
- Whichever is later—after the free-look period or following three months from the date of issuing. Loan availability depends on particular annuity conditions and choices.
LIC Smart Pension Plan Details.
- Minimum Purchase Price: Rs. 1,00,000/-; Maximum Purchase Price: Not Restricted (the maximum purchase price permitted, however, will be accepted per the board-approved underwriting policy).
- Depending on the chosen annuity payment, the minimum annuity amounts are Rs. 1,000 per month, Rs. 3,000 per quarter, Rs. 6,000 every half-year, and Rs. 12,000 annually.
- Maximum Annuity = no limit; Mode of Premium Payment = single premium.
The LIC Smart Pension plan offers benefits for both death and survivorship.
On Survival of the Annuitant:
- The annuity option selected at policy inception will determine the advantages and payouts for the annuitant.
- Various annuity solutions offer different survival advantages, depending on the conditions of the plan and whether regular payouts for life or another specific benefit are sought.
Death of the Annuitant: Primary/Secondary
- The option chosen at the time of purchase will guide the payout to the nominee, or beneficiary should the annuitant die. The death benefit could be paid in a lump sum, over time, or as an annuity. The death benefit could be paid out in installments as a liquidity option, an advanced annuity option, or an annuity accumulation option.
Purchasing LIC’s Smart Pension Plan:
- The purchase of the LIC Smart Pension Plan guarantees simplicity of access through several channels:
- Offline: Common Public Service Centers (CPSC-SPV), Point of Sales Persons-Life Insurance (POSP-LI), LIC agents, middlemen
- Online: One can buy straight at www.licindia.in.
