LIC Smart Pension Plan: Life Insurance Corporation of India (LIC) has introduced its latest offering, the LIC Smart Pension Plan. This scheme is structured as a non-participating, non-linked plan for individuals and groups, focusing on savings and immediate annuity benefits.
According to an ET report, the plan’s distinctive advantage lies in its liquidity provisions, which allow holders to withdraw funds partially or fully under certain conditions. Annuity payments can be received at various intervals – annually, half-yearly, quarterly, or monthly, based on the holder’s choice.
The scheme also includes specific arrangements for National Pension System (NPS) subscribers to access immediate annuity benefits.
LIC Smart Pension Plan: FAQs Answered
What is LIC’s Smart Pension Plan?
LIC’s Smart Pension Plan is a non-participating, non-linked, savings, and immediate annuity plan that provides consistent income to retirees. It features various annuity options for single and joint life annuities.
Who can buy the LIC Smart Pension Plan?
The plan is available to individuals between 18 and 100 years of age, with age eligibility varying by annuity option.
Is LIC Smart Pension Plan a market-linked product?
No, as a non-linked product, it offers guaranteed benefits independent of market performance.
What annuity options are available under this plan?
Single Life Annuity: Offers regular annuity payments throughout the annuitant’s lifetime.
Joint Life Annuity: Ensures continued annuity payments for both primary and secondary annuitants.
What are the minimum annuity amounts?
The minimum annuity amounts are structured as:
- Rs 1,000 monthly
- Rs 3,000 quarterly
- Rs 6,000 half-yearly
- Rs 12,000 yearly
The frequency options for annuity payments include:
- Monthly disbursements
- Quarterly disbursements
- Half-yearly disbursements
- Yearly disbursements
Do existing LIC policyholders get any benefits?
Current LIC policyholders and nominees of deceased LIC policyholders qualify for enhanced annuity rates.
Minimum and maximum purchase price for LIC Smart Pension Plan?
The purchase price parameters are:
- Minimum Purchase Price: Rs 1,00,000
- Maximum Purchase Price: Unlimited (contingent upon underwriting clearance)
Can you avail a loan against this policy?
Policy loans become accessible after either three months from issuance or post free-look period completion, whichever occurs later.
If the annuitant lives through the policy duration, they continue to receive regular annuity payments as per their selected option.
What happens in case of death of the annuitant?
Upon the annuitant’s death, the designated nominee has several options for receiving death benefits:
- Lump sum payment
- Annuitization of death benefit
- Installment payments
- Liquidity option
- Advanced annuity option
- Annuity accumulation option
What are the special benefits for NPS subscribers?
NPS subscribers benefit from the ability to select an immediate annuity, ensuring a seamless shift to retirement income.
What about financial security for dependents with disabilities?
The plan includes provisions for securing financial benefits for dependents with disabilities (Divyangjan).