LIC Smart Pension Plan? FAQs about new retirement planning scheme answered

Annuity payment can be done yearly, half-yearly, quarterly and monthly, says company

Life Insurance Corporation of India (LIC) has launched a pension plan that has a diverse range of annuity options for both single life and joint life requirements, said the state-owned company.

 

LIC New Smart Pension Plan has several liquidity options for partial or full withdrawal according to terms of a policy, it said in a statement.

 

The minimum entry age is 18 years, allowing young investors to begin planning early. The maximum entry age varies between 65 and 100 years, depending on the chosen annuity option, ensuring accessibility for a broad range of individuals.

 

The minimum purchase price is Rs 100,000 with incentives for higher purchase price and modes of annuity payments allowable are yearly, half yearly, quarterly or monthly

 

Key features of Smart Pension Plan:

 

Single premium immediate annuity plan offering financial security.

 

Diverse annuity options tailored to individual needs.

 

Flexibility to select between single life annuity and joint life annuity options.

 

Choice of annuity payment modes: yearly, half-yearly, quarterly, or monthly.

 

Incentives available for higher purchase prices.

 

Special benefits for existing policyholders and nominees/beneficiaries of deceased policyholders.

 

Additional options for enhanced benefits, including:

 

Liquidity option

 

Advanced annuity option

 

Annuity accumulation option

 

Multiple payout choices for death benefit (if any):

 

Lump sum payout

 

Annuitization of the death benefit

 

Installment-based payments

 

Frequently asked questions (FAQs)

 

What are the minimum annuity amounts?

 

Rs 1,000 monthly

 

Rs 3,000 quarterly

 

Rs 6,000 half-yearly

 

Rs 12,000 yearly

 

Is it possible to avail of a loan against this policy?

 

Yes, policy loans can be accessed after three months from the policy's issuance or upon the completion of the free-look period, whichever comes later.

 

What happens if the annuitant (an annuitant is a person who receives income payments from an annuity) survives the policy duration?

 

The annuitant will continue to receive regular annuity payments based on their selected option.

 

Are there any special benefits for National Pension System subscribers?

 

NPS subscribers can opt for an immediate annuity, allowing for a smooth transition into a steady retirement income.

 

How does this plan ensure financial security for dependents with disabilities?

 

The policy is designed to provide financial benefits to dependents with disabilities (Divyangjan), ensuring their long-term security.

 

How can you purchase LIC's Smart Pension Plan?

 

The plan is available for purchase both 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).