LIC Launches Smart Pension Plan: Invest Once, Promises Lifetime Payouts – Here’s How It Works

The Life Insurance Corporation of India (LIC) has unveiled its latest offering, the Smart Pension Plan, designed to provide a stable income for retirees through a single-premium annuity scheme. This flexible pension plan allows policyholders to tailor their annuity options based on their financial goals and retirement needs.

Announcing the plan on X (formerly Twitter), LIC stated:
“Retirement isn’t the end of earning—it’s the beginning of financial freedom! With LIC of India’s Smart Pension, enjoy a lifetime of steady income and stress-free golden years.”

With diverse payout options and withdrawal flexibility, the LIC Smart Pension Plan caters to individuals across different age groups, offering both single and joint life annuity options.

LIC Smart Pension Plan: Key Features and Benefits

1. Single-Premium Annuity Plan

• The plan operates on a one-time investment basis, meaning customers pay a lump sum only once to receive regular pension payouts.
• The amount of annuity (pension) is determined by the investment size and payout frequency chosen by the policyholder.

2. Flexible Annuity Options

The LIC Smart Pension Plan offers two types of annuity options:
Single Life Annuity: Provides lifetime annuity payments to the policyholder. Payments stop upon the annuitant’s demise.
Joint Life Annuity: Offers annuity payments for both the primary policyholder and a secondary annuitant (such as a spouse). The pension continues until both individuals pass away.

3. Eligibility Criteria

• Minimum entry age: 18 years (making it suitable even for young investors).
• Maximum entry age: Between 65 to 100 years, depending on the payout option selected.

4. Multiple Payout Options

Policyholders can choose their preferred payout mode, ensuring flexibility in receiving their pension. The available options include:

• Monthly: Minimum annuity of ₹1,000
• Quarterly: Minimum annuity of ₹3,000
• Half-Yearly: Minimum annuity of ₹6,000
• Yearly: Minimum annuity of ₹12,000

5. Withdrawal and Liquidity Options

• The scheme allows for partial or full withdrawal, subject to certain conditions and financial needs of the customer.
• This feature provides policyholders liquidity access, ensuring they can manage unexpected expenses post-retirement.

How to Buy LIC Smart Pension Plan?

The LIC Smart Pension Plan is easily accessible both online and offline:
1. Online Purchase: Customers can buy the policy directly from www.licindia.in.
2. Offline Purchase: Available through LIC agents, intermediaries, Point of Sales Persons (PoSPs), and Common Public Service Centers (CPSCs).

LIC Smart Pension Plan: Why It Matters?

The launch of LIC’s Smart Pension Plan comes at a time when retirement planning is a growing concern for individuals seeking financial stability in their later years. With flexible investment options, secure payouts, and withdrawal benefits, LIC aims to provide a reliable pension solution to meet the diverse needs of policyholders.

For those looking to secure their post-retirement life with a steady and guaranteed income, the LIC Smart Pension Plan presents a comprehensive and convenient solution.

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