Life Insurance Corporation of India (LIC) has introduced the LIC Smart Pension Plan, a non-participating, non-linked, individual/group, savings, and immediate annuity plan.
According to a press release, the initiative aims to offer financial stability and flexible retirement solutions, reinforcing LIC’s commitment to securing the future of policyholders across India.
The plan was launched in New Delhi by M Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance, in the presence of company CEO and Managing Director Siddharth Mohanty, the release said.
The Smart Pension Plan is designed to provide financial security post-retirement through a single premium, immediate annuity structure. Policyholders can choose from a variety of annuity options to suit their financial needs, with flexibility for both single life and joint life annuities.
The plan is open to individuals aged 18 and above, with the maximum entry age varying between 65 to 100 years, depending on the chosen annuity option. Existing LIC policyholders and nominees of deceased policyholders will receive an incentive in the form of an enhanced annuity rate, it said.
A key highlight of the plan is its liquidity options, allowing partial or full withdrawals under specific terms. The minimum purchase price is Rs 1 lakh, with additional incentives for higher investments. Annuity payments can be received annually, half-yearly, quarterly, or monthly, based on the policyholder's preference.
Additionally, the plan provides a special feature for National Pension System (NPS) subscribers to opt for immediate annuity. In a move towards inclusivity, the plan also offers annuity options catering to dependent persons with disabilities (Divyangjan).
The policy allows for loans after three months from issuance or after the free-look period, whichever is later. Upon the annuitant’s survival, the payout options vary according to the annuity chosen at inception. In the event of death, benefits will be disbursed based on the selected option, which includes lump sum payments, annuitization, installment-based payouts, liquidity benefits, advanced annuity, or annuity accumulation options.
LIC has made the plan accessible both online and offline. Customers can purchase it through LIC’s official website or via agents, intermediaries, Point of Sales Persons-Life Insurance and Common Public Service Centres, the release added.
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