LIC Launches New Pension Plan: Who Can Apply and How It Works?

LIC (Life Insurance Corporation) of India launched a new pension scheme named LIC Smart Pension Plan. It is a non-participating, non-linked pension plan that helps individuals and groups meet different retirement needs. It offers immediate annuity payments and provides many options for single-life and joint-life annuities.

The LIC Smart Pension Plan is a one-time payment pension scheme that starts giving payouts right away.

Key Features of the Pension Scheme

1.  You pay once and start receiving a regular pension immediately.

2. You can choose between a single-life annuity or a joint-life annuity.

3. Pension payments can be made monthly, quarterly, half-yearly, or yearly, based on your preference.

4. If you invest a larger amount or are already a LIC policyholder, you may get extra benefits.

5. If the policyholder passes away, their family has several options. They can choose a liquidity option, an advanced annuity option, or an annuity accumulation option. For death benefits, the payout can be a lump sum amount, converted into regular annuity payments, or received in installments over time.

6. The plan includes financial support for dependents with disabilities.

What is the eligibility for the LIC Smart Pension Plan?

The minimum age to join this pension plan is 18 years, and the maximum age limit varies between 65 and 100 years, which depends on the chosen annuity option.

Further Details of the LIS Smart Pension Plan

The scheme required a minimum purchase price of Rs.1,00,000 and there is no maximum limit. LIC mentions that the maximum purchase amount will be decided on the basis of their underwriting policy and approval process. The minimum pension you can get depends on how often you select to get paid: Rs.1000 per month, Rs.3,000 per quarter, Rs.6,000 per half-year, and Rs.12,000 per annum.

Policyholders can apply for a loan after three months from the policy start date or after the free-look period, whichever is later. However, loan approval depends on the selected annuity option and specific terms.

How Individuals Can Get the LIC Smart Pension Plan?

The plan can be purchased in offline mode via LIC agents, intermediaries, POSP-LI (Point of Sales Persons-Life Insurance), CPSC-SPV (Common Public Service Centers) and individuals can purchase the plan through the official website.