LIC Pension Plan: India’s largest insurance provider, Life Insurance Corporation of India (LIC), introduced its new Smart Pension Plan onnFebruary 18, 2025. This plan is a single premium pension scheme that provides various options for both single life and joint life annuities.
LIC Smart Pension Plan
The launch event was attended by Financial Services Secretary M. Nagaraju and LIC’s CEO and Managing Director, Siddhartha Mohanty, along with senior officials from the Finance Ministry and LIC. To clarify, annuity plans are designed to facilitate retirement preparation. These plans allow for a one-time lump sum payment or installments over several years, with the benefit being received as a pension upon retirement.
Key Features of the LIC Smart Pension Plan include:
– A single premium pension plan requiring a one-time investment for a lifetime pension.
– Multiple annuity options available for both single and joint life.
– Liquidity options that allow for partial or full withdrawals.
– A minimum purchase price set at Rs 1,00,000, with special discounts for higher investments.
– Flexible annuity payout options, including monthly, quarterly, half-yearly, and yearly payments.
– A unique feature for NPS subscribers, offering an immediate annuity option.
LIC has established a minimum purchase price of Rs 1,00,000 for this scheme, with no upper limit on the maximum purchase price. Payments can be made on a yearly, half-yearly, quarterly, or monthly basis, and a cash option is available for partial or full withdrawals. This pension plan offers numerous benefits to customers, including lifetime annuity payments, with beneficiaries receiving payments according to the plan after the policyholder’s death. Customers can choose to receive the death benefit as a lump sum, in installments, as an advance annuity, or through an annuity deposit plan.
Additionally, the plan provides enhanced benefits based on the policyholder’s age, and higher investments can lead to premium discounts.