Smart Pension Plan: Public sector insurance company Life Insurance Corporation of India (LIC) has launched its new pension scheme, Smart Pension Plan. This scheme provides a comprehensive, flexible and secure pension solution. It suits different financial situations, ensuring a reliable income for retirees and their families. LIC’s Smart Pension Plan is a non-participating, non-linked, personal / group, saving and immediate annuity plan designed to meet different retirement needs.
Policy benefits are guaranteed and assured
It is a non-participating product under which the benefits payable on death or survival are guaranteed and fixed. This scheme provides several annuity options to meet different financial needs and retirement goals. Customers can choose the most suitable option for their long term financial planning. According to the statement of LIC, several cash options are available for partial or full withdrawal as per the terms of the policy. The minimum purchase price under the pension scheme is Rs 1 lakh. Let us know the features of the new pension policy-
Age Limit
The minimum age to join this plan is 18 years. Based on this, young investors can start planning early. The maximum age limit to enter this is 65 to 100 years, which depends on the annuity option chosen. Hence, this scheme is available for people of different age groups.
Flexible Annuity Option:
There is ease in choosing the annuity option under this policy. In single life annuity, the policyholder is given the option to make annuity payments for life. Apart from this, in joint life annuity, the annuity payment continues for both the primary policyholder and the secondary policyholder (such as husband or wife).
Incentive
facility: Under this scheme, incentive facility has been provided for the existing policyholders. Good annual rates are given to the existing policyholders of LIC and the nominee/beneficiary of the deceased policyholder. This makes this scheme more beneficial for loyal customers. Some other benefits related to the policy are as follows-
> The policy gives the option of partial or full withdrawal. This gives the policyholder financial support when needed.
> Under the flexible annuity payment mode, the policyholder can choose the payment method of his choice. In this, you can make payment every month, three months, six months or one year. The amount of the annuity installment is decided on the basis of the method chosen.
> National Pension Scheme (NPS) members can choose the option of choosing annuity immediately. This can lead to a smooth transition to retirement income.
> An option has been given in this for persons dependent on Divyangjan. This scheme includes the option to secure financial benefits for people dependent on Divyangjan, ensuring their long-term financial well-being.
> Policyholders can avail a loan after three months from the date of issue of the policy or after the free-look period (whichever is later). Loan availability is subject to certain annuity options and conditions.
Under this, the minimum policy you can buy is Rs 1 lakh. However, there is no limit on the maximum purchase. However, the maximum purchase price will be subject to acceptance as per the underwriting policy approved by the board. Minimum annuity amount is Rs 1,000 per month, Rs 3,000 quarterly, Rs 6,000 half-yearly and Rs 12,000 annually, depending on the mode of annuity payment chosen. There is no limit on the maximum annuity.
Death and Survival Benefits of the Policy Holder
The benefits and payments on the survival of the policy holder will depend on the annuity option chosen at the inception of the policy. Different annuity options offer different survival benefits, which may include regular payments throughout life or other specific benefits as per the terms of the plan.
If the policyholder dies, the payout to the nominee or beneficiary will be determined based on the option chosen at the time of purchase. The options chosen for payment of death benefit are lump sum, annuitization of death benefit, payment in installments, liquidity option, advanced annuity option or annuity accumulation option.
