LICs Smart Pension Plan: What is it and other important FAQs for your retirement planning
A standout feature of the plan is its liquidity options, enabling policyholders to make partial or full withdrawals under specified conditions. Policyholders have the flexibility to receive annuity payments on an annual, half-yearly, quarterly, or monthly basis, depending on their preference. Moreover, the plan includes a special provision for National Pension System (NPS) subscribers, allowing them to opt for an immediate annuity.
Here are important FAQs on LIC Smart Pension Plan
What is LIC’s Smart Pension Plan?
LIC’s Smart Pension Plan is a non-participating, non-linked, savings, and immediate annuity plan designed to provide retirees with a steady income. It offers multiple annuity options for single and joint life annuities.
Who can buy the LIC Smart Pension Plan?
Any individual aged between 18 and 100 years (depending on the annuity option) can purchase this plan.
Is LIC’s Smart Pension Plan a market-linked product?
No, this is a non-linked product, meaning its benefits are guaranteed and not affected by market fluctuations.
What annuity options are available under this plan?
Single Life Annuity: Provides regular annuity payments for the annuitant’s lifetime.
Joint Life Annuity: Ensures annuity payments continue for both the primary and secondary annuitants.
What is the minimum annuity amount?
Rs 1,000 per month
Rs 3,000 per quarter
Rs 6,000 per half-year
Rs 12,000 per year
What are the annuity payment frequency options?
Policyholders can choose to receive annuity payments:
Monthly
Quarterly
Half-yearly
Yearly
Can existing LIC policyholders get any benefits?
Yes, existing LIC policyholders and nominees of deceased LIC policyholders are eligible for higher annuity rates.
What is the minimum and maximum purchase price for this plan?
Minimum Purchase Price: Rs 1,00,000
Maximum Purchase Price: No limit (subject to underwriting approval)
Can I avail a loan against this policy?
Yes, loans can be availed after three months from the issuance date or after the free-look period, whichever is later.
What happens if the annuitant survives throughout the policy period?
The annuitant continues receiving annuity payments based on the chosen annuity option.
What happens upon the death of the annuitant?
The nominee will receive the death benefit as per the selected payout option:
Lump sum payment
Annuitization of death benefit
Installment payments
Liquidity option
Advanced annuity option
Annuity accumulation option
Is there any special benefit for NPS subscribers?
Yes, NPS subscribers can opt for an immediate annuity for a smooth transition to a retirement income stream.
Does this plan offer financial security for dependents with disabilities?
Yes, there is an option to secure financial benefits for dependents with disabilities (Divyangjan).