LIC New Smart Pension Plan: Key Details Explained

Life Insurance Corporation of India (LIC) has introduced the New Smart Pension Plan, a non-linked, non-participating individual savings annuity plan. This single premium immediate annuity plan offers multiple options to suit different financial needs.

If you are considering investing in this retirement scheme, here are the key details:

Can You Buy It with Someone Else?

Yes, you can opt for a Joint Life annuity with a family member. This includes grandparents, parents, children, grandchildren, spouse, siblings, or parents-in-law.

Is the Annuity Guaranteed?

Yes, the annuity rates are fixed at the time of purchasing the policy and remain unchanged.

What Are the Available Options?

The plan offers various options, including:

• Liquidity option (allows withdrawals under specific conditions)
• Advanced annuity option (offers higher initial payouts)
• Annuity accumulation option (allows gradual growth of annuity)

What Are the Death Benefit Payout Options?

In case of the policyholder’s passing, the nominee can receive the death benefit in 3 ways:

• Lump sum payment
• Annuitisation of the death benefit (using the amount to continue receiving annuity)
• Installment payments over a fixed period

What Are the Available Annuity Options?

For Single Life, 14 different annuity options exist, including:

• Life annuity (payouts continue as long as the policyholder is alive)
• Annuity certain for 5/10/15 years and life thereafter (fixed period payouts, then lifetime annuity)

For Joint Life, there are 7 different options that ensure annuity payments continue even after the death of one policyholder.

Can You Change the Annuity Option Later?

No, once selected, the annuity option cannot be modified.

What Are the Minimum and Maximum Purchase Prices?

• Minimum purchase price: ₹1 lakh
• No upper limit on the maximum purchase price

What Is the Minimum Annuity?

• ₹1,000 per month
• ₹3,000 per quarter
• ₹6,000 per half-year
• ₹12,000 per year

How Is the Premium Paid?

The premium is paid as a single lump sum at the time of purchase. Annuity payouts can be received:

• Monthly
• Quarterly
• Half-yearly
• Yearly

This plan ensures a steady income stream during retirement, offering flexibility and security for policyholders.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.