LIC Smart Pension Plan: Should you invest in this new scheme? Check eligibility and benefits

The Life Insurance Corporation of India (LIC) introduced the “LIC’s Smart Pension Plan” on February 18, 2025. This non-participating, non-linked, individual/group, savings, and immediate annuity plan is designed to provide flexible and secure retirement solutions. You must be wondering, what non-participating, non-linked, individual/group, savings, and immediate annuity plans mean. Let’s understand it clearly.

Non-Participating: This means the policyholder will not get any share of LIC’s profits (like bonuses or dividends). The returns are fixed and decided at the time of purchasing the plan.

Non-Linked: The plan is not connected to the stock market. So, its returns are stable and not affected by market ups and downs.

Individual/Group: The plan can be purchased by a single person (individual) or by a company/organization for its employees (group).

Savings: This plan helps in securing future income after retirement by investing a lump sum amount now.

Immediate Annuity: Once you pay the premium (a one-time amount), you start receiving a regular pension (annuity) immediately, based on the option you choose.

In simple words, the LIC Smart Pension Plan is a safe retirement plan where you pay once and start receiving a fixed, guaranteed pension for life.

Eligibility Criteria

Minimum entry age is 18 years, with the maximum age ranging from 65 to 100 years, depending on the selected annuity option.

Benefits of Smart Pension Plan

Flexible payment modes
Annuity payments can be received monthly, quarterly, half-yearly, or annually, as per the policyholder’s preference. It offers flexibility to choose from Single Life Annuity and Joint Life Annuity Options.

Incentives for higher investments
The plan provides incentives for higher purchase prices, enhancing benefits for larger investments.
Incentives for existing policyholders and nominees/beneficiaries of a deceased policyholder
If you already have an LIC policy or are a nominee of a deceased policyholder, you may get additional benefits or special options when purchasing this pension plan.

Special provisions:
National Pension System (NPS) Subscribers: An option for immediate annuity is available for NPS subscribers.
Dependent Persons with Disabilities (Divyangjan): The plan includes options to secure financial benefits for dependents with disabilities.

Minimum investment amount
The minimum purchase price is Rs 1,00,000, with no upper limit on the maximum purchase price.

Why Choose LIC Smart Pension Plan 2025?

• Guaranteed income – No market-linked risks.
• Diverse annuity choices – Various annuity options to suit your financial needs.
• Liquidity options available – Partial withdrawal is permitted in certain cases.
• Special benefits for existing LIC policyholders.
• Available for purchase both online and offline.
• Can be used for NPS retirement corpus annuitization.

How to apply for Smart Pension Plan?

The plan can be purchased both offline through LIC agents, intermediaries, Point of Sales Persons-Life Insurance (POSP-LI), Common Public Service Centers (CPSC-SPV), and online directly via LIC’s official website.