LIC Launches Smart Pension Plan for Enhanced Retirement Security

LIC, India’s largest insurance provider, has launched a new Smart Pension Plan on February 18, 2025. This pension scheme is designed to allow for a single premium payment, offering a variety of annuity options that cater to both single and joint life scenarios. The introduction of this plan was marked by an event attended by prominent officials, including Financial Services Secretary M. Nagaraju and LIC’s CEO Siddhartha Mohanty.

The Smart Pension Plan is unique as it requires a one-time investment that secures a lifetime annuity for the policyholder. Additionally, the plan features flexible payout options—monthly, quarterly, half-yearly, or yearly—and provides liquidity through options for partial or full withdrawals. To participate in the scheme, customers must invest a minimum of Rs 1,00,000, with potential discounts for larger investments.

Also noteworthy is a special provision for NPS subscribers, who can opt for an immediate annuity. The plan not only ensures lifetime benefits for policyholders but also provides flexible death benefits that can be received by beneficiaries upon the policyholder's demise. Overall, the Smart Pension Plan is designed to offer enhanced financial security for individuals planning for retirement.