The Life Insurance Corporation (LIC) has launched a new Smart Pension Plan, designed to offer financial security to individuals after retirement. This is a non-participating, non-linked pension scheme that helps provide a stable income post-retirement. Below is everything you need to know about the plan’s features, eligibility criteria, and how to apply.
Key Features of the LIC Smart Pension Plan
The LIC Smart Pension Plan comes with various flexible options that make it an attractive choice for individuals planning their post-retirement finances. Here are the main features:
- Single-Premium Payment: Pay once and receive regular pension payouts for the rest of your life.
- Pension Frequency Flexibility: Choose from monthly, quarterly, half-yearly, or annually for pension disbursements.
- Annuity Options:
- Single-life annuity (for the policyholder only)
- Joint-life annuity (for the policyholder and spouse)
- Death Benefits: In case of the policyholder’s death, the family has several options:
- Lump sum payout
- Regular annuity payments
- Installment payments
- Support for Disabled Dependents: The plan includes coverage for dependents with disabilities.
- Existing LIC Policyholders: Extra benefits for LIC customers and those investing a larger amount.
Eligibility Criteria
To apply for the LIC Smart Pension Plan, ensure you meet the following criteria:
| Criteria | Details |
| Minimum Age | 18 years |
| Maximum Age | Varies between 65 to 100 years (depends on the selected annuity option) |
| Minimum Premium | Rs. 1,00,000 |
| Maximum Premium | No upper limit; subject to LIC’s underwriting policy |
Pension Amount
The minimum pension amount varies based on the frequency you choose for receiving your payouts. Here are the options:
| Payment Frequency | Minimum Pension |
| Monthly | Rs. 1,000 |
| Quarterly | Rs. 3,000 |
| Half-Yearly | Rs. 6,000 |
| Annually | Rs. 12,000 |
Loan Facility
After three months from the policy start date or after the free-look period (whichever is later), policyholders are eligible to apply for a loan against their pension plan. Loan approval depends on the chosen annuity option.
How to Apply for LIC Smart Pension Plan
You can purchase the LIC Smart Pension Plan through the following channels:
- Offline: Visit your nearest LIC agent, authorized intermediaries, or Common Public Service Centers (CPSC-SPV).
- Online: Apply directly through the official LIC website for a more streamlined process.
Conclusion
This pension plan offers a simple and flexible solution for anyone looking to secure their retirement income. Its single-premium feature makes it highly convenient for people who prefer a lump sum investment over time. Additionally, it provides death benefits and disability support, which make it an ideal option for people with family responsibilities.
Frequently Asked Questions
Who is eligible for the LIC Smart Pension Plan?
Anyone aged 18 years or older can apply. The maximum age limit varies between 65 to 100 years, depending on the annuity option.
What is the minimum and maximum premium amount?
The minimum premium is Rs. 1,00,000. There is no upper limit, but the maximum premium is determined based on LIC’s underwriting policies.
Can I take a loan against this pension plan?
Yes, after the three-month mark, you can apply for a loan against the policy, subject to LIC’s approval.
How can I apply for the LIC Smart Pension Plan?
You can apply either offline through LIC agents or online via the official LIC website.
What are the options for pension payouts?
You can choose a monthly, quarterly, half-yearly, or annual payout schedule, depending on your preferences.
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