LIC smart pension plan: Features, annuity options, eligibility, other details

LIC smart pension plan: LIC launched the LIC Smart Pension Plan (Plan No. 879) on February 18, 2025.

LIC smart pension plan: The Life Insurance Corporation of India (LIC) on Wednesday launched a new pension scheme called the Smart Pension Plan.

The LIC smart pension plan offers a range of annuity options for both single life and joint life annuities.(Hemant Mishra/Mint)

It is a non-par, non-linked, individual/group, savings, and immediate annuity plan for various retirement needs. It offers a range of annuity options for both single life and joint life annuities.

Features of the LIC Smart Pension Plan

• It is a single premium immediate annuity plan.
• Subscribers can choose between single life annuity and joint life annuity options.
• The mode of annuity payments are yearly, half-yearly, quarterly, and monthly.
• The plan offers incentives for higher purchase price and also incentives for existing policyholders and nominee.
• Deceased policyholders can get a liquidity option, advanced annuity option, or an annuity accumulation option. When it comes to death benefits, there can be a lumpsum death benefit, annuitisation of death benefits, or in installments.
• National Pension System (NPS) subscribers get the option to opt for immediate annuity
• The plan also includes an option to secure financial benefits for dependent people with disabilities.

Eligibility for the LIC Smart Pension plan

The minimum age of entry into the plan is 18 years, while the maximum age of entry ranges from 65 to 100 years, depending on the annuity option selected.

Other details of the LIC Smart Pension plan

Minimum purchase price of the plan is ₹1,00,000, and there is no limit on the maximum purchase price. However, LIC also states that the maximum purchase price allowed is subject to acceptance as per the board approved underwriting policy.

Meanwhile, the minimum annuity amounts can be ₹1,000 per month, ₹3,000 per quarter, ₹6,000 per half-year, or ₹12,000 per annum, depending on the chosen mode of annuity payment.

Policyholders can avail loans after three months from the date of issuance or after the free-look period, whichever comes later. However, the loan availability is subject to specific annuity options and terms.

How to get the LIC Smart Pension Plan

The LIC Smart Pension Plan can be purchased offline through LIC agents, intermediaries, Point of Sales Persons-Life Insurance (POSP-LI), and Common Public Service Centers (CPSC-SPV), or can also be purchased online directly from the official website.