Last Updated:
LIC’s Smart Pension Plan, launched in February, offers non-par, non-linked annuity solutions for ages 18-100, with multiple annuity options, lump-sum death benefits, and loan provisions.
Smart Pension Plan can be purchased both online and offline
LIC Smart Pension Plan: The Life Insurance Corporation of India (LIC) introduced its latest product, the LIC Smart Pension Plan, in February this year. Dubbed as a non-par and non-linked plan for individuals, groups, saving, and immediate annuity plans, it promises a range of annuity options. It features multiple annuity choices along with lump-sum death benefits and the option to receive death benefits in installments.
With some important key features and additional benefits, take a look at some frequently asked questions about the LIC Smart Pension Plan.
LIC Smart Pension Plan FAQs
1. What is a Smart Pension Plan?
It is a non-participating and non-linked savings plan offering annuity solutions to both individuals and groups.
2. Who is eligible for the LIC Smart Pension Plan?
Anyone between the ages of 18 and 100 years of age can buy the Smart Pension Plan based on the annuity option.
3. What are the annuity options under the plan?
Subscribers can choose between two annuity options, including Single Life Annuity and Joint Life Annuity.
4. What are the minimum amounts for annuity?
Rs 1,000 monthly
Rs 3,000 quarterly
Rs 6,000 half-yearly
Rs 12,000 annually
5. Is it possible to take a loan against the LIC Smart Pension Plan?
Loans can be availed after three months from the policy’s issuance or after completing the free-lock period. “The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50 per cent of the annual annuity amount payable under the policy and shall be subject to a maximum of 80 p34 d3n5 of Surrender Value,” the company says.
6. Are there any special provisions for NPS subscribers?
Those subscribed to the National Pension System can avail themselves of an immediate annuity, allowing a smoother transition to a retirement income.
7. What are the plan benefits for a person with a disability?
The plan can be purchased for the benefit of Divyangjan as nominee/annuitant. In case of the death of the annuitant (proposer), the death benefit shall compulsorily be utilised to purchase an immediate annuity on the life of the Divyangjan who would be the nominee.
8. How to apply for an LIC Smart Pension Plan?
The plan can be purchased both online and offline. While one can directly buy it online via LIC’s official website, offline purchases can be made through LIC agents, intermediaries, Point of Sales Persons—Life Insurance (POSP-LI), and Common Public Service Centers (CPSC-SPV).
