The Life Insurance Corporation of India (LIC) has introduced the Smart Pension Plan, aiming to provide flexible and secure retirement solutions for individuals and groups. The launch took place in New Delhi, featuring prominent officials such as M. Nagaraju, Secretary of the Department of Financial Services, and Siddhartha Mohanty, CEO and Managing Director of LIC.
This new plan is classified as a non-participatory and non-linked product, categorized under individual and group savings, and immediate annuities. It is thoughtfully crafted to address various retirement needs, offering distinct annuity options for both single life and joint life annuities.
Key highlights of the Smart Pension Plan include:
Age Eligibility: The plan is accessible to individuals starting at the age of 18, with the maximum entry age fluctuated based on annuity options, ranging from 65 to 100 years.
Multiple Annuity Options: The policyholders have the flexibility to select between Single Life Annuity, which offers lifetime payments to the primary annuitant, and Joint Life Annuity, ensuring continuous payouts for both the primary and secondary annuitants, such as spouses.
Attractive Incentives: Existing POLICYHOLDERS and beneficiaries of deceased policyholders stand to benefit from higher annuity rates, reinforcing loyalty to the LIC brand.
Liquidity Features: The policy provides varied liquidity options, allowing for partial or full withdrawals according to specified terms, accommodating policyholders when financial needs arise.
Annuity Payment Modes: Policyholders can choose their preferred mode of payment—whether monthly, quarterly, half-yearly, or yearly—facilitated by their personal financial preferences.
Special Features for NPS Subscribers: For those enrolled in the National Pension System (NPS), the Smart Pension Plan offers the option to select immediate annuity, ensuring a smooth transition to income post-retirement.
Support for Disabled Dependents: The plan extends its offerings, including provisions for dependent persons with disabilities (Divyangjan), ensuring their financial security as well.
Policy Loans: After three months from issuance—or after the free-look period—policyholders can access loans under the plan, subject to distinct terms and options.
The Smart Pension Plan demands a minimum purchase price of ₹1 lakh, with the potential for higher premiums to receive additional incentives. The options available for annuity payments are guaranteed at the policy's inception, correlatively providing stable returns. Notably, the annuity rates cater to both low-risk approaches, reinforced by the absence of discretionary benefits such as bonuses.
Upon the survival of the annuitant, reimbursement processes vary according to the chosen annuity plan at inception. If the annuitant passes away, the death benefits are allocated based on options selected during initial purchase. These options may entail various payout mechanisms, including lump-sum payments, systematic payouts through annuitisation, liquidity provisions, and advanced annuity options.
The launch marks LIC's serious commitment to enhancing retirement solutions provided to its customers, prioritizing financial stability for the future. The Smart Pension Plan is accessible through multiple channels, allowing customers to purchase it either via LIC's official website or through various offline methods, such as agents, the Point of Sales Persons-Life Insurance, and Common Public Service Centers.
With this innovative offering, LIC reiterates its leading stance within the Indian insurance sector.