Life Insurance Corporation of India (LIC) has officially announced the launch of its new product, ‘LIC’s Smart Pension,’ which will be available for sale starting February 18, 2025.
The ‘Smart Pension’ plan is a ‘Non-Participating (Non-Par), Non-Linked, Individual/Group, Savings, Immediate Annuity Plan’ and is tailored specifically for the domestic market.
The new plan is expected to strengthen LIC’s leadership position in India’s growing pension and retirement savings market, which is becoming increasingly important as the population seeks ways to secure their financial future.
State-run LIC’s net premium income in the latest third quarter dropped 9% to Rs 1.07 lakh crore, driven by a 24% fall in single-premium collection and a 14% decline in first-year premium collection.
A retirement plan is a key factor in financial stability, and the LIC smart pension plan is designed to help individuals build a safe financial future. Launched by Life Insurance Corporation Corporation of India (LIC),
this plan is a non-linked, non-participating personal savings pension plan that provides a guaranteed return and financial security in your retirement years.
Whether you are a professional, business owner, or freelancer, the LIC Smart Pension Plan provides a reliable way to earn a stable income after retirement.
The main features of the LIC Smart Pension Plan
The LIC Smart Pension Plan is filled with features that make it an attractive choice for retirement planning. Here’s a closer look at what the plan offers:
Guaranteed Pension:
This plan provides a guaranteed general income in the payment period, ensuring financial stability after retirement.
Flexible-Premium Payment Terms:
The policy can choose to pay premiums annually, semi-year, quarterly, or monthly, depending on their comfort.
Multiple postponed periods:
The plan allows you to select the postponement period (time between the policy purchase and the start of the pension) from 5 to 15 years. This Flexibility will help you align the plan with your retirement goals.
The purpose of death is:
In the unfortunate case of the death of the policyholder over the postponement period, the nominee’s total premiums (excluding taxes) or surrender value is high.
Surrender Value:
If you decide to discontinue the policy, you can surrender it after completing three policy years. The surrender value is paid by the plan rules and conditions.
Debt facility:
After three policy years, you can get a loan against the policy, providing financial ease in emergencies.
Tax Benefits:
Premiums paid under the LIC Smart Pension Plan are eligible for tax deductions under Section 80C of the Income Tax Act of 1961. In addition, the pension received is taxed according to applicable tax laws.
How does the LIC smart pension plan work?
The LIC Smart Pension Plan can be straightforward and easily understood. Here’s how it works:
Purchase Policy:
You can buy the policy by paying regular premiums based on the frequency of your selected payment frequency.
The postponement period:
In the postponement period, your premiums accumulate and grow, ensuring a significant corpus for your retirement.
Pension Payment:
Once the postponement period is over, you will start getting a regular pension. The amount of pension is determined based on paid premiums, postponement duration, and selected annuity options.
Annual Options:
You can choose from various annuity options such as Life Annuity, Joint Life Annuity, y, or Purchase Price to suit your needs.
Benefits of the LIC Smart Pension Plan
Economic Security: This scheme ensures steady income during retirement, helping you maintain your lifestyle without financial stress.
Guaranteed Returns: Unlike market-linked plans, the LIC smart pension plans offer a guaranteed return, making it a low-risk investment.
Flexibility: With multiple premium payment regulations and postponement periods, the plan can be customized to meet your financial goals.
Tax Saves: This plan provides tax benefits on paid premiums, reducing your total tax liability.
Who should invest in the LIC Smart Pension Plan?
LIC Smart Pension Plan is ideal for this:
People looking for a safe and guaranteed retirement income.
Those who want to build a retirement corpus without taking market risk.
People who seek tax-effective investment options for long-term savings.
Conclusion
LIC Smart Pension Plan is a reliable and effective way to preserve your economic future during retirement. With guaranteed returns, comfortable payment options, and tax purposes, this plan provides a comprehensive solution for the retirement plan. By investing in this plan, you can ensure a steady income flow and enjoy retirement without stress.
The LIC Smart Pension Plan is a trusted and effective way to plan for your retirement. With its guaranteed returns, flexibility, and tax benefits, it offers a secure and stress-free way to build a retirement corpus. Start planning today to ensure a financially stable and comfortable future.
LIC SMART PENSION PLAN: FULL DETAIL
Frequent questions (FAQs)
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What is the LIC Smart Pension Plan?
The LIC Smart Pension Plan is a non-linked, non-participating personal savings pension plan that provides a guaranteed return and general income during retirement.
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What are premium payment options?
You can pay premiums annually, semi-annually, quarterly, or monthly, depending on your comfort.
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Can I surrender the policy?
Yes, you can surrender the policy after completing three policy years. The surrender value is paid by the plan rules.
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Does Death Benefit under this plan?
Yes, in the event of the death of the policyholder in the postponement period, the nominee’s total premiums (excluding taxes) or surrender value is high.
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Are there tax benefits under the LIC Smart Pension Plan?
