Life Insurance Corporation of India (LIC) has introduced a new retirement plan, the ‘Smart’ Pension Scheme, offering a one-time premium payment option with multiple pension benefits. This scheme is designed to provide financial security for retirees and those planning their future. With this plan, individuals can receive a guaranteed pension for life while enjoying flexible payout options. Here’s everything you need to know about LIC’s new Smart Pension Scheme.
What is LIC Smart Pension Scheme?
LIC’s Smart Pension Scheme is a single premium annuity plan, meaning you pay the premium only once and receive a guaranteed pension throughout your lifetime. It offers multiple annuity options, catering to individual needs and joint pension benefits. The scheme aims to provide financial stability and liquidity options, making it an attractive choice for those seeking a secure retirement income.
Key Features of LIC Smart Pension Scheme
- One-time premium payment: No need to pay multiple premiums; a single payment ensures lifelong pension.
- Flexible annuity options: Choose from different payout options based on your requirements.
- No maximum purchase limit: You can invest as much as you want (subject to LIC’s underwriting policy).
- Multiple withdrawal options: Get liquidity with partial or full withdrawals as per policy terms.
- Minimum purchase price: Starts from just Rs.1,00,000.
- Lifetime pension benefits: Annuity payments continue as per your chosen plan.
- Nominee benefits: Higher annuity rates for policyholder’s beneficiary.
- Special benefits for NPS subscribers: Immediate annuity options for National Pension System subscribers.
- Support for disabled individuals: Special options available for policyholders with disabilities.
- Loan facility: Loan available after three months of policy issuance.
Who Can Apply for LIC Smart Pension Scheme?
- Minimum age: 18 years
- Maximum age: Varies from 65 to 100 years, depending on the annuity option selected.
- Individuals looking for a secure retirement income.
- NPS subscribers who want an immediate pension plan.
- Senior citizens or individuals planning their post-retirement financial security.
Pension Payout Options
Under this scheme, LIC offers multiple annuity payout options to ensure flexibility. You can choose the frequency of pension payouts:
- Monthly: Minimum pension of Rs.1,000 per month
- Quarterly: Minimum pension of Rs.3,000 per quarter
- Half-yearly: Minimum pension of Rs.6,000 per half-year
- Yearly: Minimum pension of Rs.12,000 per year
There is no maximum limit on the annuity amount, ensuring financial freedom for investors.
How to Get Regular Income with LIC Smart Pension Plan
This scheme ensures you receive a fixed, regular pension for life based on your one-time investment. For example:
- If you invest Rs.5 lakh, your monthly pension will be calculated based on the prevailing annuity rates.
- Higher investments will fetch better monthly returns, ensuring a stable post-retirement income.
- The pension can be received for an individual or jointly with a spouse.
Benefits of LIC Smart Pension Scheme
- One-Time Investment: No need for repeated premium payments; pay once and enjoy lifelong returns.
- Lifetime Security: Guaranteed pension throughout your lifetime.
- Flexible Payouts: Choose monthly, quarterly, half-yearly, or yearly annuity payments.
- Liquidity Option: Partial or full withdrawals available as per policy conditions.
- Nominee Benefits: Higher annuity rates for beneficiaries.
- No Tax on Pension Receipts: Annuity income is taxable as per individual income tax slabs, but no TDS deduction.
- Hassle-Free Purchase: Buy online from LIC’s official website or visit the nearest LIC branch.
How to Apply for LIC Smart Pension Scheme
Online Mode:
- Visit LIC’s official website www.licindia.in.
- Select the Smart Pension Scheme.
- Enter required details and choose the premium amount.
- Complete payment and receive policy details instantly.
Offline Mode:
- Visit the nearest LIC branch or authorized LIC agent.
- Fill out the application form and provide KYC documents.
- Choose your annuity plan and pay the one-time premium.
- Receive policy details and start your pension benefits.
Why Choose LIC’s Smart Pension Plan?
- LIC is India’s most trusted insurance provider with decades of experience.
- The one-time premium payment removes the burden of recurring premiums.
- The scheme is suitable for all age groups above 18 years, ensuring flexible benefits.
- Higher annuity rates for higher purchase prices, making it ideal for large investors.
- No investment cap, ensuring freedom to invest based on financial goals.
LIC’s Smart Pension Scheme is a game-changer for those seeking financial security post-retirement. With its single premium feature, flexible annuity options, and lifetime pension benefits, it is an excellent choice for a stress-free retirement.
For more details, visit the official LIC website or consult an LIC representative.
