Important FAQs to know for your retirement planning, ET BFSI
Life Insurance Corporation of India (LIC) has launched the LIC Smart Pension Plan, a non-participating, non-linked, particular person/group, financial savings, and immediate annuity plan.
A standout characteristic of the plan is its liquidity choices, enabling policyholders to make partial or full withdrawals beneath specified situations. Policyholders have the flexibleness to obtain annuity funds on an annual, half-yearly, quarterly, or month-to-month foundation, relying on their desire. Furthermore, the plan features a particular provision for National Pension System (NPS) subscribers, permitting them to go for a right away annuity.Additionally learn: LIC’s Smart Pension Plan: Key features, eligibility, annuity options, death benefits and more
Listed here are essential FAQs on LIC Sensible Pension Plan
What’s LIC’s Sensible Pension Plan?
LIC’s Sensible Pension Plan is a non-participating, non-linked, financial savings, and quick annuity plan designed to offer retirees with a gradual revenue. It gives a number of annuity choices for single and joint life annuities.
Who should purchase the LIC Sensible Pension Plan?
Any particular person aged between 18 and 100 years (relying on the annuity possibility) can buy this plan.
Is LIC’s Sensible Pension Plan a market-linked product?
No, it is a non-linked product, which means its advantages are assured and never affected by market fluctuations.
What annuity choices can be found beneath this plan?
Single Life Annuity: Offers common annuity funds for the annuitant’s lifetime.
Joint Life Annuity: Ensures annuity funds proceed for each the first and secondary annuitants.
What’s the minimal annuity quantity?
Rs1,000 monthly
Rs 3,000 per quarter
Rs 6,000 per half-year
Rs 12,000 per yr
What are the annuity fee frequency choices?
Policyholders can select to obtain annuity funds:
Month-to-month
Quarterly
Half-yearly
Yearly
Can present LIC policyholders get any advantages?
Sure, present LIC policyholders and nominees of deceased LIC policyholders are eligible for greater annuity charges.
What’s the minimal and most buy worth for this plan?
Minimal Buy Value: Rs 1,00,000
Most Buy Value: No restrict (topic to underwriting approval)
Can I avail a mortgage in opposition to this coverage?
Sure, loans will be availed after three months from the issuance date or after the free-look interval, whichever is later.
What occurs if the annuitant survives all through the coverage interval?
The annuitant continues receiving annuity funds primarily based on the chosen annuity possibility.
What occurs upon the loss of life of the annuitant?
The nominee will obtain the loss of life profit as per the chosen payout possibility:
Lump sum fee
Annuitization of loss of life profit
Installment funds
Liquidity possibility
Superior annuity possibility
Annuity accumulation possibility
Is there any particular profit for NPS subscribers?
Sure, NPS subscribers can go for a right away annuity for a clean transition to a retirement revenue stream.
Does this plan provide financial security for dependents with disabilities?
Sure, there may be an choice to safe monetary advantages for dependents with disabilities (Divyangjan).
