LIC Smart Pension Plan 2026: Features, Benefits, Eligibility & How to Buy it
Key Highlights
- Scheme Type: A on-participating, non-linked, individual/group savings immediate annuity plan
- Minimum Purchase Price: ₹1 lakh
- Payment Mode: Single premium
- Annuity Options: Single-life and joint-life annuity
- Annuity Payout Frequency: Monthly, quarterly, half-yearly, or yearly
What is the Smart Pension LIC Scheme Plan?
LIC's Smart Pension Plan (Plan No. 879) is a single-premium, immediate annuity product. It is formally categorised as a non-linked, non-participating plan and ensures the returns are fixed and completely insulated from market swings.
Features
The following are the features of the Smart Pension LIC Scheme Plan:
- Structure: It is available for individual and group purchase.
- Returns: It guarantees returns that remain fixed for life regardless of LIC yearly profit margins and market fluctuations.
- Flexible Payout Modes: Applicants have the option to choose receive their pension Monthly, Quarterly, Half-Yearly, or Yearly.
Smart Pension Plan Eligibility
The following table shows the eligibility of LIC Smart Pension Plan:
| Criteria | Details |
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 65 to 100 years (varies by annuity option) |
| Standard Minimum Purchase Price | ₹1,00,000 |
| Special Minimum Purchase Price | ₹50,000 (for NPS subscribers exiting the system and Divyangjan/disabled dependents) |
| Maximum Purchase Price | No upper limit (subject to financial underwriting) |
Smart Pension Flexible Annuity Options
Applicant has two options to choose from:
I. Single - Life Annuity
The table shows single-life annuity options a policyholder can choose under the Smart Pension Plan:
| Annuity Option | Particulars |
| Option A | Life annuity |
| Option B1 | Annuity certain for 5 years and life thereafter |
| Option B2 | Annuity certain for 10 years and life thereafter |
| Option B3 | Annuity certain for 15 years and life thereafter |
| Option B4 | Annuity certain for 20 years and life thereafter |
| Option C1 | Life annuity increasing at a simple rate of 3% per annum |
| Option C2 | Life annuity increasing at a simple rate of 6% per annum |
| Option D | Life annuity with return of balance purchase price |
| Option E1 | Life annuity with 50% return of purchase price after attaining 75 years |
| Option E2 | Life annuity with 100% return of purchase price after attaining 75 years |
| Option E3 | Life annuity with 50% return of purchase price after attaining 80 years |
| Option E4 | Life annuity with 100% return of purchase price after attaining 80 years |
| Option E5 | Life annuity with 5% return of the purchase price every year from age 76 to 95 years |
| Option F | Life annuity with return of purchase price |
II. Joint-Life Annuity Options
The table below shows joint-life annuity options to choose from under the Smart Pension Plan:
| Annuity Option | Particulars |
| Option G1 | Joint life annuity with 50% of the annuity payable to the secondary annuitant after the death of the primary annuitant |
| Option G2 | Joint life annuity with 100% of the annuity payable to the secondary annuitant after the death of the primary annuitant |
| Option H1 | Joint life annuity increasing at 3% per annum with 50% of the annuity payable to the secondary annuitant after the death of the primary annuitant |
| Option H2 | Joint life annuity increasing at 6% per annum with 50% of the annuity payable to the secondary annuitant after the death of the primary annuitant |
| Option I1 | Joint life annuity increasing at 3% per annum with 100% of the annuity payable to the secondary annuitant after the death of the primary annuitant |
| Option I2 | Joint life annuity increasing at 6% per annum with 100% of the annuity payable to the secondary annuitant after the death of the primary annuitant |
| Option J | Joint life annuity with 100% annuity payable until the death of the last surviving annuitant, followed by return |
LIC Smart Pension Plan - Survival of Annuitant
The benefits payable on survival of the annuitant for different annuity options are as follows:
| Annuity Option | Benefits |
| A, B1, B2, B3, B4, D, F | Regular annuity paid in arrears for the lifetime of the annuitant. |
| C1 | Lifetime annuity with a 3% annual increase. |
| C2 | Lifetime annuity with a 6% annual increase. |
| E1 | Lifetime annuity + 50% purchase price returned at age 75 (or policy anniversary). |
| E2 | Lifetime annuity + 100% purchase price returned at age 75 (or policy anniversary). |
| E3 | Lifetime annuity + 50% purchase price returned at age 80 (or policy anniversary). |
| E4 | Lifetime annuity + 100% purchase price returned at age 80 (or policy anniversary). |
| E5 | Lifetime annuity + 5% purchase price returned annually from age 75 to 95. |
| G1 | Annuity paid until the primary annuitant's lifetime. |
| G2, I1, I2, J | Annuity paid until the death of the last surviving annuitant. |
| H1 | Primary annuitant receives annuity with a 3% annual increase. |
| H2 | Primary annuitant receives annuity with a 6% annual increase. |
LIC Smart Pension Plan - Death of Annuitant
The benefits paid upon the death of the annuitant under different annuity options are as follows:
| Annuity Option | Death Benefit |
| A, C1, C2 | No death benefit. Annuity stops immediately. |
| B1 | If death occurs within 5 years, nominee receives annuity until 5 years are completed; otherwise, annuity stops. |
| B2 | If death occurs within 10 years, nominee receives annuity until 10 years are completed; otherwise, annuity stops. |
| B3 | If death occurs within 15 years, nominee receives annuity until 15 years are completed; otherwise, annuity stops. |
| B4 | If death occurs within 20 years, nominee receives annuity until 20 years are completed; otherwise, annuity stops. |
| D | Nominee receives the remaining purchase price balance (if any). |
| E1, E3 | Nominee receives purchase price minus early returns already paid. |
| E2, E4, E5 | Nominee receives remaining purchase price, if not already paid in full. |
| F | Nominee receives the full purchase price. |
| G1 | Secondary annuitant receives 50% annuity for life; annuity stops after their death. |
| G2 | No death benefit after the last survivor's death. |
| H1, H2 | Secondary annuitant receives 50% annuity (with applicable increases) for life. |
| I1 | 100% annuity with 3% annual increase continues until the last survivor's death; no death benefit thereafter. |
| I2 | 100% annuity with 6% annual increase continues until the last survivor's death; no death benefit thereafter. |
| J | Purchase price is paid to the nominee after the last survivor's death. |
How to Buy LIC Smart Pension Plan?
The LIC Smart Pension Plan can be purchased online or offline.
I. Online Process:
The steps to buy LIC Smart Pension Plan Online are as follows:
Step 1: Visit the LIC website.
Step 2: Click on 'Customer'.
Step 3: Enter the registered mobile number, verify the OTP, and click 'Login'.
Step 4: Click on the 'Buy Online' button.
Step 5: Select the 'Pension' tab and choose 'LIC's Smart Pension'.
Step 6: Click 'Proceed'.
Step 7: Fill in the required details, upload the necessary documents, pay the premium, and submit the application to purchase the policy.
II. Offline Process:
The LIC Smart Pension Plan can be purchased offline through an agent or other intermediaries, such as Point of Sales Persons-Life Insurance (POSP-LI) or Common Public Service Centres.
Benefits of LIC Smart Pension Plan
The following are the benefits of LIC SMart Penion Plan:
- The smart pension plan provides guaranteed income since there are no market-linked risks.
- It provides diverse annuity choices, where policyholders can choose an annuity option that suits their financial needs.
- It provides liquidity options as partial withdrawal is permitted in certain cases. Thus, policyholders can withdraw money in case of emergencies.
- It provides special benefits and incentives for existing LIC policyholders.
- It can be easily purchased online or offline.
- It can be used for NPS retirement corpus annuitisation.
The LIC Smart Pension Plan is a new plan offering tailored retirement solutions for individuals seeking financial stability during their post-retirement years. It provides various annuity options to choose from as per the policyholder’s convenience. It ensures financial freedom post-retirement by providing a lifetime of steady income during stress-free golden years of an individual.
Related LIC Articles:
1. LIC Policy List
2. LIC Policy Surrender
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