The Life Insurance Corporation of India (LIC) introduced the Smart Pension Plan in 2025, which is a flexible and immediate annuity scheme. LIC says that it is designed for individuals seeking guaranteed lifelong income and is suitable for recent retirees, NPS subscribers, and guardians of individuals with special needs or parents as dependents. The plan offers various options to suit the financial goals of the retirees or the retired. It includes a separate, non-participating, single-premium immediate annuity scheme. The plan provides multiple features and benefits to cater to the diverse financial needs of retired individuals. This customisation makes it an essential financial decision for individuals looking to secure a steady income stream post-retirement.
LIC Launches New Smart Pension Plan 2025: Know Details
LIC's Smart Pension Plan offers guaranteed income and flexible options, apart from other benefits for retirement
Key Features
Annuity Options: Choose between a Single Life Annuity, where the payments continue for the annuitant's lifetime, and a Joint Life Annuity, where payments continue for both primary and secondary annuitants. The former may help deceased spouses or single parents, but the latter may help secure the financials of parents or a retired couple.
Flexible Payment Modes: Annuity payments can be received monthly, quarterly, half-yearly, or annually, depending on the policyholder's preference. You can decide this frequency based on your expenses and cash flow requirements.
Purchase Price: The minimum purchase price is ₹1,00,000, with no upper limit. However, this amount is subject to underwriting approval.
Minimum Annuity Amounts: Minimum annuity amounts available for this are ₹1,000 per month, ₹3,000 per quarter, ₹6,000 per half-year, ₹12,000 per year.
Eligibility: Individuals aged between 18 and 100 can invest in an LIC Pension scheme; however, the age also differs for your chosen annuity option.
Loan Facility: Loans can be taken three months after the policy issuance date or after the free-look period.
Death Benefit Options: Nominees can choose from various payout options after the pensioner has passed. The frequency includes lump sum payments, annuitization, pension in installments, liquidation of the investment, advanced annuity option, or annuity accumulation option.
Special Benefits
For Existing LIC Policyholders: Enhanced annuity rates are available for current LIC policyholders and nominees of deceased policyholders.
For NPS Subscribers: An immediate annuity option facilitates a smooth transition from the National Pension System to a regular income stream.
For Dependents with Disabilities (Divyangjan): The plan includes provisions to secure financial benefits for dependents with disabilities.
Liquidity Options
The plan offers partial or complete withdrawal options under specific conditions, providing financial flexibility to the policyholder.
How to Purchase
The LIC Smart Pension Plan can be purchased online through LIC's official website or offline through LIC agents, intermediaries, PSP-LI, and CPSC-SPV.
This plan is particularly beneficial for individuals seeking a guaranteed income post-retirement. It offers flexibility, security, and additional benefits for specific groups, such as NPS subscribers and dependents with disabilities.