The Life Insurance Corporation of India (LIC) has launched a single premium ‘Smart’ pension scheme offering various individual and joint pension options.
LIC’s statement explains that different cash options are available for partial or complete withdrawals according to the policy terms. The minimum purchase price for the pension scheme is Rs. 1 lakh. Below are the complete details of this new pension scheme:
Minimum Annuity Amounts:
- Rs. 1,000 per month
- Rs. 3,000 per quarter
- Rs. 6,000 semi-annually
- Rs. 10,000 annually
Pension Plans:
The LIC Smart Pension Plan is a non-participating, non-linked individual/group savings immediate annuity plan. According to LIC, this new plan aims to revolutionize the pension and retirement savings segment by providing a safe way to save for retirement.
Unlike other pension schemes, it includes an immediate annuity option, allowing you to start receiving your pension in the month following the purchase of the policy.
This scheme ensures financial security post-retirement. You will continue to receive a pension once you invest in this scheme with a one-time premium.
The entire premium must be paid upfront to begin receiving a pension. Various annuity options allow policyholders to receive their pension monthly, quarterly, semi-annually, or annually.
What is an Annuity Plan?
Annuity plans are retirement plans that provide regular income during retirement. They can be funded over time or with a lump sum payment.
Incentives:
This bright pension plan lets you select between single-life and joint-life annuity options. Existing policyholders can benefit from increased annuity rates for their nominees or heirs in the event of their death.
The scheme also allows for partial or complete cash withdrawals per policy terms. The minimum purchase price is Rs. 1 lakh, and incentives are available for higher contributions.
Entry Age:
The minimum entry age for this scheme is 18. Depending on the annuity option chosen, the maximum entry age ranges from 65 to 100 years.
Existing LIC policyholders and nominees of deceased policyholders may qualify for incentives through increased annuities. National Pension System (NPS) subscribers can also opt for immediate annuities.
The scheme provides financial benefits to the dependents of individuals with disabilities, ensuring their long-term economic well-being. Policyholders can avail of loans after three months, subject to specific annuity options and conditions.
How to Avail LIC Smart Pension Plan?
You can purchase the LIC Smart Pension Plan through various channels, including offline through LIC agents, intermediaries, Point of Sale Person-Life Insurance (PoSLI), and Common Public Service Centres (CPSC-SPV). It can also be purchased directly online at www.licindia.in.
LIC Smart Pension Plan Details:
- Minimum Purchase Price: Rs. 1,00,000/-
- Maximum Purchase Price: No limit (subject to approval per the underwriting policy approved by the Board).
- Maximum Annuity: No limit.
- Premium Payment Method: Single Premium.
Key Features of the Pension Scheme:
- Single premium annuity plan.
- A wide range of annuity options to suit customer needs.
The minimum entry age is 18, and the maximum entry age ranges from 65 to 100, depending on the annuity option. - Flexibility to choose between single annuity and joint annuity options.
- Incentives for current policyholders through enhanced annuity rates for nominees or beneficiaries of deceased policyholders.
- As per policy terms, multiple liquidity options are available for partial or complete withdrawals.
- Annual, semi-annual, quarterly, or monthly annuity payment options.
- The annuity installment is calculated based on the chosen annuity payment method.
- Unique feature: NPS subscribers can opt for an immediate annuity.
- Available for the life benefit of individuals with disabilities (Divyangjan).
- This plan can be purchased online at www.licindia.in.
Policy loans are permitted under specific annuity options any time after three months from the date of policy issue or after the expiry of the free look period.