The Life Insurance Corporation of India (LIC) has launched a single premium “Smart Pension plan,” offering a range of annuity options for single life and joint life annuities.
To subscribe to the “Smart Pension plan”, which is a non-par, non-linked, individual/group, savings, and immediate annuity plan, the minimum age at entry is 18 years. The maximum age at entry varies from 65 to 100 years depending upon the annuity option, per a LIC statement.
The minimum purchase price is ₹1 lakh, with incentives for higher purchase prices. The Corporation said an incentive, an enhanced annuity rate, has been built into the plan for existing policyholders and nominees/beneficiaries of deceased policyholders.
The modes of annuity payments are yearly, half-yearly, quarterly or monthly.
“There is an option to take immediate annuity by NPS (National Pension System) subscriber. The option to take the plan for the benefit of dependant person with disability (Divyangjan) life is available under this plan,” LIC said.
The policy loan will be allowed at any time after three months from the completion of the policy (that is, three months from the date of issuance of the policy) or after the expiry of the free look period, whichever is later, under specified annuity options.
The Corporation said the options available to the annuitant regarding his survival vary depending on the annuity option chosen by him at inception.
According to LIC, the amount payable after the annuitant’s death will be as per the option chosen by the annuitant at the time of proposal. Options chosen for payment of death benefit may be lumpsum or annuitisation of death benefit or in instalments or liquidity option or advanced annuity option or annuity accumulation option.