The Life Insurance Corporation of India (LIC) has introduced the Smart Pension Plan 2025, aimed at providing guaranteed income through a single-premium, immediate annuity plan. This plan has a flexible annuity option for both single and joint lives. It is a non-linked and non-participating plan.
Important Features and Eligibility Criteria
In terms of age, the scheme is open to individuals as young as 18 and up to 100 years, subject to the chosen annuity option. It has both individual and group participation and covers spouses, parents, and even dependents with disabilities. It is well-suited for NPS subscribers who are looking towards the annuitisation of their retirement savings.
Costs and Investment Requirements
Under the plan, the minimum purchase price is ₹1 lakh; however, NPS subscribers and Divyangjan beneficiaries have the option to start investing with ₹50,000. There is no upper investment limit, subject to LIC’s underwriting norms. Better annuity rates are provided for higher investments, and existing LIC policyholders are given additional incentives.
Payment Flexibility and Annuity Types
Policyholders can select from monthly, quarterly, half-yearly, or annual payments with minimum annuity amounts of ₹1,000. The plan provides a rich selection, with the addition of life annuity, increasing annuity, and return of purchase price annuity. There are joint-life annuities to continue income payments for spouses or dependents.
Advantages of LIC Smart Pension Plan 2025
- Income is earned for as long as the person is alive with fixed annuity rates.
- Various forms of annuity cater to different financial requirements.
- Annuities provide liquidity through partial/full withdrawal subject to certain conditions.
- A loan can be availed after three months from the issuance of the policy.
Special Incentives and Tax Benefits
- Enhanced LIC Customer annuity by 0.15% age and 2.5% for online purchases.
- 3% for NPS subscribers.
- Deductions available under Section 80C of the Income Tax Act.
- Investment yields real-life returns.
Real-World Returns Based on Investment
- Investment of ₹10 lakh returns ₹6,000/month; ₹50 lakh investment yields as much as ₹44,000 a month.
- Returns differ based on annuity selection, age, and payout frequency.
How to Buy the LIC Smart Pension Plan
- Available online via LIC’s official website
- Offline purchase through LIC agents and branches.
- Submit required documents such as Aadhaar, PAN, age proof, and bank details.
To conclude, the LIC Smart Pension Plan 2025 serves as a robust, adaptable, and comprehensive retirement plan for those seeking financial autonomy during their retirement.
Also Read: PPF Withdrawal Rules 2025: What Investors Must Know