Securing a financially stable retirement is a priority for many. The Life Insurance Corporation of India (LIC) has introduced the LIC Smart Pension Plan, a single-premium immediate annuity policy designed to provide lifelong income.  

This non-participating, non-linked, savings-oriented plan ensures financial security and flexibility. Policyholders can opt for an individual plan or choose the Joint Life option, which allows annuity benefits to be extended to a family member, including a spouse, parent, grandparent, child, grandchild, sibling, or in-law. The policy guarantees fixed annuity rates, protecting against market fluctuations.  

Why choose LIC’ Smart Pension Plan? 

For those opting for the Joint Life category, annuity benefits can be extended to a family member such as a spouse, parent, grandparent, child, grandchild, sibling, or in-law. Once the policy is issued, annuity rates are fixed, ensuring financial stability in a fluctuating market.

LIC Smart Pension Plan: Key features and benefits

The LIC Smart Pension Plan offers multiple annuity payout frequencies—monthly, quarterly, half-yearly, or yearly—to cater to varying financial needs. Higher purchase amounts and existing LIC policyholders can avail of additional incentives.  

Entry is open from age 18, with the maximum age limit ranging between 65 and 100 years, depending on the chosen annuity option. The minimum investment starts at Rs 1 lakh, with no upper limit. Pension payouts begin at Rs 1,000 per month, Rs 3,000 quarterly, Rs 6,000 half-yearly, and Rs 12,000 yearly.  

LIC Smart Pension Plan: Annuity payouts and returns

For a Rs 10 lakh investment at age 60, estimated yearly payouts under different annuity options are:

– Life annuity: Rs 85,000 per year
– Annuity certain for 5 years & life thereafter: Rs 84,500 per year
– Annuity certain for 10 years & life thereafter: Rs 83,200 per year
– Annuity certain for 15 years & life thereafter: Rs 81,400 per year

LIC Smart Pension Plan: Death and survival benefits

In the event of the annuitant’s demise, the nominee receives benefits as per the selected policy option. The payout can be taken as a lump sum, annuitisation, or in installments, ensuring financial continuity for the nominee.

LIC Smart Pension Plan: Purchase and loan facilities

The plan is available through LIC agents, intermediaries, Point of Sales Persons-Life Insurance (POSP-LI), Common Public Service Centers (CPSC-SPV), and LIC’s website. A loan facility is also available after three months from policy issuance or post the free-look period, offering additional financial flexibility.