Life Insurance Corporation (LIC) of India has launched the Smart Pension plan, offering a non-participating, non-linked individual and group savings immediate annuity solution aimed at providing financial security during retirement.
The LIC Smart Pension plan allows policyholders to choose from a wide array of annuity options tailored to both Single Life and Joint Life needs. Joint Life annuities can be opted for between family members, including spouses, parents, children, grandchildren, siblings, and even parents-in-law. This flexibility makes the plan versatile for families looking to secure financial stability for their loved ones.
One of the plan's key features is that the annuity rates are guaranteed at the inception of the policy, ensuring a fixed benefit for the policyholder or their family, irrespective of actual experience. This makes the plan an attractive option for those seeking a reliable and predictable income stream in their later years.
As a non-par product, the LIC Smart Pension plan guarantees fixed benefits payable on death or survival as per the chosen annuity option. However, policyholders should note that, as a non-participating product, this plan does not offer any discretionary benefits such as bonuses or surplus shares.
The plan offers flexibility in terms of annuity payments, allowing policyholders to choose from various payment frequencies, including yearly, half-yearly, quarterly, or monthly installments. Additionally, incentives are available for higher purchase prices, as well as for existing policyholders and the beneficiaries of deceased policyholders.
Several annuity options are available to suit different needs, including the Liquidity Option, Advanced Annuity Option, and Annuity Accumulation Option. For the payment of death benefits, policyholders can opt for lump-sum death benefits, annuitization of death benefits, or installment-based death benefits.
The Smart Pension plan is available for purchase both offline through agents and intermediaries such as Point of Sales Persons-Life Insurance (POSP-LI) and Common Public Service Centers (CPSC-SPV), as well as online directly through the official LIC website, www.licindia.in.
Prospective policyholders are encouraged to consider the LIC Smart Pension plan in comparison with similar available products to make an informed decision about their future financial security.
