LIC has launched a new immediate annuity plan called the LIC Smart Pension Plan. This LIC new Smart Pension plan is an immediate annuity plan. Just pay a single premium and enjoy a life-long pension.
LIC’s Smart Pension 879 is an Immediate Annuity plan offering a range of annuity options for Single Life and Joint Life type of annuities.
The best part is joint holding between any two family generations (Grandparent, Parent, Children, Grandchildren) or spouse, siblings, or Parent-in-law.
The annuity rates under all annuity options are guaranteed.
The smart pension plan provides guaranteed income since there are no market-linked risks. It provides diverse annuity choices, where policyholders can choose an annuity option that suits their financial needs. It provides liquidity options as partial withdrawal is permitted in certain cases.
Table of Contents
LIC Smart Pension Plan Benefits
LIC Single Premium Immediate Annuity Plan benefits are mentioned below:
Guaranteed Lifetime Income: Provides a steady income stream throughout your retirement, ensuring financial stability.
Flexible Annuity Options: Choose from Multiple annuity options, from LIC immediate annuity plan, based on your needs.
One-Time Premium Payment: Make a single lump sum investment and enjoy lifelong benefits without recurring premiums.
Anyone can purchase: LIC Smart Pension plan is Available for age between 18 yrs to 78 yrs.
Joint Life Annuity Option: Offers financial security for both you and your spouse, with continued payouts to the survivor.
Return of Purchase Price: Certain annuity options provide the return of the initial investment to your nominee upon your death.
Pension for NRIs: Available to non-resident Indians, allowing them to plan a secure retirement back home.
Online Purchase Mode Discount: on online purchase you get additional Annuity upto 2.50%
Loan Facility: Avail a loan against the policy after a specified lock-in period, ensuring liquidity in emergencies.
Surrender Value: In case of financial emergencies, you can surrender the policy and receive a lump sum.
Tax Benefits: Enjoy tax deductions on the premium paid under Section 80CCC of the Income Tax Act, 1961.
No Market Risk: Since the plan is not linked to the market, your pension amount remains unaffected by market fluctuations.
LIC Smart Pension 879 plan details
If you want to take Guaranteed income after retirement with LIC than LIC Smart Pension Plan can be a good choice for you.
The Policyholder has the following Guaranteed annuity LIC options to choose from:
| Annuity Type | Annuity Options | Benefits of Annuity option | Sample Annuity if First holder age 60 Purchase price 10 lakh |
| Single Life | Yearly Annuity ( in Rs.) | ||
| OptionA | Life Annuity | Life-long pension till Annuitant is alive. On the death of Annuitant, nothing shall be payable the annuity payments shall cease immediately. | 85,000 |
| OptionB1 | Annuity Certain for 5 years and life thereafter | Life long pension till Annuitant is alive. Death in the first 5 yrs- Annuity payment shall continue for 5 years since inception. After 5 years annuity will be stopped. Death after 5 years -annuity payments shall stop immediately. | 84,500 |
| OptionB2 | Annuity Certain for 10 years and life thereafter | Life long pension till Annuitant is alive. Death in the first 10 yrs– Annuity payment shall continue for 10 years since inception. After 10 years annuity will be stopped. Death after 10 years -annuity payments shall stop immediately. | 83,200 |
| OptionB3 | Annuity Certain for 15 years and life thereafter | Life long pension till Annuitant is alive. Death in the first 15 yrs- Annuity payment shall continue for 15 years since inception. After 15 years annuity will be stopped. Death after 15 years -annuity payments shall stop immediately. | 81,400 |
| OptionB4 | Annuity Certain for 20 years and life thereafter | Life long pension till Annuitant is alive. Death in the first 20 yrs– Annuity payment shall continue for 20 years since inception. After 20 years ( death case) annuity will be stopped. Death after 5 years -annuity payments shall stop immediately. | 79,200 |
| Option C1 | Life Annuity increasing at a simple rate of 3% p.a. | Life long pension till Annuitant is alive. Annuity payment increased @3% simple interest every year On death of Annuitant, nothing shall be payable and the annuity payments shall cease immediately. | 66,200 |
| Option C2 | Life Annuity increasing at a simple rate of 6% p.a. | Life long pension till Annuitant is alive. Annuity payment increased @6% simple interest every year On death of Annuitant, nothing shall be payable and the annuity payments shall cease immediately. | 54,800 |
| OptionD | Life annuity with Return of Balance Pur- chase Price | Life long pension till Annuitant is alive. On death of Annuitant, annuity payments shall cease immediately. Remaining money ( if left) will be paid to the nominee. Remaining money = Single premium paid – ( total of all annuity payments) | 81,700 |
| OptionE1 | Life annuity with 50% Return of Pur- chase Price after attaining age 75 years | Life long pension till Annuitant is alive. At age 75 years ( following year means at age 76 yrs) 50% of initial single premium is paid back to the annuitant. On death of Annuitant, annuity payments shall cease immediately. Remaining money ( if left) will be paid to the nominee. Remaining money = death benefit – 50% of purchase price | 57,900 |
| OptionE2 | Life annuity with 100% Return of Pur- chase Price after attaining age 75 years | Life long pension till Annuitant is alive. At age 75 years ( following year means at age 76 yrs) 100% of initial single premium ( purchase price) is paid back to the annuitant. On death of Annuitant, annuity payments shall cease immediately. Remaining money ( if left) will be paid to the nominee. Remaining money = Death benefit – 100% of purchase price | 51,000 |
| OptionE3 | Life annuity with 50% Return of Pur- chase Price after attaining age 80 years | Life long pension till Annuitant is alive. At age 80 years ( following year means at age 81 yrs) 50% of initial single premium ( purchase price) is paid back to the annuitant. On death of Annuitant, annuity payments shall cease immediately. Remaining money ( if left) will be paid to the nominee. Remaining money = Death benefit – 50% of purchase price | 61,400 |
| OptionE4 | Life annuity with 100% Return of Pur- chase Price after attaining age 80 years | Life long pension till Annuitant is alive. At age 80 years ( following year means at age 81 yrs) 100% of initial single premium ( purchase price) is paid back to the annuitant. On death of Annuitant, annuity payments shall cease immediately. Remaining money ( if left) will be paid to the nominee. Remaining money = Death benefit – 100% of purchase price | 57,900 |
| OptionE5 | Life annuity with 5% Return of Purchase Price each year after attaining age 76 years to 95 years | Life long pension till Annuitant is alive. Additional 5% payment ( 5% of purchase price) from completion of 76 years( following year) to 95 years. On death of Annuitant, annuity payments shall cease immediately.Remaining money ( if left) will be paid to the nominee. Remaining money = Death benefit – Total of additional money ( 5%paid every year )paid | 60,900 |
| OptionF | Life annuity with Return of Purchase Price Joint Life | Life long pension till Annuitant is alive. On death of Annuitant, annuity payments shall cease immediately. Death Benefit equal to Purchase Price shall be payable to the nominee | 64,900 |
| Joint Life | |||
| OptionG1 | Joint Life annuity with a provision of 50% of annuity to Secondary Annuitant on death of the Primary Annuitant | Life long pension till Primary Annuitant is alive. 50% of the annuity payment to the surviving Secondary Annuitant as long as the Secondary Annuitant is alive.( upon death of primary annuitant. On death of a secondary Annuitant, annuity payments shall cease immediately. | 78,900 |
| Option G2 | Joint Life annuity with a provision of 100% of annuity to Secondary Annui- tant on death of the Primary Annuitant | Life long pension till both of Annuitant is alive. On death of a secondary Annuitant, annuity payments shall cease immediately. Nothing is paid to nominee | 74,000 |
| OptionH1 | Joint Life annuity increasing at a simple rate of 3% p.a. with a provision of 50% of annuity to Secondary Annuitant on death of the Primary Annuitant | Life long pension till Primary Annuitant is alive. Annuity payment increased @3% simple interest every year50% of the annuity payment to the surviving Secondary Annuitant as long as the Secondary Annuitant is alive.( upon death of primary annuitant. On death of Annuitant, nothing shall be payable and the annuity payments shall cease immediately. | 60,200 |
| OptionH2 | Joint Life annuity increasing at a simple rate of 6% p.a. with a provision of 50% of annuity to Secondary Annuitant on death of the Primary Annuitant | Life long pension till Primary Annuitant is alive. Annuity payment increased @6% simple interest every year 50% of the annuity payment to the surviving Secondary Annuitant as long as the Secondary Annuitant is alive.( upon death of primary annuitant. On death of Annuitant, nothing shall be payable and the annuity payments shall cease immediately. | 49,400 |
| OptionI1 | Joint Life annuity increasing at a simple rate of 3% p.a. with a provision of 100% of annuity to Secondary Annuitant on death of the Primary Annuitant | Life long pension till any of the Annuitant is alive. Annuity payment increased @3% simple interest every year till any annuitant is alive. On death of a second Annuitant, annuity payments shall cease immediately. | 55,600 |
| OptionI2 | Joint Life annuity increasing at a simple rate of 6% p.a. with a provision of 100% of annuity to Secondary Annuitant on death of the Primary Annuitant | Life long pension till any of the Annuitant is alive. Annuity payment increased @6% simple interest every year till any annuitant is alive. On death of a second Annuitant, annuity payments shall cease immediately. | 45,100 |
| OptionJ | Joint Life annuity with a provision of 100% of the annuity payable as long as one of the Annuitant survives and Re- turn of Purchase Price on death of Last Survivor | Life long pension till any of the Annuitants is alive. On death of a second Annuitant, annuity payments shall cease immediately. Purchase Price shall be payable to the nominee(s). | 64,300 |
NOTE : Annuity option once chosen cannot be altered.
Buy LIC Smart Pension Plan online
To apply for LIC Smart Pension Plan, please follow the steps given below:
- Visit the Official Website: Go to the official LIC website at https://licindia.in/buy-online
- Navigate to Pension Plans: Under the ‘What are you looking for ‘ section, select ‘Annuity/Pension Plans’ to find the LIC Smart Pension Plan.
- Select the Plan: Choose the LIC Smart Pension Plan and click on ‘know more’ if available.
- New page will be opened – https://esales.licindia.in/CustomerQuote?plan=774
- Fill in Personal Details: Provide your name, age, contact information, and other required details.
- Choose Annuity Option: Select the type of annuity (e.g., immediate or deferred) and payment frequency (monthly, quarterly, half-yearly, or yearly).
- Calculate Premium: Use the online premium calculator to determine the purchase price and expected annuity.
- Upload Documents: Submit necessary documents such as ID proof, address proof, income proof, cancelled cheque, photograph and age proof.
- Make Payment: Pay the premium online through net banking, debit/credit card, or UPI.
- Review and Submit: Double-check all information and submit the application.
- Receive Confirmation: After successful payment, you will receive a policy document and confirmation via email/SMS.
LIC Smart Pension Plan Review
LIC Smart Pension plan offers Guaranteed annuity. LIC smart pension plan 879 interest rate is around 7% per annum for Ilife annuity option ( which is highest amongst all options).
However, the LIC smart pension plan interest rate will vary for each annuity option. The return also depends on many factors, such as the policyholder’s age and, the option chosen.
The Points one should consider before purchasing The New LIC Pension plan are
- Once you pay the premium, money is locked. Some liquidity window is given but it is subject to some losses or you may not withdraw your money at all.
- The pension or annuity drawn is taxable. The annuity payment will be added to your income and taxed accordingly.
- If you are comfortable with lic smart pension plan interest rate of 5-7% and no access to your money, you may go ahead with the LIC Immediate annuity plan.
Read or watch for better insights into income-generating options.
