The Life Insurance Corporation of India (LIC) launched its latest pension scheme, the Smart Pension Plan, on February 19. The plan is a non-par, non-linked, individual/group, savings, and immediate annuity plan designed to see to the various retirement needs of consumers.
The minimum entry age for the plan is 18 years, allowing young investors to begin their financial planning early. The maximum age for entry ranges from 65 to 100 years, based on the annuity option selected.
Annuity Options
The policyholders can opt for either a Single Life Annuity, wherein annuity payments are made for the lifetime of the annuitant, or a Joint Life Annuity, wherein annuity payments continue for both the primary annuitant and the secondary annuitant, like the spouse.
The plan provides benefits payable on death or survival and these are guaranteed and fixed (as per the chosen annuity option), regardless of actual experience.
Purchase Price And Annuity Payment
The minimum purchase price for the plan is Rs 1 lakh, while the maximum purchase price has no limit. Based on the selected annuity payment, the minimum annuity amounts available for customers are Rs 1000 per month, Rs 3000 per quarter, Rs 6000 per half-year, and Rs 12000 per annum. There is no ceiling for the maximum annuity payout.
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Customers can buy the Smart Pension Plan via multiple channels. They can either go the offline route and purchase the plan from LIC agents, intermediaries, point of sales persons-life insurance (POSP-LI), and common public service centers. Alternatively, customers can also directly visit the LIC India website to purchase the plan at www.licindia.in.
The plan states that if the annuitant passes away, the payout to the beneficiary would be determined based on the option selected during the purchase.