LIC's 'Smart Pension Plan' aims to boost retirement security. Key details here

The Life Insurance Corporation of India (LIC) has introduced the LIC’s Smart Pension Plan, a retirement solution aimed at providing financial security to individuals and groups.

The plan was officially launched in New Delhi by M. Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance, in the presence of Dr M.P. Tangirala, Additional Secretary, DFS; Parshant Kumar Goyal, Joint Secretary, DFS; and Siddhartha Mohanty, CEO & MD of LIC, along with other senior executives.

The Plan is a Non-Participating, Non-Linked, Individual/Group, Savings, and Immediate Annuity Plan designed to cater to a broad spectrum of retirement needs. It offers both Single Life and Joint Life annuity options, allowing policyholders flexibility in securing their financial future.

With this launch, LIC aims to strengthen its commitment to providing a secure and flexible pension solution for all age groups. The Smart Pension Plan is designed to offer financial stability and peace of mind to retirees and individuals planning for their future.

Know key features:

• Single Premium, Immediate Annuity Plan

• Multiple annuity options tailored to individual needs

• The minimum age at entry is 18 years and the maximum age at entry varies from 65 to 100

• years depending upon the Annuity Option

• Flexibility to choose from Single Life Annuity and Joint Life Annuity Options

• Incentive for existing Policyholder and Nominee/Beneficiary of the deceased

• Policyholder by way of enhanced annuity rate

• Several liquidity options are available for partial/full withdrawal as per the terms of the policy

• Minimum Purchase Price is Rs 1 lakh with incentives for higher purchase price

• Modes of Annuity Payments allowable are yearly, half-yearly, quarterly or monthly.

• Annuity instalments as per the chosen mode of annuity payment shall be calculated.

• An exclusive feature for NPS subscribers, enabling them to opt for an immediate annuity

• Special provisions for individuals with disabilities (Divyangjan)

• Policy loan facility available after three months from the policy issuance date or post-free look period

Death and Survival benefits

• On survival of the annuitant: The benefits depend on the annuity option chosen at inception.

• On death of the annuitant: The payout structure varies as per the selected option, with choices including lump sum payment, annuitisation of the death benefit, installment-based payout, liquidity options, advanced annuity options, or annuity accumulation.

Availability and purchase options

1. The plan is available both online and offline. One can purchase it directly by visiting LIC’s official website (www.licindia.in) or through agents, other intermediaries, Point of Sales Persons-Life Insurance (POSP-LI), and Common Public Service Centers (CPSC-SPV).