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LIC Pension Scheme: If any person is in need, his biggest concern is to survive after retirement. If you want to plan after retirement, then you can invest in a life insurance policy scheme. Keeping this need in mind, the smart pension scheme of Life Insurance Corporation of India (LIC) is becoming increasingly popular among the people.

This scheme is based on lump sum investment, in which after investment, there is an option to get pension for life. Pension can be chosen monthly, quarterly, half yearly or annually—as per your convenience.

What is LIC Smart Pension Plan?

LIC Smart Pension Plan is an immediate annuity plan. This means that you deposit the premium once and the regular pension starts as per the prescribed terms. This scheme is not linked to the stock market, so the fall or rise of the market does not affect your pension.

Who can invest?

An eligible person aged between 18 to 100 years can invest in this scheme. If you want, you can take the policy alone or choose the joint option between husband and wife. After the demise of the policyholder, benefits are paid to the nominee as per the option chosen.

Main features of the scheme

minimum investment

₹1 lakh

maximum limit

no limit

policy option

single and joint

pension payment

monthly to yearly

How to get ₹25,000 monthly pension?

For example, if a 60-year-old person makes a lump sum investment of around ₹32 lakh and chooses the single life annuity option, he can get a pension of around ₹25,088 per month. This amount comes to approximately ₹ 3.01 lakh annually.

Keep in mind that the actual pension may vary depending on your age, investment amount and annuity option chosen.

Loan and withdrawal facility (LIC Pension Scheme)

In this scheme, the facility of taking loan is also available after three months of the commencement of the policy with certain conditions. At the same time, provision for partial withdrawal or under special circumstances is also available in selected options.

Where can you buy it?

You can buy LIC Smart Pension Plan through LIC’s official website, authorized agent, POSP-Life Insurance or nearest Common Service Center (CSC).