Smart Pension Plan from LIC: Get answers to the 10 most important questions for secure retirement planning

The Life Insurance Corporation of India (LIC) has introduced the LIC Smart Pension Plan, a comprehensive retirement planning solution that will ensure financial security for individuals and groups. Therefore, understanding the details of this annuity plan is essential for making informed retirement decisions.

Here are 10 important FAQs on LIC’s Smart Pension Plan you must know

Q1: What is LIC’s Smart Pension Plan and what is its purpose?

A: The LIC’s Smart Pension Plan is a retirement solution (annuity plan) introduced by the Life Insurance Corporation of India (LIC). It will provide financial security to individuals and groups through immediate annuity options.

Q2: Who launched the plan, and where was it introduced?

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

Q3: Who can buy this plan?

The minimum age at entry to buy this plan is 18 years and the maximum age at entry varies from 65 to 100 years depending upon the Annuity Option.

Q4: What is the minimum annuity amount under this plan?

You can take an annuity of Rs 1,000 per month, Rs 3000 per quarter, Rs 6,000 per half-year, or 12,000 per year. In other words, policyholders can choose to receive annuity payments either on a monthly, quarterly, half-yearly or yearly basis.

Q5: What are some key features of the LIC’s Smart Pension Plan?

A: The plan offers a Single Premium Immediate Annuity with multiple annuity options, a minimum purchase price of Rs 1 lakh, incentives for higher purchase prices, and flexible payout modes (yearly, half-yearly, quarterly, or monthly). It also includes liquidity options, special provisions for individuals with disabilities.

Q6: Can you avail a loan facility on this plan?

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

Q7: What are the benefits provided under the plan in case of survival and death of the annuitant?

A: On survival, benefits depend on the annuity option chosen. On death, payouts vary based on the selected option and may include lump sum payment, annuitisation of the death benefit, installment-based payout, liquidity options, advanced annuity options, or annuity accumulation.

Q8: Are there any exclusive benefits for NPS subscribers under this plan?

A: NPS subscribers can opt for an immediate annuity, ensuring a seamless transition to a stable retirement income.

Q9: Does this plan provide financial support for dependents with disabilities?

A: LIC’s Smart Pension Plan includes options to secure financial benefits for dependents with disabilities (Divyangjan).

Q10: How can one purchase the LIC’s Smart Pension Plan?

A: One can purchase the plan online and offline through LIC’s official website (www.licindia.in), LIC agents, intermediaries, Point of Sales Persons-Life Insurance (POSP-LI), and Common Public Service Centers (CPSC-SPV).