LIC Smart Pension Plan 2025 is the non-linking non-participating single-premium immediate annuity plan launched on February 18, 2025, by the Life Insurance Corporation of India. It fixes lifelong income, which is perfect to retirees who are in need of secure income.
Flexible Annuity Options
The policyholders have the option of selecting single-life or a joint-life annuity. Single-life payouts are paid to the annuitant until his or her death, whereas the joint-life payment stretches further to cover a second annuitant, either family member or spouse.
Guaranteed Income Security
This scheme is a fixed annuity payout scheme up to the end of the plan without volatility as with the market linked plans. The policyholders can cover their medical expenses since policyholders pay one-time premium, and can get frequent income that can be used in retirement planning with certainty.
Liquidity and Loan Benefits
It permits a certain amount of withdrawal in the event of critical illness, an alluring feature due to its financial versatility. After the recovery period of three months, or free-look period, loans may be used but only subject to a limit of 80 percent surrender value.
Special Incentives Offered
The current LIC policyholders and nominees of the deceased policyholders are entitled to better annuity rates. NPS subscribers are enjoying an addition of up to 3 percent incentives, Divyangjan dependent have adapted special payments.
Eligibility and Purchase
One can invest between 18 years to 100 years of age with a maximum age depending on the annuity option. Minimum purchase price is 1 Lakh and there is no ceiling with underwriting approval. Can be bought online through LIC or through the agents.
Key Policyholder Actions
- Select annuity option: single or joint-life based on needs.
- Submit Aadhaar, PAN, and income proof for purchase.
- Monitor payouts via LIC’s online portal.
- Consult agents for personalized plan details.
- Compare with NPS or PPF for informed decisions.
Annuity Payout Structure
| Payment Mode | Minimum Annuity (₹) | Maximum Annuity (₹) | Incentive for NPS Subscribers |
|---|---|---|---|
| Monthly | 1,000 | No limit | Up to 3% extra |
| Quarterly | 3,000 | No limit | Up to 3% extra |
| Half-Yearly | 6,000 | No limit | Up to 3% extra |
| Yearly | 12,000 | No limit | Up to 3% extra |
Why Choose This Plan?
LIC Smart Pension Plan 2025 is a flexible plan, with guaranteed returns, and customized benefits, which makes it a valuable option to retirees, NPS subscribers, and those insuring the future of their dependents. Read more on LIC Web site or call agents.
Also read: DA Arrears 2025: Pensioners and Employees to Receive Back Pay This Month