LIC Smart Pension Plan- The Life Insurance Corporation of India (LIC) has introduced its newest pension scheme, the Smart Pension Plan. This plan provides a well-rounded, adaptable, and secure pension solution designed to suit diverse financial needs, guaranteeing a steady income for retirees and their families.
LIC’s Smart Pension Plan is a non-participating, non-linked, individual/group savings and immediate annuity plan, specifically designed to address various retirement requirements. It offers multiple annuity options for both single and joint life annuities, ensuring policyholders enjoy flexibility and financial security.
LIC Smart Pension Plan: How to apply for a digital life certificate?
This is a non-participating plan where the benefits payable upon death or survival are predetermined and guaranteed, based on the selected annuity option, regardless of actual experience.
The plan provides various annuity options to accommodate different financial needs and retirement objectives. Policyholders can select the option that best aligns with their long-term financial plans.
LIC Smart Pension Plan- Steps to apply
As per the LIC website, here’s how you can obtain a digital life certificate using the LIC Jeevan Saakshya App:
Step 1: Download the LIC Jeevan Saakshya App from play store.
Step 2: Enter your Aadhaar card and policy details online.
Step 3: Capture a selfie.
Step 4: Enter the OTP received from Aadhaar for verification. Once verified, you can view your digital life certificate.
Additionally, the app offers a “Facilitator” option, allowing individuals other than annuitants and staff pensioners to assist in submitting the certificate.
LIC Smart Pension Plan- Steps to apply through facilitator
Step 1: Enter the facilitator’s details.
Step 2: Submit the annuitant’s or pensioner’s Aadhaar card and policy information.
Step 3: Verify the OTP sent to the registered mobile number.
Step 4: Capture a photograph of the annuitant or pensioner.
LIC Smart Pension Plan- Key Features
Age: The minimum entry age is 18 years, allowing young investors to begin their retirement planning early.
The maximum entry age varies between 65 and 100 years, depending on the chosen annuity option, ensuring accessibility for a diverse group of individuals.
LIC Smart Pension Plan- Annuity Options
Policyholders have the option to select from:
- Single Life Annuity: Guarantees annuity payments for the annuitant’s lifetime.
- Joint Life Annuity: Ensures annuity payments continue for both the primary annuitant and a secondary annuitant, such as a spouse.
LIC Smart Pension Plan- Benefits for existing policyholders and beneficiaries
Existing LIC policyholders and nominees or beneficiaries of deceased policyholders are eligible for higher annuity rates, providing added benefits to loyal customers.
Withdrawal Options for Liquidity:
The policy allows partial or full withdrawals under specific conditions, providing policyholders with financial flexibility when required.
Flexible Annuity Payment Modes:
Policyholders can select their preferred annuity payment frequency:
- Monthly, Quarterly, Half-Yearly, or Yearly.
The annuity installment amount is determined based on the selected payment mode.
Exclusive Feature for NPS Subscribers:
The plan offers an option to provide financial security for dependents with disabilities, ensuring their long-term financial stability.
Policy Loan Option:
Policyholders can apply for a loan after three months from the issuance date or after the free-look period, whichever occurs later. Loan eligibility depends on specific annuity options and terms.
LIC Smart Pension Plan Details
- Minimum Purchase Price: ₹1,00,000*
- Maximum Purchase Price: No upper limit (subject to acceptance as per the Board Approved Underwriting Policy).
- Minimum Annuity:
- ₹1,000 per month
- ₹3,000 per quarter
- ₹6,000 per half-year
- ₹12,000 per annum
(Varies based on the selected annuity payment mode)
- Maximum Annuity: No upper limit.
Death and Survival Benefits of LIC Smart Pension Plan
Survival Benefits:
The benefits and payouts for the annuitant are determined by the annuity option selected at the start of the policy.
Each annuity option offers different survival benefits, which may include lifetime regular payouts or other specific advantages as outlined in the plan’s terms.
Death Benefits of LIC Smart Pension Plan
In Case of Annuitant’s Death (Primary/Secondary):
Upon the annuitant’s passing, the payout to the nominee or beneficiary will be based on the option selected at the time of policy purchase. The death benefit can be received as:
- Lump sum payment
- Annuitization of the death benefit
- Installments
- Liquidity option
- Advanced annuity option
- Annuity accumulation option
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