To take LIC' SMART PENSION POLICY
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LIC’s Smart Pension (Plan No. 879)
It is an immediate annuity plan. Launched by LIC of India, it is a Non-Linked, Non-Participating, Individual/Group, Savings, Immediate Annuity Plan.
Because it is "non-linked" and "non-participating," its returns are completely safe from stock market fluctuations, and all annuity (pension) rates are guaranteed at the time of purchase. It pays out a fixed, regular income immediately after a single lump-sum premium is deposited.
Core Eligibility & Purchase Criteria
Minimum Entry Age: 18 years (completed)
Maximum Entry Age:Varies from 65 to 100 years, depending strictly on the specific annuity option selected.
Minimum Purchase Price (Premium): ₹1,00,000 (One Lakh Rupees).
Exception: The minimum purchase price is relaxed to ₹50,000 if bought specifically for the benefit of a dependent person with a disability (Divyangjan).
Maximum Purchase Price: No upper limit.
Annuity Payment Modes: Can be received Monthly, Quarterly, Half-Yearly, or Yearly (paid in arrears).
Versatile Payout Options
The policy sets itself apart with a very extensive range of options categorized under Single Life and Joint Life setups:
1. Single Life Annuities
Option A: Pure life annuity (pension continues as long as the annuitant is alive; stops upon death with no return of corpus).
Option B1 to B4: Annuity Certain for a fixed period (5, 10, 15, or 20 years) and life thereafter. If the annuitant passes away within the chosen window, the nominee receives the pension until the period ends.
Option C1 & C2: Life annuity increasing at a simple rate of 3% or 6% per annum, helping counter inflation.
Option D: Life annuity with Return of Balance Purchase Price (Nominee receives the original purchase price minus any pension amounts already paid out).
Option E1 to E3: Life annuity featuring an early return of 50% or 100% of the Purchase Price upon the annuitant reaching specific milestone ages like 75 or 80, ensuring liquidity during later life stages.
2. Joint Life Annuities
Perfect for securing family members. It can be taken jointly between any two lineal descendants/ascendants (Spouse, Parents, Children, Grandparents, Grandchildren, Siblings, or Parents-in-law).
Options G1 & G2: Joint life annuity where the secondary annuitant receives either 50% or 100% of the pension upon the primary annuitant's death.
Options H & I: Joint life setups where the annuity increases annually at simple rates of 3% or 6%, with varying payout splits for the surviving partner.
Unique USPs & Policy Customizations
Special NPS Incentive: There is a 3% special incentive structured specifically for National Pension System (NPS) subscribers who map their accumulated retirement corpus directly into this plan.
Financial Liquidity: The policy permits flexibility via partial or full withdrawal options under specified conditions, addressing a historical drawback of traditional immediate annuity products.
Loan Availability: Policyholders can avail of loan facilities against the policy after a designated period to handle urgent liquidity requirements without disrupting the primary structure.
Tax Efficiency: Premiums paid are eligible for tax benefits under Section 80C of the Income Tax Act.
Death Benefit Payout Choices: If an option with a death benefit is selected, the creator can dictate whether the nominee receives it as a Lump sum, in Instalments, or via Annuitisation (converting the death benefit into a new pension for the beneficiary).
