The biggest insurance provider in the country, LIC, has rolled out its latest pension offering, the Smart Pension Plan. This plan is all about providing a comprehensive, adaptable, and secure pension solution tailored to various financial situations. It aims to guarantee a steady income for retirees and their families. The Smart Pension Plan is a non-participating, non-linked product that caters to both individuals and groups, focusing on savings and immediate annuities.
This plan is crafted to address a range of retirement needs, featuring options for both single and joint life annuities. It prioritizes flexibility and security for policyholders. As a non-participating product, the benefits paid out upon death or during the annuitant’s lifetime are guaranteed and fixed, based on the selected annuity option, independent of actual performance. The plan provides multiple annuity choices to align with different financial goals and retirement aspirations.
Customers can pick the option that best fits their long-term financial strategy. Here are some key highlights of the LIC Smart Pension Plan:
Age Eligibility
1. The minimum age to enter is 18, encouraging younger investors to start planning early.
2. The maximum entry age ranges from 65 to 100 years, depending on the chosen annuity option, making it accessible to a wide audience.
Flexible Annuity Options
Policyholders have two choices: a single life annuity, which pays out for the lifetime of the annuitant, or a joint life annuity, which continues payments for both the primary and secondary annuitants (like a spouse). Existing LIC policyholders and the beneficiaries of deceased policyholders can enjoy higher annuity rates, adding extra value for loyal customers.
Cash Withdrawal Option
The policy allows for partial or full withdrawals under specific conditions, giving policyholders financial flexibility when they need it.
Flexible Annuity Payment Methods
Policyholders can select their preferred payment frequency, whether it’s monthly, quarterly, or another option that suits them.
Special Perk for NPS Subscribers
If you’re a National Pension System (NPS) subscriber, you can opt for an immediate annuity, making it easy to kickstart your retirement income without any hassle.
Support for Disabled Dependents
This plan also offers a way to provide financial support for disabled dependents, ensuring they have a secure financial future.
Loan Options for Policyholders
You can take out a loan three months after your policy is issued or after the free-look period ends, whichever comes later. Keep in mind that loan availability depends on the specific annuity options and the terms set forth.
LIC Smart Pension Plan Overview
Minimum Purchase Price: Rs. 1,00,000
Maximum Purchase Price: No cap (though it needs approval based on the Board’s underwriting policy)
Minimum Annuity: The lowest annuity amounts are Rs. 1,000 monthly, Rs. 3,000 quarterly, Rs. 6,000 biannually, and Rs. 12,000 annually, depending on how you choose to receive payments.
Maximum Annuity: Unlimited
Premium Payment Mode: Single premium only
Death and Life Benefits of LIC Smart Pension Plan
If the annuitant is alive:
The benefits and payouts will vary based on the annuity option selected when the policy starts. Different options provide various life benefits, which could include regular payments for life or other specific perks as outlined in the plan.
In the event of the annuitant’s death, the payout to the nominee or beneficiary will depend on the option chosen at the time of purchase. You can select from options like a lump sum, annuitization of the death benefit, installments, cash option, advanced annuity option, or annuity accumulation option.
How to Purchase LIC Smart Pension Plan
You can buy the LIC Smart Pension Plan through several convenient methods:
Offline: Available via LIC agents, intermediaries, Point of Sales Persons-Life Insurance (POSP-LI), and Common Public Service Centers (CPSC-SPV).
Online: You can also purchase it through the official website.