How does LIC’s single premium Smart Pension Plan with guaranteed annuity options work, ET BFSI
Life Insurance coverage Company (LIC) of India has launched the Smart Pension Plan, a non-participating, non-linked particular person and group financial savings rapid annuity scheme designed to offer monetary safety throughout retirement. The plan provides a assured annuity with a number of choices, catering to each single and joint life necessities.
The Good Pension Plan ensures annuity charges are mounted on the inception of the coverage, offering a secure revenue stream for policyholders. It’s a single-premium insurance coverage coverage, which means your complete premium is paid upfront, and the coverage stays in impact for the chosen length. Policyholders can choose from numerous annuity choices, together with liquidity, superior annuity, and annuity accumulation choices.
For joint life annuities, the plan permits protection for relations corresponding to spouses, dad and mom, kids, grandchildren, siblings, and even parents-in-law. This function enhances monetary safety for households in search of long-term revenue stability.
Buy and cost flexibility
The Good Pension Plan could be bought each offline via LIC brokers and intermediaries, together with Level of Gross sales Individuals-Life Insurance coverage (POSP-LI) and Widespread Public Service Facilities (CPSC-SPV), and on-line by way of LIC’s official web site. Policyholders can select from a number of annuity payout modes, together with yearly, half-yearly, quarterly, or month-to-month installments.
The plan requires a minimal buy worth of Rs 1 lakh, with no higher restrict. The minimal annuity quantity begins at Rs 1,000 monthly, Rs 3,000 per quarter, Rs 6,000 per half-year, and Rs 12,000 every year.
Demise profit and coverage restrictions
Upon the policyholder’s loss of life, beneficiaries can go for lump sum funds, annuitization of the profit, or installment-based payouts. Nonetheless, as soon as an annuity choice is chosen, it can’t be modified.
As a non-participating product, the plan doesn’t provide bonuses or profit-sharing advantages however ensures mounted funds. The plan additionally contains liquidity choices for partial or full withdrawals beneath particular phrases.
The Good Pension Plan was launched by Monetary Providers Secretary M. Nagaraju and LIC CEO & MD Siddhartha Mohanty within the presence of senior officers from the finance ministry and LIC. Business specialists imagine that the plan’s flexibility and assured annuity construction make it a viable choice for people in search of safe post-retirement revenue.
