LIC Smart Pension Plan 2025: What Happens In Case Of Annuitant's Death, And Can Policyholders Avail Loan? Check Eligibility, How To Buy

LIC's Smart Pension Plan is a non-linked, non-participating savings and immediate annuity plan designed to offer retirees a steady income. The plan provides flexible annuity options for both single and joint life annuities, ensuring long-term financial security. 

A key benefit of this plan is its flexibility. Policyholders can withdraw funds partially or fully under specific conditions. They can also choose to receive annuity payments monthly, quarterly, half-yearly, or annually, depending on their preference. 

The plan requires a minimum purchase of Rs 1 lakh, with no upper limit. It offers a single premium payment option. The entry age ranges from a minimum of 18 years to a maximum of 100 years for certain options.  

A Single Life Annuity guarantees regular payments for the annuitant's lifetime, while a Joint Life Annuity extends these payments to both the primary and secondary annuitants, ensuring continued financial support. Joint Life annuities can be opted for between family members, including spouses, parents, children, grandchildren, siblings, and even parents-in-law.  

The minimum annuity amounts are set at Rs 1,000 per month, Rs 3,000 per quarter, Rs 6,000 per half-year, and Rs 12,000 per year.  

Policy loans are available after three months from the policy start date or once the free-look period ends, whichever is later. If the annuitant survives the policy term, they will continue receiving annuity payments based on their chosen option. 

In the event of the annuitant’s passing, the nominee can receive the death benefit in different ways, such as a lump sum, regular installments, annuitization, a liquidity option, an advanced annuity, or an annuity accumulation plan.  

The LIC Smart Pension Plan allows the nominee to receive a lump sum payment after the subscriber's death. Alternatively, the benefit can be converted into another annuity or taken in installments over 5, 10, or 15 years.

Moreover, the subscribers can withdraw up to 60% of the purchase price after 5 years. They can also avail a loan facility after 3 months from the policy's start date. Notably, the current LIC policyholders and nominees of deceased LIC policyholders will also be qualify for enhanced annuity rates.  

This plan can be purchased offline through agents and other intermediaries, including Point of Sales Persons-Life Insurance (POSP-LI) and Common Public Service Centers (CPSC-SPV). It is also available online directly through the LIC website at www.licindia.in. (Image Credit: File Photo)