The Life Insurance Corporation of India (LIC) has introduced a new pension scheme, the Smart Pension Plan, designed to offer retirees a steady and reliable income. This single-premium, non-par, non-linked plan provides a range of annuity options, including choices for single life and joint life annuities.
LIC, promoting the plan on its X (formerly Twitter) account, emphasized that retirement should be seen as “the beginning of financial freedom” and not the end of earning. With the Smart Pension Plan, policyholders can look forward to a lifetime of financial security and stress-free golden years.
Eligibility and Key Features:
The plan is open to individuals aged between 18 and 100 years, though the specific eligibility may vary depending on the chosen annuity options. Once an annuity option is selected, it cannot be altered, so policyholders are advised to choose carefully.
The minimum purchase amount for the plan is set at Rs 1 lakh, with no upper limit, although the maximum purchase price will be subject to the company’s underwriting policy. The minimum annuity under this scheme is Rs 1,000, and annuity payments can be made annually, semi-annually, quarterly, or monthly, depending on the preference of the policyholder.
Special Features for NPS Subscribers:
National Pension System (NPS) subscribers can avail of an immediate annuity under the LIC Smart Pension Plan.
Additional Features:
- A range of annuity options to meet diverse financial needs
- Flexibility to choose from single-life or joint-life annuities
- Incentives for higher purchase amounts
- Special incentives for existing policyholders and beneficiaries of deceased policyholders
- Various options for death benefits, including lump sum payments, annuitization, or installments
This new plan is part of LIC’s strategy to offer tailored retirement solutions for individuals looking for financial stability during their post-retirement years.
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