Life Insurance Corporation has rolled out LIC New Smart Pension Plan. It is a non-participating, non-linked, individual, savings, immediate annuity plan. This is a single premium immediate annuity plan.
The official website of the state insurer – last updated on Feb 18 – specifies that the plan offer a wide range of annuity plans, among which policholders can choose the ones which suit their needs.
If as an investor, you too are contemplating investing into this retirement plan, you can explore more in the information shared below:
Smart pension plan: Key Questions Answered
Can you buy it jointly with someone?
Yes, the Joint Life annuity can be taken between any two lineal descendant/ascendant of a family (i.e. Grandparent, Parent, Children, Grandchildren) or spouse or siblings or Parent-in-law
Is there a guarantee of annuity?
Yes, the annuity rates under all annuity options are guaranteed at the inception of the policy.
What are the different options available?
The different options available are liquidity, advanced annuity option and annuity accumulation option.
With regards to payment of death benefit, what are the options available?
Different options available for payment of death benefit are lumpsum death benefit, annuitisation of death benefit and in instalments.
What are the annuity options available?
Under single life, different annuity options — total 14 — are available which include life annuity, annuity certain for five years and life thereafter and annuity certain for 10 years and life thereafter, and so on.
Under joint life, there are seven different annuity options available.
Can you change the annuity option?
No, annuity option once chosen cannot be altered.
What are the minimum and maximum purchase price?
The minimum purchase price is ₹one lakh and there is no maximum limit.
What is the minimum annuity?
The minimum annuity is ₹1,000 per month, ₹3,000 per quarter, ₹6,000 per half year and ₹12,000 per annum.
What is the mode of payment of premium?
Insurance premium needs to be paid as single premium. The available modes of annuity payment are yearly, half-yearly, quarterly, and monthly.