LIC’s new pension plan: What is eligibility, annuity options and other details
LIC’s Smart Pension Plan is a non-par, non-linked, individual/group, savings, and immediate annuity plan designed to cater to various retirement needs. It offers a range of annuity options for both single life and joint life annuities, ensuring flexibility and security for policyholders.
The minimum entry age is 18 years, ensuring young investors can start planning early.
The maximum entry age ranges from 65 to 100 years, depending on the annuity option selected, making the plan accessible to a wide range of individuals.
Policyholders can choose between a Single Life Annuity, which provides payments for the annuitant's lifetime, and a Joint Life Annuity, which ensures payments continue for both the primary and secondary annuitants.
The LIC Smart Pension plan requires a minimum purchase price of Rs.1,00,000 with no maximum limit (subject to underwriting policy). The minimum annuity payments are Rs.1,000 per month, Rs.3,000 per quarter, Rs.6,000 per half-year, and Rs.12,000 per annum, while there is no limit on the maximum annuity. Premiums are paid as a single payment.
The benefits and payouts for the annuitant will depend on the annuity option chosen at the beginning of the policy.
Different annuity options provide varied survival benefits, which could include regular payouts for life or other specific benefits as per the plan’s terms.
If the annuitant passes away, the payout to the nominee or beneficiary will be determined based on the option selected at the time of purchase. The options chosen for payment of death benefit may be lumpsum or Annuitisation of death benefit or in Instalments or Liquidity option or Advanced Annuity option or Annuity Accumulation option.
The LIC Smart Pension Plan can be purchased offline through LIC agents, intermediaries, POSP-LI, and CPSC-SPV, or online directly at www.licindia.in.
